Balfour Beatty and Gammon Constructions Sign JV

RNS Number : 5283Q

Balfour Beatty PLC

20 October 2011

 



BALFOUR BEATTY JOINT VENTURE AWARDED £724 MILLION

RAIL INFRASTRUCTURE CONTRACT 

Balfour Beatty, the international infrastructure group, announces today that Gammon Construction, the market-leading contractor in Hong Kong in which Balfour Beatty has a 50% shareholding, has been awarded a HK $8.9 billion (£724 million) rail infrastructure contract, in joint venture with Leighton Asia, by MTR Corporation.

The contract, in which Gammon has a 50% share, is for the construction of a major terminus station in the West Kowloon district and part of the Hong Kong section of the Guangzhou - Shenzhen - Hong Kong Express Rail Link (XRL) which forms part of China's strategic national express rail network. It is the second XRL contract secured by the joint venture, following the award of the West Kowloon Terminus Approach Tunnel South in 2010.

Commenting on the contract award today Balfour Beatty Chief Executive, Ian Tyler, said:

"This is a very significant contract win and evidence of our strength of capability and reputation for quality in the region. We are pleased that MTR Corporation has chosen to continue the long association with Gammon, significantly extending our scope of work on this project which, when complete, will provide a world class rail terminus and serve as an international gateway to China."

Construction works are scheduled to begin in October 2011 with an expected completion date in 2015.

Analyst enquiries:

Basak Kotler
Balfour Beatty plc
Tel [phone]

Media enquiries:

Matt Graydon
Balfour Beatty plc

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Notes to Editors:

1.

Gammon Construction is 50% owned by Balfour Beatty and 50% by Jardine Matheson, the major Asian trading and manufacturing group. Gammon is Hong Kong's largest and most successful contractor with over 5,000 employees.

2.

Balfour Beatty (www.balfourbeatty.com) is a world-class infrastructure group operating in professional services, construction services, support services and infrastructure investments. We work in partnership with our customers principally in the UK, continental Europe, the US, South-East Asia, Australia and the Middle East, who value the highest levels of quality, safety and technical expertise. Key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail). The Group delivers services essential to the development, creation and care of these infrastructure assets including project design, financing and management, engineering and construction, and facilities management services. Balfour Beatty employs 50,000 people around the world

 

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