Austin (ASX:ANG) partners to expand Americas offering

Highlights

  • Austin has signed an agreement with Mexican-based equipment manufacturer, Melter, to boost its product delivery and service capabilities in the US and the northern region of South America.
  • The collaboration with Melter allows Austin to competitively deliver on its contract to supply Austin-designed truck bodies to Newmont’s Peñasquito operations.

ASX-listed Global mining equipment design and manufacturer Austin Engineering Limited (ASX:ANG) has announced that it has entered into an agreement with Mexican-based equipment manufacturer, Melter, to broaden its product delivery and service capabilities in the US and the northern region of South America.

Melter will build Austin-designed truck bodies for Newmont’s Peñasquito gold operations in Mexico. Newmont is the world’s largest gold miner, and there is potential for additional sales to this customer. Besides building truck bodies, Melter will also provide Newmont local support and maintenance assistance, supported by Austin’s US-based teams in Casper, Wyoming. 

The Melter partnership is the latest iteration of Austin’s rollout of “hub-and-spoke” networks in the Americas to support Austin’s central US manufacturing hub in Casper. 

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According to the release, this approach aims to reduce the logistics cost and complexities of delivering truck bodies over large distances. Under this strategy, the Casper facility will provide designs and kits for local assembly to the end-user facilities in instances where transport costs are high. This approach is intended to enhance the competitiveness of ANG’s Casper facility and escalate market share. 

The stock ANG closed at AU$0.220 per share on ASX.

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Bottom Line:

The partnership with Melter will enable Austin to grow its service offering in a market where the Company doesn’t have manufacturing capabilities. In addition, the collaboration with Melter allows Austin to competitively deliver on its contract to supply Austin-designed truck bodies to Newmont’s Peñasquito operations.

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