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CIMIC Group (ASX:CIM) subsidiary secures $180M in contracts

ASX 200, Mining
ASX:CIM
22 January 2020 13:30 (AEST)

CIMIC Group’s (CIM) subsidiary, UGL, will bring in roughly $180 million in revenue after securing new mining contracts.

The engineering company, formerly known as United Group, will provide maintenance, shutdown and project services for its clients within the mining sector.

UGL will provide mechanical, electrical and access services over the course of three years.

“We are excited to be leveraging our 30 years of experience in the mining industry to support key organisations in the resources sector,” UGL Managing Director Jason Spears said.

“Our strong working partnerships with leading mining organisations support UGL’s reputation for solid performance and safe delivery of maintenance and shutdown services,” Jason added.

UGL will provide multi-discipline services for Alcoa across the Wagerup and Pinjarra sites in Western Australia.

This isn’t the first time the companies have crossed paths; UGL was previously contracted by Alcoa for $594 million to work on the material giant’s alumina refinery.

“These contract awards demonstrate UGL’s position as a market leader in the Australian mining industry for the delivery of maintenance and mechanical, electrical and instrumentation access services,” CIMIC CEO Michael Wright said.

Despite the good news, CIMIC is down slightly by 0.44 per cent and shares are trading for $34.19 each at 11:18 am AEDT.

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