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Industrea wins another $7.5M of Chinese contracts

INDUSTREA has won a $A5 million contract to supply four roof support carriers to China and a $2.5 million contract for spare parts.

Blair Price
Industrea wins another $7.5M of Chinese contracts

Chinese coal producer Inner Mongolia Yitai Coal has inked a deal to take the four 40-tonne roof support carriers, following a previous $6.2 million order for Industrea’s 55t chock carriers in February.

The new spare parts contract was signed with Beijing Huajin Wanshun Machinery and Jincheng Mining Group, with Industrea saying the deal proved the value of its newly established product support centre in China.

“Industrea has continued its strong order flows in the new financial year, having announced more than $33 million of new product contracts, or in excess of $10 million per month in sales, to the Chinese market since July 1,” Industrea managing director and chief executive Robin Levison said.

“At present, there is no sign of this pace slowing.”

He said the company’s record of successful delivery, commissioning and reliability meant it continued to win repeat business with Yitai Coal, Jincheng and Shanxi Changping Coal Mining.

The underground coal-focused original equipment manufacturer also noted reports that major producer China Shenhua Energy will spend almost $US40 billion between 2009 and 2013 to double coal capacity to 400 million tonnes per annum.

Key customer Yitai Coal also plans to ramp up to 100Mtpa by 2015, having produced 38Mt in 2007.

While China has now become the second-biggest coal importer after Japan, various analysts have predicted China will increase its domestic coal production for the rest of the year.

But recent accidents in central China’s Henan Province have prompted government authorities to impose safety-related shutdowns of small mines in the province.

Along with lower freight rates and infrastructure constraints, safety crackdowns have played a role in lifting China’s coal imports to unprecedented levels this year.

Industrea shares are up half a cent this morning to 43.5c.

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