Global engineering firm Austin Engineering Limited has secured a USD 20 million (AUD 31 million) grant and loan package through the City of Mills, Wyoming, and the Wyoming Business Council (WBC).
These funds will facilitate the construction of a proposed 69,000-square-foot manufacturing facility and a 15,000-square-foot paint and blast building in Casper, Wyoming, the company revealed in an ASX announcement.
The expansion aims to enhance Austin’s manufacturing capacity, primarily for customised mining haul truck bodies in the US and Canada, and other product lines like mining buckets, water tanks, and tyre handlers.
While the application for the grant and loan package has been approved, final development approval is expected at the end of the year after a comprehensive business case review.
If approved, construction could start in late FY24 and is projected to take up to two years. The expansion is expected to create approximately 50 new permanent jobs, in addition to the current 110-strong staff base.
Austin CEO and Managing Director, David Singleton, expressed his satisfaction, stating that they were highly delighted to receive the funding package from the Wyoming Business Council, enabling them to embark on a crucial renovation of their current facilities.
“As well as being part of the local community in the City of Mills since 1940, and Wyoming since 1938, our Casper facility is the hub of our rapidly growing North American operations,” Singleton noted.
Regarding North America’s FY23 revenues, which exhibited a 13 per cent year-on-year increase, it was noted that Austin had recently secured a short-term lease for a facility to accommodate the rising demand in the region.
The CEO said the prospect of a larger, permanent facility aligns with Austin’s anticipation of continued growth and would enable them to further enhance their production capabilities.
“The determination to improve mining efficiency in North America has seen a strong growth in demand for trays and buckets, particularly in recent years, and is expected to continue,” concluded Singleton.
Austin will also commit additional capital funding of USD 5 million (AUD 7.8 million) for the facility. The grant and loan will be fully amortised over 20 years at a fixed interest rate of two per cent.
As part of the package, Austin will donate around 25 acres of land to the City of Mills for future community development projects. This expansion reflects Austin’s commitment to improving mining efficiency in North America and meeting the growing demand for trays and buckets in the region.
Over the past year, Austin has initiated expansions at its facilities located in Indonesia and Chile, resulting in improved production levels and increased manufacturing efficiency throughout the company.
