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Saunders’ growth in infrastructure sector continues with new projects

Summary

  • Saunders International has been awarded AU$10 million in new infrastructure projects.
  • The new projects will contribute to revenue from Q1FY22 into Q4FY22.
  • The rollout of the NSW Government’s Fixing the Country Bridges Program is one of Saunders’ critical strategic focuses in FY22 and beyond.

Engineering and construction company Saunders International Limited (ASX:SND) has been awarded AU$10 million in new infrastructure projects.

Since 1951, Saunders has been aiding to the development of Australian industries. The Company offers a range of reliable, innovative, and cost-effective solutions, with trouble-free project delivery to the oil & gas, infrastructure, defence, water, energy, mining & minerals sectors.

INTERESTING READ: What soaring crude oil prices mean for Saunders International (ASX:SND)

Of late, Saunders has been growing in the infrastructure sector - a significant part of its business. A catalyst for this growth is the rollout of the NSW Government’s Fixing the Country Bridges Program, a key strategic focus for Saunders’ in FY22 and beyond.

New infrastructure projects

Saunders’ sustained growth has made it a reputable, multi-disciplinary company delivering a range of service offerings to industrial and infrastructure clients. The Company has added three more names to its diverse client base list, including an NSW Local Government Authority. The below demonstrates Saunders’ latest awards/projects in the infrastructure sector-

“We are excited with the continued growth of the Group’s Infrastructure projects and the increase in the pipeline of opportunities within this sector,” says Chief Executive Officer Mark Benson. Notably, the new projects will contribute to Saunders’ revenue from Q1-FY22 into Q4-FY22.

GOOD READ: Saunders International (ASX:SND) at vantage point amid robust infrastructure spending

In May 2021, Saunders was awarded approximately AU$11 million in infrastructure projects. These included-

  • The design, construction of six bridges across three NSW Local Government Authorities and a rail overbridge for John Holland CRN.
  • The manufacture of specialised infrastructure components, including 25 dock blocks for a Defence site in NSW and 6 Super T’s for a specialist private contractor.

READ MORE: Saunders International Bags New Infrastructure Projects Worth AU$11 Million

An overview of Saunders’ infrastructure offerings

Transport infrastructure is a major part of the Company’s business, in which it has over four decades of experience. Saunders Civilbuild is focused on undertaking the construction, upgrade, and maintenance of road and rail bridges, wharves, and jetties.

The Company caters to state authorities, the local government, major mining, and private sector clients. Besides, the Newcastle precast facility supplies planks, super T’s and girders for road and rail projects.

DON’T MISS: The big number game at Saunders International- revenues, dividends, contracts

What’s propelling Saunders’ growth in infrastructure sector?

The Group’s recent success and continued momentum in the infrastructure sector have been primarily underpinned by the Fixing the Country Bridges program, which the NSW Government released at the end of 2020.

The Fixing Country Bridges is an AU$500 million NSW Government program. It aims to create a new legacy for the local NSW road network, facilitating councils to replace over 400 timber bridges in poor condition and better connect regional and rural communities.

ALSO READ: What are the key forces powering Saunders International’s growth?

Mr Benson also believes that Saunders’ contribution to the successful delivery of the iconic Sydney Harbour Bridge project has led to increased manufacturing opportunities.

Image source: Saunders’ investor presentation, February 2021

On the ASX, SND traded at AU$0.79 on 21 July 2021.  

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