Tag Archives: mining buckets

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

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 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.”