Looking abroad pays off for building firms

Posted On Wednesday, 12 June 2013 08:35 Published by Commercial Property News
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Engineering and construction company Aveng Group has shown that the best way to make headway in the industry is to diversify geographically.

Aveng GroupSome of the bigger builders that have the capacity, have managed to clinch long-term work in other parts of the world.
Aveng group said in a business update last week that its two-year order book had increased 6% to R41.8bn at the end of April this year, from R39.7bn at the end of December. Aveng is the JSE’s largest construction company with a market capitalisation of R11bn. It operates mainly in Australia, SA and parts of Africa, but is increasingly using its clout elsewhere in Africa and in Asia.
The construction and engineering segment in SA and the rest of Africa continued to experience difficult trading conditions. Labour disruptions at the Medupi power station had made its African division struggle, but it could always gain from other projects.
The company said despite a slowdown in mining-related infrastructure activities in Australia, the underlying business had generally performed well, though the underperformance of three large projects eroded results.
Aveng said work on the Komo airfield in Papua New Guinea is largely complete and the first Antonov aircraft landed there last month, while the Queensland Curtis Liquid Natural Gas Pipeline project was 85% complete.
Last modified on Friday, 21 June 2013 20:25

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