RCR secures $47m in new contracts

Welshpool-based engineering company RCR Tomlinson Ltd has secured more than $47 million in new contracts across the Australasia region.

The company said the new project work was in addition to more than $60 million in new orders since the start of the year.

The new contracts include $22.3 million in new equipment orders through its Bunbury design office, $7 million for the first combined electrical and mechanical order for the overhaul of a dragline through Eagle Engineering operations and $8.5 million for the design, manufacture and supply of a lignite fired boiler in New Zealand.

Below is the full announcement:

Multi-disciplinary engineering company, RCR Tomlinson Ltd (ASX code: RCR), has recently secured more than $47 million in new project work across Australasia. These works include:

- $10 million estimated per annum for site electrical and mechanical minor construction works over an initial two year period with an optional five year extension;

- $22.3 million in new equipment orders through the Bunbury design office in Western Australia;

- $8.5 million for the design, manufacture and supply of a lignite fired boiler in New Zealand, with delivery scheduled for first quarter 2009; and

- $7 million estimated for the first combined electrical and mechanical order for the overhaul of a dragline through Eagle Engineering operations.

The new project work which is in addition to more than $60 million in new orders for RCR since January 2008, demonstrates a very strong outlook for the Company, with robust tendering levels across the business.

RCR Positron and the Construction and Maintenance business units' tendering activity has increased by an unprecedented 200% in the last quarter. RCR currently has a number of opportunities being tendered on a reimbursable basis in lieu of a fixed price contract basis.

The existing pending tender book value is in excess of $130 million and the current tender enquiry level is in excess of $200 million. This level of enquiry represents more than two years of project work for these divisions going forward.