Downer Group will now consist of three businesses – Downer Infrastructure, Downer Mining and Downer Rail.
The Chief Executive Officer of Downer, Grant Fenn, said the establishment of Downer Infrastructure would deliver a range of benefits flowing from greater collaboration including sharing of skills, knowledge and best practice.
“The establishment of Downer Infrastructure will help us optimise our performance, deliver better results for our customers and implement change more effectively,” Mr Fenn said. “It will also deliver a range of benefits across Zero Harm, Risk and Project Management and our key business systems.
“Both in Australia and New Zealand Downer operates in the Transport Infrastructure, Water, Communications and Power markets. Bringing our core businesses together will ensure we leverage our existing expertise more broadly and improve our performance.
“It will also enhance our ability to capitalise on growth opportunities. Significantly, Downer Infrastructure will offer our customers a substantially enhanced asset management capability. This business will provide a completely integrated suite of asset management solutions, from strategic consulting advice, data management systems, tools and programs, through to maintenance skills and services.
“Importantly, Downer Infrastructure will provide greater career opportunities for our employees by facilitating the movement of people as well as knowledge and best practice,” Mr Fenn said.
Downer Infrastructure has work-in-hand of $8.4 billion (31 December 2011) and contributes around half of Downer Group’s revenue and earnings before interest and tax. It employs around 14,000 people.
Downer Infrastructure will now consist of five operational divisions (Australia East, Australia West, New Zealand, Resources and Specialist Services). David Cattell, currently CEO of Downer Australia, has been appointed CEO of Downer Infrastructure.
Downer will continue to report the individual performances of Downer Australia and Downer New Zealand in its statutory reports.