Valmec has won a major asset services contract, while Centurion has secured mine site works in Queensland and Decmil has been named preferred contractor for a Victorian rail project.
Valmec has won a major asset services contract worth $100 million, while fellow Perth business Centurion has secured mine site works in Queensland and Decmil Group has been named preferred contractor for a Victorian rail project.
The agreement is for an initial five-year term, with two one-year extension options.
Valmec’s shares were up 10 per cent on the news at 12:10pm AEDT, reaching 26 cents – its highest share price since March.
As part of its growth plan, Valmec intends to provide a one-stop shop within its asset services division to deliver design, construction and maintenance services to the energy, resources and infrastructure sectors.
Valmec says the energy sector is entering a major maintenance cycle, which will bolster the company’s asset services division.
The company has an existing working relationship with Sydney-headquartered Origin, having been contracted in 2016 to provide maintenance and construction services to Origin’s Australia Pacific LNG project in Queensland.
The scope of work, to be carried out at Century’s Karumba Port facilities, includes customers’ clearance, wharf collections of import commodities, warehousing, road transport, and airfreight and courier services.
Centurion will begin the works around February.
If contracted, the VicConnect consortium will duplicate track, extend a crossing loop, upgrade level crossings and signalling, and build additional platforms at three stations.
Project work is expected to complete in late 2022.
Decmil chief executive Dickie Dique said the business was pursuing an alliance contracting model.
“The successful bid for these works opens up a new buoyant market for Decmil,” he said.
“We expect this significant government investment in infrastructure will continue in order to stimulate the COVID-19-impacted economy.
“As a result, we have entered into a partnership with UGL to enhance our ability to capture further opportunities across a broad range of markets in the thriving infrastructure sector.”
Decmil expects the final Gippsland rail contract to be awarded in the coming months.
Its shares were up 3 per cent at 1:40pm AEDT, to trade at 69 cents.