What has happened?
SciDev (ASX:SDV) announced that its to be acquired subsidiary Haldon Industries has been awarded the contract to design, construct and commission a Sequencing Batch Reactor Leachate Treatment Plant for Sydney’s $2.6 billion Gateway Road Project.
What are the key highlights?
- SciDev announced that soon to be subsidiary Haldon Industries has been awarded the contract to design, construct and commission a Sequencing Batch Reactor Leachate Treatment Plant for Sydney’s Gateway Road Project. Sydney’s Gateway Road Project is a new direct high capacity road connection linking the Sydney motorway network at the St Peters interchange with Sydney Kingsford Smith Airport, with the project costing about $2.6 billion.
- The potential revenue from the contract is expected to be approximately $1.5m to $2m over the term of the agreement, with activity scheduled to commence in Q4FY21 and complete in Q1FY22.
- The Company’s acquisition of Haldon was announced on the 29th of March 2021 and is due to complete prior to end Q4 FY21 with conditions precedent being satisfied in line with expectation.
What does this mean?
The recent announcement of Haldon’s contract illustrates the significant opportunity in the infrastructure and wastewater verticals that the soon to be acquired business lends SciDev. Through the acquisition of Haldon, SciDev further extends its presence in significant infrastructure projects nationally, with the scale of the Gateway Road Project illustrating the Company's calibre and ability to take on large contracts. Furthermore, the newly won contract could bring in between approximately $1.5m to $2m over the term of the agreement.