Automation and robotic systems firm Scott Technology said it had won a $10 million contract to design and build a lamb-boning system for one of Australia's largest meat processors, Thomas Foods International (TFI).
The investment by TFI will deliver improved product quality and increased yield of high-value cuts, Scott said.
The system uses advanced X-ray and vision technology to deliver a high accuracy of cutting, while also improving health and safety by removing much of the heavy cutting activities.
"Like many industries, the meat processing industry in Australasia and the United States continues to grapple with the challenges of improving worker safety while increasing yields, at the same time as struggling with major issues around labour availability," chief executive John Kippenberger said in a statement.
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Scott's lamb processing technology is used in 13 processing plants across Australasia.
The system is to be installed at TFI's Tamworth plant in New South Wales and will be designed and built from Scott's Dunedin facility.
Newly restructured Scott last week said that it expected its earnings momentum to continue in the second half after returning to profit and paying a dividend in the first.
Scott's net profit came to $4.7m for the six months to February 28 compared with a loss of $13.7m in the previous first half, which included the costs associated with the programme.
The company's shares last traded at 2.60, up eight cents from Monday's close.