A new partnership between mining equipment manufacturer Austin Engineering and a Mexican manufacturer is set to strengthen the company’s market position in the United States and central and northern South American markets.
The partnership, part of a new ‘hub-and-spoke’ market strategy adopted by Austin after a strategic review, will see Mexico’s Melter manufacture Austin heavy-haul mine dump truck bodies as well as providing local support and maintenance assistance to customers.
Initially the partnership will see Melter manufacture five Austin designed Ultima lightweight truck bodies (pictured) for Newmont’s Penasquito gold operations in Mexico, with other potential sales possible to this large gold-miner customer.
Following the review by Austin CEO David Singleton, Austin is expanding its North America’s manufacturing operations based in Casper, Wyoming with a new 23,000 square feet facility leased at Fort McMurray, Alberta which will better serve customers in Western Canada.
The Austin facilities will supply designs and kits of parts for local assembly by the company’s own facilities or those of ‘spoke’ partners such as Melter closer to the end user.
This should aid sales as long distances from Casper introduce high freight charges on the Austin product.
Singleton said: “(The) partnership with Melter allows Austin to competitively deliver on its contract to supply Austin-designed truck bodies to Newmont’s Penasquito operations.
“We are continuing to review other potential spoke locations to support our Casper facility and delivering on our US strategy to improve our equipment delivery logistics and reduce overall transport costs, especially into remote markets, making our product offering more cost competitive.”
Picture: Austin Engineering
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