Mining equipment manufacturer Austin Engineering is continuing its strategic review, announcing the consolidation of two sites at Mackay in Queensland to a single location.
The company, which recently moved its headquarters from Brisbane to co-locate with its largest factory at Kewdale in Perth, will close its repair and maintenance workshop and consolidate at its Progress Drive, Paget site (pictured).
One-off restructuring costs will be $600,000 primarily in redundancies, however $4 million of capital will be unlocked from the sale of the site on Len Shield Street.
The Mackay business will focus on sales and support of Austin’s customised dump truck bodies, buckets, water tanks, tyre handlers and products utilised in the mining industry, as well as high-quality machining and line boring services.
Austin equipment sold on the east coast is sourced from the company’s plants at Batam Island, Indonesia, and Perth.
Austin’s operations in Australia, Asia, and North and South America were hit by the initial stages of the Covid-19 pandemic, with the company earlier rationalising its Hunter Valley and Site Services operations in Australia and terminating low margin site contracts in South America.
The latest move will not affect full year net profit which should be in excess of $9 million.
Picture: Austin Engineering Mackay
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