ANG opened its manufacturing factory in Brisbane 43 years ago. In 2004 they could see how the iron ore boom was just getting started and opened a much larger factory in Perth. RIO became and remains their biggest customer in the APAC region. USA (2007) and Chile (2009) soon followed... both via acquisition.
Then in 2011 ANG decided they could employ a competent workforce in Indonesia for a fraction of the cost of welders, steel fabricators etc in Perth and QLD. In 2010 ANG initiated a 'built for purpose' brand new factory from the ground up in Batam, located across a narrow stretch of water from Singapore. Production commenced in 2011.
Today the workforce (incl contractors) at Batam is 695, while staff at Perth has steadily reduced and now stands at 156. A considerable proportion of the Batam employees are sub-contractors/casual and utilised on a 'as need' basis... another cost saver. Hence, it is considerably less expensive to build and ship trays to Oz than build in Oz. I assume those ordered by iron ore mines are sent direct to Port Headland or similar. Same with Mackay which services the coal industry.
India. In one of his interviews/presentations the ANG CEO described how an IO mine in India bought a couple of trays from the Batam factory on a trial basis. 2 months later they placed an order for 25 trays. Batam is ideally placed to service India and I noticed ANG advertise they use TATA steel to make trays destined for TATA's mines in India. India is now way ahead of Japan and USA in steel production with output ramping-up every year.
Schlam. With their HQ also in Perth, this firm makes and sells 500 trays/annum in Oz. They have the vast bulk of BHP's work in their IO mines while ANG are the main provider for RIO. Schlam have 3 factories. Perth, China and Mexico. Their Chinese plant sells into China, Mongolia and former USSR states esp Kazakhstan. Some trays are also sent to Newcastle NSW.
Schlam are a serious competitor for ANG and their website shows they produce an excellent product. A merger with ANG would be ideal but unlikely imo. Their factory in Mexico exports to Peru, Chile and USA. ANG's factory on the Chile/Peru border has an obvious advantage. But ANG's factory in Casper Wyoming (recently massively expanded and hitting full production from late April25) is where ANG holds the trump card. ANG use USA steel and entire product made within USA... hence exemption from crazy tariff system. Schlam not as fortunate. ANG's Wyoming plant is doing exceptionally well and is by a margin the largest tray producer in the USA. ANG also send tray parts to Canada where they are assembled, hence also avoiding Canada's reciprocal tariffs.
The OEM order of 100 trays from Komatsu in Chile has been a serious setback for ANG. But I doubt the new CEO will make a similar miscalculation. Replacement trays are not a discretionary item. They are essential. Mine trucks usually have several trays during their working life.
I have been in contact with a truck driver on QLD coalfields, a former site manager at a large QLD coal mine plus a mechanical engineer who worked at the superpit at Kalgoorlie. Have learned a fair amount about what affects a tray's lifespan and where/how they are repaired/replaced. Will post about this in the days to come.
What has become clear is that the 'larger the tray the more advantageous it is for ANG'. Modern trucks have an eye-watering 400 ton payload. Exactly what ANG likes best.
What would be very useful is for someone who works in mine workshops in WA or similar to post regarding their thoughts/experience with ANG trays and the competition.
I remain confident re ANG's prospects barring a world calamity.
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