WestStar sets up 2020 with contract extensions, acquisition

WestStar’s subsidiary SIMPEC has been awarded $6 million in contract extensions across its structural, mechanical, piping and electrical and instrumentation disciplines.

The extensions of the contracts increase SIMPEC’s work value for the 2020 financial year to $30 million.

While the company did not specify which projects had been impacted, it stated that current Western Australian contracts were among those extended.

Some of the contracts SIMPEC has been awarded since July 1 include a $5 million contract to build Tianqi Lithium Kwinana’s lithium hydroxide process plant, $5 million from Energy Power Systems to build a diesel power generator at Fortescue Metal Group’s Eliwana mine and a contract for the Rio Tinto Robe River joint venture West Angelas to establish the communication and electrical systems.

SIMPEC managing director Mark Dimasi was pleased to continue building on relationships formed and continue its contract works.

“These scope extensions are in recognition of the team’s willingness to deliver to our client’s expectations,” Dimasi said.

“Well done to our project teams and we again thank all of our clients for their ongoing support.”

WestStar is well-positioned for a strong 2020 financial year, with SIMPEC’s contract renewals and as it progresses towards the completion of its Alltype Engineering acquisition.

The company anticipates the acquisition of the Tier 2 steel fabrication provider to occur in early January 2020, in a deal worth approximately $8.4 million.

WestStar chief executive officer Robert Spadanuda the acquisition will broaden WestStar’s horizons to include the workshop fabrication, site installation, construction and maintenance services Alltype provides.

“Alltype is a well-established and respected name in the industry and WestStar looks forward to pursuing strategic integration opportunities, along with a greater diversity in disciplines and proven client relationships that Alltype provides,” Spadanuda said.

“We have begun planning to integrate the Alltype business into the WestStar group and are excited by the meaningful opportunities it is delivering across an enlarged customer base.”

Alltype Engineering’s company management team will join WestStar once the acquisition is complete.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.