Industrea said the contract included associated training and equipment in its successful sale to Shanxi Jincheng Athracite Mining Group’s Sihe coal mine in Shanxi Province.

The drilling system will be built in the New South Wales Hunter Valley.

As part of the company’s push into Chinese markets, Industrea has also opened a product support centre in China and registered its subsidiary Wadam as a wholly owned foreign enterprise.

Industrea has won about $110 million of new contracts for the current financial year, most coming from China’s underground coal mining sector.

“Industrea continues to win new business in China against tough international competition due to our market leadership in mining safety and productivity equipment,” Industrea managing director and chief executive officer Robin Levison said.

“Our world-class directional drilling technology allows our customers to safely remove gas at high volumes from a coal seam.

“We are now moving into the next phase of our Chinese growth strategy with the development of recurring revenue streams from not only new equipment sales, but also from training, maintenance, spare parts and support services, which are an increasingly important aspect of winning and maintaining customer loyalty.”

Industrea shares are down half a cent to 27c this morning.