The CIMIC Group Ltd (ASX: CIM) share price is on course to finish the week on a high.
The engineering company’s shares are up 2% to $34.10 in morning trade.
Why is the CIMIC share price charging higher?
Investors have been buying CIMIC’s shares after it announced three major new contract wins.
According to the release, CIMIC’s CPB Contractors business has been selected by Rio Tinto Limited (ASX: RIO) to deliver three separate packages of work at Robe Valley, in the Pilbara region of Western Australia.
This includes various earthworks and civil works associated with the development of Robe Valley. Management estimates that the projects are worth approximately $150 million.
CIMIC’s Chief Executive Officer, Michael Wright, said: “CIMIC Group companies have a strong track record of delivering significant projects to the iron ore industry. With our decades of experience in the Pilbara we offer major mining clients certainty and confidence in construction, mining and industrial services.”
This isn’t the only contract that CPB Contractors has won this week.
On Tuesday CIMIC revealed that its CPB Contractors business has won a contract to deliver the Yanchep Rail Extension and the Thornlie to Cockburn Link components of Perth’s METRONET.
The Yanchep Rail Extension extends the Joondalup line north from Butler to Yanchep and involves the construction of three new stations. Whereas the Thornlie to Cockburn Link connects the Mandurah and Armadale lines. It involves the construction of two new stations.
The alliance-style contract, delivered in partnership with Downer EDI Limited (ASX: DOW), is expected to generate revenue of approximately $423 million to CPB Contractors.
Once again, it appears as though its experience and track record player a key role in this contract award.
Mr Wright said: “Our construction company CPB Contractors has a strong and experienced team in Western Australia, which will ensure the safe and efficient delivery of the METRONET program.”
The post CIMIC share price higher on Rio Tinto contract win appeared first on Motley Fool Australia.
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