Both sides of politics have jumped on a $50 million contract awarded to AusGroup subsidiary AGC Industries for Chevron's Gorgon development in the continuing debate over local content in major resources projects.
Both sides of politics have jumped on a $50 million contract awarded to AusGroup subsidiary AGC Industries for Chevron's Gorgon development in the continuing debate over local content in major resources projects.
Both sides of politics have jumped on a $50 million contract awarded to AusGroup subsidiary AGC Industries for Chevron's Gorgon development in the continuing debate over local content in major resources projects.
Premier Colin Barnett was on hand with Chevron Australia's managing director, Roy Krzywosinski, today at AGC Industries to announce the deal, which will take place over 18 months and will cover receiving material, fabrication, storage, coating and testing of 8,200 pipe spools of various diameters.
It takes AusGroup's order book to $288 million.
"We are extremely pleased to support Chevron as the operator of the historic Gorgon Project," AusGroup managing director John Sheridan said.
"Today marks an important milestone for AGC - this opportunity strengthens our growth and delivery aspirations within the Australian natural resources industry."
AGC said fabrication would occur at its facilities in Kwinana and Henderson.
Mr Krzywosinski said he was optimistic there would be similar announcements in the near future.
"I think it's a great day for AGC, it's a great day for Chevron and it's an encouraging sign for the future of local fabricators," Mr Krzywosinski told reporters at the industrial hub of Henderson, south of Perth.
"I think it demonstrates local fabrication can compete on an international basis as this contract was bid for by both local and international fabricators."
But local businesses and unions have seized upon the deal, saying the contract was insignificant compared to the work for the project that has gone overseas.
Although he welcomed the contract award, Australian Manufacturing Workers Union state secretary Steve McCartney said the 7,500 tonne project was a drop in the ocean compared to the 250,000 tonnes of steel the Gorgon project was having fabricated overseas.
"While the AMWU welcomes all steel contracts and all steel jobs, the Premier needs to be a little humble about this announcement, when you consider it represents less than 3 per cent of the total steel required for the Gorgon project alone," Mr McCartney said.
Australian Steel Institute WA manager James England agreed, and said local fabrication businesses were not getting the pipeline of work needed to create jobs and apprenticeships.
"Local businesses need a clear stream of work to invest and train workers and we need a long term solution, rather than a few small short term contracts," Mr England said.