Cementation buys Wood's conveyor systems business

Engineering group Wood is selling its subsidiary, Terra Nova Technologies, a conveying and material-handling systems business, to Cementation Americas, part of Murray & Roberts
Cementation buys Wood's conveyor systems business Cementation buys Wood's conveyor systems business Cementation buys Wood's conveyor systems business Cementation buys Wood's conveyor systems business Cementation buys Wood's conveyor systems business

Terra Nova Technologies provides materials-handling design, consulting services, design/supply sourcing and general contracting

Staff reporter

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.