Raubex takes 70% stake in Westforce

South African construction group Raubex has taken a 70 per cent stake in local engineering contractor Westforce Construction for $6.5 million.

Westforce, which was established in 2006, has about 60 employees and works primarily for government organisations including Defence, Western Power, Water Corporation, Public Transport Authority and top-tier contractors.

Westforce managing director Mike Murrey said the sale would open up interstate opportunities for the business.

“The experience and financial capacity of Raubex is expected to allow Westforce to compete for larger projects across a variety of sectors,” he said

Raubex has annual revenues of around $1 billion with interests across mining, infrastructure and housing developments.

In a statement to the Johannesburg Stock Exchange, Raubex said a softening local construction industry had forced the business to look internationally to increase revenue.

“The group is encouraged by the prospects in Western Australia and the opportunities that can be unlocked through the Westforce acquisition,” the company said.