Despite the current economic climate, engineering firm VDM Group Ltd is planning to expand its services into the United Arab Emirates as it scraps plans for some smaller acquisitions.
In a move to assure shareholders of its position, the company said that while it is mindful of the potential slow down in the construction sector, the management team is actively moving ahead with plans to broaden the company's geographical reach.
"The United Arab Emirates offers significant opportunities for VDM Group to provide its diversified engineering and project services," VDM said in a statement.
The company already has a contract in the Middle East, acting as structural engineering consultants for the Nakheel Tower in Dubai, currently the tallest tower in the world under construction.
"The company is also benefitting from continued spending in the Australian infrastructure market, particularly South East Queensland where the Bellero Construction business continues to outperform," it said.
Meanwhile, VDM said that given current market conditions, it will not progress with some of the smaller acquisitions it was considering, however will maintain the current close relationship with the firms.
It did not name which businesses it was considering acquiring.
Shareholders were pleased with the news, driving the company's share price up 20 per cent to close at 56.5 cents today.
