ASX-listed Cimic expects $82m of revenue from Tauranga's SH2 upgrade
ASX-listed Cimic Group subsidiary CPB Contractors will generate $82 million of revenue from the design and build of the State Highway 2 Baypark-to-Bayfair link upgrade in Tauranga.
The company, formerly known as Leighton Holdings, was awarded the contract last month by the New Zealand Transport Agency, which expects the project will be completed in December 2020 at a total cost of some $120 million, according to the government entity's website. Cimic today said the second and final phase of the project will reap $82 million of revenue for its unit, with work scheduled to start this month.
"Our track record of delivering major road initiatives puts Cimic Group and CPB Contractors in a strong position to deliver the upgrade of Tauranga's eastern corridor," group chief executive Adolfo Valderas said in a statement to the ASX. "We are pleased to contribute our world-class expertise and local experience in New Zealand to this project, which will support economic growth in the region by improving the route to the Port of Tauranga, and create a safer and more sustainable roads system."
CPB Contractors' New Zealand projects include Transmission Gully north of Wellington, the St Lukes interchange and Southern corridor improvements in Auckland, and the construction of Christchurch hospital's acute services building.
The ASX-listed shares last traded at A$39.85 and have gained 14 percent so far this year.