Fulton Hogan announces Term Joint Venture

Media Statement

Wednesday, 29 September 2010

Fulton Hogan announces Term Joint Venture with John Holland

Fulton Hogan today announced a five-year term joint venture with John Holland, one of Australia’s leading contracting, engineering and services providers.
 
The joint venture leverages off Fulton Hogan’s resources, geographic presence and relationships, while combining John Holland’s specialist engineering expertise in areas such as rail, tunnelling, power and energy and resources.
 
“This strategic partnership provides a new level of competition and skill set for the New Zealand infrastructure sector,” said Nick Miller, Managing Director of Fulton Hogan. “Together we will target projects in areas such as tunnelling, rail, power, communications and minerals processing over the next five years.”
 
John Holland’s Group Managing Director, Glenn Palin, said the partnership represents an important new overseas venture for the business.
 
“This agreement reflects our ongoing strategy of using our leading specialist construction skills to develop new partnerships with established construction businesses in offshore markets. John Holland’s strength lies in its diversity of skills and its collaborative approach to the delivery of major construction projects. We look forward to working closely with Fulton Hogan to develop new opportunities in the expanding New Zealand construction market.”
 
The joint venture headed by Fulton Hogan’s Executive Manager – Infrastructure, Brian Kirtlan, is a result of the strong collaboration between the companies and culminated in the official signing of the joint venture agreement, which was attended by Fulton Hogan’s Chairman Ed Johnson and John Holland’s Chairman Janet Holmes à Court AC.

The announcement comes as Fulton Hogan releases its 2010 Annual Report to shareholders this week. With consolidated revenue growth of 16% over the previous year, the company reported a consolidated operating surplus of $92.5million, down some 8% on last year. In his report to shareholders Chairman Ed Johnson noted the result was heavily influenced by the execution of two important initiatives for the future of the Group; reaching agreement to buy-back Shell’s shareholding over the coming four years, and the full acquisition of Pioneer Road Services (PRS) in Australia.
 
“Fulton Hogan has achieved a solid result in a tough market, with the infrastructure sector still feeling the impact of the global financial crisis,” said Managing Director Nick Miller. “This has been achieved through a successful acquisition of PRS in a difficult environment. The acquisition of PRS is the largest in Fulton Hogan’s 77 year history and represented an opportunity for Fulton Hogan to become one of Australasia’s leading and most capable asphalt and surfacing companies.”
 
“Fulton Hogan now has 5100 staff based in over 100 locations throughout Australia and New Zealand. The business is on track and is quietly achieving solid results in the Australian marketplace. Backed by the strong performance of our New Zealand contracting business, the result demonstrates the importance of our vertically integrated business model,” he said.
 
Miller, who took over as Managing Director from Dave Faulkner at the start of 2010 following five years as the Australian Chief Executive, said that the year has been one of significant change for the company as the Group establishes the new base from which to launch the next generation of growth. Miller, a New Zealander, returns to Christchurch later this year, after six years in Australia.
 
 
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