ASX-listed drill and blast specialist Ausdrill will exit its DT HiLoad truck tray manufacturing business with effect from 31 March 2016.
Ausdrill MD Ron Sayers says the decision aligns with the company’s strategy to divest non-core and under-performing assets.
At present, Ausdrill is currently in negotiations with a number of parties who have expressed an interest in purchasing the assets of the DT HiLoad business.
“DT HiLoad is a volume-driven business which relies heavily on mining equipment utilisation and sales. It has been a very strong performing business when activity levels have been high,” Sayers states.
“However, as the mining sector slows, there are potential strategic benefits and cost efficiencies in effecting a rationalisation of assets between industry participants. Consequently, we have made the decision to exit this non-core business.
“DT HiLoad was acquired as part of the Brandrill acquisition and is not material to the Ausdrill Group as a whole,” Sawyers explains.
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