Corporate: Perth’s Costco warehouse & BHP iron ore project among WestStar’s latest $3m worth of wins
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Construction and engineering services provider WestStar Industrial (ASX:WSI) has added a further $3m worth of contract wins to its order book including Perth’s Costco warehouse and BHP’s (ASX:BHP) South Flank iron ore project.
Costco is arriving in Western Australia early next year with a $55m warehouse being built near Perth airport.
The warehouse will be 14,000sqm — more than three times the size of a normal supermarket.
WestStar’s prefabricated concrete subsidiary, Precast Australia, will supply wall panels for the construction.
WestStar will also serve BHP’s next planned iron ore mine at South Flank. The mining giant anticipates it will be one of the world’s largest iron ore operations and will make up for its Yandi mine that is being closed within the next few years.
Production will begin in early 2021 and Wood Mackenzie has predicted a capital intensity of $US36 per tonne.
WestStar, which will supply precast concrete elements to the project, noted there was an opportunity for substantial growth in this particular contract award.
So far this financial year, WestStar has won $18m in contracts and it is expecting more.
“There are many opportunities to expand our footprint,” said Mark Dimasi, managing director of SIMPEC (the WestStar subsidiary servicing Costco).
Shares rose as much as 7.4 per cent this morning to 2.9c. This is more than double the 1.3c it started 2019 at.
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