Tanks And Silos Reduce Rural Cash Flow Risk

A Brisbane based silo manufacturer has recently acquired a New South Wales rainwater tank company to ensure continued business growth during times of drought.

Grain silo manufacturer MPH Rural bought Amos Water Tanks in July 2006 because of MPH Rural's country customer base, growing demand for water tanks, and similarities between tank and silo manufacturing processes.

Cowra based Amos Water Tanks, established 13 years ago by Lyndon Amos, manufactures approximately 500 rainwater tanks a year from AQUAPLATE® steel, with capacities ranging from 500 litres to 67,500 litres. More than 90 per cent of the company's water tanks are sold within a 200 kilometre radius of Cowra.

"Rainwater tanks and silos have great synergies, as they both involve the storage of a bulk commodity, and require quality steel fabrication, delivery and installation," MPH Rural Director Michael O'Connor says.

"Both products appeal to the same rural and farming customers. Selling tanks and silos in conjunction will also allow us to grow our business and drought proof our company."

"Traditionally, water tank sales increase while silo sales fall during times of drought, but the decision to sell tanks and silos will provide us with steady, balanced sales growth into the future."

Water tank sales currently account for 10 per cent of MPH Rural's revenue, but Michael estimates 40 to 50 per cent of MPH Rural's turnover will come from water tank sales in the next three years.

"Amos Water Tanks is one of only a few tank manufacturers in Australia that manufactures tanks from AQUAPLATE® steel in 45,000 litre and 67,500 litre capacities."

"Round and slim tanks with capacities up to 23,000 litres are fully transportable, but tanks greater than 23,000 litres are built onsite."

MPH Rural also operates a water tank manufacturing facility at Pittsworth in south east Queensland to supply water tanks to the Brisbane market. It plans to expand Amos Water Tanks and sell products to wholesalers in Sydney, and country and metropolitan Victoria.

Michael says Lyndon Amos continues to work with Amos Water Tanks, sharing his tank making expertise throughout MPH Rural factories.

"MPH Rural's silo fabricators will be trained to build water tanks made from AQUAPLATE® steel over the coming 12 months," Michael says. "We're ordering tank curving machinery for our silo manufacturing workshops at Toowoomba in Queensland, and Moree, Gilgandra and West Wyalong in New South Wales."

Amos Water Tanks is a member of the STEEL BY™ Brand Partnership Program, and a dedicated user of Australian made BlueScope Steel products.

"Customers recognise tanks made from AQUAPLATE® steel are an attractive, long lasting quality alternative to polyethylene tanks," Michael says. "They're also competitively priced, and carry a 20 year BlueScope Steel product warranty."

For more information contact:
Michael O'Connor
Amos Water Tanks
(MPH Rural)
Ph: 1800 135 732
Website: www.mphrural.com.au