Coote Industrial (CXG)

Shares / Stock Code

CXG

Stock Exchange / Sharemarket

Australian Securities Exchange

Coote Industrial (CXG) is a provider of engineering, logistics and manufacturing services to quality clients operating in a range of industries. CXG’s offerings include project management, engineering services, fabrication, repair and maintenance services, plant, equipment and component sales, rail infrastructure services, rail operations, freight logistics, and personnel services. In FY08, the company acquired Gemco Rail and Bucks Rail Welding. CXG operates in New Zealand, Singapore, Sweden, and Australia. It operates in seven segments: Gemco Rail, Drivetrain, Momentum, Convair, Industrial Powertrain, South Spur Logistics and Coote Investments. On December 2, 2008, the Company’s wholly-owned subsidiary Gemco Rail Pty Ltd acquired New RTS Pty Ltd. The company's vision is to deliver world class technically based sales and service solutions to satisfied customers whilst maximizing value and return for all stakeholders.

Coote Industrial History

During the 16 years from commencement of operations in 1989 through to 2005 company's business grew from a single niche product line in diesel engine turbochargers and components, to encompass comprehensive large diesel engineering and commercial equipment manufacture. This growth was derived through investment in people, calculated investment risks, innovative engineering ideas and business opportunities presented to them by a satisfied customer base.

The period saw continued diversification of products and services, expansion into new industry sectors – particularly Defence, Rail and Resources, a number of small acquisitions, new company formations, and growth from 1 employee to 150 employees at 4 sites. Another important aspect of their efforts during the period was the development of the strong business partnerships and relationships which they enjoy to this day.

During 2006 CXG successfully completed the acquisition of three successful companies; Hedemora Diesel (Sweden), Asset Kinetics and Convair Engineering. Hedemora Diesel (Sweden) is the original equipment manufacturer (OEM) for the Hedemora diesel engine range - most recently and notably those providing power generation onboard Australia’s Collins Class submarines. Asset Kinetics was a specialist road transport solutions provider for project freight, dangerous goods, transportable housing and mine site logistics.

Convair Engineering, a world-class dry bulk transport tanker manufacturer, expanded its Melbourne-based production capabilities during the year and achieved a world first with the introduction of the B-double aluminium bulk pneumatic tanker, co-designed with German partner Feldbinder. While these businesses are excellent operations in their own right, their amalgamation into the group significantly enhanced their overall service offering. As a group the company was then able to harness individual business capabilities and leverage them to provide integrated, innovative solutions to their customers.

2007 entailed their most dramatic and exciting period of growth to date. Coote Industrial Ltd listed on the Australian Stock Exchange on 14 December 2006, seeking capital to invest in an array of exciting business opportunities. As a result of successful listing they were able to engage in several very important strategic acquisitions and further invest in their infrastructure and people.

The conclusion of those acquisitions saw the group services offering extended to include railroad operations, rollingstock manufacture and maintenance, power generation and alternate energy. Company also enhanced their logistics services to encompass rail transportation, and engage in freight forwarding and port services through the acquisition of FCD Container Logistics. Each of the new companies met their acquisition criteria of high barriers to entry, stable high recurring earnings, and a history of strong long-term growth.

South Spur Rail Services joined the group in May 2007, bringing with it the South Spur and Southern & Silverton railroad operations, specialist rail labour hire entity Momentum Rail, restaurant train operator Spirit of the West and rail training and accreditation entity Centre for Excellence in Rail Training.

The introduction of Perth-based Gemco Rail to the group fast-tracked their aspirations to establish a Rollingstock Services division by several years. The company’s focus on wagons, wheelsets and bogies is unique and possibly has no equivalent within Australia. Gemco Rail is actively engaged with every major rail operator in the country and is recognised as a leader in their market niche.

FCD Container Logistics is based at Fremantle Container Terminal and is engaged in container handling and storage; quarantine and inspection, fumigation and cleaning services; freight forwarding and customs clearance.

Industrial Powertrain, a more recent acquisition, specialises in the repair and overhaul of heavy powershift transmissions, torque converters, planetary axles and differentials.

As part of their commitment and contribution towards a sustainable future, Coote Industrial established its Energy division in 2007 with intent to provide cost-effective alternate energy solutions with reduced environmental impact for the rapidly expanding private power industry

Coote Industrial’s corporate body continues to strengthen and consolidate unity within the group through the development of strategic management, group accounting, business systems, marketing and human resource teams. These teams provide direction and support to their operating entities while facilitating commonality of business practices.

Coote Industrial (CXG) Products and Services

  • Providing broad-based technical services to customers who rely upon heavy/complex plant and machinery
  • Specialised rolling-stock to meet their power, propulsion and infrastructure needs

Coote Industrial (CXG) Locations and Subsidiaries

Coote Industrial Head Office
Level 1, 10 Kings Park Road,
WEST PERTH, WA 6005
Phone: (08) 9251 8000
Fax: (08) 9452 2186

Coote Industrial (CXG) Share Price

Submitted by ASX Listed Company on 13 March, 2010 - 03:28

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