Page 29 - Bradken Annual Report 2013_Page flip

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YEAR IN REVIEW
During 2013, 1,070 rail cars were manufactured
at the Xuzhou, China facility. This represented a
volume reduction on the prior year and is reflective
of the general down-turn in the resources sector.
The resource sector slow-down also resulted in
flat spare parts sales compared to 2012.
The Australian market is now highly contested with
Chinese wagon manufacturers firmly established,
which impacts price and Bradken’s opportunity to
sell wagons which subsequently affected the sale
of rail spare parts.
2013 saw the last of the lowmargin contracts wash
through the business. Favourable contract terms,
better cost structures and business controls are
seeing the work mix return an acceptable margins.
OUTLOOK
The Rail Division has articulated a vision in its
five year plan to evolve from a predominantly
Australia-centric rail freight car manufacturer to
a transportation solutions business with global
reach. Work has commenced in opening up new
markets in Africa and South America.
New products, including innovative designs for
haul truck trays and heavy haul coupler systems
are currently being introduced into the market.
At the same time, full service maintenance offerings
are gaining traction in the Australian market with
promising penetration achieved during 2013.
BRADKEN LIMITED ANNUAL REPORT 2013 29
ARG
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Magnetite Wagon which will operate in the Geraldton Region, Australia.
B-Series Rio Tinto
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Iron Ore Wagon which will operate in the
Pilbara, Australia.