Hastings Deering invests to build further capacity
Since the US$360 million purchase of the former Bucyrus distribution business a little more than 12 months ago, Hastings Deering has invested a further $100 million to build additional capacity in its mining division
Leading CAT machinery dealer Hastings Deering says it has invested a further $100 million in its mining division since the takeover of the former Bucyrus distribution business a little more than 12 months ago.
The purchase, valued at approximately US$360 million, transformed the company into the world's first Caterpillar dealer to sell, service and support the expanded range of surface and underground mining equipment.
As one of the world's largest CAT dealers operating in a region with a significant field population of legacy Bucyrus machinery - covering Queensland, the Northern Territory, Papua New Guinea and New Caledonia − Hastings Deering says it is committed to growing its mining business and supporting the expanded range of CAT mining equipment.
In 2012, the company focused on a number of initiatives to integrate the new product line; investing in technology, facilities, tools, service vehicles and equipment, people and training, and parts inventories.
Hastings Deering Managing Director Scott Cameron says that in the 12 months since acquiring the distribution rights for the former Bucyrus product range it has achieved a number of milestones.
Throughout 2012, the mining division delivered a record number of new mining trucks and ancillary equipment, as well as a number of hydraulic shovels, long-wall systems and electric rope shovels.
"Representing more than $1 billion in equipment sales and hundreds of units, this is driving the need to invest in future support capabilities," Cameron says.
To increase parts coverage and assure on-time supply, $90 million was invested in additional Hastings Deering parts and component inventories.
Furthermore, Caterpillar established a facility in Brisbane which holds more than $201 million worth of parts to support the expanded product line.
"We have also expanded all specialist areas of our organisation to support the new product range - from equipment product specialists, engineering and technical support personnel, to training programs," Cameron says.
Hastings Deering has established multiple 'Centres of Excellence', which are focused on delivering industry-leading capabilities and support.
These centres are based in strategic locations, such as, Brisbane, Mackay, Rockhampton and Toowoomba. They include the Hastings Deering Institute of Technology, specialist rebuild centres, and an equipment management group.
"These centres are key to supporting customers in the long term and maximising the return on their investment in CAT equipment," Cameron says.
A dedicated excavation and underground coal support group in Mackay is set to expand with the purchase of an additional 17,000 square-metres of land (representing an investment of $2.6 million), which will significantly increase future operational capacity. The facility already covers 5.5 hectares in the industrial hub of Paget with workshops that repair and rebuild all components of equipment for surface and underground mining.
Large components, such as, dragline boom feet, boom and masts are also manufactured at the site.
In the past five years, Hastings Deering has reinvested in excess of $1 billion into the wider business.
Throughout 2013 and beyond, the group will continue building capacity to deliver end-to-end sales, service and support for customers utilising CAT equipment in their operations.
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