Tasmania’s oldest foundry is transforming into a modern, carbon-neutral manufacturing success story.
A foundry is perhaps the ultimate symbol of heavy industry: smoke, molten metal, and a heritage stretching back centuries.
In Australia, this traditional manufacturing sector has long wrestled with the pressures of global competition and the need to modernise. On the outskirts of Launceston, a business with roots tracing back to 1834 is proving that tradition is not a barrier to innovation.
Castings Tasmania is forging a new path, using advanced automation and a commitment to the circular economy. It’s demonstrating how Australian industry can successfully transition from mere survival to global competitiveness, underpinned by environmental stewardship.
Castings Tasmania, which primarily manufactures large, technical steel castings for the rail, mining, and industrial sectors, has a history marked by both boom and near-extinction. After operating under various corporate ownerships, the business was shuttered in 2016 and later revived by the EcoCycle Group, which saw the potential of the facility and its skilled workforce. That legacy, while rich, came with inherent challenges that required systemic change, especially in environmental and operational practices.
Dean Lalor, General Manager at Castings Tasmania, says the journey has been about much more than just staying afloat.
“We’ve not only survived the challenges facing the Australian manufacturing industry, but – through invigorating strategies, especially around automation and the circular economy, coupled with investment from our parent company – we’re now well positioned to transition from simply surviving to becoming a thriving success story,” Dean says.
“If we think about the business itself, it comes with tradition and heritage. A lot of old practices come with that, and not all of them good. There is a multitude of history that we need to unwind and change at the same time.”
As part of the EcoCycle Group, which includes EcoCycle, EcoBatt, Eco E-Waste, Recycal, and ACL Metal Powders, Castings Tasmania has embraced evolution, targeting sustainability and operational excellence. The core of its transformation lies in the company’s material sourcing and energy profile. About 97 per cent of its product is produced using recycled steel. This immediately provides clients with significant Environmental, Social, and Governance (ESG) benefits, a crucial metric for major industrial customers.
Compounding this advantage is the plant’s geographical location. Based in Tasmania, 85 per cent of the foundry is powered by the state’s hydroelectricity grid.
Newly installed pulsified gas burners use 50 per cent less gas. This means that the most energy-intensive part of the process – melting steel – is already largely decarbonised, positioning the foundry ahead of many international competitors reliant on coal-fired power.
Beyond energy and steel, Castings Tasmania views every input as a resource that must be managed responsibly. This extends to the moulding sand, a non-renewable resource that is currently facing shortages in Australia.
The company is exploring ways to remove used casting sand completely out of the waste stream and into the circular economy, either by reclaiming it for repeated use within the foundry or by repurposing it into a component, such as concrete, for other industries.
Dean is a staunch supporter of the company’s approach to resource recovery, referring to the team’s role not merely as recyclers, but as stewards of the materials they use.
“This circular economy is not just a buzzword. We need to own it, because we need to make the most of our resources that we currently have.”
“We are just custodians of these resources. In the past, industry has been very good users. Now, all EcoCycle Group businesses are about recovering as much as we can, and repurposing and recycling. It’s stewardship of our resources.”
Embracing this philosophy has driven significant capital investment in automation and technology. The foundry is currently commissioning a first-in-Australia prototype robotic cell designed for the finishing of castings. Traditionally, this laborious and high-risk work involved staff using grinders and oxygen cutters.
“By changing some of the processes, we can remove some steps that require energy consumption,” Dean says.
“Before, we used to heat up some of the castings to process them. By using a robot, we don’t need to heat them. Therefore, we’re removing some energy costs, as well as ensuring we have consistent, repeatable processing. There’s also a secondary benefit of improved productivity.”
This digital transformation strategy is deliberately aligned with the company’s people strategy. By automating physically demanding and repetitive roles, Dean says the business can focus on attracting and training personnel for high-skill, technical roles, ensuring the essential skill set remains in Australia.
He believes the future of Australian manufacturing must be built on a foundation of quality, accessibility and sustainability.
“What is our value proposition for people to buy from us, versus buying it from larger manufacturing places? It has to be around quality, delivery time, and ESG,” he says.
“When you get a lining to go to a mine site out of Castings Tasmania, and you contrast that with a lining coming out of an international market, I know where the ESG value is going to be.”
Looking forward, the vision is ambitious. Castings Tasmania aims to transition from solely producing castings to manufacturing the final, full product, complete with machining. This will not only capture more value in the supply chain but also reinforce Australia’s manufacturing sovereignty.
The ultimate goal, however, is a moonshot for heavy industry: carbon neutrality.
“There is no reason why we cannot get to that position,” Dean says. “The carbon credits that we get from recycled steel coming through – that is a massive credit base to work from.
“Then, if we can start using thermal energy and solar, there is a lot of opportunity where we could end up being carbon neutral. Why shouldn’t we aim for that?”
For more information, visit: www.castingstas.com.au
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