FROM humble beginnings in a small shed in 1994, Bunburybased engineering and construction firm SWG Holdings has grown to become one of the state’s key players in the industry.
poweFrom humble beginnings in a small shed in 1994, Bunbury-based engineering and construction firm SWG Holdings has grown to become one of the state's key players in the industry.
SWG provides its clients in the mining, oil and gas and resources sectors with expertise in engineering and drafting, fabrication, installation, construction and maintenance services.
With four business units - Engineering and Drafting, Fabrication and Maintenance, Onshore Projects and Offshore Construction - SWG can cater for small one-off jobs to multi-million dollar construction projects.
Its clients include Iluka Resources Ltd, BHP Billiton Ltd, Rio Tinto Ltd, Bunbury Port Authority and Alcoa Ltd, with operations and projects being executed across WA and South East Asia.
Now with more than 200 staff and forecasting an annual turnover of $95 million for 2007-08, the company has its sights set on expansion into South East Asia, recently opening a new office in Singapore.
The past three years has been the strongest growth period for the South West-based labour hire business turned diversified engineering and construction group.
With a new executive management team coming on board in 2005, including chief executive officer David Kaestner, executive director and chief operating officer Scott Anderson and chairman Mark Bradley, the company set about expanding its presence and brand in its chosen markets.
The new team has already delivered strong results, recording close to 100 per cent year on year turnover growth.
During that period, staff numbers also rose from 146 to 215, a significant increase on the 85 staff working for the company at the beginning of 2005.
Chief operating officer Andrew Holborn, who joined the company at the beginning of 2007, said the past three years have been outstanding for the company.
"That's been part of our philosophy, we're not for the quick hit, but to grow as a sustainable business organisation," he said.
SWG believes it has been able to achieve such high levels of growth due to its ability to attract, retain and develop quality staff, as well as by delivering a high quality of services supported by a business assurance system.
It also believes that understanding its niche position in the wider market has allowed it to focus its efforts and build a reputation in a specific area.
Now on a solid growth trajectory, the management team are committed to growing SWG into a $400 million business in the next three years.
It says it will achieve this objective through its three year strategic plan, with its growth strategy focused on taking its existing services to new geographic markets.
Mr Holborn said the company's expansion strategy is two fold - to replicate its offshore production business into other geographical regions, with a focus on South East Asia, with the second focus on expand its construction business product within WA.
"We've just completed a train unloader for FMG, so it's a good opportunity to use it as a platform to continue to expand into that market," he said.
"We have demonstrated that we're not restricted, that we can work anywhere."
The company believes the high global demand for resources, together with recent efforts to build on its capacity to become a business of this size through addressing infrastructure, people and processes, will ensure its strategic plans are met.
Its offices in Bunbury and Perth are expanding to cater for construction projects being undertaken in the state, with Singapore to provide a base for South East Asian projects.
Key entrepreneurial personnel have been bought on board to manage the group's business division and corporate functions, while initiatives have been implemented to attract and retail staff.
The company's expansion plans have also been boosted by its proposed acquisition by Programmed Maintenance Services Ltd.
The acquisition, at a price of $40 million, is expected to put SWG in a strong position to take advantage of growth opportunities.
"We believe growth into Singapore and continued expansion will not only be supported but might be accelerated [by the Programmed acquisition]," Mr Holborn said.
It is expected SGS management will sign long-term contracts to remain with the company, which will operate as a separate business within Programmed.
SWG was a desirable target for acquisition by Programmed because of its strong growth and management team, and excellent reputation and track record in sectors where demand is growing at a fast rate, the company said in a statement.
It also complemented some of its existing business units, and will extend Programmed's presence in the oil, gas and resources industries.
Meanwhile, Programmed are in the middle of dealing with its own acquisition by Spotless Ltd.
The directors of Programmed have suggested shareholders reject the Spotless takeover offer.
