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 CEO Steve Davy said constructive negotiations continue with PowerChina Huadong and HydroChina (both subsidiaries of PowerChina) on the form a potential joint venture might take.

“We want to maximise opportunities for Entura. 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,” Mr Davy said.

The details of any future structure have not yet been the topic of discussion, but Hydro Tasmania has been clear that we intend remaining 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,” Mr Davy said. 

“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.”

We will continue to maintain our 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.

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 in due course on a joint venture to take Entura forward.

Mr Davy said many issues are still the subject of negotiation, and it is premature to speculate on the final form of the joint venture if in fact it does proceed.

Ends.