Friday, June 21, 2013

US foundry moves to Australia to exploit resources boom

Times are tough for Australian manufacturing, even though the Australian dollar has fallen from its recent highs.

But while some companies are struggling to survive by off-shoring, a big US company is reversing the trend.

Weir Minerals has moved its divisional headquarters to Australia to be closer to the production phase of the mining boom.

Listen to my story broadcast on this morning's edition of AM.

Hidden on Sydney's lower north shore, the company's foundry makes heavy duty pumps and components for the mining industry - 1,000 parts a week from 11,000 tonnes of molten metal poured every year.

It is the biggest foundry of its type in Australia.

Late last year it "in-shored" - relocating its divisional headquarters from the United States to Australia.

Weir Mineral's plant manager Howard Cullis believes the company on track for growth.

AUDIO: Weir Minerals relocates to exploit mining boom (AM)
"I think geographically we're well placed to service the whole of Australia," he said.

"We have probably some of the shortest lead times with what we manufacture anywhere else in this business so the customer gets what he wants when he wants it."

The company's managing director Dean Jenkins says basing the division in Australia was a no-brainer.

"It's a matter of being prepared to make quick decisions and being flexible about where you do things and what you do, and making sure you understand in a local environment what really adds value that customers will pay for,"

"And for us here in Australia it's about how do we get parts to the customer very quickly. And to be in Australia, have a manufacturing capability in Australia allows us to do that."

Weir employs a thousand people in Australia, half of them at Artarmon.

It is evidence that manufacturing in Australia is not necessarily fading, despite the outlook for the resources sector.

And it is not just hot work in the foundry.

Weir also carries out major research and development locally as it stays ahead of industry needs to keep the business model viable.

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