MINING equipment company Industrea Limited (IDL) continues to sign more than $10 million worth of contracts a month, with new orders announced today to the tune of $7.5 million with Chinese businesses.
At the current rate the Brisbane-based company has the potential to turnover $132 million in sales from China this financial year.
Industrea managing director Robin Levison says the latest contracts show commitment to the Chinese market, with unprecedented demand for coal that has developed a string of repeat business relationships.
“Industrea has continued its strong order flows in the new financial year, having announced more than $33 million of new product contracts, or in excess of $10 million per month in sales, to the Chinese market since July 1. At present, there is no sign of this pace slowing,” says Levison.
The recent contracts include a $5 million order for longwall roof support carriers with Inner Mongolia Yitai Coal, as well as $2.5 million in spares with Beijing Huajin Wanshun Machinery and Jincheng Mining Group.
And with China’s biggest coal producer China Shenhua Energy planning to double coal output capacity, Levison expects a trend of more contract wins for Industrea.
“Industrea is leveraged to the growth of China’s underground coal industry, and our recent contract wins secured against top international competition show our ability to compete with our ‘best of breed’ products,” he says.
“By deepening business relationships and also winning new customers across the country, Industrea is set to increase both new product orders along with recurring income streams from training, maintenance, spare parts and other support services in the world’s biggest coal market.”
Industrea has recently announced a share purchase plan to assist with further acquisitions to cater for the growing Chinese market.
IDL shares rose this morning by 2.3 per cent to $0.44.
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