Southern Cross to step into Downer’s rejected contract

Southern Cross will fill Downer’s boots, after the contractor walked away from an ammonia plant construction job.

Downer pulled out of the Burrup Peninsula ammonium plant construction project over a pay dispute.

The contractor is reportedly seeking $60 million in damages over what it claims are breaches of the contract by plant owner Tecnincas Reunidas (TR).

It walked away from the operation, claiming TR failed “to remedy a sustainable breach of the contract”.

While Downer did not state the nature of the breach, it added, “Downer has not taken this decision lightly but considers it has no alternative given TR’s conduct.”

Downer is currently demobilising from the site and handing over work as required by the contract.

Now Southern Cross has reportedly been brought in by TR to finish the job.

While a value has not been released, it is understood the contractor will complete and commission the technical ammonium nitrate (TAN) plant at the site.

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