SIMPEC wins $7m Fortescue contract

WestStar Industrial’s engineering and construction arm has been subcontracted for works at Fortescue Metals Group’s Solomon Hub in the Pilbara.

Fortescue is developing the Solomon Central Facilities Workshop, which involves consolidating various workshops, facilities and other non-process infrastructure into a centralised location.

It contracted Central Systems for $57.5 million in October last year to complete the design and construction works associated with the central facilities.

Central Systems has subcontracted WestStar's SIMPEC to supply and install the facilities' electrical, instrumentation and communication infrastructure.

Works will begin immediately and are expected to complete by the third quarter of 2021.

“To be part of this new development in the non-process infrastructure space on a Fortescue Metals Group project is very rewarding for the team,” SIMPEC managing director Mark Dimasi said.

“The large project allows SIMPEC to showcase its true engineering and instrumentation capabilities.”

The Fortescue works come shortly after SIMPEC, acquired by WestStar in mid-2017, secured its first contract under a joint venture with Indigenous-owned IronMerge, valued at $15 million.

ASX-listed WestStar says it has secured about $58 million in new contracts through SIMPEC and its other subsidiary, Alltype Engineering (acquired in late 2019).

The group was trading 5 per cent lower at 11:28am AEDT to 1.9 cents per share.