WA construction and engineering services provider Civmec has moved to acquire some of the assets of the privately owned engineering and shipbuilding company Forgacs, which is well known for its work manufacturing blocks for the Air Warfare Destroyer (AWD) program.
Civmec announced that it has agreed terms to enter into a due-diligence phase for the acquisition of certain assets and the Forgacs name, and expects to complete the transaction in December.
The proposed acquisition includes the Forgacs Shipyard Tomago shipbuilding site near the Port of Newcastle, plus Forgacs Heavy Engineering Hexham and Forgacs Heavy Engineering Gladstone. Forgacs-Broens does not form part of the sale.
“This is a very exciting opportunity for our company to extend our multi-disciplinary operations to the east coast of Australia, and to gain a long-established foothold in the defence shipbuilding industry,” said Civmec chief executive officer Pat Tallon.
“It will also give us the opportunity to acquire in-house submarine building and technical expertise. We will be well positioned to capitalise on the significant infrastructure expenditure planned for the east coast.”
The company stated that it believes significant opportunities in the infrastructure sector on the east coast, as well as the long-term outlook within the defence, oil and gas, and metals and minerals sectors, justifies the investment.
Civmec said the final terms of the agreement, which are commercially sensitive, will be disclosed upon finalisation of the sale.