International contractor CIMIC Group Ltd (ASX:CIM), in joint venture with Chun Wo Building Construction Ltd, has secured an A$205 million contract in Asia.
The contract has a focus on ancillaries building works for the Hong Kong Zhuhai-Macao Bridge Hong Kong Boundary Crossing Facilities Project. The 60:40 Leighton Asia JV (being in favour of CIM) is expected to garner revenues to CIMIC of around A$123 million.
These projects form part of the Hong Kong government boundary crossing facilities project, in which the Leighton Asia-Chun Wo JV is currently constructing the A$1.48 billion passenger clearance building.
The range of works within this project includes the construction of 14 buildings, associated services, earthworks and landscaping, along with the procurement, testing and commissioning of a mobile X-Ray vehicle scanning system and a baggage inspection system.
This project officially started on the 31st December 2015, with a target completion date around November 2017.
CIMIC Group Executive Chairman and CEO Marcelino Fernandez Verdes spoke optimistically about the JV project with Chun Wo: “We are delighted to have a greater role in this key infrastructure project for the Hong Kong government. Hong Kong is a growing market with a considerable number of building and integrated transport infrastructure projects planned for the future. We are honoured to be able to undertake further work for this client.”
Late last year, CIMIC Group contract mining subsidiary, Theiss, secured a A$115 million contract extension from Anglo-American, in order to resume mining operations at the Dawson South Coal Mine, which is within Central Queensland.
Investors have not shown a considerable reaction to the announcement as CIM shares were down 1.5% around midday, to trade around the $23 mark. However, CIMIC has outperformed the broader market in the past 12 months, rising approximately 3% during that period.
Author: Imran Valibhoy
Jan 06, 2016
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.