IN PARTNERSHIP WITH:

BUILDING GLOBAL STRUCTURES

AN ATTITUDE OF ACHIEVEMENT

Civmec is a relative newcomer to the Australian resources market but its growth has been unstoppable. Co-founder and CEO Pat Tallon explains

the agile philosophy that is keeping the company ahead in challenging times.

Written by: John O’Hanlon | Produced by: Glen White

AN ATTITUDE OF ACHIEVEMENT

Civmec is a relative newcomer to the Australian resources market but its growth has been unstoppable. Co-founder and CEO Pat Tallon explains

the agile philosophy that is keeping the company ahead in challenging times.

Written by: John O’Hanlon | Produced by: Glen White

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Established late in 2009, Civmec wasted no time in making itself the go-to multi-

disciplinary service provider to the Western Australia (WA) contracting market, winning its first contracts to construct two 400T precast intake pump structures for the Binningup Desalination Plant and site civil works in the same year. 2009 also marked the start of construction of its waterfront facilities on the Australian Marine Complex (AMC) at Henderson south of Perth.

Today, Henderson is the largest undercover fabrication facility of its kind in Australia at 120,000 square metres. Roughly a quarter of the facility is dedicated to the fabrication, assembly and commissioning of smart modularised structures up to 4,000 square metres and 18 metres high under a single roof. “It couldn’t be in a better location,” says Civmec CEO Pat Tallon. “We can do pretty much anything that any customer can throw at us, and we can do it very efficiently and very quickly.”

According to Tallon, all of Civmec’s sites, spread from

Western Australia to New South Wales, Queensland and the Northern Territories, were chosen for optimum access to ship, road and rail logistics. In its first four years, Civmec targeted the booming mining and offshore oil and gas (O&G) sectors. Despite recent falls in commodity prices, which have hit Australia’s iron ore, coal and hydrocarbons sectors particularly

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Civmec Henderson

hard, the solid reputation Civmec has gained with the oil industry, such as providing the subsea manifold for Apache’s Coniston project, have ensured a healthy continuing order book.

“The contracts are smaller than they were before, but there is still a requirement for innovative expertise – and smaller jobs require just as much project management input as

the larger ones,” says Tallon. It’s a similar story in mining. Low

prices mean that the majors are typically working their plants to their nameplate capacity and beyond as volume takes the place of margin. The emphasis of the iron ore market has shifted to some extent from China to fast growing markets including India and developing African and Asian economies.

CIVMEC

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Previously known as Readymix in Australia our products have built some of our country’s

most iconic landmarks from major infrastructure, civil and mining projects right through

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However there is still a significant level of confidence among companies like Rio Tinto, which has partnered with Civmec on important projects and the huge Hancock Prospecting’s Roy Hill development in the Pilbara, where Civmec was called in when an overseas fabrication contractor failed to deliver. A large package of work was involved, including three structural steel modules up to 160 tonnes, platework, conveyors, extensive cabling, electrical switchrooms and up to 620 Civmec personnel to

deliver the job on a tight nine-month schedule.

“We are happy with our performance at Roy Hill, because it proved we can deliver technically and commercially on a job like this,” says Tallon.

A TALE OF D IVERS IF ICATIONNevertheless the downturn is a fact, with Tallon explaining the importance of planning from the outset to diversify from year five onwards and to widen the

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Holcim is one of the world’s leading construction materials companies, delivering

cement, aggregates and concrete in over 70 countries. With strength, performance and

passion we have been supporting Australia’s construction industry for the past 100 years.

Previously known as Readymix in Australia our products have built some of our country’s

most iconic landmarks from major infrastructure, civil and mining projects right through

to residential. Our 3,000 people located at 300 sites help us deliver. With strength,

performance and passion.

www.holcim.com.au | ph (02) 9412 6600

Building with strength, performance and passion.

Strength. Performance. Passion.

Products and services Holcim operates right across the Australia supplying construction materials from a network of more than 200 concrete plants, 900 mixer trucks, 60 quarries, 16 Humes precast manufacturing plants, and mobile and on-site contracting facilities.

We offer an extensive array of premix products designed to achieve specific properties based on their application, transport and construction requirements. Mobile concrete batching and on-site operations service major projects and remote rural communities. Holcim provides an extensive range of technical and testing services backed by laboratory facilities in all major locations.

The quarry products available from our operations throughout Australia including rail ballast, aggregates, gravels, road pavement materials, and manufactured and natural sands.

Our Humes business is Australia’s longest serving precast concrete manufacturer and specialises in providing engineered precast and pre-stressed concrete.

For more information visit us at: www.holcim.com.au

SUPPLIER PROFILEHOLCIM

M I N I N G

focus from O&G and mining to infrastructure and defence. The Perth waterfront used to be an under-utilized asset, but now WA’s capital city is finally making the most from it with the $2.6 billion Elizabeth Quay Project, which covers nearly ten hectares of prime riverfront land between Barrack and William streets in the heart of the city. The project creates a magnificent precinct featuring a newly dug 2.7 hectare inlet surrounded by a split level promenade, shops, cafés, restaurants and other exciting entertainment venues. Civmec

secured a major package of work on Elizabeth Quay in July 2014, laying down a marker that it had arrived in the infrastructure space.

“The job initially involved the supply of precast marine fascia panels, a very visible, architectural part of the development involving dramatic curved shapes around the whole perimeter. This led to the award of an iconic steel structure, the two architectural arches supporting a pedestrian bridge. Not many people could have delivered the level of quality they needed,” Tallon says.

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Construction work at Elizabeth Quay

Moving from the heart of Perth to the gateway of Perth Airport, Civmec has recently undertaken important parts of the road development around the airport. It has also delivered significant fabrication work at the new Virgin Australia terminal, a world-class facility and the most significant project in Perth Airport’s current $1 billion redevelopment.

These high-profile jobs helped Civmec to secure another contract that will put it very much in the spotlight. In March 2015, Civmec was awarded the contract to deliver the steelwork that is part of the construction of the $1.1 billion Perth Stadium, due to open in 2018. The contract involves the fabrication, surface treatment and installation of over 4,500T of

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Perth Airport Project

structural steelwork that makes up the stadium superstructure. In June 2015, Civmec was also awarded a further contract on the Perth Stadium to part supply and install precast elements including seating platforms and step units.

“The stadium contract is the latest in a series of projects where Civmec is taking a major role in the development of new infrastructure for Perth,” says Tallon.

“WE CAN DO PRETTY MUCH ANYTHING THAT ANY CUSTOMER CAN THROW AT US, AND WE CAN DO IT VERY EFFICIENTLY AND VERY QUICKLY.”– Pat Tallon, CEO

Perth Stadium Project team reviewing the project schedule

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first full EPCC (Engineering, Procurement, Construction and Commissioning) contract, on the expansion of BHP Billiton’s Jimblebar iron ore mine in the Pilbara. The $145 million contract involves the installation of a new primary crusher and additional conveying capacity which will employ approximately 270 personnel at its peak.

“We secured this job on the back

SUPPORTING NATIONAL SECUR IT YAll this demonstrates how successfully Pat Tallon and Jim Fitzgerald have led the company from a startup in 2009, through its listing on the Singapore Stock Exchange in 2012, to what is fast becoming a dominating position in the Australian civil contracting market. In a joint venture with Sedgman, Civmec secured its

Civmec employees conducting quality checks in the Henderson workshop

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of delivering to clients through the EPCM process,” he explains. “It puts us into a different space: under EPCM, the client hired an engineer to manage the project, then the engineer hired the contractors. Under EPCC the client specifies what they wants and we come in, take over the design, liability and the risk and build the plant at a fixed, lump-sum price. It’s better for the client because it delivers cost savings by cutting out the engineer in the middle.”

Civmec’s expansion across Australia, as well as its positioning on the SGX, will place it in good stead when it comes to its next planned strategic leap; expansion into the economies of Southeast Asia. Tallon does not propose to rush this move, however for the coming year, he plans to keep the focus firmly on the home market. This is to take advantage of their recent acquisition of the country’s largest privately-owned engineering and shipbuilding company, Forgacs

along with its purpose-built shipyard at Tomago on the Hunter River, just 160 kilometres to the north of Sydney. The 22.7-hectare site includes 535 metres of river frontage with two ship basins. It is hard to overstress the significance of this move, since it gives Civmec the capability to be involved in defence builds over the coming years.

The Australian government has just announced that it will spend $150 billion over the next decade to include a doubling of its submarine fleet to 24, three additional destroyers, nine new frigates and twelve offshore patrol boats. This acquisition, added to Civmec’s own excellent reputation for making durable structures for long-term subsea performance, gives Civmec the opportunity to become deeply involved in the government programmes including submarines. A strong contender to design these vessels is Germany’s Thyssen Krupp, working with Siemens for their power plants. It has been suggested that Civmec would be favourite to build the pressure hulls.

“We wanted to get into fabrication

and precast on the east coast,” says Tallon. “There are so many opportunities for these activities particularly in NSW, so we are planning to create a facility that mirrors the Henderson site. It will be a major building block in our growth programme and will make up for the shortfall in mining and O&G contracts.”

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Submarine hull section unveiled at Civmec Henderson

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COMPANY NAME

DOING R IGHT BY THE PEOPLEWhile diversification and geographical expansion when the time is right remain strategic goals, Tallon zealously guards his company’s founding principles, which put people first. One of his mantras is “hire for attitude, not skills,” a philosophy that plays well in Australia’s journey to a fairer

society. If a potential employee shows commitment and positivity, any lack of skills can be rectified. “We were all apprentices once,” says Tallon.

In April 2014, Civmec was accredited as a Registered Training Organisation (RTO). The training facility at Henderson, as well as managing apprenticeship and graduate programmes for

James Finbarr Fitzgerald Executive Chairman

Patrick John Tallon Chief Executive Officer

S E C T O R

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COMPANY NAME

the society as a whole.Last year the company got

together with the David Liddiard Group (DLG) to create a joint venture subsidiary that will principally engage in securing and providing construction and engineering services with indigenous participation, for projects within the Australian defence sector.

Civmec DLG takes this

employees, offers free skills training to indigenous groups.

It’s not so much, Tallon says, that Civmec and all its Australian clients have a statutory requirement to employ indigenous personnel and subcontractors, as this is something the company tries to do as a matter of principle. It’s that a diverse and non-discriminatory workforce helps to advance the right development of

Patrick John Tallon Chief Executive Officer

Kevin James Deery Chief Operating Officer

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engagement one step further, says Tallon. “DLG was a company that wanted to develop its people. So we came together to combine our understanding and experience in both industry capability and indigenous participation to ensure that each project is able to demonstrate authentic engagement with local Indigenous communities. We aim to upskill the local workforce, ensuring a sustainable

economic benefit wherever we deliver projects.”

As Tallon points out, in the defence sector there’s really only one customer. Work must be able to meet very exacting standards in quality, execution and capacity but the government is more committed to indigenous sourcing, and the new entity will be well placed to win defence work. As a further step towards positive

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View of the Yandi project where Civmec delivered site civil works, fabrication, modularisation and structural mechanical and piping installation services

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w w w. c i v m e c . c o m . a u 1 7The team at Nammuldi after the successful installation of the train loadout bin

“WE GOT THE EPC BHP JIMBLEBAR CONTRACT ON THE BACK OF DELIVERING TO CLIENTS THROUGH EPCM. IT PUTS US INTO A DIFFERENT SPACE.”– Pat Tallon, CEO

View of the Yandi project where Civmec delivered site civil works, fabrication, modularisation and structural mechanical and piping installation services

he says. “We are very aware that many employees spend long periods away from their families in remote areas, so we try to involve families as much as we can. We send out progress reports and other materials to the families to keep

community involvement, DLG contracts will incorporate long-term maintenance agreements so that the communities will benefit for many years post-execution.

“We are focused as a company on doing the right thing socially,”

Civmec made two donations to Dreamfit during FY2015 from savings attributed to the achievement of specific safety performance targets by our employees

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them updated and we’ll always help if someone needs to come home in an emergency.

Environmentally, we aim to use renewable energy sources wherever possible, utilise sustainable waste management and endeavor to leave a site in as good or an even better condition than we found it.”

Company Information

I N D U S T RYConstruction, Engineering and Modularisation

H E A D Q U A RT E R S

Henderson, WA - Australia

E S TA B L I S H E D

2009

E M P L O Y E S S

1500 approx

R E V E N U E

$499 Million (SGD)

CIVMEC

MAIN WEST COAST FACILITY16 Nautical Drive, Henderson WA 6166

Telephone: +61 8 9437 6288 Facsimile: +61 8 9437 6388

Email: civmec@civmec.com.au

MAIN EAST COAST FACILITY40 Old Punt Road, Tomago NSW 2322

Telephone: +61 2 4028 0300 Facsimile: +61 2 4964 8316

Email: civmec@civmec.com.au

SINGAPORE REGISTERED OFFICE80 Robinson Road #02-00 Singapore 068898

www.civmec.com.au