RCR Tomlinson

RCR Tomlinson was an Australian engineering and infrastructure group whose operations combined heavy industrial manufacturing, project construction, maintenance and technical services. The company was formed in December 1996 through the merger of RCR Engineering and Tomlinson Bros, bringing together two Western Australian engineering traditions. Tomlinson Bros had been established in Perth in 1898 by Ernest and Edward Tomlinson, while RCR Engineering originated in 1979 when Ron Stevens, Clive Butcher and Robert Wovodich created a fabrication and machining business in Western Australia’s south-west. Over time, RCR developed from a regional engineering contractor into a broad industrial group. Its capabilities included the design, manufacture, installation and maintenance of heavy equipment, materials-handling systems, boilers, power-generation equipment, electrical infrastructure and industrial facilities. It worked across iron ore, gold, nickel, lithium, mineral sands, oil and gas, liquefied natural gas, power generation, water, rail and transport infrastructure. Manufacturing activities included stackers, reclaimers, conveyors, feeders, crushers, dumpers and other equipment used to move and process bulk materials. The company also provided structural, mechanical and piping construction, commissioning, electrical installation, substations, automation and site maintenance. RCR’s energy activities covered conventional and renewable power projects. The group supplied combined-cycle and open-cycle power-plant services, boilers, heat-recovery steam-generation systems, burners, thermal-oil heaters and other process-heating equipment. It held or used technology and licensing relationships associated with several boiler businesses, and supplied equipment for industrial fuels and renewable or waste-derived fuels. Its expansion into solar construction became increasingly important in the middle of the 2010s, including work on large Australian photovoltaic projects. The group broadened its service platform through acquisitions. In 2012 it agreed to acquire the Norfolk Group, whose businesses included O’Donnell Griffin electrical services, Haden building services and Resolve Facilities Management. The transaction, completed in 2013, expanded RCR into electrical contracting, building services and facilities management. RCR also operated in New Zealand and Southeast Asia, with boiler, electrical, fire-safety and industrial-service activities serving customers such as power stations, dairy producers and timber businesses. RCR reported rapid growth during the early and mid-2010s, supported by resource-sector construction, large iron-ore projects, infrastructure work and renewable-energy contracts. Its portfolio included projects for Fortescue Metals Group, BHP, Rio Tinto, Iluka Resources, AGL and other industrial customers. The company later reduced its exposure to coal and pursued solar and other diversified infrastructure opportunities. The business entered severe financial and strategic difficulty in 2018 after significant cost overruns were identified on a project. Trading in its shares was suspended for an extended period, followed by a capital raising and an eventual loss of creditor support. RCR entered voluntary administration in November 2018. Administrators conducted an accelerated sale process but were unable to sell the conglomerate as one operating business. Its divisions and assets were subsequently sold to different buyers during 2018 and 2019. The break-up transferred businesses including rail, boilers, energy services, mining technologies, laser processing, New Zealand operations and doors manufacturing to separate owners. RCR Tomlinson therefore ceased to operate as an independent corporate group.

RCR Tomlinson’s history combined the development of two Western Australian engineering businesses. Tomlinson Bros was founded in Perth in 1898 by Ernest and Edward Tomlinson. It became a substantial engineering enterprise and was floated on the Australian Securities Exchange in 1951. Clyde Engineering later accumulated a controlling interest and launched a successful takeover in 1981. After a downturn in available work, Clyde proposed closing the business in 1985, but a management buyout preserved the operation. RCR Engineering was established in Western Australia in 1979 by Ron Stevens, Clive Butcher and Robert Wovodich. It initially provided fabrication and machining services in the south-west of the state. Over the following years, the business expanded its industrial capabilities and developed into the business later associated with mining and energy technology. In December 1996, RCR Engineering and Tomlinson Bros merged, creating RCR Tomlinson. The merged company built a multidisciplinary operating model. It manufactured and maintained equipment for bulk-materials handling, mining, power generation and industrial processing, while also undertaking structural, mechanical, piping, electrical and commissioning work. Its resource-sector customers operated in iron ore, gold, nickel, mineral sands, lithium, oil and gas and LNG. RCR also pursued infrastructure projects involving rail, roads, tunnels, water and wastewater systems. The company experienced pressure in the late 2000s. Long-serving chief executive and director John Linden retired in 2007, and the business faced weaker shareholder performance and increased borrowings in 2008. From 2009, management pursued diversification. RCR acquired or developed capabilities in energy technology, water-construction work and infrastructure, while appointing Andrew Walsh as chief financial officer. The company subsequently reported stronger profitability and reduced debt. During the early 2010s, RCR secured major work for mining and industrial customers. It designed and delivered mobile mining-plant systems, undertook structural and mechanical work for alumina operations, and provided turbine construction, testing and commissioning services for power stations. Its contract portfolio expanded significantly through work for Fortescue Metals Group and other resource companies. The acquisition of Norfolk Group, completed in 2013, added electrical contracting, building services and facilities-management businesses. These included O’Donnell Griffin, Haden and Resolve Facilities Management. By the middle of the decade, RCR had become an international engineering group with operations in Australia, New Zealand and Southeast Asia. Its activities included boilers, heat-recovery systems, power-plant services, electrical manufacturing, automation, substations, laser processing, fire-safety products and facilities maintenance. It also served industrial customers in New Zealand and Asia. In 2016, RCR moved away from coal-related activity and expanded into solar construction, delivering projects such as the Broken Hill solar farm. In 2017, it won work on large solar developments including Darling Downs, Daydream, Hayman and Sun Metals, in addition to lithium, rail, water, boiler and materials-handling projects. The group’s expansion ended abruptly in 2018. Project cost overruns were identified in July, while RCR was still operating and had reported a net-cash position at the end of the financial year. The chairman directed a prolonged suspension of trading, followed by a capital raising. Secured creditors withdrew support in November, and RCR entered voluntary administration. McGrathNicol conducted an accelerated sale process involving many interested parties, but the administrators were unable to secure a buyer for the entire conglomerate. The group was consequently dismantled. RCR Boilers and energy-related businesses were sold to The Environmental Group; RCR Rail went to John Holland Group; RCR Mining Technologies was acquired by NRW Holdings; RCR Laser was sold to Unique Metals Laser; the doors business went to ARA Group; and New Zealand operations were transferred to other buyers, including the Chow brothers and Windsor Engineering Group. These transactions brought the RCR Tomlinson corporate group to an end.

• 2019

  Operating divisions sold

  [1]RCR Tomlinsonen.wikipedia.org

  The group’s businesses were sold to multiple purchasers, ending RCR Tomlinson as an independent company.

• 2018

  Voluntary administration

  [1]RCR Tomlinsonen.wikipedia.org

  After project cost overruns, a prolonged trading suspension and creditor-support failure, RCR entered voluntary administration.

• 2016

  Solar-market expansion

  [1]RCR Tomlinsonen.wikipedia.org

  RCR expanded into solar-farm construction and continued to diversify away from coal-related work.

• 2013

  Norfolk Group transaction completed

  [1]RCR Tomlinsonen.wikipedia.org

  The acquisition was completed and RCR added O’Donnell Griffin, Haden and Resolve Facilities Management.

• 2012

  Norfolk Group acquisition agreed

  [1]RCR Tomlinsonen.wikipedia.org

  RCR agreed to acquire the Norfolk Group businesses, expanding into electrical, building-services and facilities-management work.

• 1996

  RCR Tomlinson formed

  [1]RCR Tomlinsonen.wikipedia.org

  RCR Engineering and Tomlinson Bros merged in December to create RCR Tomlinson.

• 1985

  Management buyout preserved Tomlinson Bros

  [1]RCR Tomlinsonen.wikipedia.org

  A proposed closure was avoided when management acquired and rescued the business.

• 1981

  Clyde Engineering takeover

  [1]RCR Tomlinsonen.wikipedia.org

  Clyde Engineering, which already held a majority shareholding, completed a takeover of Tomlinson Bros.

• 1979

  RCR Engineering established

  [1]RCR Tomlinsonen.wikipedia.org

  Ron Stevens, Clive Butcher and Robert Wovodich established RCR Engineering in Western Australia.

• 1951

  Tomlinson Bros floated on the ASX

  [1]RCR Tomlinsonen.wikipedia.org

  Tomlinson Bros became a publicly traded Australian company.

• 1898

  Tomlinson Bros founded

  [1]RCR Tomlinsonen.wikipedia.org

  Ernest and Edward Tomlinson founded an engineering company in Perth, establishing one of the historical roots of RCR Tomlinson.

A vertically integrated, project-based engineering group combining industrial manufacturing, construction, maintenance, energy systems and infrastructure delivery for resource and major industrial customers.

• Industrial machinery

  Mining and materials-handling equipment

  RCR designed, manufactured, installed and maintained equipment for mining and bulk-materials operations. Its portfolio included conveyors, stackers, reclaimers, feeders, crushers, dumpers and relocatable or track-mounted systems. These products and projects supported the movement and processing of iron ore, nickel, gold, mineral sands and lithium. The business also undertook turnkey structural, mechanical, piping and commissioning work around the equipment.

• Energy equipment

  Boilers and energy systems

  RCR’s boiler and energy businesses supplied steam and hot-water boilers, heat-recovery steam-generation systems, indirect air heaters, burners, inert-gas generators and thermal-oil heaters. The group served power stations and industrial users across Australia, New Zealand and Southeast Asia, with systems designed for conventional, waste-derived and renewable fuels. It also provided engineering, maintenance and project-delivery services.

• Electrical infrastructure

  Electrical and automation systems

  Through its electrical businesses, RCR delivered switchboards, substations, electrical installation, testing, commissioning, SCADA and automation systems. These capabilities were applied to mines, processing plants, power infrastructure, transport projects and commercial facilities. The offering combined manufacturing with field construction and maintenance rather than operating solely as a component brand.

• Renewable-energy infrastructure

  Solar-farm engineering and construction

  RCR entered large-scale solar construction during the 2010s as part of a strategy to diversify its energy portfolio. Its work included the Broken Hill solar farm and later projects at Darling Downs, Daydream, Hayman and Sun Metals. The solar business provided project delivery and construction capabilities within the broader engineering group.

• Industrial manufacturing services

  Laser processing and metal fabrication

  RCR Laser provided adaptive and fibre-laser cutting, folding, tube processing and associated fabrication services. It served industrial customers requiring precision metal processing and manufactured components. The operation was later sold to Unique Metals Laser.

• Facilities management

  Facilities and building services

  The group’s facilities-management platform included repair and maintenance, cleaning, security and air-conditioning services. Through O’Donnell Griffin, Haden and Resolve Facilities Management, RCR also delivered electrical and building-services work for infrastructure, commercial and industrial sites.

• 2018

  Project cost overruns and corporate collapse

  Significant cost overruns on a project led to a prolonged suspension of trading, a capital-raising effort and a loss of confidence among creditors and market participants. Secured creditors withdrew support in November 2018, after which RCR entered voluntary administration. The administrators could not sell the complex group as a whole, and its divisions were broken up and sold.

  Source

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• 2018

  Voluntary administration and asset divestmentOther

  Background

  Project cost overruns, a prolonged trading suspension and the withdrawal of secured-creditor support left the group unable to continue as an integrated business.

  Action taken

  RCR entered voluntary administration, and administrators pursued an accelerated sale process before selling individual businesses and divisions.

  Aftermath

  The whole-of-business sale failed, and the group ceased to exist as an independent corporate entity after its operations were transferred to multiple buyers.

  Source

• 2016

  Move toward renewable-energy projectsStrategy

  Background

  Changing conditions in Australian power generation reduced the attractiveness of coal-related work.

  Action taken

  RCR exited the coal industry and invested in solar-farm construction, including the Broken Hill project.

  Aftermath

  The company subsequently won several large solar projects, including Darling Downs, Daydream, Hayman and Sun Metals.

  Source

• 2012

  Norfolk Group acquisitionM&A

  Background

  RCR wanted to add electrical contracting, building services and facilities management to its engineering platform.

  Action taken

  It agreed to acquire the Norfolk Group businesses, including O’Donnell Griffin, Haden and Resolve Facilities Management.

  Aftermath

  The transaction was completed in 2013 and materially widened the group’s service offering.

  Source

• 2009

  Diversification beyond resourcesStrategy

  Background

  RCR faced weakness in parts of the resources sector and sought to broaden its revenue base.

  Action taken

  The company expanded into infrastructure, energy technology and water-related construction activities.

  Aftermath

  The strategy supported stronger activity across infrastructure, power, mining and industrial services during the following years.

  Source

1. 1RCR Tomlinsonen.wikipedia.org