Disposal
Broken Hill Proprietary Co Ld
3 November 1999
BHP ANNOUNCES SALE OF BHP ENGINEERING
The Broken Hill Proprietary Company Limited (BHP) today agreed to sell BHP
Engineering to the Canadian-based Hatch Group, with the sale expected to be
effective 8 November 1999.
BHP Engineering is a wholly owned subsidiary of BHP. The sale is part of the
Company's ongoing global asset portfolio review and will result in the
transfer of all BHP Engineering staff, about 900 Engineering employees and
contractors, to the Hatch Group.
The transaction ensures the cost-effective delivery of world class engineering
services and ongoing access to key engineering personnel for BHP's operations
and activities globally. Importantly, it provides greater career opportunities
for BHP Engineering employees in a recognised engineering business.
BHP Services President Kirby Adams said: ''As a natural resources company, BHP
recognised it was not the natural owner of the BHP Engineering business. The
agreement ensures the Company maintains access to the engineering capabilities
it requires without having to own that business.
'The sale to Hatch is designed to optimise service delivery to BHP operations
and other customers, taking into account their current and future
requirements. The enlarged Hatch organisation is represented worldwide and
will have the industry-specific capabilities to support BHP's needs.'
Mr Adams said the sale would provide an opportunity for BHP Engineering
employees to enhance their widely acknowledged skills and experience. ''There
is an alignment of purpose between Hatch and where we had planned to guide BHP
Engineering,'' he said.
'BHP Services is focused on achieving leading commercial solutions for our
customers and we look forward to our ongoing alliance with the Hatch
organisation.'
Hatch President and CEO Ron Nolan said 'We are delighted to have reached an
agreement with BHP and look forward to maintaining a very close relationship
with the Company in the future.'
Mr Nolan said: 'For us the key to this move was the calibre of the BHP
Engineering people. They will broaden and deepen the range of specialist
skills we can offer worldwide, enhancing the Hatch group as a recognised
market leader.
'We will be meeting with BHP Engineering staff as soon as we can, but it is
already clear that there is an alignment in culture and strategic intent and a
clear focus on customer needs. This is a major step for Hatch and we're very
excited about the future,' he said
Hatch is a global supplier of technical and strategic services, including
consulting, process development, engineering, project management and
construction, to the mining metallurgical industries worldwide.
Media Relations: Mandy Frostick
Manager Media Relations
BHP Group
Tel: +61 3 9609 4157
Maree Arnason
Manager External Affairs
BHP Services
Tel: +61 3 9609 2411
Paul Luker
Hatch Australia
Tel: +61 2 9438 0568
Investor Relations: Dr Robert Porter
Vice President Investor Relations (elect)
Tel: +61 3 9609 3540
(NB: Attached are background profiles for both BHP Engineering and Hatch.)
BACKGROUND NOTES
BHP ENGINEERING
. BHP Engineering is one of Australia's leading engineering companies working
with both BHP and non-BHP customers to provide engineering and project
management services which deliver better business results.
. BHP Engineering is a wholly-owned subsidiary of The Broken Hill Proprietary
Company Ltd.
. Approximately 900 Engineering employees and contractors.
. Key products and services include:
- Project and construction management
- Mining, minerals processing and materials handling
- Hot metal making, casting, rolling, coating and processing
- Power and oil and gas processing
- Infrastructure (rail, ports, water, mining, civil/geotechnical)
- Maintenance engineering
- Environment and risk engineering
- Land technologies and
- Electrical power systems.
. BHP Engineering has offices in Melbourne, Sydney, Brisbane, Perth,
Wollongong, Newcastle in Australia, and offices in Manila (Philippines),
Antofagasta (Chile), Shanghai (PRC) and New Delhi (India)
HATCH
. Hatch is a leading international consulting, engineering, information
systems, project management and construction organisation offering services
in the mining, metals, infrastructure and energy industries.
. 2,300 employees
. Headquarters near Toronto, Canada and a network of 30 permanent offices
worldwide located in Canada, USA, Europe, South Africa, South America, South
East Asia and Australia.
. Hatch has been active in Australia for many years, providing engineering to
mining and metals companies and recently established an Australian operation
dedicated to building a permanent presence and continued growth in
Australia.
. Annual worldwide fees and technology sales of approximately $200m
. Projects in 80 countries
. The units and affiliates of the Hatch Group provide a full range of
technology driven, value-adding solutions and services to clients in the
mining, minerals, metals, manufacturing, infrastructure and energy sectors.
. The employee owned organisation is designed around five Groups:
- Consulting to Management
- Process Group
- Design Group
- Project Management & Construction
- Advanced Systems Group
. Programs and projects under management have an aggregate value in excess of
$6 billion.
. Hatch was the first major engineering firm in North America to have its
management systems certified on ISO 9001, and was named in 1996, 1997 and
1998 as one of the 50 Best Managed Private Companies in Canada.