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Purchase of KLMSA Modular by SHAPE Australia expands client offering to include offsite construction.
As one of Australia’s most successful interior fitout companies, the urge for SHAPE Australia to expand their market offering with the purchase of KLMSA Modular was a natural evolution to their business.
With last week’s announcement of the KLMSA Modular purchase by ASX listed company SHAPE, George Panacheril, Group Executive Strategy, SHAPE Australia explains: “There were many conversations for us over the years about modular construction and we came to the conclusion that it was a good fit for us, and something we really wanted to invest in.”
ABOVE: George Panacheril, Group Executive Strategy, SHAPE Australia.
A key plank in SHAPE’s decision to buy KLMSA Modular was the ability to assume greater control of a project’s lifecycle. “Over the years as head contractor, we’ve completed a number of projects that were modular built, and we’ve outsourced the modular elements of those projects, which often constitute a significant proportion of the project’s overall value.”
“We realised, interestingly, that a lot of the skillsets from our long-term focus on fitout and refurbishment, are very relevant for the modular sector. In particular, the ability to work collaboratively with all project delivery stakeholders, to develop solutions.
“It’s a natural evolution of the business; a complementary adjunct to our skills in applying those same management and build principles to modular construction.
“Modular construction plays to our strengths and will give value to our clients in many of the areas where we operate, such as health and education, where minimising site disruption and maintaining operational continuity are critical.”
With complete ownership of the Victorian-based modular builder, SHAPE plans to service clients nationally.
“What we’ve bought is a platform and we will build on it. We bring to the mix a national footprint and client relationships across multiple sectors where we believe modular construction will add significant value,” said Mr Panacheril.
The ability to enhance safety and sustainability outcomes were further considerations in the purchase.
SHAPE will initially focus on more bespoke builds, and consideration will be given to expanding the Victorian manufacturing base nationally over the next 12 months.
See: shape.com.au
See: klmodular.com.au
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