A major new initiative in the global and African EPCM (Engineering, Procurement and Construction Management) market was given lift-off recently with the official launch of the expanded WorleyParsons resources and energy organisation, on the back of its acquisition of TWP Holdings in South Africa. A recent launch ceremony in Johannesburg, attended by top WorleyParsons and TWP executives and customers, follows the recent R900-million acquisition of the TWP group by WorleyParsons, giving rise to one of the largest EPCM companies in Africa. The transaction is one of the top 10 acquisition activities in South Africa for the year to date.
WorleyParsons, which is headquartered in Australia and listed on the Australian Stock Exchange, is the world’s fourth-largest EPCM company, servicing the global resources and energy industries. The organisation works across three key customer sector groups - hydrocarbons; power, infrastructure and environment; and minerals, metals and chemicals and has enjoyed a presence in the sub-Saharan region since 2004. WorleyParson’s Chairman, John Grill, told last night’s executive audience: “South Africa has always been the natural hub from which to expand the group’s presence and capabilities in sub-Saharan Africa. Our new South African business now sits alongside other locations in the WorleyParsons group such as London, Abu Dhabi, Calgary, Houston and Perth as one of our major global hubs.”
Andrew Wood, CEO of the WorleyParsons group, said the acquisition had three key benefits. “It strategically positions us as one of the strongest services platforms in sub-Saharan Africa. We believe in the future development of Africa as one of the major resource regions of the world. The combination of TWP’s and WorleyParsons’ existing capabilities provides a compelling offering to customers developing projects in Africa and we anticipate the expansion of local activity within South Africa and into the broader region.” Wood noted that as resource grades diminish and become more difficult to access, there was a clear global trend toward underground mine development. “As part of our growth strategy, our aim has been to globalise our minerals, metals and chemicals business and to expand into underground mining and precious metals sectors. Our acquisition of TWP as a global leader in this field immediately goes a long way to achieving this goal.”
Wood said that the initial geographic focus of the new entity would be on Africa, North and South America and Australasia. “Johannesburg will become our global minerals, metals and chemicals’ project delivery hub for underground mining and precious metals from which South African-based engineers will provide their services to other parts of the world. In terms of international exposure, these services will also provide new skills and career development for our people in South Africa.
“The complete mine-to-market offering we bring to the table for mega-projects will be a real point of differentiation for us within the mining industry globally. “We are already seeing significant potential for the joint entity as a result of the number of enquiries we have been receiving from the global market”. WorleyParsons Executive Director Sub-Saharan Africa and Global Mining and Precious Metals, Nigel Townshend said there had been a clear TWP strategy to expand the business globally and the acquisition had presented the right opportunity for the group. “It affords TWP the platform and global reach to take its skills set to all significant world markets, as well as opportunities to grow within the WorleyParsons group and to access its skills, expertise and relationships to further develop our offering, within the enhanced business framework that the new entity provides.”