The target, which is headquartered in Newcastle and specialises in mechanical and electrical engineering, was purchased for an undisclosed sum.

It has been operating since 2005 and works in the mining, energy, transport and oil and gas sectors.

“SRO is a renowned leader for the design and manufacture of a full range of electrical products from electrical enclosures, motor control centres to fully integrated transportable switchrooms,” Murray managing director Craig Lindsay-Rae said.

“SRO's expertise and professionalism provides Murray with electrical and mechanical opportunities on the eastern seaboard and enables a national support capability for the combined range of products and services.”

The expansion comes at a time when many engineering firms are downsizing or fighting for survival.

Under the tie up, SRO managing director Troy Culley will report to Lindsay-Rae.

The combined business is expected to generate revenue of about $75 million a year with more than 230 employees in Australia and China.

“The consolidation will allow the group to provide strategic and sometimes unique services, manufacturing and execution options around core products and will position the group as the leading manufacturer of electrical products and services across Australia and provide significant value to our clients,” Culley said.

SRO owns a 7500sq.m base in Newcastle, which includes a workshop and hardstand areas, and a manufacturing facility in China.

It has worked on a number of big resource projects including the Cape Lambert rail and port expansion, Glencore Ravensworth operation and Whitehaven’s Maules Creek project.

Murray holds a 5.5 hectare complex at its Pinjarra headquarters in Western Australia along with service centres at Kalgoorlie and Mt Isa.

“Our new business creates an expanded national mechanical and electrical engineering offering to the Australian resource sector at a time when the industry  demands efficiency and is driven by cost-effectiveness,” Lindsay-Rae said.