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Downer Group

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Downer EDI Limited
Company typePublic
ASX: DOW
Founded1933
FounderArnold Fielder Downer
Headquarters
Sydney
,
Australia
Key people
Grant Fenn, CEO and Managing Director
ServicesIntegrated services
$12.6 billion (August 2018) [1]
Increase $296.5 million (August 2018)
Number of employees
53,000 (May 2019)
DivisionsTransport and Infrastructure
Mining, Energy and Industrial
Spotless
New Zealand
SubsidiariesDowner Rail
Keolis Downer (49%)
Spotless Group Holdings (88%)
DM Roads
Hawkins
EPICURE
QCC Resources
Mineral Technologies
VEC
Websitewww.downergroup.com

Downer Group is an integrated services company active in Australia and New Zealand.

Listed on the Australian Securities Exchange and New Zealand Stock Exchange as Downer EDI (DOW), Downer is an ASX 100 company.

Downer Group employs approximately 52,000 people across more than 300 sites, primarily in Australia and New Zealand but also in the Asia-Pacific region, South America and Southern Africa.

History

Downer's foundations were laid in the 19th century, when Walkers Limited and Clyde Engineering were founded in Australia, and the Public Works Department and Electrical Telegraph Department were founded in New Zealand. They would merge in the 20th century to form parts of the Downer Group. The 20th century also saw the purchase of companies that now make up Downer's core divisions: railway manufacturer Evans Deakin & Company (EDI) and mining contractor Roche Brothers.[2]

In 1933, the Downer Group was founded in New Zealand by Arnold Fielder Downer, as Downer & Co, focussing on providing engineering and construction services to the public and private infrastructure sectors in New Zealand, including the New Zealand Public Works Department. In 1954, Downer & Co merged with William Cable Holdings and, in 1964, with A & G Price, to form Cable Price Downer.[2]

In 1994, Downer merged with Hong Kong-based Paul YITC. 1996 saw the purchase of Works Corporation, the state-owned enterprise civil construction arm of the New Zealand Ministry of Works & Development. In 1997, mining contractor Roche Brothers was acquired.[3] In 1998, Downer purchased major roads contractor Technic Group, and was first listed on the Australian Securities Exchange.[2]

In 2000, road-sealing business Bitumix was acquired from BP.[4] In 2001, Downer merged with Evans Deakin Industries to form Downer EDI.[2][5] Between 2003-2008 Downer also acquired Stork, QCC, Snowden, Emoleum and Excell Corporation. In October 2014, the construction assets of Tenix were acquired.[6]

In March 2017, Downer acquired Hawkins, one of New Zealand's largest builders, and in June 2017, took majority ownership of Spotless Group Holdings through a hostile takeover.[7][8] It took full ownership of Spotless in October 2020. [9] The Spotless acquisition was the largest in Downer's history.

Major projects

Projects undertaken by the company have included:

Operations

Downer reports its financial results under five service lines: Transport; Utilities; Facilities; Engineering, Construction and Maintenance (EC&M); and Mining.

Rail/Bus

Downer Rail was formed in March 2001 as EDI Rail following the purchase of Evans Deakin Industries by Downer Group. Evans Deakin operated the former Clyde Engineering plants at Kelso and Somerton and Walkers Limited, Maryborough plant. It reopened the former Cardiff Locomotive Workshops to build CityRail M sets. In July 2007 it was renamed Downer Rail.[22]

In 2008 Locomotive Demand Power was established as a subsidiary to lease locomotives. In November 2009 Downer Rail became a tram operator through its 49% shareholding in Keolis Downer that operates the Yarra Trams franchise in Melbourne.[23] In July 2014, Keolis Downer commenced operating the G:link light rail line on the Gold Coast.[24]

In March 2015, Keolis Downer purchased bus operator Australian Transit Enterprises which operates the Hornibrook Bus Lines, LinkSA, Path Transit and SouthLink operations with 930 buses.[25] In July 2017, Keolis Downer commenced operating bus and ferry services in Newcastle under the Newcastle Transport brand.[26][27]

Transport

Transport comprises Downer's road services, infrastructure projects, and rollingstock services businesses. It conducts transport infrastructure services that include earthworks, civil construction, asset management, maintenance, surfacing and stabilisation, supply of bituminous products and logistics, open space and facilities management and rail track signalling and electrification works.[28]

Utilities

The Utilities service line provides services to customers across the power and gas, water, communications and renewables sectors. Downer designs, builds, operates and maintains steel lattice transmission towers, electricity and gas networks, wastewater treatment plants, water assets, wind farms, solar farms and telecommunication networks such as the NBN.[29]

Facilities

The Facilities services line operates in Australia and New Zealand delivering facilities services to customers across a range of industry sectors including: defence, education, health government and hospitality. Facilities businesses include Spotless, AE Smith, Alliance, Ensign, EPICURE, Mustard, Nuvo, Taylors and Envar. [30]

Engineering, Construction and Maintenance (EC&M)

Downer's EC&M service line includes its Engineering & Construction and Asset Services businesses and works with customers in the public and private sectors delivering services including design, engineering, construction and maintenance of critical assets. In the oil and gas sector, Downer's capabilities cover the full range of services including maintenance, shutdown, turnaround and outage delivery, sustaining capital program delivery, project and commissioning services.[31]

Downer also has a Defence business which offers professional and managed services, asset sustainment and estate upkeep services to the Australian and New Zealand defence forces.[32]

Mining

Downer's Mining business operates across 50 sites in Australia, Papua New Guinea, South America and Southern Africa. Most of Downer's Mining contracts deliver open cut mining and blasting services, with other services such as tyre management, underground mining, blasting and site rehabilitation.[32]


Use of pseudoscience

In 2019 Downer admitted to using dowsing, in an attempt to find water pipes while contracting to the Wellington City Council. Dowsing is considered a pseudoscience and there is no scientific evidence that it is any more effective than random chance. Downer told New Zealand Skeptic's chair Craig Shearer that Downer has no concern about the public perception that ratepayer money is being spent on a technique considered pseudoscience. Downer's general manager of business excellence and reputation Brooke Dahlberg said "the method is safe, and it has no plan to ban staff from using it - the choice to use it was up to individual employees."[33]

In December 2019, at the New Zealand Skeptics annual conference, the Downer Group was co-awarded the Bent Spoon by NZ Skeptics for "showing the most egregious gullibility in 2019" for the contractor's use of water divining to find underground pipes.[34]

Sponsorships

Downer Group was the naming rights sponsor of the NRL Auckland Nines in 2016 and 2017.[35][36] It also sponsored the 2016 Anzac Test at the Newcastle International Sports Centre and the 2018 World Club Challenge.[37][38] Downer will be the major sponsor of the Rugby League World Cup 9s.[39][needs update]

In 2017, Downer signed on to be the major sponsor of the Sunshine Coast Lightning netball team.[40]

References

  1. ^ https://www.downergroup.com/Content/cms/media/2018/PDF/2018_Full_Year_Results/FINAL_DOW0041_Annual_Report_2018_FA.pdf
  2. ^ a b c d History Downer Group
  3. ^ A Family History Roche Brothers
  4. ^ Works Civil cleared to acquire Bitumix Commerce Commission New Zealand 27 July 1998
  5. ^ Company name and ASX code changes 2001 Australian Securities Exchange
  6. ^ Downer EDI buys Salteri family's Tenix business for $300m Sydney Morning Herald 20 October 2014
  7. ^ Downer launches $1.27b bid for Spotless The West Australian 21 March 2017
  8. ^ Downer EDI seeks seats on Spotless board Special Broadcasting Service 27 June 2017
  9. ^ https://www.downergroup.com/asx-announcements
  10. ^ " Longest Tunnel in British Commonwealth" Railway Gazette 18 November 1955 page 584
  11. ^ "City Rail Link Become Reality". NBR. Retrieved 4 December 2016.
  12. ^ [1]
  13. ^ "Downer wins Gorgon contract". The Sydney Morning Herald. 2 September 2014.
  14. ^ "Downer EDI wins $400m Wheatstone contract". Australian Financial Review. 1 November 2013.
  15. ^ "Ausenco Downer JV awarded EPC contract for Carrapateena Copper Gold Mine Project". www.ausenco.com.
  16. ^ "Gruyere gold project partners sign $400m contract". The West Australian. 19 December 2017.
  17. ^ Rostron, Sophia. "Downer wins $250m contract extension at Meandu Mine". blog.plantminer.com.au.
  18. ^ Probert, Author Oliver (12 September 2016). "Downer consortium wins HCMT contract". {{cite web}}: |first= has generic name (help)
  19. ^ NSW, Transport for (23 June 2017). "Sydney Growth Trains". www.transport.nsw.gov.au.
  20. ^ "Millenium maintenance contract extension". Downer Corporate Site.
  21. ^ "Newcastle Light Rail". revitalisingnewcastle.nsw.gov.au.
  22. ^ Downer EDI launches new company names and branding approach Downer EDi 2 July 2007
  23. ^ Melbourne tram and train operators selected Railway Gazette International 25 June 2009
  24. ^ GoldlinQ selected to build Gold Coast light rail Railway Gazette International 6 May 2011
  25. ^ Operator ATE Sold Australasian Bus & Coach 11 March 2015
  26. ^ Keolis Downer awarded contract to run light rail, buses and ferries says Baird government Newcastle Herald 12 December 2016
  27. ^ Keolis Downer awarded Newcastle Transport Contract Archived 10 August 2017 at the Wayback Machine Keolis Downer 12 December 2016
  28. ^ "Roads". Downer Corporate Site.
  29. ^ "Communications". Downer Corporate Site.
  30. ^ "Facilities Management". Downer Corporate Site.
  31. ^ https://www.downergroup.com/Content/cms/ResultsCentre/DOW0056_Annual_Report_2020_COMBINED_AW_LR_5_.pdf
  32. ^ a b "Defence". Downer Corporate Site.
  33. ^ Wellington ratepayers foot bill for pseudo science Newsroom 6 March 2019
  34. ^ https://www.stuff.co.nz/dominion-post/news/117848225/wellington-city-council-wins-skeptics-award-after-contractor-divines-for-water
  35. ^ Downer becomes 2016 Nines naming rights sponsor National Rugby League 19 January 2016
  36. ^ Downer secures NRL Auckland Nines naming rights sponsorship for 2017 and 2018 NRL Auckland Nines 5 July 2016
  37. ^ Downer to sponsor Test Match National Rugby League 13 April 2016
  38. ^ Downer partners with World Club Challenge Melbourne Storm 6 February 2018
  39. ^ Major sponsorship announcement Downer Group 30 November 2018
  40. ^ "Major partnership with Sunshine Coast Lightning". Downer Corporate Site.
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