Re Contract
Carillion PLC
8 March 2002
Carillion secures overseas facilities management and highways maintenance
agreements potentially worth around £500 million
Carillion, now firmly established as one of the UK's leading service suppliers,
is making excellent progress with its strategy to take its business services
expertise into its international regions, securing agreements on new work
potentially worth around £500 million.
The company has formed a joint venture business to undertake facilities
management of property in the Caribbean and signed an agreement to undertake the
same activities in the United Arab Emirates. In addition, Carillion's Canadian
joint venture company has secured a further highways maintenance contract in
Ontario, Canada.
In Dubai, Carillion has signed a memorandum of understanding with Emaar
Properties PJSC to jointly establish a facilities and property management
company over the next 10 years. The joint venture will provide facilities
management and property management support to Emaar's rapidly expanding
portfolio of property that includes residential, commercial and leisure
facilities at the new Dubai Marina - where Carillion's local joint venture
construction company has work totalling over £200 million - and the growing
Emirates Hills and Emirates Lakes residential developments.
The company will also be marketing its services to other organisations both
within the United Arab Emirates and the wider Arabian Gulf area.
In Trinidad and Tobago, a joint venture company, Servus, has been formed with
Guardian Properties to undertake the facilities management of 13 Guardian
Properties' buildings in the country with a further three buildings, currently
being built by Carillion, to be added shortly. The total floor area of the 16
properties in the facilities management portfolio is over 700,000 square feet.
It is anticipated that Servus will market its expertise to other key corporate
and governmental organisations in Trinidad and Tobago and other countries in the
Caribbean.
In Canada, Carillion has a 70 per cent stake in the TWD joint venture which is
now the second largest road maintenance contractor in Ontario, with operations
covering large sections of some of the busiest major highways. TWD's latest
contract, signed with the Ministry of Transportation, Ontario, and worth over
£24.5 million, is for the maintenance of 736 kilometres of highway over the next
eight years. This takes the total value of TWD's current maintenance contracts
to £33.6 million.
Carillion chief executive John McDonough says, 'Expanding facilities management
and infrastructure services through our international businesses is an important
part of our strategy for growth.
'Having well established building and construction businesses in selected
international markets with strong reputations for safety, quality and service
delivery, has enabled us to promote our wider business services skills to
existing and new clients.
'These successes, together with the progress we are making in bidding for PPP
projects in Ireland and Oman, confirm the positive outlook for exporting our
core business services and investments skills to our international regions.'
Notes to editors
• Carillion has well established businesses in Canada, the Caribbean,
Ireland, France and the Middle East.
• In Dubai, the long-term relationship with Emaar builds upon the success of
Carillion's local construction associate in Dubai which has recently
received a letter of intent for the construction of the £80 million south
Towers Project at Dubai Marina. This success follows on from the award in
July 2001 of the North Towers contract with a value of £100 million. Works
are expected to be completed by January 2004. For both of these construction
projects, Carillion's local associate is working in joint venture with
Australian contractor Multiplex.
• In the Caribbean, Carillion is currently working on several prestigious
building projects in Trinidad for key clients with a total value of £38
million. Activities on other Caribbean islands include the £18 million
National Cricket Stadium in St Lucia and the £9 million Finance Building in
Dominica.
• In Canada, where Carillion has been established for nearly 50 years, the
company has an annual turnover of around £70 million. The range of
activities includes the above mentioned highway maintenance work,
infrastructure services for housing developers and major projects such as
the civil engineering works for hydro electric schemes, currently including
High Falls, in Northern Ontario and Granite Canal in Newfoundland.
For further information contact
John Denning, Director of Group Corporate Affairs 01902 316246
John Davies, Corporate Communications Manager 01902 316444
This information is provided by RNS
The company news service from the London Stock Exchange
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