AUSTRALIA’S biggest supplier of road transport trailers, MaxiTrans Industries Ltd, has won one of the country’s biggest contracts with the signing of an agreement to supply 395 trailers to Coles Supermarkets in New South Wales and Western Australia.

The deal, worth about $60 million, is a shot in the arm for the publicly-listed, Ballarat-based manufacturer and described by MaxiTrans managing director and CEO, Dean Jenkins, as “a tremendous show of support by Coles in Australian regional manufacturing”.

It means security of employment for 950 employees and the chance to generate more than 100 new jobs over the life of the contract.

The agreement will see MaxiTrans manufacture 395 of its self-designed Maxi-CUBE and Freighter trailers to Coles Supermarkets in New South Wales and Western Australia.

Mr Jenkins said it came at a “critical time for local automotive manufacturing”.

“The order will offer employment prospects to many Victorians,” he said.

“All of the units will be assembled at MaxiTrans’ manufacturing facility in Wendouree, Ballarat and feature components made at our plant in Hallam, both in Victoria.

“MaxiTrans’ annual trailer production capacity is unrivalled in Australia. This gives us a unique ability to fulfil an order of this size around our existing output.

“We pride ourselves on being able to support all kinds of businesses from large fleets to single operators and are excited by this opportunity to show the industry the full extent of our capabilities.”

Coles will have the ability to access MaxiTrans’ trailer after-sales support over the life of the trailers at more than 30 locations in the combined MaxiTrans dealer network and MaxiParts retail parts network.

Coles head of transport Tony O’Toole said, “Coles is always looking for ways to strengthen our relationships with local suppliers to help sustain the communities we serve every day, and we’re proud that deliveries to our stores will be made using trailers produced here in Victoria”.

Mr Jenkins said the contract will not make a material contribution to his company’s 2016-17 financial year figures but “it will provide a solid start to FY18 trading”.

MaxiTrans’ latest half-year report for the six months ending December 31, 2016 showed revenue was down 5.7 per cent to $171.6 million compared with the previous corresponding period.

In the report to the Australian Securities Exchange, MaxiTrans stated that the Australian trailer market was showing the first signs of growth for two years led by stronger tipper demand.

By Neil Dowling