WestStar Industrial Limited’s (ASX: WSI) engineering construction contracting business Alltype Engineering has been awarded a new major contract valued at circa $12 million by Lynas Kalgoorlie Pty Ltd.
This contract further bolsters and contributes to the WestStar FY2022 order book and aligns with Alltype Engineering’s strategic plan to focus and deliver on major turnkey construction projects and provide a differentiated vertical service offering incorporating fabrication, SMP and E&I construction works.
Alltype Engineering has a commitment to becoming a market leader in rotating equipment installation projects, supported by key personnel with over 40 years’ experience in this unique field of expertise.
For Alltype Engineering, this contract is a result of the experience of its key execution team members in delivering rotary kiln projects successfully in the past with different organisations throughout the Australian resources and mineral processing industry.
Alltype Engineering will commence preliminary work immediately with works planned to be completed by Q2, 2022.
During our FY21 strategic planning in 2020, we identified a niche market opportunity in the rotary kiln and rotating equipment installation space,” Alltype Engineering Managing Director Kelvin Andrijich said.
“During our FY21 strategic planning in 2020, we identified a niche market opportunity in the rotary kiln and rotating equipment installation space. It is very pleasing to see that the subsequent business case and execution of this strategy 12 months later has resulted in securing our first rotary kiln erection contract as part of the landmark Lynas Rare Earths Processing Facility development in Kalgoorlie.
“We are pleased that Lynas has recognised the experience and capability of our delivery team and the proven self-execution multidiscipline construction capability of Alltype Engineering in the gas, energy, petrochemical and minerals processing industries.
“Alltype Engineering has previously undertaken balance of plant scopes around rotary kilns on operational mineral sands and lithium processing sites in the past and we are excited to now be completing the entire turnkey package in addition to those works.”
Capital Raising
Meanwhile, WestStar has received firm commitments from institutional and sophisticated investors for a Placement of $3.5 million.
With the recent award of the Lynas Rare Earths kiln erection and installation Contract, WestStar has secured an orderbook of ~$222 million for the 2022 Financial Year.
This represents a record achievement for the Group and tendering pipeline for new project awards remains strong.
The funds raised from the Placement will be used for general working capital as required by the Group.
