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AUSTRALIAN four-wheel drive and SUV accessories manufacturer ARB Corporation has secured a supply contract with United States electric ute maker Rivian, says an Australia Financial Review (AFR) report. 

Company CEO Roger Brown told the AFR that his company’s order book is stronger than it was before the COVID-19 pandemic, and that the new deal with Rivian – a start-up electric manufacturer backed by e-commerce giant Amazon – is a “great opportunity”.

Mr Brown stopped short of disclosing a monetary value of the Trans-Pacific deal, saying it was difficult to forecast how big the group’s US business could become. 

ARB Corporation now generates sales of close to $100 million in the United States and says its profits were expected to continue growing in the first half of the 2021-22 financial year. 

It said that the company’s order book was “robust” in all major markets in which the group operates and that it had not been severely impacted by shipping disruptions nor rising steel prices.

“Our order book grew strongly from January 2020 to about February 2021,” Mr Brown said at the company’s annual meeting.

It’s the third major deal for ARB this year. In early 2021 the company announced that it would supply accessories for Ford’s Everest and Ranger models, replete with the backing of a Ford factory warranty. It also purchased UK-based Auto Styling Truckman Group Limited in March for AUD$40 million.  

ARB Corporation chief operating officer Lachlan McCann told shareholders the company is committed to strong Australian growth from its Melbourne headquarters but that interest from international markets was equally solid.

Mr McCann said ARB Corporation was in a “sweet spot” because the types of vehicles that were popular with buyers both in Australia and the United States, were the same the company supplied parts for. 

Four-wheel drive, SUV, and utility vehicle sales across the Australian market now represent more than half (50.3 per cent) of all vehicles sold.

ARB told the Australian Financial Review that it had lifted some of its prices in recent times to mitigate potential losses arising from increased shipping costs and “sharply higher steel prices”. 

In 2020-21, ARB’s net profit after tax jumped 97 per cent to AUD$113 million with sales revenue increasing 34 per cent to AUD$623 million. The company lifted its final dividend to 39c per share, up from 21c.

ARB Corporation manufactures roof racks, bull bars, snorkels, and suspension products, and also stocks a wide range of four-wheel drive and camping accessories. It operates manufacturing plants in Australia and Thailand. 

The Australian dollar is at a three-year high against the Thai baht, which is clearly a big plus for the company in the current climate. 

Rivian is preparing to list on the US stock exchange with a potential value of USD$70 billion (AUD$95 billion), the AFR says.

By Matt Brogan

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