AZMEB factory to close

Australian trailer heavyweight MaxiTRANS has announced it is closing production of AZMEB trailers at the brand's Bundaberg facility, with the manufacture of AZMEB products to continue at other MaxiTRANS factories.

In a media statement issued on Monday, August 10, MaxiTRANS said the group would "continue to sell, manufacture and support AZMEB products in Australia and will explore international opportunities" – the latter a reference to continuing to pursue both international and domestic sales.

AZMEB produces a range of innovative heavy-duty side-tipper trailers for use primarily in the waste and mining sectors. It launched its latest model, the HVST (High Volume Side Tipper, pictured) at the 2015 Brisbane Truck Show in May.

However, the company says the AZMEB line has come under increasing pressure as the mining sector continues to slow.

"AZMEB was acquired by MaxiTRANS in May 2012 as a part of its strategy of participating in the Australian mining and resources sector," the media release states.

"It has developed unique, innovative and proven side-tipper designs that underpin the business's highly regarded brand in the mining and waste sectors.

"Since its acquisition and until recently, the business capitalised on the strong resources sector investment phase and generated substantial returns on the investment.

"The decline in resources sector investment and mining activity has significantly reduced the demand for the AZMEB product and the Company does not see a material improvement in demand for these products into the foreseeable future.

"Accordingly, to ensure the Company continues to operate an efficient manufacturing business model, the Board has decided to close the Bundaberg manufacturing facility that produces the AZMEB products and relocate its production to its other manufacturing facilities."

While a final decision is yet to be made, production of AZMEB's specialist tipper trailers will now go to MaxiTRANS facilities in either Brisbane, where the majority of the Lusty EMS range is manufactured, or the group's major factory in Ballarat (Vic), where Freighter trailers are made.

MaxiTRANS has given its assurance that it will seek to continue the employment of AZMEB's Bundaberg staff within the wider company wherever possible. The Bundaberg site, which includes the factory and an office, currently employs 25 people.

A final closing date for the facility is yet to be confirmed.

A MaxiTRANS spokesperson told trucksales.com.au that while the Bundaberg facility would go, it was still 'business as usual' for AZMEB, and that customer enquiries should continue to be directed to their local AZMEB dealer. Customers who dealt with the Bundaberg facility directly, however, will now have to deal with AZMEB dealers in either Brisbane or Townsville.

"Other than that nothing really changes for the customer experience; MaxiTRANS will continue to build, service and supply the AZMEB product, just out of a different factory," the spokesperson said.

The closure of AZMEB's Bundaberg factory is just the latest in a long line of impacts wrought on the transport business following the end of Australia's mining boom.

In late June, business management consultants Ferrier Hodgson announced it had been appointed as voluntary administrator for Queensland-based transport firm Heavy Haulage Australia, after it succumbed to the mining slowdown. On July 10 Ferrier Hodgson said it had failed to attract a buyer for HHA, and that the business would subsequently be wound up.

Fortunately for AZMEB, the backing of the MaxiTRANS group means it can continue its operations elsewhere within the wider group's business, although that will come as little consolation for those directly affected by the closure of the Bundaberg facility.

AZMEB has been producing side tippers since 1975.