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As per latest ASX announcement on 11th December 2018, CIMIC group companies â UGL and CPB Contractors have partnered with Taswater, with the aim of alliance targeted at delivering efficient infrastructure, project development and strong delivery of all capital works, across Taswaterâs regional asset network in Tasmania.
Taswater, formed through an amalgamation of the three Tasmanian Water and Sewerage Corporations in 2014 deals with water and sewerage functions in Tasmania.
The company enjoys an annual turnover of around $290.7M with total assets amounting to $2,032.2M. UGL and CPB have been selected by Taswater as preferred contractor, to deliver a capital works program which will support and develop water and wastewater infrastructure, and major regional water projects in Tasmania. Taswaterâs regional assets includes water and wastewater treatment plants, water networks, dams and water storage and general asset renewal programs.
CIMIC Group Limited (ASX:CIM) is an Australia-based leading global contractor operating in numerous business segments such as engineering, infrastructure, telecommunications, property, mining and mineral processing, etc. The CIMIC group consists of companies like CPB, Thiess, Sedgman, UGL, Pacific Partnerships. Currently it is running various projects in the space of solar farms, schools, coal mining, copper processing, etc.
As stated by the CEO of CIMIC Michael Wright, the expertise of UGL in the water sector and CPB Contractorsâ experience in major project design and construction projects, makes CIMIC group the best entity to partner with Taswater, which holds the potential and track record of delivering world-class infrastructure in Tasmania. CIMIC can generate revenue of approximately $600 million from this joint venture between UGL and CPB over a time span of initial four years.
UGL is a diversified services company. The company delivers comprehensive engineering, operations and maintenance services to the rail, transportation, technology, energy, resources, water, renewables and defence sectors. UGLâs capabilities extend across a broad range of services and whole-of-life solutions, utilising world-leading, sustainable and innovative technologies to deliver great outcomes for its clients across diverse industry sectors.
PB contractors is a prime international construction services with its operations across Australia, New Zealand, Asia, India and Papua New Guinea. The company delivers projects across crucial sectors including construction industry, roads, rail, tunnelling, defence, building and resources infrastructure.
UGL and CPB Contractors are currently working in partnership to deliver the Western Treatment Plant Stage Two Upgrade for Melbourne Water in Victoria, as well as numerous rail and infrastructure projects across Australia.
According to a recent statement by UGL Managing Director Jason Spears, the company is excited to have the opportunity to partner with Taswater for developing and delivering vital water infrastructure across its network of assets. The company will use and derive benefits from its water industry capability to optimise infrastructure planning, project development and capital delivery.
CPB Contractors Managing Director Juan Santamaria mentioned that both CPB Contractors and UGL have successfully delivered a range of water projects in Australia for more than 50 years. They are optimistic and looking forward to bringing the CIMIC Groupâs expertise to benefit Taswater and the people of Tasmania.
CIMIC stock has been demonstrating a downward trend this year as reflected by its YTD performance of â 23.10%. The scrip has shown a negative return of -14.41% over last 1 month. However, post the partnership announcement today, stock opened at $40.580 and is trading on higher side, around levels of $41.530.
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