AUSENCO BROADENS ITS HORIZONS
Written on the 9 July 2015
SPANISH company Duro Felguera and Brisbane's Ausenco (ASX: AAX) have partnered up, as AAX turns an eye to Spain, broader Europe, the Middle East and North Africa.
The companies have signed a Memorandum of Understanding to jointly pursue and deliver engineering, procurement and construction (EPC) projects globally to increase market share in their sectors.
Duro Felguera currently holds a 4.99 per cent holding in AAX, and intends to move deeper into Canada, Australia, Asia and Africa through the alliance.
Both companies have long ties to their industries, with Duro Felguera being listed on the Madrid Stock Exchange since 1905. It currently has a market capitalisation of 0.6 billion.
AAX CEO Zimi Meka (pictured) says both companies have a strong track record in delivering EPC projects and follow the same comprehensive approach, which is increasingly sought after by clients.
"Both companies have a history of successful EPC project delivery; currently over 85% of DF's revenue is generated through EPC," says Meka.
"The collective reputation for project delivery, together with well-established systems and controls, will ensure that the Alliance can leverage opportunities to maximise value and manage risks.
"Discussions with existing and prospective clients have indicated a significant shift in the 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."
AAX's expertise in mining and oil & gas solutions is complemented by Duro Felguera's established construction background, key presence in the energy sector and long history of successful EPC project delivery.
There is also said to be little overlap of current clients or markets between the companies.
AAX operates from 31 offices in 19 countries, with a major presence in the Americas, Africa and Asia.
Meanwhile, Duro Felguera holds strongest in Europe, South America and Australia respectively.