05/11/2008 - 11:33

Downer, Paladio secure $66m in contracts

05/11/2008 - 11:33

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Downer EDI has secured a $35 million engineering contract with BHP Billiton for expansion works at its Pilbara iron ore operations, while Paladio Group has won its third Woodside contract in two months.

Downer, Paladio secure $66m in contracts

Downer EDI has secured a $35 million engineering contract with BHP Billiton for expansion works at its Pilbara iron ore operations, while Paladio Group has won its third Woodside contract in two months.

Downer chief executive Geoff Knox said the electrical installation work forms part of BHP's Rapid Growth Project Stage 4, also known as the Newman Hub.

"It's always pleasing to see relationships with strong clients mature and grow and to be working on our fourth stage of such an important project for BHP Billiton shows the confidence that industry leaders have in our ability to deliver in high performance environments," Mr Knox said.

"This new contract takes the value of our work on the Newman Rapid Growth Project to approximately $200 million.

"The contract was won on a competitive tender basis with our proven performance in regard to safety and environmental management key factors in securing the win," he said.

The project, which includes the provision of a crushing and screening plant, stockyard facility, ore train loadout facility and an ore-car dumper, is expected to be completed in July 09.

Meanwhile Paladio, through its wholly owned subsidiary Decmil Australia Pty Ltd, has been awarded a further contract for work at Woodside's Pluto LNG Project in Western Australia.

The latest contract, valued at $31 million, is for the construction of the Project's Central Control Room.

The $12 billion Pluto LNG Project, expected to produce first gas in late 2010, is set to become Australia's second biggest resources project.

This contract lifts Paladio's current order book to approximately $320 million and, depending on various project timings, the order book for 2009/10 is now estimated at $130 million.

Paladio Chief Executive Officer, Mr Victor Kuss, said Decmil's ability to consistently win significant contracts in recent months demonstrates the continued demand for their engineering and construction services by major resource companies in Western Australia such as Woodside, BHP Billiton and Rio Tinto.

"Decmil has established long-term relationships with these and other clients over the past three decades. This platform means that Paladio is well positioned to continue to execute the company's growth strategy and build a strong and sustainable future for the Paladio Group."

In the contract awarded by Woodside today, Decmil will construct a 2000 sq metre building to house Pluto's state-of-the-art plant control room and administration.


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