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CIMIC (ASX:CIM) share price on watch after $800m Australian Defence contract win

The CIMIC Group Ltd (ASX:CIM) share price will be on watch on Wednesday after announcing a major contract win this afternoon…
The post CIMIC (ASX:CIM) share price on watch after $800m Australian Defence contract win appeared first on Motley Fool Australia. –

The CIMIC Group Ltd (ASX: CIM) share price will be on watch on Wednesday following an after-market announcement.

What did CIMIC announce?

On Tuesday afternoon CIMIC revealed that its CPB Contractors business has been selected by the Australian Government’s Department of Defence to deliver the development phase of the Australia-Singapore Military Training Initiative (ASMTI) facilities project in North Queensland.

In addition to this, CPB Contractors has been named as the preferred contractor to manage the second phase of the project. This is currently scheduled to commence mid-2022.

The ASMTI facilities are being developed in order to support Australian Defence Force training and increased access by personnel of the Singapore Armed Forces to Australian military training areas.

According to the release, combined, the two phases of the project are expected to generate approximately $800 million in revenue for CPB Contractors.

The project design work will commence in early 2021 and construction of the ASMTI facilities is scheduled to be completed in late 2027.

CIMIC Group’s Chief Executive Officer, Juan Santamaria, notes that the company has a long history of working with the Defence Force.

He said: “We have a history of working with the Australian Defence Force, providing our regional projects experience and technical expertise to safely deliver key projects. We’re proud to continue to deliver long-term value to the Commonwealth.”

This sentiment was echoed by CPB Contractors’ Managing Director, Jason Spears.

Mr Spears commented: “CPB Contractors has been reliably delivering projects for the Department of Defence for more than 20 years. We will work collaboratively with the Department to ensure the economic opportunities created by this project are maximised through the involvement of local suppliers.”

CPB Contractors has previously delivered some of Australia’s most significant Defence infrastructure projects. This includes the RAAF Base Williamtown Redevelopment Stage 2 and HMAS Albatross Redevelopment Stage 3 in New South Wales.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post CIMIC (ASX:CIM) share price on watch after $800m Australian Defence contract win appeared first on Motley Fool Australia.

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