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Indonesia provides platform for global growth
October 6th, 2023 | by excitemediaAustin’s decision to upgrade and expand its manufacturing operations in Indonesia is proving an effective move in supporting its other global manufacturing businesses, from a production capacity and cost perspective.
Austin’s Batam facility underwent a major expansion in early 2023, adding a further 10,000 square metres to its floorspace, and doubling production capacity.
Austin’s refurbishment of its existing Batam operations comprised reviewing and refining production systems to lift efficiency and product quality, particularly for truck trays and underground ore pass and chute assemblies.
The Batam facility is able to manufacture Austin’s entire product range and will be used as a key production and export hub, shipping to customers across the globe. Set up as part of Austin’s hub and spoke strategy, Indonesia is being used to absorb capacity overflow in other major centres in Australia and the US.
Austin CEO and Managing Director, David Singleton, said: “I am really excited by what is happening in Indonesia, where we are seeing strong orders and throughout, which is generating revenue growth. Ultimately, it’s being driven by a great local team that is transforming the business.
“Indonesia is key to our hub and spoke manufacturing under our Austin 2.0 strategy and will be increasingly able to support our operations in Australia, boosting the capabilities in our important Asia Pacific segment, and further afield to the US and eventually EMEA.”
The investment in Batam has paid off with Austin’s FY23 revenue from its Indonesian operations increasing 51% compared to the previous year.
The Batam facility’s production capacity in FY23 increased from 10 truck bodies per month to over 20 units.
Further enhancements to the manufacturing process systems and tools is expected to see the facility produce over 30 truck bodies per month, which will allow it to further extend its manufacturing hub service to Austin’s North and South American business units.
Mr Singleton added: “We’ve already lent on Batam to support our business in Australia with full and partial builds and we are now preparing to support our US business with order overflow.
From Batam, we also have options to ship products at various stages of assembly to meet customer needs and utilise our existing operations and final assembly partnerships.”
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Austin opens a new market to India
September 19th, 2023 | by excitemediaIn 2023, Austin Engineering received its first-ever order of truck trays from an India-based customer, representing a new market opportunity for Austin’s Asia Pacific business.
India is one of the world’s largest mining countries, with more than A$39 billion worth of minerals produced each year, and a rapidly developing mining industry. India is also the world’s third-largest iron-ore producer and has some of the largest mineral reserves of coal, iron ore and bauxite globally.
India’s mining industry has shown rapid growth over the past 10 years with the nation becoming a major international player in the production and exportation of critical minerals.
In June 2023, Austin received a purchase order for four haul truck trays from one of India’s major iron ore producers, adding further growth to our already extensive Asia Pacific business and opening a new door to possible customer partnerships.
Austin’s customer is looking to demonstrate the benefits of Austin’s unique truck tray design across its iron ore operations.
Austin’s 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.”
The order consists of customised ULTIMA trays that took nine months of engineering work with the customer to complete. The trays are custom-designed without a steel wear liner and are designed to deliver an additional 66,000 tonnes of ore per annum with less downtime for repairs.
The trays will also be fitted with Austin’s Mainetrack condition monitoring software to allow our customer to monitor the wear rates of their new truck trays in real-time.
Mr Singleton said,
“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.”
Austin is looking forward to continuing to expand into the Indian mining market.
“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.”
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