RCR Tomlinson
| Company type | Public |
|---|---|
| Industry | Engineering, Infrastructure, Resources |
| Predecessor | Tomlinson Bros, RCR Engineering |
| Founded | 1898 (as Tomlinson Bros) |
| Founder | Ernest and Edward Tomlinson (Tomlinson Bros); Ron Stevens, Clive Butcher, Robert Wovodich (RCR Engineering) |
| Fate | Entered administration in 2018; assets sold off |
| Headquarters | Perth , Australia |
Area served | Australia, New Zealand, Southeast Asia |
Key people | Roderick Brown (Chairman), Bruce James (CEO at time of administration) |
| Products | Heavy machinery, infrastructure for resources and power generation, industrial boilers, laser cutting services, electrical works |
Number of employees | Approx. 400 (RCR Rail acquisition) |
| Parent | None (was publicly traded on ASX) |
RCR Tomlinson ranked among Australia's prominent engineering, infrastructure, and resource enterprises with expertise spanning multiple disciplines.
History
The origins of the company trace back to 1898 when Ernest and Edward Tomlinson established Tomlinson Bros in Perth. It became publicly traded on the Australian Securities Exchange (ASX) in 1951. In 1981, a controlling interest of 63% was acquired by Clyde Engineering, which successfully assumed control. By 1985, the firm faced potential shutdown due to a downturn in projects but was ultimately preserved through a management-led buyout.
The entity known as RCR Tomlinson emerged in December 1996 following the consolidation of RCR Engineering and Tomlinson Bros. Founded in 1979 in Western Australia by Ron Stevens, Clive Butcher, and Robert Wovodich, RCR Engineering Ltd initially focused on diversified fabrication and machining services and progressively grew over 15 years to incorporate the MNLng Technologies business.
Company Overview
RCR Limited developed into a comprehensive engineering group with capabilities in designing, manufacturing, and maintaining heavy machinery, infrastructure for resources, power generation facilities, and industrial boiler systems. Its service portfolio extended to site upkeep, facilities management, construction projects, project oversight, laser-cutting operations, heat treatment processes, fire safety door production, air-conditioning installation, electrical works, and substation construction.
The company’s operations were divided into four primary sectors across three geographic regions:
- Resources – Provided specialized structural construction and maintenance solutions for industries including iron ore, gold, nickel, lithium, mineral sands, oil & gas, and LNG. This segment also managed the design, fabrication, upkeep, and repair of turnkey systems across Western Australia’s Pilbara region as well as South Australia, New South Wales, and Queensland.
- Energy – Delivered combined cycle and open cycle power plants utilizing proprietary Heat Recovery Steam Generation technology alongside boiler technologies licensed from Alstom, Tomlinson, and Babcock & Wilcox. The boilers accommodated various fuels such as recycled waste products and renewable energy sources. Operations extended throughout Southeast Asia, Australia, and New Zealand.
- Infrastructure – Concentrated on electrical construction and maintenance for transport and railways, water and wastewater systems management, road tunnel building projects, and comprehensive project management services.
- Facilities Management and Building Services – Offered maintenance repairs, cleaning services, security solutions, and air-conditioning under brands including RCR O'Donnell Griffin, Haden, and Resolve FM.
Additional activities in specific regions included:
- New Zealand – Focused on supplying boiler technology predominantly for dairy and timber sectors while also providing electrical services and manufacturing fire safety doors.
- Asia – Delivered boiler technology solutions tailored for power generation plants and water infrastructure projects.
Manufacturing efforts at RCR Tomlinson concentrated on equipment for material handling within iron ore, nickel, mineral sands, gold, and lithium industries. This included machinery such as dumpers, stackers, feeders, conveyors, and crushers designed for material transport.
The RCR Boilers division specialized in producing energy generation equipment including steam boilers, hot water boilers, indirect air heaters, Weishaupt burners, inert gas generators, and thermal oil heaters. Electrical manufacturing encompassed switchboards along with SCADA/automation systems and substations.
RCR Laser offered advanced laser cutting utilizing fiber laser technology complemented by folding techniques, tube processing capabilities, and fabrication services.
Company Expansion
In 2007, John Linden, the long-serving CEO and Director, stepped down from his role. By the following year, the company experienced a significant 62% drop in shareholder returns, while borrowings escalated to $55 million, equaling its Market Capitalisation.
In 2009, RCR earned the WA Engineers Australia Engineering Excellence Award in the Products and Manufacturing category. The firm broadened its focus beyond the challenged Resources sector by entering the infrastructure market through acquiring an Austrian Energy business operating in Australasia and the Construction division of the Water Corporation (Western Australia). During this period, Andrew Walsh was appointed as Chief Financial Officer.
By 2010, shareholder returns had recovered to 36%, net debt was reduced by half, and profits increased by 25%. Notable projects included engineering services for Iluka Resources' Jacinth Ambrosia mine, the design and commissioning of a next-generation track-mounted mobile mining unit plant, structural and piping contributions to BHP's Worsley Alumina project, and gas turbine construction at the Yarralyi Maya Power Station near Karratha.
The year 2011 saw revenues soar by 600% to $607 million, EBIT climb by 80%, net profit after tax grow by 12% reaching $19.5 million, net debt decrease from $23.1 million to $6.5 million, and dividends increase by 25% to 3.75 cents per share.
In 2012, with a strong cash position of $45 million and no outstanding debt, RCR acquired the Norfolk Group, which included O'Donnell Griffin Electrical, Hadens, and Resolve Facilities Management. The company secured a $600 million contract with Fortescue Metals Group for new Iron Ore developments, successfully delivering Kings and Firetail process plants on time with $780 million worth of completed projects. Over three years, total shareholder returns surpassed 200%.
By 2013, RCR finalized the Norfolk acquisition for $140 million, adding more than $1 billion in revenue. That same year marked the retirement of CFO Andrew Walsh.
By 2014, RCR had evolved into a global multidisciplinary conglomerate boasting revenues above $1 billion across more than 40 subsidiaries. Sales revenue increased by 49% to reach $1.3 billion alongside record profit growth; total shareholder returns over five years exceeded 414%, with dividends rising by 21%. The company secured new infrastructure contracts worth $125 million, including Brisbane's Legacy Way tunnel project.
In 2015, the order book grew by 30%, dividends rose by 10%, and net debt declined by 79%. Major undertakings encompassed the Novo Rail Alliance, Sydney’s Wynyard Station upgrade, oil and gas service contracts at Gorgon, Pluto, Wheatstone LNG on Curtis Island, plus international engagements such as Thai Oil in Sriracha. Maintenance contracts were awarded for NRG Gladstone, AGL Torrens Island, Newcrest Cadia Panel Cave 2, Rio Tinto’s Angeles West Deposit B and Mesa J sites, Wheatstone offshore platform SMP E&I works, and Roy Hill operations.
RCR exited the Coal sector in 2016 to concentrate on renewable energy projects influencing Australian power generation. The company invested in technologies including acquiring Australian rights to the Kiruna Wagon Helix unloader. It also ventured into solar energy generation by delivering AGL's inaugural solar farm at Broken Hill, which generated record gross margin profits.
By 2017, RCR’s order book reached $1.4 billion with revenues at $1.3 billion. EBIT stood at $35.2 million while achieving Preferred Contractor status on an additional $1.6 billion worth of projects. Key contract wins included solar farms at Darling Downs (110 MWac), Daydream (159 MWac), Hayman (50 MWac), and Pilbara Minerals’ lithium processing facility.
Additional awarded contracts encompassed the Sun Metals Solar Farm (125 MWac), Melbourne Underground Rail Loop project, Melbourne Water sewerage capital works program, a 20MW lignite-fired boiler installation, Mataura Valley Milk NZ biomass boiler project (20MW), Senipah Power Plant in Indonesia, Fortescue Metals’ relocatable overland conveyor system, and Pilbara Minerals’ Pilgangoora lithium project stacker/reclaimer installation. The Sun Metals solar farm notably delivered record gross margin profits for RCR.
Divestment
By the close of fiscal year 2018, the company had expanded its revenue to $2 billion and was in a net cash position as of June 30, 2018, having completely cleared its debt obligations. In late July 2018, the discovery of substantial cost overruns on a project occurred; nevertheless, the company maintained profitability and remained net cash positive. Chairman Roderick Brown initiated a voluntary suspension lasting 30 days, which subsequently caused enduring adverse impacts.
Following this, the company secured $100 million in capital through a raising led by Macquarie Bank, incurring fees totaling $12.1 million, and then resumed its standard operations. However, on November 21, 2018, when secured creditors withdrew their support, the chairman and board members appointed administrators. The liquidator’s concluding report identified the extended suspension and diminished confidence in leadership—specifically Brown and newly appointed CEO Bruce James—as key contributors to the group’s inability to attract new contracts.
According to administrators McGrathNicol, an expedited sale process engaged over 300 interested parties but did not culminate in a sale of the entire enterprise. Potential buyers ultimately refrained from submitting final bids due to the limited timeframe for due diligence, which was considered inadequate for a large and complex conglomerate, as highlighted in KPMG’s “Navigating Complex M&A” report.
The Sell Off
In 2018, RCR Boilers was acquired by The Environmental Group Limited. That same year saw RCR Rail purchased by John Holland Group, a subsidiary of China Communications Construction Company, incorporating approximately 400 employees. Additionally, RCR Mining Technology Pty Ltd was sold to ERW.
In 2019, ownership of RCR Tomlinson New Zealand transferred to the Chows brothers, who rebranded it as RCR Infrastructure Ltd. RCR Energy Services, employing around 50 staff members, was also sold to The Environmental Group. Meanwhile, the Metalbilt/Danks doors division, with a workforce of 60, was acquired by New Zealand’s ARA Group. That year also saw RCR Laser sold to Wangara Business. NRW Holdings completed purchases of RCR Mining Technologies and RCR Heat Treatment.
Following the parent company entering voluntary administration in March 2019, the boiler projects segment RCR Energy New Zealand was sold to Windsor Engineering Group Ltd and subsequently renamed Windsor Energy.