AusGroup unveils key changes to its exco
Reshuffle part of strategic review by the firm of its fabrication business in Australia
Singapore
SGX-LISTED AusGroup announced on Friday that it was conducting a strategic review of its fabrication business in Australia, which includes the reshuffling of some key personnel.
The company's board of directors said in a statement to Singapore Exchange (SGX) yesterday that with effect from Feb 19, 2015, there will two key changes to the AusGroup executive committee.
First, Michael Bourke, its executive general manager of operations, has resigned and ceased to manage the fabrication and manufacturing business units in Kwinana in Western Australia, and Singapore.
Next, Christopher Dargie, group manager of strategy and development, has been appointed to the executive management of the Singapore business. Mr Dargie will take on this responsibility on top of his current role.
Prior to the commencement of employment with AusGroup, Mr Dargie had held senior management positions in supply chain management of Subsea 7 in both Singapore and Latin America. He last held the position of director - supply chain management, Brazil, for Subsea 7. He has extensive sectoral experience, having worked within the oil and gas industry since 1996.
As a result of this personnel change, the company said that it has strategically reviewed its fabrication business in Australia.
"The industry performance of fabrication in Australia has been historically tied to trends in downstream construction markets. That demand has been adversely affected by the slump in commercial and industrial investment over recent years," AusGroup said in its statement.
"The company's specialisation in the fabrication of subsea components for the LNG sector has provided a number of major fabrication packages over the past five years. That work is now being completed and the LNG investment cycle for West Australian projects is coming to an end. The company has taken this opportunity to review the size and structure of its fabrication business in Australia."
The group also explained that the implemented changes to the operating and cost structure of the fabrication business will position it to better manage overheads at a level that will continue to support its maintenance strategy going forward.
The Perth-based AusGroup expanded into the the provision of onshore and offshore marine services last year when it purchased Ezion Holding's marine supply base business - Ezion Offshore Logistics Hub and Teras Australia. AusGroup shares closed at 27 Singapore cents on Wednesday's half-day trading on SGX.
