5th Nov 2014 10:49
LONDON (Alliance News) - Morgan Sindall Group PLC on Wednesday said it has won places on contracts from BAE Systems PLC and Network Rail Ltd worth a total of GBP413 million to the company.
Morgan said its construction and infrastructure arm is to tender alongside two other contractors on a GBP300 million, eight-year redevelopment programme for BAE which will focus on the FTSE 100 defence and aerospace company's submarine building capabilities at the Barrow-in-Furness site.
Earlier Wednesday, Costain Group PLC said it also was appointed as a contractor on the BAE project at Barrow-in-Furness, which is in Cumbria, north west England.
In addition, Morgan has won a GBP113 million role on the GBP250 million Edinburgh-Glasgow improvement project being run by Network Rail.
The two-year deal is part of the GBP742 million Scottish government-backed investment in the country's infrastructure.
Morgan said the Network Rail deal has been signed on a risk-share model, allowing the parties involved to share in end-of-contract profits or losses.
"We are delighted to have been appointed to these two critical projects which will enable BAE Systems and Network Rail to deliver on their strategic and operations ambitions," said Morgan Chief Executive John Morgan.
"Despite the challenging backdrop in the construction sector, our expertise in delivering complex, high-quality infrastructure projects for our customers ensures we are well positioned to take advantage of the healthy pipeline we see ahead," Morgan added.
Morgan Sindall shares were up 0.1% to 656.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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