Wagners to build Adani airport?

Wagners Holding Company Limited (ASX: WGN) hasn’t been on the ASX for long but is already featuring in the news.

Wagners is a diversified Australian construction materials provider and is the largest independently owned cement manufacturer and supplier in South East Queensland, supplying approximately one third of the market’s cement requirements.

It also provides customers with concrete batching, quarrying, precast concrete products, reinforcing steel, contract crushing and haulage services.

Therefore, it should come at no surprise that it has been in contact with Adani about the possible construction of a Carmichael Coal Mine Airport in Queensland.

In an ASX announcement the company said ‘The Company confirms that it has entered confidential contract negotiations with the mine owner, Adani for the potential future construction of this airport. These negotiations have continued over a significant period of time and following a competitive tender process by Adani.’

‘Wagners cannot comment on any discussions or agreements between Adani and local councils interested in funding construction of an airport’.

Wagners has been involved with constructing several other airports, so it would make sense that it’s involved with the Adani mine as well in its own backyard.

Speaking to the AFR, non-executive chairman Denis Wagner said that Wagners will not be intimidated by activists if it goes ahead in building a $30 million airport for fly-in, fly-out workers.

In my opinion, this could be a very big deal for Wagners and be a stepping stone to other large projects if it can build this high-profile airport on time and on budget using eco-friendly construction materials.

Foolish takeaway

I think Wagners could be one of the best construction-related companies to own on the ASX. It has a promising medium-term future with a large pipeline of infrastructure projects. Australia is a new and fast-growing country, our cities are constantly growing thanks to urbanisation and there will likely always be demand for Wagners’ quality products. I’m looking forward to seeing Wagners first report.

Until I can have a good look at Wagners’ financials, I’d rather buy shares of these top growth ideas.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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