Contracts worth approximately

RNS Number : 4697H

Carillion PLC

05 November 2008

 



5 November 2008

Carillion joint venture selected for contracts worth approximately £600 million during a visit by Prime Minster, Gordon Brown, to the UAE. 

Leading Middle East company, Al Futtaim Carillion, has been selected to deliver major construction contracts in Abu Dhabi and Dubai, worth some £600 million.  

The selection of Al Futtaim Carillion was confirmed during a visit to the UAE by the Prime Minister, the Rt Hon Gordon Brown, and the Secretary of State for Business, Enterprise and Regulatory Reform, Lord Mandelson, who were accompanied by a number of senior UK businesses leaders, including Carillion Chief Executive, John McDonough.     

In Abu Dhabi, Al Futtaim Carillion signed a Heads of Terms agreement for a £500 million long-term contract to build the Al Muneera phase of ALDAR's £10 billion Al Raha Beach development.  The contract is due for completion in April 2011 and will involve the provision of a 14-story office building, eight 14-story apartment buildings, 148 town houses and eleven luxury villas facing the development's canal and waterfront. 

This is Al Futtaim Carillion's second major project for ALDAR in Abu Dhabi, having been awarded a £250 million contract for the Race Track Hotel, on Yas Island, in June of this year.  

In Dubai, Al Futtaim Carillion has been selected by the German Business Park FZCO to deliver its German Business Park project, which is expected to be worth over £100 million and completed in under two years.  

Commenting, Lord Mandelson said : 'The UK and the Gulf have a long-established business relationship. In the current climate it is even more important than ever that we seize every opportunity for long-term economic growth. British venture Al Futtaim Carillion is already a leading contractor in the Gulf. These two agreements representing £600 million of business will make an important contribution to the economies of both the UK and the UAE.'

Carillion Chief Executive, John McDonough, added: 'Over the last 35 years, Al Futtaim Carillion has established a strong reputation for delivering high quality projects for Government and blue-chip customers.  Our selection for these prestigious projects further enhances that reputation.  

'We look forward to working closely with ALDAR and the German Business Park FZCO to deliver these projects and to developing strong, long-term relationships to support delivery of their future investment plans, including the substantial development programme that ALDAR has in Abu Dhabi over the next ten years.

'Our order book and pipeline of probable new orders in the Middle East remains strong and we are firmly on track to achieve our previously announced objective of broadly doubling the sales revenue of our joint venture businesses in the Region to an annual run rate of over £1.0 billion by the end of 2009, of which Carillion's share will be over £600 million'  

For further information contact

John Denning, Director Group Corporate Affairs, Carillion plc [phone]

Notes to editors 

Carillion is the UK's leading support services company with a substantial portfolio of Public Private Partnership projects and an extensive construction business. The Group has annual revenue of around £5 billion, employs some 50,000 people and operates across the UK, in the Middle East, Canada and the Caribbean. 

Al Futtaim Carillion is a 51:49 per cent joint venture between the Al Futtaim Group and Carillion.

In the UK, Carillion's principal market sectors are Defence, Education, Health, Facilities Management & Services, Rail, Roads, Building, Civil Engineering and Utilities Services. 

In the Middle East, Carillion's principal market sectors are Construction and Facilities Management. In Canada and the Caribbean, the Group's main sectors are Health, Roads Maintenance and Construction.

Carillion's portfolio of equity investments in Public Private Partnership projects includes projects in the UK and Canada, particularly in the Defence, Education, Health and Transport sectors.

In the inaugural 2008 Sunday Times Best Green Companies Awards, Carillion secured first place in category for large and medium-sized companies with high environmental impact and second place overall.   

This and other Carillion news releases can be found at www.carillionplc.com 

Photographs

High resolution photographs are available free of charge to the media at www.newscast.co.uk telephone [phone].

 

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