The CIMIC Group Ltd (ASX: CIM) share price is tumbling lower in early trade. This is despite an announcement out of the engineering company this morning which reveals a new major contract win.
At the time of writing the CIMIC share price is down 2% to $23.36.
What did CIMIC announce?
This morning CIMIC announced that its CPB Contractors business has been selected by the South Australian Government to deliver three important projects under the Port Wakefield to Port Augusta Regional Projects Alliance (RPA).
In an alliance with the Department of Planning, Transport and Infrastructure, Aurecon Australasia and GHD, CPB Contractors will deliver:
- The Joy Baluch AM Bridge Duplication in Port Augusta;
- The Port Wakefield Overpass and Highway Duplication;
- And the Augusta Highway Planning Project located between Port Augusta and Port Wakefield.
According to the release, the projects, which are funded by the South Australian and Australian governments, will generate revenue of approximately $236.8 million to the CPB Contractors business.
Work on the projects is scheduled to commence this year and is expected to be completed by 2022.
The company's chief executive officer, Juan Santamaria, was pleased with the contracts win.
He said: "CPB Contractors will draw on its proven capability to efficiently deliver these major road projects through an alliance style contract, consistent with our strategy of effectively managing risk. These three upgrades will provide improved road safety, reduced traffic congestion and greater network resilience for the communities of regional South Australia."
This sentiment was echoed by the managing director of the CPB Contractors business, Diego Zumaquero.
He said: "We are pleased to be working with the South Australian Government to ensure that these infrastructure projects are delivered safely and according to schedule. A key focus will be on maximising social and economic benefits to the regional and indigenous community, including employment, training and economic opportunities."
