Shipbuilder Austal has made a push into the resources sector, announcing a $1.5 million modular building joint venture with Nomad Building Solutions.
The agreement, between Nomad subsidiary Nomad Modular Building and Austal, will see Nomad manufacture and assemble modular buildings at Austals manufacturing facility at the Australian Marine Complex in Henderson.
Nomad managing director Michael Bourke said the first project to be built under the agreement would be the manufacture of 44 accommodation and staff amenity buildings for Rio Tinto’s Western Turner Brockman project.
“The joint venture agreement was a win-win situation for both companies,” Mr Bourke said.
“It provides Nomad with access to a skilled workforce and high-tech manufacturing facilities as well as providing additional manufacturing capacity, and enables Austal to develop new manufacturing expertise and generate additional revenue in the resources sector”
The announcement is the first major shift in strategy for Austal since it announced a sweeping review of its Henderson operations in May.
Austal chief executive Andrew Bellamy said the contract was a low-risk opportunity for Austal to apply its modular manufacturing capabilities to project opportunities in an adjacent sector.
“The demands of the resources sector are creating opportunities for organisations with different skills, capabilities and industry perspectives. We believe that the resources sector will value the high quality workmanship that Austal's skilled fabricators, with their international maritime sector credentials, bring to this project.”
“This contract presents a good opportunity for both Austal and Nomad to trial this style of working relationship as a model for further potential co-operation.”
Mr Bellamy said the contract would likely be the first of many resource sector-related opportunities for Austal in coming months.
At 10:50AM (WST) Austal’s stock had gained 4 cents, to $2.70, while Nomad shares rose 1.1 cent, to 10 cents.
