The engineering house has leased about 10,000sq.m of purpose-built manufacturing factory space, including laydown areas, adjacent to its existing facility in the industrial boomtown near Singapore.
Lease rates for the facility represent about 5% of the cost of Austin's leased facility in Perth, Western Australia.
The expanded, advanced manufacturing facility will provide 150 production jobs and is expected to be opened in early January 2023. Activity there will include building sub-assemblies to feed Austin's other businesses and clients around the world thanks to the advanced manufacturing jigs, tooling, automation and build facilities.
The sub-assemblies will be sent to Australia for final assembly.
With a second 24m bed plasma machine due to be installed, material cutting and processing capacity rises from 5000 tonnes to 10,000t.
Austin has reported the expected cost of the Batam facility upgrade and capacity expansion to be $3 million for advanced manufacturing, $2 million for facility expansion and $1 million for additional equipment, including the plasma and welding machines.
Austin chief executive officer and managing director David Singleton said for supply into Australia, the Indonesia activities helped ease the significant labour scarcity, particularly in WA.
"I am really excited by what is happening in Indonesia, where we are seeing strong orders and revenue growth being driven by a great local team that is transforming the business," he said.
"We have made changes that were necessary to our business as identified in the strategic review."
Singleton said first half 2023 revenue was expected to be about 80% higher when compared to the previous corresponding period.
Continued revenue growth is expected in the second half, as the increased order book feeds through to revenue.
Singleton said continued weakness in the WA business had forced changes, which were underway.
"We will wear some of the financial impact in the first half but expect stronger performance from here," he said.
"Indonesia is key to our hub and spoke manufacturing strategy and will be increasingly able to support our operations in Australia, boosting the capabilities in our important Asia Pacific segment."
Shares in Austin closed at 32c yesterday, giving the company a market capitalisation of $186.7 million.