International engineering and project management services provider Amec has expanded its client base in the African and South-East Asian mining sectors with its A$106-million acquisition of engineering ser-vices company Minproc, an Australia-based company with operations in South Africa.
The benefits of the new entity, Amec Minproc, include almost total global coverage, substantial support for growth, depth of resources for larger projects, proven systems for large projects and the ability to draw on expertise in other parts of the business. Its core capabilities lie in the design, procurement, construction and commissioning of mineral resource projects.
“The combined strength of people, capability and geographical coverage was the main driving force behind the acquisition. It will create synergy by having global operations, complementary sets of expertise and a strong safety and risk management culture. We also have a significant base of major mining clients that include the likes of BHP Billiton, Rio Tinto and Vale,” says Amec Minproc Africa operations MD Colin Kubank.
Amec Growth Regions president Tony Cruddas adds that the combined expertise with wider global coverage and increased size will provide improved delivery for its customers.
Kubank says that the greatest benefit of the acquisition is the depth of project management resources and engineering and management systems already in place through Amec’s global operations. Before the acquisition, Minproc was limited in the size of the project it could undertake; but now Amec Minproc will be able to take on larger projects with a greater service offering, as well as small and medium- sized projects.
“There will also be a greater opportunity to consolidate the strength of our position and expand into new markets and new sectors, as part of the broader Amec,” he says.
Cruddas points out that the acquisition also offers a greater opportunity to consolidate strength of position and expansion into new markets and sectors, such as iron-ore. The South African office provides a foothold into the rest of Africa and, potentially, other places
and also provides access to Australian and Canadian clients operating in Africa.
Meanwhile, Kubank says that the global financial crisis has slowed down its project pipeline, but the company is seeing more enquiries into feasibility study works, on which it is basing its project pipeline in the expectation of converting these enquiries into projects later on in the year and into 2011.
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