Page 31 - Bradken Annual Report 2013_Page flip

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YEAR IN REVIEW
Sales for 2013 were lower than the previous year
due to reduced activity in the resources sector.
Most foundries in Australia service this sector
and as a consequence of cost pressures and the
delay or shelving of major projects, foundry activity
reduced accordingly. The competitiveness of
export orientated foundries, several of which have
closed in the last 12 months, reduced due to the
high Australian dollar.
Our commitment to technological advancements
by use of our skill, equipment and technique
development is integral to our position as a
market leader. To ensure this success Bradken
has built a Technology Centre within the new
Global Corporate Centre in Newcastle that will be
managed by technical specialists from CMS.
OUTLOOK
The business is focusing on entering new markets
in North America and further expanding sales
into the United Kingdom and China. Expansion
of the Company’s manufactured product range,
which enjoys a higher margin, will provide new
opportunities. Relocation of high cost Australian
manufacturing into the Company’s new Chinese
manufacturing facility will result in margin
expansion on existing sales. CMS management of
the new Technology Centre will enable product
development teams to differentiate existing, and
develop new products. The centre will also provide
a place to expand our metallurgical expertise and
undertake development of foundry consumable
products. TheCompany’s growth plans are forecast
to achieve increased sales due to the launch of
new products, expansion into new market sectors
and sales of traded consumables, most notably
ferroalloys and chemical resins.
BRADKEN LIMITED ANNUAL REPORT 2013 31
CMS stocked warehouse.
Foundry core inspection by CMS.