14/04/2015 - 14:56

Civmec buys Indonesian facility

14/04/2015 - 14:56

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Henderson-based construction services company Civmec plans to purchase a 21-hectare waterfront site in Indonesia from engineering group Technip, as it seeks to lower its cost base by building up its overseas operations.

Civmec buys Indonesian facility
Civmec chief executive Pat Tallon.

Henderson-based construction services company Civmec plans to purchase a 21-hectare waterfront site in Indonesia from engineering group Technip, as it seeks to lower its cost base by building up its overseas operations.

Singapore-listed Civmec said the proposed acquisition of PT Global Industries Asia Pacific included securing 21ha of waterfront land with deepwater access in Batam, Indonesia.

It also includes the signing of a long-term collaboration agreement with Paris-based Technip, which in the past two years has awarded supply contracts to Civmec for the Wheatstone and Prelude LNG projects.

Batam has become a major site for fabrication and assembly of modules for Australian resources projects, in many cases replacing work that was previously done at workshops on the Kwinana strip or on site at the resources projects.

“Further development of the facility will enable the company to carry out many of its multi-disciplined capabilities including heavy engineering, modularisation and pre-cast concrete works,” Civmec said.

“The location and geometry of the land also makes it ideal for new activities such as the potential establishment of a spoolbase for shallow and deep-water subsea pipelines.”

Civmec has previously been conducting work out of its facility in Henderson.

The company said the acquisition was justified by considerable opportunities in the infrastructure and subsea sectors, as well as the long-term outlook within the oil and gas and mining sectors.

Chief executive Pat Tallon said it was an opportunity for the company to extend its multi-disciplinary operations overseas.

“We will be well positioned to capitalise on the significant infrastructure expenditure planned for South-East Asia,” Mr Tallon said.

“The increased capacity allows Civmec to deepen our relationship with existing blue chip clients globally, as well as bringing onboard new regional clients.”

The company expects to complete the transaction by August, with the acquisition to be funded through its current banking facilities.

 

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