Austin Engineering Ltd’s (ASX:ANG) strategy to expand its presence in global markets has started to deliver results as the company was awarded contracts from four separate clients for new products into key new target territories.
The products will be delivered to Africa (Egypt) and Eastern Europe (Ukraine), as well as into South and Central America (Argentina and the Dominican Republic).
Innovative truck bodies and excavator buckets
Austin managing director Peter Forsyth said: “These new territories are important to Austin’s growth aspirations, as there are a number of mining regions around the world that are still largely operating with standard OEM products for truck bodies and excavator buckets.
“Adoption of Austin’s innovative replacement products in these regions would enhance production metrics significantly.
“Partnerships are proving a key to our success in entering these new regions and allow us to leverage our experience with our partners’ commercial contacts to achieve great outcomes for Austin, our clients and our partners.”
Orders worth $6+ million
The total value of orders consisting of truck bodies and buckets received is more than $6 million and is anticipated to provide a springboard for further sales into these markets.
Notably, most of the orders received have been from subsidiary companies of large global miners.
The order received in Egypt was made possible by the Austin ETT joint venture partnership entered into earlier this year.
In line with this strategy, the company has also recently signed a contract with a representative in South America to work with potential clients in Brazil and is in the process of finalising a representative to support Austin in Eastern Europe.
Both these markets have a large field population of mining trucks and shovels and could be important markets for Austin in the medium term.
The new orders are supportive of Austin’s guidance for underlying profit after tax to be in excess of $9 million for FY2021.