From a small country town in Victoria to the commercial centre of Japan – STG Global marks a company milestone.
STG Global is known for its innovation. Now the home-grown truck manufacturer is tapping into international expertise to expand its reach and product development.
In December 2024, the company entered a new chapter through an acquisition and merger by one of the world’s largest manufacturers of purpose-built trucks, Kyokuto Japan.
James Agius, STG Global Chief Operating Officer, says the partnership is a defining moment in STG’s history.
“It’s a significant milestone in the evolution of the business,” James says. “It signifies a union of strength of both STG and Kyokuto.
“Together, we are positioned to elevate our offerings, expand our reach and achieve sustainable growth on a global scale.”
STG Global is no stranger to defining moments. The company’s origin story is one of ingenuity and grit. It arose from the determination of two brothers, Ross and Regan Yendle, to save the family farm in the small country town of Mansfield, Victoria, which had been hit by drought and hard times.
The brothers’ first water tanker was built in 24 hours, using spare parts from around the farm, to help suppress dust at a local construction site.
That truck changed the brothers’ trajectory and was to be the backbone of a company that has earned a reputation for building trucks to navigate Australia’s versatile and sometimes tough conditions.
Seeing a hole in the market when it came to manufacturing and producing world-class water tanks and other truck bodies, the brothers directed their energies and attention to this market.
For the past 30 years, STG Global has delivered ground-breaking waste trucks including The Bandit Side Loader, Tusk Frontloader and Vacuum Jetter trucks, as well as partnering with international companies such as Aebi Schmidt and NewWay Trucks.
In 2023, the company invested heavily in delivering a fleet of ‘smart trucks’, with advanced functionality including a single, digital screen and self-diagnostic capabilities.
The ability to pivot to meet industry demand has put STG Global at the forefront of the waste and recycling industry in Australia and New Zealand. James says the company has experienced 30 per cent growth year on year over the past four years, on the back of an increased product portfolio, greater presence in the market and fast lead times.
He says the merger with Kyokuto is the next step in that growth, both domestically and internationally, and will enhance STG’s manufacturing capabilities.
“STG and Kyokuto are like-minded companies,” he says. “Kyokuto is renowned for its precision manufacturing and commitment to quality, sustainability, and customer satisfaction, which complements STG’s innovative spirit and deeply rooted DNA of delivering purpose-built trucks, coupled with Australian engineering excellence.
“The merger allows our Australian engineering team to tap into the experience of Kyokuto’s team to provide customers with more products and more solutions.”
James says STG Global has strategically placed facilities in key locations such as the Americas and Asia. Early in 2024 the board recognised that capital was required to take the next step in the company’s ambitions to place STG trucks across all nations.
While there was investor interest from several companies, Kyokuto was the best fit, drawn to STG Global’s large product portfolio, strong market presence across Australia and agility to deliver products quickly.
“Like-minded companies have a better understanding of the complexities involved in growing a business,” James says. “Kyokuto builds quality products. They are manufacturing truck bodies and products that complement ours and they have the same market aspirations as we do, to grow their markets globally.”
Kyokuto Japan was established in the 1950s and has more than 70 years’ experience in manufacturing and innovation of special-purpose vehicles, bringing new technologies and ideas to various fields.
A large portfolio of truck solutions includes refuse and dump trucks, concrete pumps and mixers and bulk carriers, which could in future be distributed and supported within Australia under the STG Global banner.
With operations spanning Japan, China, Indonesia and India, Kyokuto’s recent global expansions include the acquisition of SATRAC Engineering in India, highlighting a vision for strategic growth and excellence.
A vision shared by STG Global.
James says STG’s mission is to provide world-class, innovative specialised trucking solutions to all industries across the world. One of its key target markets is North America.
“We have a large product portfolio and waste trucks are just one sector. The yearly market in North America is 14,000 new trucks a year – just some of that market would be significant for us,” he says.
Kyokuto’s experience and expertise will help drive the company forward, but for now, there is no immediate change to STG’s business operations.
Over time, STG will integrate Kyokuto’s advanced manufacturing techniques, global expertise and product offerings.
Tatsuya Nunohara, Kyokuto Representative Director, President and Chief Executive Officer, says STG and Kyokuto have different DNA, however, they are in a relationship where they complement each other and can produce the best possible synergy.
“Firstly, each product of STG and Kyokuto can complement each other without interfering, therefore, we can increase the number of our product lines and the synergy between production and sales bases will be very high,” he says.
The acquisition was effective from December 2024. Kyokuto executives visited STG Global’s Australian headquarters following the final sign-off. Both companies will now develop a strategy to harness each other’s strengths over the next one to five years.
“We’re excited to embark on this transformative journey,” James says.
“When you are a small, privately-owned business one of the limitations when you grow at dramatic speed is having the infrastructure and support.
“For customers, the advantage of this merger is that we will be backed by a larger group. Kyokuto’s appetite for further investment in growth presents a huge opportunity.”
The Yendle brothers continue to be active in STG Global through to the acquisition.
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