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Transfield Services Awarded Key Defence Contract

8 April 2005

Transfield Services Awarded Key Defence Contract

Transfield Services has been awarded a $12 million, four year Facilities Maintenance contract for the Royal New Zealand Air Force (RNZAF) Ohakea Base.

The ASX-listed company took over the Ohakea contract when it acquired Serco New Zealand in June last year and has successfully re-tendered against a number of other major service providers.

Transfield Services’ New Zealand General Manager, Tony Fisher, said the win was in line with the company’s strategy of expanding its presence in core industries.

“This is our first Defence re-tender since the Serco acquisition last year,” said Mr Fisher. “Our success in winning this contract confirms our position as a significant partner to Defence, with a number of other key contracts in both New Zealand and Australia.”

As part of its Facilities Management contract, Transfield Services will provide building and asset management and maintenance, an around-the-clock call centre, grounds management, fire protection equipment management and minor capital works. The company has already invested in new and replacement plant and equipment since it took over the contract from Serco.

Air Force's Director of Support Services, Mr Ian Brunton said that the new contract includes many of the previous tasks undertaken by Transfield Services, but focuses on meeting set key performance indicators and additional reporting requirements that will enable Air assets to be managed more efficiently and effectively.

"The Royal New Zealand Air Force is pleased to continue its association with Transfield Services in what is seen as a new generation of contract for Base Ohakea. Transfield Services has demonstrated the ability to perform to a high standard under the previous Ohakea contract and Air look forward to the same professionalism being demonstrated throughout the new contract term."

Transfield Services is one of the largest and most diversified service providers in New Zealand with a workforce of over 3,000. It is already a major employer in the Palmerston North region through its rail maintenance contract to New Zealand Railways Corporation (Ontrack).

“The Ohakea contract win cements our position as a key employer within the region and will provide ongoing employment for our valued team of 30 skilled tradesmen and women,” said Mr Tony Fisher.

More…/2 “The four year tenure also puts Transfield Services in a good position to support the Air Force’s proposed transfer from the Whenuapai Air Base in Auckland, where we also provide support,” said Mr Fisher.

The four-year contract with the RNZAF has options to extend for a further period of two years at the discretion of the RNZAF.

The win comes on the back of a year of significant expansion for Transfield Services, with the acquisition of Serco New Zealand in July and the acquisition in December of Areva’s Electrical and Telecommunications Services in New Zealand and Australia.

Transfield Services - Background Transfield Services is a leading provider of operations, maintenance and other asset management services across 11 industry sectors with some 110 contracts across Australia, New Zealand and Malaysia. The company is publicly listed and is included in the S&P/ASX 200. It has a turnover in excess of AUD $1.2 billion (2003/04). Clients of the company include major national and international companies as well as all levels of government.

In New Zealand, Transfield Services has a workforce of 3,000 people across a range of industry sectors. Other Defence contracts held by Transfield Services in New Zealand include the total Base non-core support of the Waiouru Army Training Group and Facilities Management for the RNZAF Whenuapai Base.

ENDS


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