Ausdrill has announced it will divest its DT HiLoad truck tray manufacturing business.
The move, effective from 31 March, “aligns with the Company’s strategy to divest non-core and underperforming assets,” Ausdrill managing director Ron Sayers said.
“DT HiLoad is a volume-driven business which relies heavily on mining equipment utilisation and sales,” 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 a decision to exit this non-core business.”
DT HiLoad was initially acquired by Ausdrill during its takeover of Brandrill, Sayers adding it was “not material to the Ausdrill group as a whole”.
Ausdrill is currently in negotiations with a number of potentially interested parties for the divestment of DT HiLoad.