Opening of Hagglunds Drives' head office in Canning Vale

28/2/96

Yet another international company has moved its head office to Western Australia, reinforcing the growing focus on Perth as the resource capital of Australia.

Resources Development Minister Colin Barnett today opened the new premises of 'Hagglunds Drives' which has moved its head office from Sydney to Perth.

Hagglunds' Canning Vale premises, manufacturers of custom-made large hydraulic drives, has developed a niche market based on a product vital to many mining processing operations.

Mr Barnett said Hagglunds was a subsidiary of a major Swedish company which had developed the custom-made, low-speed, high-torque drive transmissions which were in increasing demand with the move to mineral processing in this State.

The Minister said about half of Hagglunds' business was generated by the growing resource projects in WA, leading to the decision to move its main focus to Perth.

He said Perth was increasingly becoming the head office for Australia's mining industry, with the annual value of mineral and petroleum production in WA worth more than $13 billion, with another estimated $30 billion worth of resource projects either committed or under construction in WA over the next 10 years.

Other companies to recently relocate to Perth or commit to moving large parts of their business here include Woodside Petroleum, AGL, Coflexip, Stenna Offshore, Drill-Quip, Expro Group, Bayo Australia and Drillco-Drillex.

Hagglunds had also highlighted that another advantage in locating to WA was that Perth time was closer to Sweden's, allowing for easier communications.

The Minister said more than 80 Swedish companies were now operating in Australia, such as Atlas Copco, Dyno Wesfarmers, Dunlop Duraline, Alfa Laval, Ericsson, Volvo, and Skega. Some had even formed specialised manufacturing and marketing groups such as the Swedish Australia Mining Group which employed about 15,000 people.

The Minister said Hagglunds had many big customers in WA including Alcoa of Australia, Hamersley Iron, Worsley Alumina, Argyle Diamonds, Sims Metals, Bunnings, Woodside Offshore Petroleum, BHP Iron Ore, Western Power and Boddington Gold. In WA, Hagglunds has installed more than 1000 variable speed drives for major mining industry and industrial clients. Hagglunds is represented in more than 40 countries and has more than 60,000 drive systems installed in various applications around the world.

In Australia, it has an annual sales turnover of $15 million and employs about 30 people across the country, including 18 in WA.

In pursuit of new business, the company recently won major orders from a gold mine in Chile, a large sugar mill in Queensland and is on the short list for major drive contracts in Russia and the Philippines.

Media contact: Carolyn Vicars 222 9699