Bradken today announced its intention to focus its growth plans on the mining sector, following a review of its global operations.
CEO Simon Linge said guiding the organisation from a diversified manufacturing company to a highly specialised mining wear solutions provider was designed to focus the company’s growth plans, while maintaining its core engineering, design and manufacturing capability.
“We’ll be looking for opportunities to expand our range of mining wear products and services to further support our customers’ needs,” Mr Linge said.
As a result of this sharpened focus on the mining sector and a prolonged downturn in conditions in the Australian and New Zealand industrial markets, Bradken will phase out work at its foundries in Ipswich and Dunedin. Dunedin will ramp down over the next five months while moving out of Ipswich will take closer to 12 months.
“Moving away from these markets we have served for a long time was not a decision that was made lightly.
“We understand the impacts it has on our people, many of who have been part of Bradken for a long time and we are committed to supporting them to make this transition and take the next steps in their working lives.”
Bradken will also be working closely with impacted customers to make sure they find alternate suppliers.
Bradken also owns a niche business, serving the sugar industry near Innisfail Queensland, which it will look to sell. Boutique Advisory Firm LCC Asia Pacific has been engaged to assist with that process.
“Our sugar business is very successful and we want to find an owner who can invest in it and help it to grow. Strategically it doesn’t align with our future, but it’s a great operation, with great people and I’m certain it will thrive under the next owner,” Mr Linge said.
“These decisions are never easy, but this is the right one for Bradken at this time.”