Redcat on right track
In a boost for small business in the Far North, a Cairns-based wheel safety product manufacturer has signed a lucrative deal with a South-East Asian bus company. Redcat Industries manager Ron Mason (right) said the 16-year-old business was undergoing rapid expansion even before it scored the five-year contract with Singapore Bus Services. The system will be rolled out in the US, the UK, Europe, Canada, Australia and South Africa.
IN A boost for small business in the Far North, a Cairnsbased wheel safety product manufacturer has signed a lucrative deal with a south-east Asian bus company.
Redcat Industries manager Ron Mason said the 16-yearold business was undergoing rapid expansion even before it scored the five-year contract with Singapore Bus Services.
The internationally patented, Australian designed and manufactured, loose wheel indicator restrainer system will be rolled out in the US, the UK, Europe, Canada, Australia and South Africa.
“We have moved into much larger premises in Portsmith (from Redlynch) because of our recent expansion,” Mr Mason said.
“We employ five people. We run very lean because we’re globally competitive. We have injection moulding machines in Brisbane that are fully robotised and we are pretty advanced in relation to that.
“Geographically Cairns is well positioned for Asia. We can get things up in to Asia two to three hours quicker than Melbourne or even Brisbane.
“The cost base provides us with a much more competitive product. We can even beat the Chinese at price and at quality as well. These two things add up to quite a lot, especially adding in quality service.
“The beauty about this contract is our brand is so obvious, the marketing is basically done by SBS Transit. The name is plastered all over the buses and everyone can see who we are and what we do.”
Mr Mason estimates the Singapore contract will add $300,000 “pure profit” to the firm’s bottom line.
That is on top of income from its defence force, transport and mining company contracts. The initial shipment of 176,000 units to Singapore has been completed and the fitting has begun.
Redcat has now signed an agreement with UK distributors ATE UK to take the product closer to the European market.
The first shipment will arrive in the UK next month.
Sales have grown 15 per cent annually and 1.5 million units were sold last year.