Austin, Schlam deliver truck bodies for big miners

David Singleton-led Austin Engineering has delivered its 1,000th truck body to Rio Tinto’s iron ore division, while Forrestfield-based Schlam won a $110 million contract from BHP.

Austin announced the milestone at its manufacturing facility in Kewdale, with the ceremony attended by Premier Mark McGowan, Rio Tinto Iron Ore chief executive Simon Trott, and Austin chairman Jim Walker and managing director Mr Singleton.

Austin claims to have supplied more than $300 million worth of mining equipment to Rio in the past 30 years, with the latest being the ULTIMA truck body.

Their partnership started in 1988, with Western Australian business John’s Engineering and Cranes (now part of Austin) contracted to provide truck body components to Rio's Robe River.

“In the dynamic and constantly evolving mining industry it is becoming an increasing rarity to see a long-standing partnership, particularly one deeply rooted in the local community, going from strength-to-strength,” Mr Singleton said this afternoon.

“This makes today’s milestone all the more extraordinary, and like the other 999 truck bodies we’ve made for Rio Tinto Iron Ore in Western Australia, it will be manufactured locally.

“Austin is proud of its role in helping Rio Tinto successfully deliver the iron ore that is the economic lynchpin of our great state.”

Kewdale is one of two manufacturing sites for Austin, with the second located in Batam, Indonesia.

The ASX-listed company is investing $6.5 million to upgrade both facilities.

Mr McGowan said Austin was one of WA's key local manufacturers.

“It is providing mining companies like Rio Tinto with locally designed and manufactured equipment, but it is also creating an increasing number of local job opportunities here at its Kewdale facility,” the premier said this afternoon.

“I encourage other companies operating in Western Australia to join Rio Tinto in supporting local manufacturing, employment opportunities and the diversification of the economy that has been the source of its success.”

He said Rio’s commitment to purchase WA-made truck bodies was in line with the state government’s pledge to boost local manufacturing, content, and jobs.

Meanwhile, Forrestfield-based Schlam will continue to supply its Hercules dump truck bodies to BHP Western Australian Iron Ore (WAIO) sites in the Pilbara, as well as to BHP Mitsubishi Alliance (BMA) sites in both Queensland and NSW.

The contract is expected to generate $110 million in revenue for Schlam.

The Matt Thomas-led company said the Hercules bodies were selected due to their lightweight design and durability.

“Our engineering team was challenged by their counterparts at BHP to push the limits of the Hercules’ design to lower its already light weight and increase payload further,” Mr Thomas said in a statement.

“This resulted in the development of a new Hercules design that is twenty per cent lighter than other already class-leading Hercules models and is maintenance-free with up to six years of service life due to steel innovations.”

Mr Thomas said Schlam would use the latest technology and robotics to deliver the dump bodies, which would redefine the company’s manufacturing process.

Schlam, founded in 1996, is also planning for a national and international expansion.