Ausdrill has announced it will divest its DT HiLoad truck tray manufacturing business.
DT HiLoad manufacturers the Hercules tray body.
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.