Infrastructure and environmental services provider Citywide has entered into a joint venture with Fulton Hogan to operate the company’s North Melbourne Asphalt Plant.
The joint venture involves an equal 50 per cent stake in the plant’s operating assets and business.
The agreement was completed in December last year and took effect on 15 January.
Citywide’s asphalt plant supplies low carbon, market-ready asphalt products to Victorian infrastructure companies and councils.
Citywide Chief Executive Officer, Chris Campbell, said in a statement that entering the joint venture with a company of the scale and know-how of Fulton Hogan would enable the organisation to deliver a broader range of innovative asphalt products to more customers.
“It marks an important step in our renewed focus on delivering high-quality products and services for our customers, and doing so consistently and efficiently,” he said. “By sharing resources and knowledge, and through access to leading-edge technology, it’s an alliance that will enable us to grow our asphalt operations while generating value for our business.”
After opening the asphalt plant in 2007, Citywide expanded its operations in 2013 to provide a greater asphalt recycling capability.
Mr Campbell said Fulton Hogan was an excellent joint venture partner for Citywide given the strong alignment from a cultural, safety, and customer-focus perspective, giving rise to the potential for further strategic synergies down the track.
“They bring a strong pedigree when it comes to owning and operating asphalt operations, and we have a shared view of what it means to put the customer first which gives rise to the possibility of exploring further strategic opportunities between our two companies in the future,” he said.