In a show of strength for Queensland’s manufacturing and METS sectors, well-known businesses SMW Group and BAE Engineering have today announced their merger, and the creation of a new parent company, SMW Group Limited.
SMW Group is a diversified mining support and industry services provider based in Rockhampton, Queensland. SMW has been operating since 2010 and employs over 320 staff. SMW has three key business divisions covering heavy fabrication and engineering, field services and abrasive blast and paint. SMW works with a number of market-leading mining and infrastructure related entities, including BHP/BMA, Anglo American Coal, Coronado Curragh, Aurizon and the Rockhampton City Council.
BAE is based in Mackay, Queensland and has been operating since 2011. BAE provides specialised mining support services, manufacturing mineral processing equipment supplied to the mining, construction, petrochemical and sugar industries. Offering a complete solution, from innovative design, product manufacture or maximising the return on a client asset investment through our specialised repair process. BAE is seen as a valued and integral supplier within the Bowen Basin region.
BAE has over 70 staff working across three principal divisions – Maintenance and Field Services, Workshop Manufacture and Fabrication, D Scanning and Design drafting. BAE supports and executes service for the major mining houses operating in the Northern Bowen Basin, including BMA, Glencore, Stanmore, Thiess, Anglo American, Peabody, Batchfire and Port Infrastructure.
This new parent company will be a market leader when it comes to the mining, engineering and construction services sector. The company will subject to receiving final approvals, be listed on the NZX Market in New Zealand as SMW Group Limited (NZX:SMW), with a view to eventually listing on the ASX.
SMW Group founding partner Jack Trenaman noted, “The merger represents an exciting step in the growth of the company, as well as an expansion of our ability to deliver services to our existing clients. Our business’s footprint will now cover Mackay and Rockhampton, meaning that we can provide services to the Bowen Basin and major projects in a faster, smarter and more efficient manner.”
“As we expand our potential, this also means we will be able to work with customers in new and improved ways. Whether this looks like an expansion to our field service offering, new projects in civil or defence or even duplicating our successful industrial cleaning or solar power divisions in a new location, we’ll be on the lookout to provide maximum value to our customers in the simplest way possible.”
The Chair of the newly formed SMW Group Limited will be Chris Leon. Chris is a veteran industrial leader with listed company experience both in Australia and Asia. He is a professional engineer with a wide range of experience in heavy engineering including in LNG, mining, fertiliser, lime, cement and steel mill services. Chris has significant commercial experience and a successful track record in Mergers and Acquisitions in both the formation of IPL Ltd and the integration of Cement Australia, as well as a history of working effectively with both state and federal governments.
Mr Leon commented, “I’m delighted to be working with the new SMW Group. The future of the company will capitalise on the inherent skills and experience of both the SMW and BAE teams, as well as their strong reputations for servicing the needs of industrial customers in Central Queensland. The larger critical mass of the combined entity, together with the governance assurance of a listed business, will open up new opportunities. As a listed business, the Group will have improved access to capital for expansion: both organic and through acquisition.”
Queensland Resources Council CEO Ian Macfarlane noted that a public listing amidst the COVID-19 pandemic showed the importance and enormous resilience of the resources sector in Central Queensland.
“Agriculture and Resources have been the backbone of the economy and will continue to drive this State forward. As the world’s largest coal exporter, and potentially the world’s largest LNG exporter around the turn of the decade, Australia is an energy superpower with over 280 years of black coal, 50 years of gas, and 30 years of oil at current production rates.”
“The long-term outlook for metallurgical coal, which accounts for two-thirds of Australia’s total coal export earnings, is positive. There is no proven competitive substitute for metallurgical coal in blast-furnace steel-making and the ongoing urbanisation and industrialisation of emerging Asia will require steel.”
“These are all opportunities for companies like SMW Group to grow and expand with the industry. I commend them on their vision and look forward to seeing their expansion in the region”
Queensland Senator Matthew Canavan notes the importance of the resources industry in central Queensland, and how pivotal growth in the sector is to all Queenslanders.
“SMW have grown from a small partnership employing 5 people to their current size at over 320 staff and some of the smartest technology in the region.”
“The mining sector is the bedrock of central Queensland, delivering nearly 12,000 full time jobs and inputting $3.4 billion into our local region. This is on top of the $5.2 billion in royalties that’s shared throughout Queensland.”
“SMW is a pivotal supporter of this industry. With their field and local maintenance and manufacturing staff, they are ensuring that mines are continuing to run and resources are continuing to deliver for our region. With this new partnership, they will only keep growing our local economies and employing regional Queenslanders.”
Michelle Landry MP commented, “Jack, Frank and Scott are a part of the fabric of this community and continually giving back. The resources are in Central Queensland, the work is here and companies like Adani and SMW Group have the confidence to invest in Central Queensland. As an LNP Government, we understand that the resources and agricultural sector in Northern Australia are what keeps this country afloat and we back companies like SMW in their investment.”
Federal Member for Dawson George Christensen congratulated the companies on their consolidation.
“This business move demonstrates the strength of the mining and construction services industry in our region, as well as the confidence that SMW Group have in our future,” Mr Christensen said.
“It’s great to see local businesses grow in scale to the point where they’re publicly listing, and I applaud their commitment to supporting local jobs.”