FMG awards $24m contract

Fortescue Metals Group has awarded a $24 million contract to Australian Ceramics Engineering, primarily to provide offsite refurbishment for its operational sites in the Pilbara.

Australian Ceramics is a privately-owned Western Australian company, formed in 2011, with manufacturing facilities in Perth and Port Hedland.

Under the contract, the company will complete up to 50 per cent of the offsite repairs at its facility in Port Hedland and also establish a purpose-built workshop in Newman.

Australian Ceramics chief operating officer Darren Clinton said the contract would create up to 10 new jobs and increase its Pilbara-based workforce.

“Australian Ceramics will spend an estimated $2 million to $3 million on infrastructure, facilities and services in the Pilbara site over the next three years, thus supporting many local businesses in the delivery of their services,” he said.

Fortescue chief executive Elizabeth Gaines said the contract announcement signified the company’s ongoing commitment to supporting local jobs and businesses.

“From the outset, it was Fortescue’s vision to ensure our communities benefit from our growth and development through employment and business development opportunities,” she said.

“Engaging a WA business with facilities in the Pilbara not only provides us with cost effective, reliable and high-quality services, but also provides a welcome boost to the local asset management sector and flow-on benefits to the region’s economy.”

Shares in Fortescue were up 1.01 per cent to trade at $9, as at 4:10pm AEDT.