$184m in new work for Ausclad

Kwinana industrial services company Ausclad Group has lifted its order book to $184 million after winning three new contracts in the iron ore, energy and nickel sectors.

The new contracts follow Ausclad’s recent move to full ownership of its Singapore subsidiary Cactus Engineering, which provides specialist machining and fabrication services to the oil and gas industry.

Ausclad bought 76 per cent of Cactus earlier this year and paid a further $3.2 million last month to acquire 100 per cent ownership.

Managing director Stuart Kenny said Ausclad always intended to gain full control of Cactus, which he believes will be able to win work from the increased use of sub-sea systems in offshore oil and gas production.

With a listing on Singapore’s Sesdaq exchange, Ausclad’s new contracts include $16 million of work for Fortescue Metals Group, which is developing an iron ore project in the Pilbara.

The work includes the supply of fabricated structural steel and plate work.

Alinta has awarded Ausclad a $12 million contract for work on the installation of two gas turbine generator units at a new power station being built at Alcoa’s Wagerup refinery.

Ausclad will work on the installation of various components such as the fuel block, exhaust stack, piping and insulation.

The third new contract, valued at $4 million, is for the manufacture, supply and delivery of a heat exchanger for Anaconda Nickel’s Murrin Murrin nickel project.

The Minara contract followed the recent extension of Ausclad’s maintenance contract at the Murrin Murrin plant.

The 21-month extension is estimated to be worth more than $40 million.

Commenting on the domestic outlook, Mr Kenny said the firm had a good order book, but he was cautious.

“It’s a good position to be in, but by no means are we at capacity.”

He said the firm’s workshops were going through “a bit of a lull” at the moment.

Mr Kenny was much more upbeat about the regional oil and gas sector, which he expects will generate plenty of work for up to five years.