Austin Engineering doubles size of Indonesia plant

Mining equipment manufacturer Austin Engineering has nearly completed a near-doubling of the size of its Batam, Indonesian manufacturing plant following an 80 percent plus increase in H1 Fy23 Indonesian revenue.

The Perth company, which recently completed an upgrade of capabilities and systems at its Kewdale, Perth facilities, told investors the $6 million Batam upgrade would double local production capacity, allowing continued revenue and margin increases.

The company has leased a site adjacent to its 12,000 m2 facility, doubling floor space, and is well advanced in employing another 150 production workers as well as continuing to strengthen its local management team.

In the past 12 months Austin, which manufactures giant truck bodies used in the mining industry as well as related equipment, has refined production systems to lift efficiency in Batam.

Ineffieient processes have been smoothed and obstacles to flow production such as internal offices removed.

The new 10,000 m2 factory space was leased at around five percent of the cost of a similar leased facility in Kewdale.

It includes 5,000 m2 of usable concrete layout areas which will enable Austin’s hub and spoke manufacturing concept under which sub-assembly manufacture occurs at few locations, with parts assembled and final manufacture closer to remote mining sites.

Austin said: “This action has eased significant labour scarcity, particularly in Western Australia.

“…The general capability of the (Batam) facility and the quality improvements were instrumental in winning what is expected to be an ongoing series of purchase orders over several years for equipment for a regional mine which may be worth (about) $13 million a year.”

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Picture: Austin Engineering

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