WestStar Industrial adds $7 million to engineering contract order book

Contracts include fabrication works at Fortescue’s Christmas Creek project, the Kwinana Waste-to-Energy project and an APA Group gas offtake facility in WA’s north.

Perth-based construction group WestStar Industrial (ASX: WSI) has added $7 million to its order book through new contracts secured by its engineering contractor business Alltype Engineering.

The orders are comprised of multiple new contracts and extensions with existing clients across industries including oil and gas, mining and infrastructure.

The deals include new contracts for: process piping fabrication works by Primero Group on Fortescue Metals Group’s (ASX: FMG) wet high-intensity magnetic separation plant (WHIMS) project at Christmas Creek; fabricated structural steel and modules for the Kwinana Waste-to-Energy (KWTE) project; and turnkey concrete, structural mechanical and piping (SMP), and electrical and instrumentation (E&I) works at a gas offtake, metering and custody transfer facility in the Western Australian Pilbara region for APA Group (ASX: APA).

These three deals represent about a $5 million addition to Alltype’s order book.

The other $2 million announced on the order book is made up of a variety of contracts and contract extensions with new and existing clients including Georgiou, BP, Melchor, and Altona Plumbing and Civil.

In an announcement today, WestStar said the calibre of these tier one clients and projects is testament to Alltype’s reputation, capabilities and market reach, and the group’s focus is to improve Alltype as it transitions from a predominantly heritage workshop fabricator to a multidisciplined site constructor.

“Recent supply chain disruption to overseas and interstate fabrication options has increased the market opportunity of the business, resulting in significantly increased levels of tendering for committed major project works, new clients domestically and internationally, with notable consumption of industry capacity,” Alltype Engineering managing director Kelvin Andrijich said.

“Alltype has been delivering accelerated fabricated steel, plate and piping products and equipment to enable major resource and infrastructure projects to maintain progress and momentum on site.”

“Once this alternative supply chain process was proven successful, it has resulted in multiple repeat orders and future supply opportunities,” Mr Andrijich added.

Other recent orders

Today’s news follows WestStar’s announcement earlier in August that its construction and engineering subsidiary SIMPEC had secured more than $2 million in contract extensions for the Sydney WestConnex New M5 project with the CPB Dragados Samsung joint venture.

SIMPEC is performing detailed E&I completions and handover activities on the WestConnex New M5 tunnel works. The contract is now valued at more than $4 million.

WestStar today confirmed it and its subsidiaries are continuing to tender for new work and “expects outcomes from these tendering activities in due course”.

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