Mining and construction engineering firms Ausenco and Duro Felguera have formed an alliance create a global EPC partnership.
The two companies today signed an MoU to form a strategic alliance “to jointly pursue and deliver EPC projects globally and pursue market share in their sectors,” Ausenco said in a company statement.
This is not the first time the two companies have interacted, with Duro Felguera already holding close to five per cent of Ausenco.
Ausenco CEO Zimi Meka said the alliance will focus on winning and delivering major EPC projects.
“The alliance will leverage each party’s geographic footprint and track record of engineering expertise,” Meka said.
“Discussions with existing and prospective clients have indicated a significant shift in focus of resources sector financiers and project owners towards cost certainty.
“As the size and complexity of projects continue to grow there is an increasing demand in most sectors of our market to have projects delivered on an EPC basis.”
The two businesses combined EPC project pipeline already sits at over $14 billion.
Speaking on the matter, Duro chairman Angel del Valle said there was no likelihood of competition between the two companies as there exists little overlap of clients, despite their similar skills base.
“This alliance provides both companies an opportunity to grow market share across the mining, infrastructure, oil & gas, and energy markets,” del Valle said.