Tag Archives: David Singleton

Austin Engineering Chile business wins major new truck tray orders

Equipment maintenance, Mining consumables, Mining equipment, Mining services, Steel and iron ore, ,

Austin Engineering says it has won more than 100 orders for new truck trays at its Chile business in the first three months of its 2025 financial year (to September 30, 2024).

The orders are collectively worth circa A$35 million ($23 million) and are expected to be delivered before the end of this financial year (to June 30, 2025). The orders represent significant, and potentially ongoing incremental business over the previous year, Austin says.

The bulk of the purchase orders for “first fit” trays to OEMs follow on from an initial small production order to check product quality and capability, awarded earlier and announced to the market in March 2024.

The orders represent an improved revenue outlook for Austin’s Chile business unit following a record revenue year in the 2024 financial year. A successful ramp up of production is likely to see further orders placed with the Chile business for delivery towards the end of the current financial year and into financial year 2026.

The increased orders will require Austin to produce up to circa three times the number of trays per month in the 2025 financial year from its recent production levels. As a result, Austin has deployed its manufacturing improvement team to Chile to assist in planning the production ramp up. The Chile business is already operating at twice the truck tray production rate averaged in its 2024 financial year and is expecting to reach the new required production rate by early 2025. In addition to the OEM orders, expected production levels of Austin’s own brand tray ranges are expected to strengthen alongside continued demand for both new and rebuild mining buckets, including dipper buckets.

Austin is confident these orders represent a new normal in the level of tray production that can be expected in the region in future years and that the contribution of this business unit to group results will become increasingly important, it stated. In the 2024 financial year, the Chile business had a revenue base of A$51.6 million, which included only a minor contribution from the program outlined above. As is usual for Austin customer arrangements they are subject to the regular placement of purchase orders and programs do not commit the customers to minimum orders.

Austin Chile is also reporting strong growth in its bucket business for new buckets and rebuilds. As previously announced, in dipper buckets alone, the Chile team expects to have rebuilt more than 22 dipper buckets at the end of 2024 and is currently building a new large dipper bucket for a local customer.

Austin Chile services the copper mines of northern Chile and southern-central Peru where demand has been very strong, driven by a rise in global demand for copper, which has traded at strong levels this year.

In the 2024 financial year, Austin Chile recorded a 26% year-on-year increase in revenue, with strong recurring revenue of 91%. Growth in the 2025 financial year is expected to comfortably exceed that level.

Austin CEO and Managing Director, David Singleton, said: “This ‘first fit’ tray program represents a significant outcome from the long-term investment in global relationships that Austin has made. We believe this style of order could fundamentally change the growth rate of our business not only in Chile but in our other business units if it is duplicated in other regions.

“These contracts and resultant orders required Austin to develop its operational processes, its capabilities, and its teams. The enabling of this ramp-up has been achieved through the investments made under our Austin 2.0 strategy that has focused on customer relations, integrating the business globally, and readying our manufacturing facilities for increased production.”

Austin’s first international Armadillo dipper bucket heading to US copper mine

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Austin Engineering Limited has announced the first international export of its high performance Armadillo dipper bucket, with the unit in question having been shipped to a large US-based copper miner where it is expected to be delivered this month.

The bucket will be trialled on site, with potential for further orders, if successful, Austin says.

It is Austin’s fourth dipper bucket order following the company’s acquisition of Australian bucket specialist Mainetec in 2022. Two dipper buckets have already been delivered to Australian-based customers, and a third dipper bucket is currently being manufactured at Austin’s Chile facility for a South American-based customer.

Austin’s Armadillo dipper bucket is between 80 and 90 t in weight but is lighter than previous models due to the design requiring less steel in fabrication. It is designed to achieve consistently higher payload and improved fill compared to an equivalent OEM unit thereby offering significant performance and return on investment to the customer. The Armadillo is also fitted with Austin’s iTrip door latching and control system. iTrip has been proven over several years of testing to reduce maintenance intervals and increase the mean time between maintenance and overhaul, consequently increasing throughput and reducing maintenance costs, according to Austin.

Dipper buckets are high value products, selling for approximately $1.5-$2.5 million per bucket, depending on configuration specifics.

The successful shipment to the major US market is a milestone for Austin. A key opportunity of the Mainetec acquisition was to offer the dipper buckets into Austin’s global markets, particularly North and South America, where there is high demand and a large dipper bucket market.

Austin sees a large market opportunity in North and Central/South America with the company’s internal data estimating there to be circa-430 rope shovels operating across those regions.

Austin’s Chile business is currently manufacturing an 86-t full Cat 7495 dipper bucket for a local customer and has rebuilt 18 dipper buckets in the workshop this calendar year, marking much higher bucket segment activity in this region than previous years. Austin Chile is currently rebuilding a further three dipper buckets, with a fourth bucket on its way to the workshop for repair.

Austin CEO and Managing Director, David Singleton, said: “The Armadillo bucket was designed in Australia, manufactured at our Batam facility in Indonesia, and is en route to large US copper mine, supported by our Casper operations, which demonstrates the full integration and global capabilities of the Austin business model.

“We are very pleased to have marked the first international shipment of an Austin dipper bucket and see North and South America providing a large opportunity for further dipper bucket sales, and also for rebuilds at our US and Chile facilities. We are well set up to build market share in these markets.”

Austin Engineering eyes US expansion with Wyoming government-backed grant, loan package

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Austin Engineering says it has achieved a significant development milestone and moved a step closer to undertaking a major rebuild and expansion of its US manufacturing base in Casper, Wyoming, after securing the benefit of a $20 million grant and loan package through the City of Mills, Wyoming and the Wyoming Business Council.

The funds are designated for the construction of a proposed new circa-69,000-sq.ft (6,410-sq.m) manufacturing facility and a 15,000-sq.ft paint and blast building on the site of Austin’s existing manufacturing facility, on land already owned by Austin. The grant and loan facility is made to the City of Mills, which will build the facility to Austin’s requirements, and lease it to the company.

North America is Austin’s strongest performing business unit on a revenue and margin basis, the company says. The expansion of the Casper facility would significantly increase the manufacturing capacity for Austin’s customised mining haul truck bodies primarily for the US and Canada. It will also be capable of manufacturing other product lines such as mining buckets, water tanks, and tyre handlers.

The $15 million grant and $5 million loan package application was approved by the State Loan and Investment Board. It requires final approval from the Wyoming State Attorney General and the Austin Board after a full review of the business case. The Austin Board does not expect to give final development approval for the new facility until the end of the year after a full business case has been completed and assessed.

If final approval is given, construction could commence sometime in late financial year 2024 (to end-June 2024) following board approval, final facility design and permitting, with the build forecast to take up to two years. The construction will not affect the existing production output and it is envisaged that it would create circa-50 new permanent jobs in addition to the current 110-strong staff base.

As part of the investment, Austin would need to commit a further $5 million capital funding for the facility, the majority of which would need to be spent during its 2025 and 2026 financial years.

As part of the package, Austin has agreed to donate approximately 25 acres (10.1 ha) of land, that is mostly industrially unusable, due to being part of a floodplain, and not required for production or storage, to the City of Mills for future community development projects and public facilities.

In the last 12 months, Austin has undertaken expansions of its Indonesian and Chilean-based facilities, enhancing both output and manufacturing efficiencies across the business. However, this investment would be the biggest undertaken to expand capacity.

Austin CEO and Managing Director, David Singleton, said: “We are extremely pleased to have been awarded this funding package from the Wyoming Business Council to undertake a much-needed rebuild of our existing facilities. As well as being part of the local community in the City of Mills since 1940, and Wyoming since 1938, our Casper facility is the hub of our rapidly growing North American operations.

“North America’s financial year 2023 revenues were up 13% year-on-year. We had recently taken a short-term lease on a facility to meet increased orders in the region. A larger, permanent facility would enable Austin to increase its output further in line with expected growth.

“This rebuild will also ensure Austin US stays at the forefront of designing and building customised truck bodies, mining buckets and other equipment. The determination to improve mining efficiency in North America has seen a strong growth in demand for trays and buckets, particularly in recent years, and is expected to continue.

Austin banks A$25 million truck tray order destined for Western Australia

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Austin Engineering says it has now received all the purchase orders expected following a successful tender process last year, plus a further 25% in additional orders, under a single contract for truck trays to be delivered to Western Australia.

The value of the orders received to date is approximately A$25 million ($16.7 million).

The first three trays under this order were delivered ex-works 10 days ago for onward shipment to the customer site. The remaining trays are in, or scheduled for, production at Austin’s facilities in Batam, Indonesia and Perth, Western Australia.

Austin announced in May 2023 it had received 85% of the outstanding purchase orders related to this contract and was awaiting receipt of the final orders, which has now occurred.

Overall order book growth has been maintained. Austin’s group order book to the end of May 2023 is up 21% year-on-year to A$146 million and more than double from the same time two years ago, it says.

Austin CEO and Managing Director, David Singleton, said: “We are very pleased to have received more purchase orders than expected under the financial year 2023 tender contract and can confirm that most of the revenue will be booked in financial year 2024. Further, we have continued to build our financial year 2024 order book, driving an improved revenue outlook.

“Our recently expanded Batam manufacturing centre continues to provide the extra capacity and flexibility we need in our business. With deliveries now scheduled across the world including US, Australia, Europe and India, we are expecting a strong performance for our Batam operations in financial year 2024.”

Austin makes inroads in India with customised ULTIMA truck tray order

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Austin Engineering says it has received purchase orders for four haul truck trays from a major iron ore producer in India, potentially opening up a substantial new market opportunity for its Asia Pacific business.

Austin has not sold truck trays into India before.

The truck trays in this order will be used in iron ore operations to demonstrate the benefits of the Austin design, however there is no commitment at this stage from the customer for further orders, the company said.

The customer’s full order requirement is for up to 165 trays across its various iron ore and coal mines. Iron ore truck trays are expected to have a service life of around four years before they will be required to be replaced.

The orders follow nine months of engineering work with the customer to develop a customised ULTIMA tray designed to be used without a steel wear liner and can, therefore, outperform the OEM unit in this application. The Austin tray is designed to deliver an additional circa 66,000 t/y of ore per truck with less downtime for maintenance to replace wear liners. This equates to a significant lift in overall tonnage delivered across the full operation per year, and additionally leads to a reduction in fuel and tyre usage, thereby reducing carbon emissions per tonne of ore delivered.

Austin’s Mainetrack condition monitoring software will be used to monitor the performance of all Austin trays deployed at the sites allowing wear rates to be accurately evaluated, the company said. Austin added the digital wear monitoring system to its service offering through its acquisition of Mainetec in 2022. Initially used on Mainetec’s excavator and dipper buckets, Austin has now configured it for deployment on its truck tray range.

The four trays are being manufactured in Austin’s facility in Batam, Indonesia, and are expected to be ready for delivery in the next six weeks. Austin has established a small team on the ground in India to oversee the delivery and assist with the use of the Mainetrack digital monitoring system.

The order for the four trays is expected to be completed by the end of July and will be settled ex-works Batam. The customer will organise transport from Batam to India using its own logistics system.

Austin CEO and Managing Director, David Singleton, said: “We are very excited to have this entry point into India as we continue to broaden our customer network across the Asia Pacific region. India is the world’s third largest iron ore producer, and we are pleased to have secured an order with one of the country’s major miners. It presents an important opportunity for Austin to market its customised equipment and the potential advantages it could bring the country’s iron ore sector. We also see India as a logical market expansion opportunity given our existing experience in the Australian iron ore sector.

“The Australian Government has vastly improved business access and trade opportunity with India through an elimination, reduction or phase out of tariffs, and we see a long-term future potential for Austin in this market.”

Austin Engineering makes milestone Mainetec dipper bucket sale in USA

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Austin Engineering Limited says it has sold its first Mainetec-designed dipper bucket into the US market, with the Armadillo electric rope shovel dipper bucket set to be delivered to a large copper mine in the US by mid-2024.

These dipper buckets typically sell for between $1.5-$2 million each depending on configuration specifics, according to Austin.

Austin acquired dipper bucket specialist, Mainetec, in 2022. The Armadillo bucket will be designed in Australia, manufactured in Austin’s facility in Batam, Indonesia, and will be supported by Austin’s US business in Casper, Wyoming.

The Armadillo dipper bucket is a light, strong bucket designed to achieve consistently higher payload and improved fill factor, while using less energy to dig compared with the standard unit, Austin said. This reduces operating cycle times and thereby reduces overall fuel cost and carbon emissions.

The dipper bucket will be fitted with the latest version of Mainetec’s proprietary door latching and control system, iTrip. Already widely used in Australia, iTrip dramatically reduces maintenance intervals and increases the service life of the components, Austin says. The system has proven to increase the standard dipper service life between overhauls by up to 18 months. Under the contract, Austin will also supply spare components for the iTrip system.

A unique aspect of Austin and Mainetec’s global bucket offering is that all of the buckets are customised to individual sites and orebodies.

Earlier this year, Austin announced plans to grow its US business by focusing on increasing market share for haul truck trays and, in particular, mining buckets.

Austin CEO and Managing Director, David Singleton, said: “We are pleased to have secured the first sale of a Mainetec bucket to into the major US market. This sale also showcases Austin’s ability to leverage its global capabilities around design, manufacture, and delivery, under our Austin 2.0 strategy.

“The Armadillo is a new generation, high performance product designed in Australia by Mainetec, built in our manufacturing hub in Batam, Indonesia, and assembled and delivered by our business in the US. This integrated ‘hub and spoke’ approach to product delivery is becoming a standard feature of our international business.

“This sale is a synergy benefit related to the acquisition of Mainetec in 2022, where we can offer Mainetec’s buckets globally using Austin’s routes to market. We believe that the market for replacement dipper buckets in the Americas alone could be worth over A$100 million ($68 million) per annum in addition to bucket rebuilds and spares from the iTrip system.”

Austin Engineering delivers Indonesia-made truck trays into Pilbara region

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Austin Engineering Limited has completed the first shipment of fully built and assembled truck trays from its Indonesia facility in Batam, which have been delivered directly into Western Australia’s Pilbara mining region.

The delivery comprised four truck trays that were shipped from Indonesia via Singapore into Port Hedland and then onto the customer site.

Austin recently completed a major expansion and upgrade of its Indonesian facility, which has doubled its manufacturing capacity to address increased demand.

The larger Indonesian facility is allowing Austin, it says, to mitigate the impact of ongoing supply constraints in Western Australia, particularly for skilled fabrication labour, which has been a limiting factor for production.

Alleviating these supply constraints has enabled the company’s local Western Australian facility to maintain more even operational output in line with local labour availability while ensuring Austin’s customers continue to have access to products, it said.

A return of freight costs to pre-pandemic levels has also enabled Austin to augment the shipping of sub-assemblies into Perth for final build (which has been standard practice for some time) with the delivery of full truck trays direct to the Pilbara.

Austin said: “The ability to ship directly from Indonesia to Port Hedland has the added benefit of removing the need for road haulage from Perth to client mine sites in the Pilbara. A reduction in overall transport and logistic requirements has safety, environmental and cost benefits. Specifically, a reduction in road haulage is favourable from a road safety and emissions reduction perspective.”

Further direct deliveries into the Pilbara are being planned with customers to augment Austin’s Australia-based supply, it said.

Austin CEO and Managing Director, David Singleton, said: “We are extremely pleased to see our design and manufacturing strategy starting to work in sync in the Asia Pacific region. The expanded facilities in Perth and Indonesia are allowing more flexibility from a manufacturing and delivery point of view. We have previously shipped truck trays, buckets and other mining equipment directly into Queensland, but it is the first shipment we’ve completed direct to the major mining centre of the Pilbara, and we expect this supply route to become a regular feature of our integrated supply chain.

“We remain committed to Australia as a manufacturing location, exemplified by our two factory units in Kewdale, Perth along with our two operating sites in Queensland. In addition, the majority of the steel we used in Australia and Indonesia is sourced from Australia.“

Austin Engineering receives IAF grant to boost advanced manufacturing program in WA

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Austin Engineering says it has been selected by the Western Australian (WA) Government for a grant of up to A$5 million ($3.5 million) to boost its advanced manufacturing program at its Perth-based operations in Kewdale.

The grant funding has been allocated under the Government’s Investment Attraction Fund (IAF), which was announced in March 2022. The IAF seeks to bring further investment, jobs and economic diversity into Western Australia, increasing demand for local goods and services, securing trade in new sectors and within new markets.

The grant will support greater automation and production efficiency in Austin’s manufacturing facilities in Perth as part of the continued rollout of Austin’s global advanced manufacturing plan, the company says. Austin launched the program in 2021 under the Austin 2.0 strategy to transform the business through increased efficiency and capability across its major mining equipment production facilities.

The program has involved upgrades to its manufacturing equipment and processes in Perth using the latest technology and innovation to streamline and increase production, and improve quality.

To date, the manufacturing program has allowed for a lift in output and product suite expansion, according to Austin. The company recently launched its Western Australia-designed and manufactured, ultra-lightweight High Performance Truck Tray (HPT), which, it says, can carry additional ore tonnes per annum due to its lighter weight and increased volume efficiency.

Through the integration of the Mainetec business, Austin has expanded its manufacturing capacity space to produce and deliver Mainetec’s High Performance bucket range out of Perth as well. Additionally, Austin is now offering equipment condition monitoring software on its excavator bucket range and is upgrading it for suitability on truck trays for more accurate monitoring of repair and replacement requirements.

The terms of the grant, including the timing of any funding, will not be clear until a definitive agreement and project plan are agreed.

Austin CEO and Managing Director, David Singleton, said: “We are very grateful to be selected by the Western Australian Government for funding under the Investment Attraction Fund. The grant will allow us to continue investment into advanced manufacturing and technology in our Western Australia operations, to create more local jobs and deliver world-class designed and engineered products to our mining customers.”

Austin Engineering’s ultra-lightweight High Performance Tray finds its market

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Austin Engineering says it has received orders for, or been notified of award of, in excess of 210 truck tray orders in the December 2022 to January 2023 period, improving the company’s order book and revenue outlook for the second half of 2023.

The orders over the period represent approximately 40% (approximately 500 expected in the 2023 financial year) of orders received in a normal full year.

These orders have come from multiple customers across the globe and will be manufactured and delivered from Austin’s four operating sites located in the Asia Pacific (Australia and Indonesia), North America (Wyoming) and South America (Chile), it said.

Production of the trays is either already underway or planned to commence shortly, with most of the deliveries scheduled through 2023 but with significant revenue to be booked in the second half of the 2023 financial year.

Approximately 120 of the truck tray orders are for the recently launched, ultra-lightweight High Performance Tray (HPT). The HPT can, according to Austin, deliver significant additional ore per year due to its lighter weight and increased volume efficiency. In an early application, the truck body design could deliver an additional 45,000 t/y of ore per tray compared with previous comparable truck trays developed by Austin.

Austin expects the market interest in the HPT to continue due to its attractive design and operational benefits, it said. Austin has received several proposals to tailor the design for different geographies, suggesting it will become a mainstay in the company’s global product portfolio, complementing Austin’s existing four truck tray types.

Austin has previously announced manufacturing capacity expansions to deal with an anticipated surge in demand, which has now occurred. The expansions, now largely complete, were in Indonesia, Chile and in Western Australia, where a specialised bucket facility for Austin and Mainetec buckets has been commissioned.

Austin CEO and Managing Director, David Singleton, said: “The increased orders reflect an increased win rate in contracts across the business aided by the release of improved product designs such as the HPT, which is receiving significant market interest because of its attractive operational efficiencies.

“We had confidence to commit capital to capacity expansions at some of our major manufacturing sites, namely Indonesia, Chile and Australia. We have also invested in upgraded equipment in the workshops to enable efficiency and quality improvements across our product lines.

“Pleasingly, the capacity expansions have aligned with increased orders ensuring customer delivery timeframes can be maintained. The continuing and increasing strength in the order pipeline suggests that high utilisation levels in all jurisdictions will continue.

“We believe that our commitment to product design and development, our focus on cost control and developing capacity to meet our mining customer needs is driving this improvement in workload.”

Austin Engineering makes management changes as it targets further North America growth

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Austin Engineering Limited has announced changes to its senior management structure in an effort to grow its North American business.

Current Chief Operating Officer (COO), Graham Backhouse, has been appointed to the new role of Chief Strategy Officer. The role will primarily concentrate on developing a growth strategy for Austin’s North American business where Austin is focused on increasing market share for haul truck trays and, in particular, mining buckets, following the company’s acquisition of Australia-based Mainetec in 2022.

In the last 18 months, following several operational changes, Austin’s North American business has seen much-improved EBITDA margins, which are now at record levels, Austin said. The North American order book has nearly doubled since a similar period last year, further reflecting the success of those operations and highlighting the potential in this region.

Austin’s central North American hub is located in Casper, Wyoming. It is a large manufacturing facility supported by multiple final assembly partnerships. North America is a major global market for mining equipment and Austin sees the potential for further substantial revenue growth across its existing equipment offering, plus Mainetec’s products, including in its high-value dipper bucket products.

Vincent D’Rozario has been appointed as the company’s COO. He will continue to drive the Austin 2.0 growth strategy across the business and further embed the operating model that has seen substantial increases in delivered margins and order book growth across the business, the company says.

D’Rozario has held a number of executive positions and senior roles in a diverse range of sectors including engineering, commercial aviation, major project delivery, and environmental and waste management solutions. Most recently he was the Regional Managing Director APAC for CHC Helicopters, overseeing services to mining and energy companies and State and Federal Government entities. He is currently a Non-Executive Director of ASX-listed The Environmental Group, which provides waste and environmental solutions to the resources, health and heavy industry sectors.

Both appointments are effective January 20, 2023.

Austin CEO and Managing Director, David Singleton, said: “We are very pleased to strengthen the capabilities of our executive team with these two appointments, which will drive the next and substantial phase of our growth plan. We have made big strides across all business units over the last year and a half, with focused attention on our Australian and Indonesian businesses. We are very pleased to appoint Graham to develop and roll out a new growth strategy in North America. It is our second biggest market, and we are seeing substantially improved profitability and growth opportunity ahead. Central to that focus will be deploying more products developed in Australia into that region.

“We warmly welcome Vincent to the team as our new Chief Operating Officer. Vincent brings added capability to Austin through his diverse range of international experience in growing companies. We look forward to his contribution to Austin as we continue to grow our global business.”