Global mining equipment design and manufacturer, Austin Engineering Ltd says it is expanding its North American operations into Canada and has signed a ten-year lease on a four-acre site with 23,000 square feet of manufacturing facilities in Fort McMurray, Alberta. It said: “The company’s recently completed strategic review of global operations supported focusing on growth opportunities in North America while improving overall cost competitiveness, including through production and operational efficiency.”
A Canada base will improve product delivery logistics, cutting travel times and significant costs. “The Canadian market represents the potential for significant growth across Austin’s full range of products and services and establishing a local operation will allow Austin to pursue business development opportunities in the region. Austin expects to commence operations in November 2021. Several staff are already stationed in the region, which will facilitate the rapid implementation of operations.”
Austin’s US business has been operating for more than half a century and has supplied its custom designed and manufactured truck bodies, hauling and loading equipment, water tanks and other equipment to mines across a range of commodities throughout the region. Austin estimates there are more than 400 ultra-class trucks operating in the immediate vicinity of its new facility and sees an opportunity to strengthen its existing ~25% market share in Western Canada. Austin also envisages growth in bucket sales, which will also require more ongoing repair and maintenance support serviced by the Western Canada facility. Start-up capital expenditure for equipping the site will be low because Austin will be re-deploying equipment from recently closed operations in other jurisdictions.
Austin CEO and Managing Director, David Singleton said: “We are widening our North American presence to Canada and have concluded the timing is right to do it now. We have long-term mining customers in the region, and we will more ably support them from a geographically closer support and manufacturing facility. This move is another important step in our strategic review of global operations. We will continue to implement initiatives to cut costs, streamline the business and pursue new paths to growth and earnings improvements.”
