Northbridge-based VDM Group Ltd subsidiary, Queensland-based Bellero Constructions Pty Ltd has been awarded a $30m contract for the construction of the Bundaberg Ring Road by the Queensland Department of Main Roads.
The full text of a company announcement is pasted below
Perth, 8 November 2007: VDM Group Limited (ASX: VMG) today announced that its recently acquired subsidiary, Bellero Constructions (QLD) Pty Ltd (Bellero), has been awarded a contract for the construction of the Bundaberg Ring Road by the Queensland Department of Main Roads.
The two-stage project provides for the construction of a bypass road to the Bundaberg Port, which aims to relieve the Bundaberg township of heavy vehicle traffic. Bellero will commence works immediately on the first stage of the project which will generate approximately $20 million of revenue for the 2008 financial year. The balance of the $30 million contract will be completed in the 2009 financial year.
Bellero's Managing Director, Bob Goodwin, said: "Bellero was attracted to joining the VDM Group to take advantage of opportunities in which Bellero historically could not participate. Going forward, Bellero can now utilise the financial and technical strength provided by VDM Group to enable Bellero to undertake the larger projects of our clients. The Bundaberg Ring Road contract is an immediate outcome of the benefits and potential which Bellero's membership of the VDM Group can generate in the future."
Also commenting, Chief Executive Officer of VDM Group, John Farrell, said: "Bellero is a very well managed and respected Queensland-based civil contracting and construction company. As a private company, however, Bellero's ability to compete for larger projects was restricted. By becoming a member of the VDM Group, Bellero's capacity to compete for larger projects is significantly enhanced. The acquisition of Bellero was therefore a perfect fit for VDM Group."
"Bellero provides a solid foundation to enable VDM Group to build a significant presence in the construction and civil contracting sectors in Queensland. It is very pleasing to be reworded immediately with a significant contract", Mr Farrell said.
