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Why the Cimic share price rose more than 2% today

The Cimic Group Ltd (ASX: CIM) share price rose more than 2% today after making an announcement about contract wins. 

Cimic subsidiary UGL has secured contracts to provide maintenance, shutdown and project services for its clients in the mining sector. 

The engineering company said that these new contracts will generate combined revenue to UGL of approximately $180 million and will be done over a three-year period, providing mechanical, electrical, instrumentation and access services for maintenance, shutdowns and sustaining capital projects. 

The contracts will deliver a three-year contract to provide multi-discipline services across the Wagerup and Pinjarra sites in Western Australia. The contracts will also deliver maintenance, shutdown and project services across multiple sites with multiple clients in the Bowen Basin in Queensland. 

Cimic CEO Michael Wright said: “These contract awards demonstrate UGL’s position as a market leader in the Australian mining industry for the delivery of maintenance and mechanical, electrical and instrumentation access services.”

UGL Managing Director Jason Spears said: “We are excited to be leveraging our 30 years of experience in the mining industry to support key organisations in the resources sector. Our strong working partnerships with leading mining organisations support UGL’s reputation for solid performance and safe delivery of maintenance and shutdown services.”

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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 Scott Phillips.