Downer EDI (DOW)

Shares / Stock Code

DOW

Stock Exchange / Sharemarket

ax

Downer EDI Limited (DOW) is a company engaged in the provision of infrastructure management services and comprehensive engineering services to private and public power, rail, road, mining, resource and telecommunications sectors in Australia, Asia, Europe, New Zealand and United States. DOW was listed on the Australian Stock Exchange on the 20th of December 1990. Its average annual revenue reaches approximately $5 billion out of its issued capital of $607 million. Its headquarters is located in Sydney, Australia and to date; around 2,570 people are employed in the company. Downer EDI Limited operates mainly in four business segments: engineering, infrastructure, rail, mining and resources.

The engineering segment of Downer EDI Limited is comprised of the engineering division of the company. This segment specialises in process engineering, power and telecommunications. Included in the worldwide services this segment provides are design and project management as well as the facilities management services.

The infrastructure segment of DOW is in charged of the company's operation through Works Infrastructure where it provides preventative maintenance, routine maintenance, and other construction services to the rail and road sectors both in Australia and in New Zealand. Moreover, this segment also provides other services such as waste reticulation and treatment, sewage and wastewater reticulation and treatment, landfill operation and refuse disposal, tendering of reserves and parks, urban environmental activities and these services are given mostly to the local government.

The rail segment of Downers in engaged in the design, manufacturing, refurbishment, overhauling as well as maintenance of the electric locomotives, diesel electric locomotives, rail wagons, electric and diesel multiple units, rolling stock and traction motors. This segment operates through the EDI Rail.

The mining and resources segment of the company carries out its operations through the mining and minerals processing services provider, Roche Mining. Through this, the segment is capable of providing services such as process design, mine design, operations, construction and maintenance.

Downer EDI Company History

Downer Construction was the name of Downer EDI when it was first established in 1933 in New Zealand. It became Cable Price Downer after 30 years when Cable Price took it. Downer separated in 1989 and joined Honk Kong’s listed company Paul Y. ITC in 1994. The company had a lot of achievements like works Civil Construction and Works Geothermal from the New Zealand Government, Century Drilling and Roche Bros in 1996 and 1997. It became Downer EDI in 2001 after it was listed on the Australian Stock Exchange in 1998.

Downer EDI got CPG, a facilities and project management, and engineering consultancy company and went on to purchase and manage the electrical and facilities businesses of ABB in Australia and Hong Kong disposing its 49% investment in 2003. After selling its Walkers sugar business and foundry business in Maryborough, Queensland, the company bought Australian electrical and maintenance businesses and Civil Construction Services.

QCC Resource was taken by Roche Mining in April 2004. The company Works Infrastructure got Pavement Technology from Adelaide Brighton in May 2004 and in December 2004, Snowden Consulting Group joined Downer EDI group of companies.

Downer EDI’s castings foundry business Roche Castings Pty Ltd was sold to Bradken Limited in 2005 but the company got Dufill Watts King group of companies. In addition, multi-disciplined firm Coomes Consulting Group became part of the company. EDI Rail and SCT Logistics spent about $75million when they signed an agreement to design, supply and maintain 11 locomotives.

Emoleum was finally taken by Downer in April 2006. Century Resources partnered with Premier Oil and Canoro Resources in October 2006 to explore and develop work in north east India. EDI’s mining division finally signed a pact with Xstrata Coal in November 2006. April 2007 was the attainment of two new consulting businesses in New Zealand. Downer Engineering got agreements in the Pilbara region of Western Australia amounting to $200 million. The company started a new branding portfolio in July 2007. Downer EDI Rail with BHP Billiton Iron Ore and Rio Tinto Aluminum spent $75 million in supplying 15 locomotives in August 2007. In December 2007, MB holding bought Downer Century Resources. Peabody Pacific chose Downer EDI mining to be its tenderer. Mr. Geoff Knox was appointed as the Chief Executive Officer in the same month. The dispute between the parties at Coppabella mine was resolved. In January 2008, Mr. Peter Jollie was chosen as the Chairman of the company by the Board of Directors.