Downer Group
| Company type | Public |
|---|---|
| Industry | Engineering, Construction, Infrastructure, Mining services |
| Founded | 1933 |
| Founder | Arnold Downer |
| Headquarters | Sydney , Australia |
Area served | Australia, New Zealand, Asia-Pacific, South America, Southern Africa |
| Products | Infrastructure development, mining services, energy projects, transportation systems |
Number of employees | 31,000 |
| Website | www |
Downer Group is a comprehensive services provider with its primary operations located in Australia and New Zealand.
Trading on the Australian Securities Exchange under the name Downer EDI (DOW), it ranks among the ASX 200 companies.
With a workforce of around 31,000 employees distributed across over 300 locations, Downer mainly serves Australia and New Zealand, while also maintaining a presence in the Asia-Pacific, South America, and southern Africa regions.
History
The foundation of Downer can be traced back to several 19th-century firms, including Australia's Walkers Limited and Clyde Engineering, alongside New Zealand's Public Works and Electrical Telegraph Departments. Over time, these organizations amalgamated to form components of today's Downer Group. Significant acquisitions that shaped the company include railway manufacturer Evans Deakin & Company (EDI) and mining services firm Roche Brothers.
Established in 1933 by Arnold Downer as Downer & Co in New Zealand, the business initially concentrated on engineering and construction projects for both government and private sectors. In 1954, it merged with William Cable Holdings and later combined with A&G Price in 1964, creating Cable Price Downer.
In 1994, Downer joined forces with Hong Kong-based Paul YITC. It then acquired Works Corporation—the civil construction division of New Zealand's Ministry of Works & Development—in 1996, followed by the purchase of mining contractor Roche Brothers in 1997. The company expanded further by acquiring the prominent roads contractor Technic Group in 1998 and subsequently listed on the Australian Securities Exchange.
The early 21st century marked continued growth: Bitumix was procured from BP in 2000; in 2001, a merger with Evans Deakin Industries resulted in Downer EDI. Between 2003 and 2008, the company added Stork, QCC, Snowden, Emoleum, and Excell Corporation to its portfolio. October 2014 saw the acquisition of Tenix's construction assets.
In March 2017, Downer took over Hawkins, a leading construction firm in New Zealand. By June that year, it initiated a hostile takeover bid for Spotless Group Holdings, eventually securing majority control. The complete acquisition was finalized in October 2020 for $1.27 billion, marking the largest purchase in Downer's history.
Major projects
Notable projects undertaken by Downer include:
- Construction of the Homer Tunnel (1935–1940)
- Development of the Rimutaka Tunnel alongside Morrison-Knudsen (1951–1955)
- Building the Cook Strait Ferry Terminal for passenger and freight services (1960)
- Creation of the Lower Nihotupu Reservoir (1948)
- Implementation of the Lower Wairarapa Valley flood control scheme (1964–1984)
- Establishment of the New Plymouth Power Station (1972)
- Participation in Auckland’s City Rail Link project (from 2016)
- Operations at Christmas Creek mine (2010–2016)
- Involvement in the Gorgon gas project (2014–2017)
- Contribution to the Wheatstone project (2014–2017)
- Development of the Carrapateena mine
- Execution of the Gruyere Gold Project
- Management of Meandu Mine operations
- Construction of Ross River and Clare solar farms
- Work on Australia's National Broadband Network infrastructure including FttC, FttN, HFC technologies
- Collaboration on High Capacity Metro Trains (HCMT) with CRRC Changchun Railway Vehicles
- Partnership on Sydney Growth Trains (SGT) alongside CRRC Changchun Railway Vehicles
- Maintenance services for Sydney Trains' Millennium passenger fleet
- Delivery of the Newcastle Light Rail
These initiatives highlight Downer's extensive expertise across sectors such as infrastructure development, mining activities, energy projects, and transportation systems.
Operations
Downer presents its financial performance through five primary service divisions: Transport; Utilities; Facilities; Engineering, Construction and Maintenance (EC&M); and Mining.
Rail/Bus
Downer Rail was established in March 2001 under the name EDI Rail following Downer Group's acquisition of Evans Deakin Industries. It took over operations at the former Clyde Engineering facilities located in Kelso and Somerton, as well as the Walkers Limited site in Maryborough. The company also recommenced activities at the former Cardiff Locomotive Workshops to manufacture CityRail M sets, before adopting the Downer Rail name in July 2007.
In 2008, Locomotive Demand Power was launched as a subsidiary focused on leasing locomotives. By November 2009, Downer Rail expanded into the tram sector through acquiring a 49% shareholding in Keolis Downer, which operates the Yarra Trams network in Melbourne. In July 2014, Keolis Downer began managing the G:link light rail system on the Gold Coast.
The transport portfolio of Keolis Downer broadened further in March 2015 with the acquisition of bus operator Australian Transit Enterprises, bringing under its umbrella the brands Hornibrook Bus Lines, LinkSA, Path Transit, and SouthLink, collectively operating a fleet of 930 buses. In July 2017, it commenced provision of bus and ferry services in Newcastle under the brand name Newcastle Transport.
Transport
The Transport division encompasses Downer's road-related services, infrastructure projects, and rail & transit system operations. It delivers a range of transport infrastructure solutions including earthworks, civil construction, asset management, maintenance, surfacing and stabilisation works, supply of bituminous materials and logistics support, open space and facilities management, as well as rail track signalling and electrification services. In June 2023, Downer divested its transport projects business to Gamuda Berhad, which subsequently rebranded it as DT Infrastructure.
Utilities
Serving sectors such as power and gas, water, telecommunications, and renewables, the Utilities division is responsible for designing, constructing, operating, and maintaining infrastructure including steel lattice transmission towers, electricity and gas distribution networks, wastewater treatment facilities, water assets, wind and solar energy farms, along with telecommunication networks like the NBN.
Facilities
Operating throughout Australia and New Zealand, Facilities provides services across defence, education, health care, government institutions, and hospitality sectors. Its portfolio includes businesses such as Spotless, AE Smith, Alliance, Ensign, EPICURE, Mustard, Nuvo, Taylors, and Envar.
Asset Services
Downer's Asset Services division supports Oil and Gas, Power Generation, and Industrial clients from both public and private sectors. It offers comprehensive services including design, engineering, construction works, maintenance activities, shutdowns and turnarounds, sustaining capital projects, project delivery management, and commissioning. The Defence segment delivers professional services alongside managed offerings that include asset sustainment and estate maintenance for defence forces in Australia and New Zealand.
Mining
On 1 February 2021, Downer finalized the divestment of its Open Cut Mining West segment to MACA Limited. Subsequently, in December 2021, the company completed the sale of its remaining Mining operations by transferring the Open Cut Mining East division to Buma Australia Pty Ltd.
Use of pseudoscience
In 2019, Downer acknowledged employing dowsing as a technique to detect water pipes during a contract with the Wellington City Council. Although dowsing is widely regarded as a pseudoscience lacking scientific validation for its efficacy, Downer showed no apprehension about public reaction concerning the allocation of ratepayer money toward this practice. The company’s general manager for business excellence and reputation indicated that dowsing posed no safety risks and allowed employees to decide individually whether to use it.
At the New Zealand Skeptics annual conference in December 2019, Downer was jointly awarded the Bent Spoon for demonstrating "the most glaring credulity" due to its reliance on water divining methods for underground pipe detection.
Sponsorships
Downer Group acquired naming rights sponsorship for the NRL Auckland Nines tournaments in both 2016 and 2017. The company also supported the 2016 Anzac Test held at the Newcastle International Sports Centre as well as the 2018 World Club Challenge. Furthermore, Downer served as the principal sponsor of the Rugby League World Cup 9s.
In 2017, Downer took on the role of major sponsor for the Sunshine Coast Lightning netball franchise. By 2021, it had established a Major Partnership with mental health organisation Beyond Blue.