DIGGA AUSTRALIA EXPANDS OFFSHORE

DIGGA AUSTRALIA EXPANDS OFFSHORE

ONE of the Gold Coast’s homegrown manufacturing success stories will set up distributor networks in the US and a manufacturing base in the UK by 2012.

Digga Australia has forecast FY11/12 revenues of $50 million as it taps global markets and soaring demand for its drilling and digging machinery.

Chief executive Suzie Wright (pictured), who will celebrate 15 years with the company on Melbourne Cup day, says despite global pressures and a volatile Aussie dollar Digga Australia will keep its 12,500 square metre manufacturing base at Yatala, north of the Gold Coast – but will manufacture some components in the UK.

“We have an enormous future ahead of us in the USA. You don’t have to have too much of the market to be successful there,” says Wright.

Digga supplies gearbox components to the US military for its all-terrain vehicles with two years remaining on the contract. When the term expires in 2013, the company would have shipped 7000 auger drives into the US.

The company has also acquired a two-acre parcel of land in the UK where it has built a 900sqm plant to manufacture auger drill tips to avoid excess shipping costs.

“We have an office in the UK where they do base fabrication, while all-sub assemblies will come from here (Queensland). Auger drills are very difficult to ship. They have sharp tips, don’t pack together well and there’s a lot of space when packing them into a container. You can’t max out a container in its weight,” says Wright.

“It’s only a small factory, but it’s on two acres for testing equipment. It’s not ideal, but we are looking at setting up master distributors in key countries with the first one potentially in Poland. We have a really good distributor, they are great to do business with and local costs are good. It will also give us good access to Russia.

“We went to Russia in May and June and what was impressive for us is that everyone knew who we were. We were invited to take the stand and people wanted to do business with Digga. While it’s (Russia) a very new market for us, the internet allows us to be next door. Our main sales rep in England speaks seven languages and is constant contact with our world-wide contacts.”

Wright says the networks and manufacturing plants will add efficiencies and significantly decrease lead times – ‘the biggest challenge facing Australian exporters’.

The significance of the company was highlighted recently when Federal Opposition Leader Tony Abbott visited the company as part of a national anti-carbon tax tour.

For the full story on the future of Digga Australia, expert economic insights for 2012 and a special feature dedicated to trading in China via Hong Kong, get your copy of Gold Coast Business News today – out now in a newsagent near you.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Netflix NT drama series Territory to debut in October

Netflix NT drama series Territory to debut in October

Netflix is set to launch its next blockbuster Australian drama seri...

American Express to pay $8m fine over inappropriate targeting of co-branded David Jones credit cards

American Express to pay $8m fine over inappropriate targeting of co-branded David Jones credit cards

American Express Australia (Amex) has been ordered to pay an $8 mil...

Results from Juukan Gorge show 47,000 years of Aboriginal heritage destroyed in mining blast

Results from Juukan Gorge show 47,000 years of Aboriginal heritage destroyed in mining blast

Aboriginal and Torres Strait Islander readers are advised this arti...

From Michael Hill to Adore Beauty, retailers rise on positive sales results

From Michael Hill to Adore Beauty, retailers rise on positive sales results

A handful of retailers including jeweller Michael Hill Internationa...