Schlam announced today that it had been awarded a multi-million-dollar supply agreement with Fortescue Metals Group Limited (Fortescue) for both its products (Schlam Payload Solutions) and services (Schlam People Solutions) divisions.
The contract will see Schlam Payload Solutions supply Fortescue with dump bodies and buckets, whilst Schlam People Solutions will provide skilled on-site mechanical and fabrication services for a minimum of three years with options to extend.
The agreement solidifies Schlam's relationship with Fortescue and gives both parties confidence due to priority build slots and in-depth forecasting.
Schlam Chief Executive Officer Matt Thomas said that he expected the agreement's value to reach over $90 million.
"Like Schlam, Fortescue is a proud and innovative West Australian company, who we have been working with for almost a decade. This relationship strengthened when we trialled a Hercules dump body suited to their fleet of 240-tonne class trucks in 2018. At the time, it was the lightest 240-tonne body we had manufactured, and through working with innovative partners, like Fortescue, we've been able to develop the next generation of payload products, including the Hercules EXO," said Mr Thomas.
Fortescue will be one of the first operators to receive the Hercules EXO since its successful trial and market release. The Hercules EXO is a 240-tonne class iron ore specific dump body that is 20 per cent lighter than the Company's already class-leading Hercules. The decreased weight gives miners a greater payload potential, while a complete redesign and innovative material selection have resulted in a 100 per cent increase in service life.
To date, Schlam has supplied almost 60 Hercules bodies to Fortescue’s fleet of mining trucks and will deliver a further 50 in the next financial year alone.
The agreement brings Schlam Payload Solutions and Schlam People Solutions under the same set of terms and conditions. The latter expands its portfolio of Tier-1 clientele, for which it supplies HD mechanics, boilermakers, auto-electricians, and other skilled labour.
“The agreement will underpin our journey to introduce the latest robotic technology to transform our manufacturing processes and develop a state-of-the-art advanced manufacturing facility right here in Western Australia,” said Mr Thomas.