Downer EDI’s CEO Grant Fenn has said that the mining slowdown has hurt the engineering company’s locomotive business, with the focus now on helping customers manage their assets.
Fenn, appearing on the ABC’s Inside Business program yesterday, said that three years ago the company made 55 – 60 locomotives, though this year had made zero.
He said that the focus had switched to helping customers manage their assets and costs.
“For the last 12 months we’ve been working with the mining companies, particularly around their cost base,” he told the ABC.
“We’ve been working with them pretty pro-actively to reduce their costs but we’ve noticed this for the last 12 months, in the locomotive business, we provide locomotives for the mining industry, we’ve seen orders really drop off considerably and demand drop off.”
Fenn made similar comments at Downer’s AGM last week, and warned of uncertainty around revenues for the financial year 2014, due to a lack of demand for construction work in resources.