Victorian Industry and Trade Minister Jacinta Allan joined staff and managers from WA McNeill to open its new factory in Derrimut that will manufacture the cushion inserts, which were previously imported from overseas, creating six new jobs.

"Our Government supported WA McNeill with $11,500 to help it prepare a business plan that has transpired into this amazing new facility, creating six new jobs and replacing a previously imported product," she said.

Ms Allan said the company was also investigating a new way to export its cushion inserts using a method of vacuum flat-packing.

"This would allow WA McNeill to fit more product into one container to be exported, maximising business, securing jobs, and reducing carbon emissions through reduced transport," she said.

Ms Allan said the next challenge for the Government and WA McNeill was to find a local supplier of the recycled PET material.

"The material for the cushion inserts is a recycled PET fibre that WA McNeill currently imports, but is keen to find a local supplier for," she said.

"We are working closely with WA McNeill to make this happen, creating the potential for more jobs and more local business once a local solution is found."

Ms Allan said the business case was supported through the State Government's Grow Your Business program.

The Victorian manufacturing sector contributes $29.5 billion annually to the state economy, employs 290,000 people - or 10.5 per cent of the total workforce - and is the largest provider of full time jobs.