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| Order Book and Market |
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The total Construction & Engineering order book increased 69% in the period under review to
R38 billion, with the 3-year backlog at R24,5 billion (June 2007: R22,5 billion).
Construction Middle East accounts for R2,8 billion of order book (up 25%) with Construction
SADC at R9,2 billion (up 8%), Engineering at R2,9 billion (up 88%), Mining Contracting
at R5,5 billion (up 11%) and Clough at R6,1 billion (up 22%). The remaining R11,5 billion
relates to the balance of long-term power generation projects for the period between 2010
and 2015.
The regional composition of total order book is SADC 70% (58%); Middle East 8% (13%)
and Rest of World 22% (29%). The amounts in brackets are comparative levels at
30 June 2007.
Murray & Roberts and its partners are in contention for further work associated with South
Africa's power station build program. In all cases the competition is foreign contractors with
limited or no previous experience in the country. Following a thorough evaluation of its options,
the Group selected Westinghouse and Shaw Group of the United States as its technology and
implementation partners for the proposed Nuclear Power Program in South Africa. The tender
proposal has been submitted and will be followed by an intensive evaluation process to select
the preferred contractor group.
The Group is in advanced negotiation for, or has subsequently secured a number of major
building projects in South Africa and Middle East. Mining contracting markets in Australia and
Canada remain buoyant, with the South African market impacted in the short term by power
supply concerns.
The Group has minor exposure to the slowdown in demand for home building services and
materials. However, the infrastructure and industrial construction markets continue to offer
good growth potential to the Construction Materials & Services operations. |
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