Presentation by Nick Flanagan, Regional Manager SA/NT WSP Parsons Brinckerhoff. Information on the Advanced Modular Construction initiative and its opportunities for South Australian business.

1. Future proofing South Australia
Advanced
Modular
Solutions (AMS)
RESA / AUSTMINE
FEB 2016

2. WHAT IS AMS ? 2

3. WHY CONSIDER AMS HERE IN SA? 3
TRADITIONAL
MANUFACTURING
HERITAGE
HIGH SKILL BASE
NEED GREATER
EXPORT FOCUS
LEAN MANUFACTURING
MINDSET
SUPPLY CHAIN UNDER
STRESS

4. NORTHERN ECONOMIC PLAN
4
 AMS is now included in the Northern Economic
Plan issued by the SA Government

5. CONCEPT STUDY OVERVIEW
5
•Larger MEGA projects have slowed particularly in Australia
•Australian ASX listed companies looking offshore
•Increased certainty of capital costs and facility ramp up within schedule especially
in a debt funded global project environment
•Focus on driving innovation into projects and improving efficiencies
•Companies considering short mine life opportunities
•Logistics and locations remain a big challenge for new projects
Demand Side
•Modularisation exists and large modular yards are in play across Asia
•Module yards not necessarily high end technology and no evidence of innovation
was found
•Oil & Gas quite mature in business as usual modularisation
•Logistics and planning are key to successful modularisation
Supply Side
•Gaps exist between current supply and demand of complex plants in remote areas
•Opportunities: Introduce standardisation into AMS and design for full asset
lifecycle, Utilise lean manufacturing techniques, Establish an alliance frame work
and CoE. Attract existing supply chain organisations as well as new business
organisations and key individuals to South Australia.
SWOT
•South Australia is well placed to innovate and commercialise new AMS technology
•South Australia looking to attract new Industry and business’ to establish here
•Action Plan: Align clients, R&D, industry and government to accelerate innovation
and commercialisation.
Local SA

6. PROPOSED TARGET MARKETS
6

7. VISION
7
Vision for an AMS industry alliance based in SA:
 South Australia will become a
global Centre of Excellence for
AMS through an Industry led
alliance that innovates, consults
designs, produces, supplies,
installs and maintains ‘Modular
Solutions’ for its clients
throughout the full asset lifecycle.
Key focus and mission for AMS technology:
 AMS technology will enable a
reduction of a proposed project’s
capital cost, operating costs and
time to market that could swing the
balance of risk and opportunity in
favour of the business case to
proceed with new projects.

8. KEY RECOMMENDATIONS
8
The proposed pathway forward is to;
Establish an Alliance model of Industry, Technology, Research &
Development and Government agency partners that delivers the AMS
vision supported by a global Centre of Excellence located in South
Australia that:
 Develops key AMS technologies and innovates to maximise the value
of the AMS concept,
 Engages with Industries including Resources, Defence, Energy, Oil and
Gas, Renewables and enables commercialisation of AMS opportunities
(initially target pilot projects), and
 Identifies and applies for relevant funding both from State and Federal
government and industry. (Also membership based funding)
 Has a long term export focus in ‘niche’ market segments

9. PLANNED AMS ROADMAP – PHASE 1 2016
9

10. GENERIC AMS PILOT PROJECT SET UP
10

11. EXAMPLE – COPPER CONCENTRATOR 11
• BIM designed Compact Modules – smart structures
• Sub Module Assembly on Site
• Manufactured Structures, Mech and Elec
• Efficient Component change Out
• Automation and remote control
• Optimised process control systems
• Power and process efficient
• Scalable Capacity through > modules
• Logistics Solutions
Areasof
Innovation

12. CURRENT STATUS AND NEXT STEPS
12
Demonstrate the feasibility of AMS Concept
Develop concepts for the pilot project
opportunities to compare with the
conventional model
Secure additional pilot projects
opportunities to commercialise AMS
Concept
Build pipeline of AMS opportunities
and seek funding arrangements
Establish AMS Alliance and Centre of
Excellence.
AMS Forum
Inform MIPO & Industry
specialists on the progress to
date and seek feedback.
Collect innovative ideas
through collaboration
Identify and attract partners
and specialists.
Drive innovation into Pilot
Projects
Confirm the way forward with
State Government
Pursuing Pilot Project Opportunities
Presented at IMARC
Concept design for Pilot Project 1
(resources sector) is ready to
commence.
Pilot Project 2 (resources sector) and
3 (renewable energy sector) are in
pursuit.
Financial co-contribution is being
applied through the State
Government
Complete the Concept Study
Report Delivered to DSD in Oct 2015
Follow-up interviews with the resources companies to inform them of the
findings & roadmap and seek feedback.

13. BENEFITS FOR PACE SUPPLY CHAIN INITIATIVE
13
 Allows existing SA supply chain to expand Nationally and Internationally
 Has a strong longer term export focus
 Will encourage companies to develop and improve capabilities
 AMS will attract global OEM’s and Technology firms to Adelaide
 Alliance model will allow for ‘open’ collaboration amongst competitors
 AMS can operate across many markets

14. SUMMARY
14
 AMS recognised in Northern Economic Development Plan
 AMS will operate under an ‘Alliance’ framework and CoE
 AMS is about bringing the local supply chain along for the ride
 International OEM’s need to be attracted to the state
 Not constrained to any particular markets
 Lifecycle focus – design, build, operate, maintain, optimise, relocate