Water Corporation has found a buyer for the company’s Engineering and Construction Services (ECS) team for the sale price of $10.4 million.
RCR Tomlinson will be the new owner of the division.
RCR Tomlinson is one of the largest and most diversified infrastructure and engineering companies in Australia and brings extensive experience across key water, rail and transport, power and other infrastructure projects.
Water Corporation Chief Executive Officer, Sue Murphy, said less need to build significant new water and wastewater infrastructure had been the key driver for the sale of ECS.
“We are coming out of a decade that has seen major changes in the management of Perth’s water supplies, such as the successful implementation of desalination,” Mrs Murphy said.
“This combined with lower population growth and the successful reduction in per person water use means the need to deliver major water projects has lessened.
“Selling ECS provides the best opportunity for ongoing employment for our people – employees were given the opportunity to move across to the successful bidder, without loss of pay and conditions.”
Mrs Murphy said the Water Corporation would work closely with RCR Tomlinson to ensure the successful transition of ECS and the completion of works for the Water Corporation into the future.
“RCR Tomlinson is extremely positive about the experience and capability of the ECS workforce, and they see the potential for the team to add real value to their business now and into the future,” Mrs Murphy said.
Water Corporation announced its intention to look for a buyer for ECS in January 2015 and selected RCR Tomlinson through a rigorous public competitive sale process.
The sale of ECS forms part of Water Corporation’s broader commitment to ensure it operates in the most efficient way possible to provide the best value for money for Western Australians.
RCR Tomlinson is a large Western Australian employer with a strong presence in the State.