Hydro Tasmania is exploring a potential joint venture with leading Chinese energy companies to build a stronger future for its professional services business Entura. Hydro Tasmania, PowerChina Huadong and HydroChina (both subsidiaries of PowerChina), have signed a non-binding, in-principle agreement that reflects the desire of the three parties to reach a formal agreement on a joint venture to take Entura forward.
"We want to maximise opportunities for Entura," Hydro Tasmania's CEO Steve Davy said. "The market opportunities that will be available to the proposed joint venture will be substantial, and we would anticipate that this would see Entura grow in terms of its revenue and profitability and in terms of employment and career opportunities for its people, including those based in Tasmania."
The details of any future structure have not yet been the topic of discussion, but Davy made it clear that Hydro Tasmania intends to remain a substantial participant in Entura.
“Entura is a consulting business. Its core assets are its people, its knowhow, its brand and its client base. These have a strong link to Tasmania which, while intimately connected to Hydro Tasmania, is deeper than that. Hydro Tasmania will remain an active owner (and client) of an Entura joint venture," he stated. "PowerChina acquiring an ownership interest in Entura will not diminish its Tasmanian connections. What we are looking forward to is it increasing Entura's international ones."
Hydro Tasmania said it will continue to maintain its Tasmanian office where the majority of Entura's employees are located, as well as having an ongoing presence in other parts of Australia and in India.
Davy said many issues are still the subject of negotiation and it would be premature to speculate on the final form of the joint venture, if it does proceed.
