Belmont-based mineral sampling equipment manufacturer, Essa Australia Ltd, has announced a $7 million deal for the sale of its new laboratory automation system to global company, SGS Group.
Belmont-based mineral sampling equipment manufacturer, Essa Australia Ltd, has announced a $7 million deal for the sale of its new laboratory automation system to global company, SGS Group.
In a move that signifies a growing trend towards laboratory automation in minerals testing, SGS will take delivery of the two automated systems over the next several months at its new custom-built laboratory located at the Perth International Airport Industrial Park.
Essa chief executive Darryl Stevens said the company had committed more than $2 million during the past two years in research and development towards the new system.
The system was developed in conjunction with Essa’s automation partner, FLS Automation in Denmark, which assisted with the design of the final product.
The versatile modular system allows the client to buy a basic package and add on the required components, allowing greater flexibility and mobility and adding to its durability.
Mr Stevens said demands from industry for more flexible and reliable testing systems in the face of increased labour and production costs had been the catalyst behind the company’s investment in what it identified as a key growth area.
“Automation has been promoted over the past five years, but it’s taken up until the last 12 months to be recognised as a viable option,” he said.
With its head office in Geneva, SGS has a global network of more than 100 geochemistry labs, including four located in Western Australia.
Its new 6,500 square metre purpose-built facility at Perth Airport, located on a 2.7-hectare site in Kewlink West, will incorporate a new office, laboratory and warehouse.
The facility will combine all of SGS Australia’s operations located in the Perth metropolitan area, providing co-location benefits and the flexibility to expand.
Mr Stevens said the supply contract signalled the first of potentially a number of benefits from the ongoing relationship between the two companies.
“They [SGS] are keen to look at levels of automation elsewhere,” he said.
Essa is also in the process of final negotiations with several companies over potential supply contracts both in Australia and overseas.
Strong demand for its standard and sampling equipment on the back of increased development of iron ore resources in WA helped Essa increase its net profit this year by 79 per cent to $3.2 million, exceeding its earlier forecasts.
Late last month, the company raised $5.6 million to fund the establishment of a manufacturing facility in Brazil, undertake further R&D, and provide working capital for the expansion of its automation equipment business.
Last September, Essa acquired Bibra Lake-based STACE Pty Ltd, a company specialising in maritime repair, testing and engineering services.
