Workers from iron ore rivals FMG and Rio will all be bedding down with Sodexo.

Pilbara mine camp merger

Friday, 3 November, 2017 - 13:30
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Global facilities management giant Sodexo, which counts Rio Tinto’s iron ore business among its major clients, is buying Australian competitor Morris Corporation, the manager of Fortescue Metals Group’s three major camps.

The combined business will have about 5,200 workers across Australia, with nearly half of those in WA.

Fifty per cent of Morris’ 1,200-strong workforce is WA-based and close to 1,800 of Sodexo’s 4,000 workers are in WA.

The acquisition adds to rapid growth in Sodexo's business.

In March 2016, Sodexo signed a $2.5 billion contract to manage all of Rio Tinto’s mine camps and other facilities in the Pilbara for 10 years, across 42 sites, including five towns, 15 mine sites and three ports.

The services encompass everything from catering, cleaning and waste management to grounds maintenance, aerodrome management and transport services.

Outside of iron ore, in February 2017 Sodexo won a two-year, $22 million integrated services contract at Rio Tinto’s Amrun bauxite project in north Queensland.

In November 2015, it was awarded a contract to run Shell’s Prelude floating LNG facility off the Kimberley coast.

It also operates the new 256-bed Melaleuca women’s prison for the WA government

Morris Corp’s biggest client is FMG, with the two companies having worked together for 10 years.

In 2013, FMG awarded six five-year contracts collectively worth $500 million to joint ventures between Morris Corp and five indigenous businesses, including Eastern Guruma and MIB Group.

Morris currently manages FMG camps at Cloudbreak, Christmas Creek and Port Hedland. The remaining villages are service either by Action Industrial Catering or by FMG direct.

"We look forward to working closely with Morris and Sodexo to ensure a smooth transition that maintains our high standards of services to the Fortescue team," managing director Nev Power said.

Queensland-based Morris had total revenue of $152 million last financial year.

The terms of the acquisition were not disclosed.

Sodexo's major competitors include global players ISS Facilities Services and Compass Group’s remote division, ESS Support Services Worldwide, along with Australian company Spotless.

Sodexo chief executive Michel Landel said today both his French company and Morris Corporation started as family-owned catering firms in 1966.

“We share similar values including a commitment to indigenous communities and a focus on developing sustainable local businesses wherever we operate,” he said.

Sodexo has 425,000 employees in 80 countries and annual revenue of €20.2 billion ($30.6 billion).

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