AUSTIN Engineering has acquired Chile-based steel dump truck body business, Conymet for USD 19.6 million (about $23.3m).
The business is the leading manufacturer and supplier of steel dump truck bodies in Chile. Established in 1973, the Conymet business serves the resources sectors across South America. It has long-standing supply arrangements with the major regional miners including Codelco, BHP Billiton, Anglo American, Xstrata and Antofagasta Minerals.
Conymet is based in Antofagasta in Northern Chile, the business is strategically located next to the major copper mines in the region including the Escondida mine, which is reported as currently being the highest-producing copper mine in the world.
Austin says the acquisition of the business will enable Austin to further realise its international growth plans in a key area of mining activity and potential growth.
Austin’s Chairman Peter Fitch says the acquisition of the Conymet steel dump truck body business provides Austin with an excellent opportunity to further expand its international presence through market penetration of the Chilean and wider South American mining and resources markets. It also enables Austin to increase the market base for its market-leading Westech and JEC product ranges and for their operational advantages to be demonstrated and offered to customers in the region.
Conymet has its own design and range of dump truck bodies, which have been used and operated successfully by customers in the region for a number of years.
Fitch claims Conymet’s steel dump truck body business is well understood by Austin as its business model, operating structure and client base were very similar to Austin’s existing operations in Australia and the USA.
Conymet’s existing management has agreed to stay with the business for a period of time in order to ensure that there is minimal disruption from the change in ownership.
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