WorleyParsons Consolidates Presence in Chile through Joint Venture with ARA

The Australian company saw the opportunity to develop a centre of excellence in the base metals sector in Chile that could be used as a regional hub of operations.

When looking to expand its presence in Latin America, Australian engineering company WorleyParsons identified Chile, with its politically stable environment and growing economy, as a suitable base for expansion. The increased levels of trade and commercial interaction between Chile and Australia also made it an attractive destination, as did a marked growth in the capacity to exchange and export technology.

Given Chile’s developed levels of technical capacity and the fact that two of the world’s largest copper producers have headquarters in Santiago, Worley- Parsons saw the opportunity to develop a centre for the base metals sector, which could be used as a regional hub of operations and to provide support to existing WorleyParsons minerals and metals operations elsewhere.

These positive factors resulted in November’s announcement of a 50:50 joint venture with the Chilean engineering company Arze, Recine y Asociados, Ingenieros Consultores (ARA). The company is now operating as ARA WorleyParsons, with 550 staff, located primarily in Santiago de Chile.

According to WorleyParsons’ Andrew Roy, the combination of WorleyParsons with ARA was a good fit given that both have strengths in the base metals sector. But base metals wasn’t the only attraction in Chile for WorleyParsons. With concerns over possible energy shortages, the Chilean Government has made a strong push to attract foreign investment in the power sector. This has opened up the possibility for project delivery service providers to participate in major new projects, including in infrastructure and sectors. According to Roy, entering the already-established engineering services market would normally be difficult as a new foreign player. But WorleyParsons had made local connections through the industry and with key service providers. Roy highlighted the important role that Austrade’s assistance, along with the network of Australian companies, had played in making a smooth entry into the Chilean market.