Citywide, Australia’s leading provider of infrastructure and environmental services, has entered into a joint venture with Fulton Hogan to operate the company’s North Melbourne Asphalt Plant.
The joint venture involves an equal 50% stake in the plant’s operating assets and business. It brings to bear Fulton Hogan’s more than 80 years’ experience in roads and infrastructure development, including its ownership of some 50 asphalt plants across the Asia Pacific region. The agreement, completed today for an undisclosed sum, takes effect 15 January next year.
Citywide’s asphalt plant
supplies low carbon, market-ready asphalt products to Victorian infrastructure companies and councils.
Citywide Chief Executive Officer, Chris Campbell, said entering the joint venture with a company of the scale and know-how of Fulton Hogan would enable the organisation to deliver a broader range of innovative asphalt products to more customers.
“It marks an important step in our renewed focus on delivering high-quality products and services for our customers, and doing so consistently and efficiently,” he said. “By sharing resources and knowledge, and through access to leading-edge technology, it’s an alliance that will enable us to grow our asphalt operations while generating value for our business,” said Mr Campbell.
After opening the asphalt plant in 2007, Citywide expanded its operations in 2013 to provide a greater asphalt recycling capability.
Fulton Hogan operates a number of sites across New Zealand, Australia and the South Pacific. Its expertise spans transport, water, energy, mining and land development infrastructure. Mr Campbell said Fulton Hogan was an excellent joint venture partner for Citywide given the strong alignment from a cultural, safety, and customer-focus perspective, giving rise to the potential for further strategic synergies down the track.
“They bring a strong pedigree when it comes to owning and operating asphalt operations, and we have a shared view of what it means to put the customer first which gives rise to the possibility of exploring further strategic opportunities between our two companies in the future,” said Mr Campbell.
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