Tag Archives: Mainetec

Austin Engineering makes milestone Mainetec dipper bucket sale in USA

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 receives IAF grant to boost advanced manufacturing program in WA

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 makes management changes as it targets further North America growth

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.”

Austin Engineering eyes multiple operational benefits with Mainetec acquisition

Austin Engineering Limited says it has successfully completed the acquisition of Australia-based mining equipment manufacturer, Mainetec Pty Ltd for an initial amount of A$19.6 million ($12.3 million).

The acquisition, Austin says, provides it with numerous operational benefits, both immediately and in the long-term.

Mainetec’s premium range of “Hulk” buckets will complement Austin’s JEC-HP high performance and standard bucket ranges, as well as bolster the company’s presence on the East Coast of Australia by leveraging Mainetec’s existing strong market share in the region, it said. This is anticipated to have a cascading benefit to Austin’s Austbore Mackay repair and maintenance service business.

Beyond Australia, Mainetec’s electric rope shovel dipper bucket is a high-value product that Austin is already progressing plans to offer across the US, Canada and Chile markets, which are markets that have a high demand for large dipper buckets and where Austin already has an established presence, it says.

Additionally, Mainetec’s condition monitoring software system, ‘Mainetrack’, will be used across the Austin’s fleet to maximise productivity.

Austin CEO and Managing Director, David Singleton, said: “It is very pleasing to finalise our acquisition of Mainetec which will deliver significant and tangible value to Austin. This acquisition ticks all of the right boxes; it will complement our core product range, enhance our market presence in Australia and beyond, and is set to deliver enhanced earnings.

“I am looking forward to working with the founders of Mainetec and their workforce as we collectively strive to achieve a phase of prolonged growth.”

Austin Engineering to add Hulk mining buckets to its offering with Mainetec acquisition

Austin Engineering Limited says it has entered into a binding agreement to acquire Australia-based mining equipment manufacturer, Mainetec Pty Ltd, for an initial amount of A$19.6 million ($13.4 million), funded through cash reserves and debt.

Three further earn-out payments will be made if Mainetec achieves agreed performance hurdles in the three years following completion, Austin clarified.

The acquisition will give Austin access to Mainetec’s Hulk range of high performance mining buckets, increasing the potential customer base in all of Austin’s markets, it said. The Hulk buckets complement Austin’s recently-launched JEC bucket range and the dual product offering will increase Austin’s bucket market share in Australia, especially on the East Coast where Mainetec has a well-established presence.

Austin also plans to offer Mainetec’s high value dipper buckets into its global markets, particularly North and South America, where there is high demand and a large dipper bucket market.

Mainetec is a leader in the design and manufacture of high performance, customised excavator mining buckets and currently supplies several blue-chip mining companies, according to Austin. It builds and upgrades dipper buckets, and supplies the majority of dipper bucket systems in Australia. It also manufactures rope shovels, and offers bucket repairs and spare parts.

Mainetec is expected to have revenue of more than A$40 million (on an annualised basis) for the 2023 financial year (to June 30, 2023), with the acquisition expected to deliver significant synergies through the lower supply chain costs Austin is able to provide, and optimised operating costs.

Austin CEO and Managing Director, David Singleton, said: “The key benefits of this acquisition for Austin are the ability to expand our mining bucket offering in Australia and then to offer that into our other markets around the world. Mainetec is a technology-led business that has developed the Hulk range of buckets suited to demanding applications and has also become a key supplier in Australia for dipper buckets used on rope shovels. Dipper buckets are typically the largest used in the industry and we will be able to introduce these upgrades through our operations in the much larger Americas markets. Mainetec’s presence on the East Coast of Australia will also support our re-energised activity in that region.

“The acquisition has clear synergies for both companies. Mainetec complements our core business offering and Austin is able to integrate more competitive supply chain economics and cost synergies into the Mainetec business.

“Additionally, in Mainetec we gain a very talented team as well as some leading design IP. I am pleased to welcome the founders of Mainetec and their workforce to Austin, with the determination that Austin will assist them to continue product development that will enable further growth and success in Australia and beyond.”