It might not seem like an obvious fit at first glance…a former CEO of an $8 billion national utility operator takes over the US divisional operations of an $800 million ship builder.
It might not seem like an obvious fit at first glance…a former CEO of an $8 billion national utility operator takes over the US divisional operations of an $800 million ship builder.
The contrasts seem stark on paper.
It’s only when Austal Ltd founder and executive chairman, John Rothwell, gets talking about his ambitions for the Henderson-based shipbuilder that the move to snare former Alinta Ltd head Bob Browning becomes clear – beyond the US passport he holds.
Mr Rothwell believes Austal’s position as the world’s biggest aluminium ship producer with a new military technological expertise is simply a foundation point.
“What could we do in the next five years to make this a serious business?” he asks.
“We have huge growth potential and we should become a serious a global player.”
With the calm of Cockburn Sound as a backdrop, Mr Rothwell explains the opportunity he sees to triple the size of Austal’s US business, potentially grow an operation business in Europe, sell naval technology to like-minded countries, and expand beyond aluminium ships if the right chance came along, including acquisitions.
That is the kind of strategy for which you might employ someone who has grown a business rapidly, from a tiny Western Australian gas retailer to one of the nation’s biggest infrastructure players.
The fact that Mr Browning is an American who had committed himself to heading back to the US is also a little convenient.
He heads to Austal’s US headquarters in Mobile, Alabama, in two weeks, just a few months ahead of the time he says he would have gone anyway, even if the management buy-out attempt at Alinta that he participated in had been successful.
Mr Browning said he planned to be more of a board member or investor, had the Macquarie Bank-backed bid succeeded.
Having been at Austal as a director for years (he’ll move off the board soon, to be replaced by former senator, Ian Campbell), the discussion about running the American business had taken place some time ago.
And while Australia might remain at the heart of the company, Austal expects the US operations to more than triple in the next three to four years to as many as 3,000 employees from 900 at present, which will dwarf the 1,200-strong workforce at Henderson.
There they will be hoping to supply a big part of 55 Littoral Combat Ships, each worth at least $300 million, as well as developing new high-speed vessels for non-combat military roles.
“There is no doubt in my mind that the opportunities are in the US, that is the engine room for Austal’s growth,” Mr Rothwell said.
While Mr Browning will be there initially to consolidate the US operations after a period of growth, there will also be time to get hands-on experience in manufacturing after a crash course in recent months.
“The fundamentals of manufacturing are relatively simple,” he said.
It is about productivity and cost efficiency – not dissimilar to the utility business, he reckons.
“You gather the right people, give them the right resources, hold them accountable for achieving their objectives and reward them when they do,” he told WA Business News.
Whether or not Mr Browning is being groomed to takeover from Mr Rothwell is not entirely clear.
“Bob and I have not come to grips with whether he would do that,” Mr Rothwell said. “If the cards fell that would be an option but right now it’s too early to tell.”
