AMIDST the debate over increased local content on major projects, a big investment in local manufacturing has enabled a Perth company to successfully outbid a Chinese rival.
AMIDST the debate over increased local content on major projects, a big investment in local manufacturing has enabled a Perth company to successfully outbid a Chinese rival.
HVLV will invest a further $12 million into its $11 million undercover switchroom manufacturing facility, which will allow it to stay ahead of the overseas competitors that are vying for Western Australia’s major resources projects.
The company operates the newly built, 2,800 square metre facility in Hazelmere and secured the order from engineering group Sandvik Mining to manufacture a switchroom for Rio Tinto’s Cape Lambert project.
HVLV managing director Steve de Mol has been involved in the resources industry for more than 20 years, previously running mining equipment re-furbisher Action Mining Services, which he sold to NRW in 2009.
Mr de Mol said the facility was the only undercover switchroom manufacturing facility in Australia, which enabled his firm to cut manufacturing time in half.
“By operating 24 hours, seven days a week, we have the capacity to produce two switchrooms a week and are able to meet the most rigorous project timeframes,” Mr de Mol said.
He said switchroom manufacturers in Asia and Europe already had undercover facilities, so investing in such a facility in Perth was the only way that the company could be truly competitive.
“One of the stipulations for the oil and gas industry is that construction of their switchrooms must be undercover. There is no other switchroom manufacturer in WA that manufactures undercover, so we have made that investment to be competitive,” he said.
Mr de Mol said an advantage HVLV had over foreign manufacturers was the ability for clients to interact with the company on a one-on-one basis to minimise design changes, which was one of the biggest cost drivers. Ê
“Our facility gives us the ability to see the manufacturing process from conception through to completion, including design and layout, fabrication, air conditioning, ventilation, construction, installation and delivery,” Mr de Mol told WA Business News.
Other added values that couldn’t be given a direct monetary value, he said, were design flexibility, on-time delivery, and local knowledge.
“In the past, the advantage of sending work overseas related to cheap labour and on time delivery, but we have proven that we can build our switchrooms cheaper than an imported model and logistically we are closer,” Mr de Mol said.
The company has also prepared for future skills shortages in the industry by introducing in-house training and apprenticeship programs.
It has internal traineeships programs for welders and boilermakers, which Mr de Mol said was to ensure the company wouldn’t be caught by the skills shortages in coming years.
HVLV is a member of the Australian Covenant 50,000 Indigenous jobs policy and Mr de Mol believes any manufacturer that doesn’t invest in on-the-job training will suffer the looming labour shortfall and not meet growing capacity.
“Companies that don’t invest in their internal skills set will become uncompetitive,” Mr de Mol said.
According to Mr de Mol, the Skilled Local Jobs Bill read into State Parliament last week by the opposition was an important step forward to increase local content.
The bill requires project proponents to make firm upfront commitments on skilled engineering and fabrication work to be performed in WA, before their project is given the go-ahead by government.
“If there is a bill that says companies need to outline exactly the local content of their contracts, I think that’s it in a nutshell because the flow-on effect will be filling up local workshops and creating jobs for trainees and apprentices,” Mr de Mol said.
