20/06/2013 - 14:42

Forge subsidiary in line for $US221m deal

20/06/2013 - 14:42

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Forge Group managing director David Simpson.

Forge Group’s newly acquired US-based subsidiary Taggart Global has been named preferred contractor for a $US221 million engineering and construction contract at the Vista coal project in Alberta, Canada.

The contract comprises construction of a six million tonne per year, thermal coal facility including a coal handling, preparation and processing plant, including conveyor belts and loading infrastructure.

Forge managing director David Simpson said the company was pleased Taggart had been named project operator Coalspur Mine’s preferred contractor.

“We acquired Taggart to give Forge Group exposure to a recovering North American economy and to diversity our revenue and earnings into these markets,” Mr Simpson said.

“Taggart’s extensive track record in CHPP projects was an important determinant in the tendering process.”

Forge acquired Taggart earlier this month, for $US43 million. Settlement of the acquisition is expected to occur early next month, after which Taggart will be rebranded alongside Forge’s existing divisions.

At close of trade today, Forge Group shares were up 0.5 per cent, trading at $4.19.

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