Ausdrill to sell DT HiLoad

Mining services company Ausdrill has announced plans to sell its underperforming DT HiLoad truck tray manufacturing business, and is in discussions with several interested parties.

In a statement today, Ausdrill managing director Ron Sayers said the decision to sell DT HiLoad aligned with the company’s strategy to divest non-core and underperforming assets.

An asking price for the business was not disclosed.

The DT HiLoad business, together with Drilling Tools Australia, Remet Engineers and Drill Rigs Australia, forms Ausdrill’s manufacturing division which reported a 0.5 per cent fall in revenue to $88.5 million in the 2015 financial year.

“DT HiLoad is a volume-driven business which relies heavily on mining equipment utilisation and sales,” Mr Sayers said.

“It has been a very strong performing business when activity levels have been high.

“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.”

Mr Sayers said DT HiLoad was acquired as part of Ausdrill’s Brandrill acquisition and was not material to the group as a whole.

The company said it was in negotiations with a number of parties which have expressed interest in purchasing DT HiLoad.

Ausdrill plans to sell the business of by the end of March.

Shares in Ausdrill were unchanged at 23 cents each at the close of trade.