The proceeds of the sale, which is part of Wood's programme to dispose of its non-core assets, will be US$38 million.

Wood chief financial officer David Kemp said: "Terra Nova Technologies has a strong track record in delivering material-handling equipment to our customers."

Kemp also explained that the groups strategy going forward was to focus on "asset-light solution" rather than manufacturing of equipment.

"The disposal makes a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan," he noted.

The sale remains subject to normal conditions and is expected to close in the June quarter.