July 7, 2010
After a highly successful Chilean venture, Brisbane-based Austin Engineering has established a foothold in Brazil via a new 50/50 joint venture with established Brazilian company Delp Engineering.
Austin Delp Equipamentos de Mineracao or Austin Delp Mining Equipment will deliver custom mining products designed specifically for the South American mining sector, in particular Brazil.
Delp, which has serviced the local resources industry for over 40 years with welded and machined metal components, is based in Belo Horizonte, Brazil’s major mining hub.
Austin Engineering Managing Director Michael Buckland says this location provides a strategic advantage for Austin.
“Austin’s products involve the same manufacturing process used by Delp and our major clients are also located in Belo Horizonte so it was a perfect fit for us,” Buckland says.
During the initial stages of operation Austin will utilise Delp workshop space and administration functions with the intention of creating a joint site in the future.
Austin will provide ongoing technical assistance as well as engineering and sales support for the joint venture with personnel from Australia and the United States.
SOUTH AMERICAN MARKET
Buckland says the success of the Chilean venture has helped Austin to gain a strong understanding of the South American Market.
“We completed detailed research of the South American market and following the successful commencement of our Chilean operations we felt confident the Brazilian joint venture would be equally successful,” he says.
“We know our products will be keenly sought after as there is currently no existing local manufacture of our product range.”
The joint venture means Austin Engineering will now supply its full range of custom made mining products, from buckets to truck bodies as well as service and repairs, from its Brazil-based facilities at Belo Horizonte as Austin Delp Equipamentos de Mineracao.
“The venture demonstrates Austin’s ongoing commitment to pursuing growth and acquisition opportunities worldwide, particularly where businesses have synergy with Austin’s skills, products and services.”
Queensland-based Austin has Australian manufacturing facilities in Brisbane, Perth and Mackay.
It also has overseas presence in the American state Wyoming through its subsidiary Western Technology Services (Westech) and Austin Ingenieros Chile located in the northern mining region of Antofagasta.
In addition, a joint-venture in the Middle East has also provided Austin with a manufacturing facility in Oman.
