Toowoomba-based construction company Wagners (ASX: WGN) has landed a $140 million deal to supply concrete materials in a megaproject that will transform Sydney’s western suburbs.
The agreement will see WGN provide more than 67,000 precast tunnel segments, which are used for the lining of an underpass, to help construct 9.8km twin tunnels in the Sydney Metro - Western Sydney Airport project.
Construction is slated to commence in early 2023, with the group anticipating it will contribute $140 million in revenue over a 20-month period.
Wagners CEO Cameron Coleman says “the segments will be manufactured locally” at the company’s Wacol precast facility before being transported to Sydney for installation into the project.
“Wagners are extremely proud to work with the CPB Contractors and Ghella (CPBG) joint venture on this critical scope of works for the project which will also deliver significant job opportunities,” he added.
“We will begin site preparation works over the coming months to ensure our facility and people are ready to commence production of the segments later this year.”
Announced two years ago by the New South Wales government, the Sydney Metro – Western Sydney Airport service will deliver 23km of rail between St Marys Station and the future Western Sydney Aerotropolis in Bringelly.
The megaproject is anticipated to support more than 14,000 construction jobs for both the NSW and national economies, which will include six new metro stations at:
- St Marys, interchanging with the existing suburban railway station and connecting customers with the rest of Sydney’s rail system
- Orchard Hills, to service a future commercial and mixed-use precinct
- Luddenham, to service a future education, innovation and commercial precinct
- two stations within the airport site, at the airport terminal and at the airport business park
- the commercial heart of the Western Sydney Aerotropolis (the area proposed to be named Bradfield)
While CBPG was awarded a metro tunnelling contract in December 2021, it also landed a second deal three months later which will see it deliver 10.4km of elevated viaduct, earthworks for track formation and a rail bridge over the new M12 motorway. The latter deal was also awarded to Sydney-based civil construction company United Infrastructure.
The supply agreement for WGN comes nine months after the company’s entity – Wagner Corporation - secured a partnership with the Queensland government to build a 1,000-bed quarantine facility adjacent to the Toowoomba Wellcamp Airport (WTB).
Wagner Corporation entered the aviation market in 2014 after developing WTB for over 19 months, making it one of the first privately funded airports in Australia.
Shares in WGN are up 10.50 per cent at $1.32 each at 3:36pm AEST.
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