29th Sep 2014 08:34
LONDON (Alliance News) - AMEC PLC and Balfour Beatty PLC said Monday that the companies have been selected to deliver Sellafield's Box Encapsulation Plant project in West Cumbria in a joint venture with Jacobs Engineering Group.
AMEC, the engineering and project management company, said the four-year reimbursable framework contract, awarded by Sellafield Limited, has a potential value range of between GBP240 million and GBP336 million.
Under the terms of the waste treatment contract, the joint venture partners will share the financial terms equally, said FTSE 250-listed AMEC. The joint venture will deliver the complete life cycle of services to the project, which addresses the cleanup of one of the most hazardous legacy facilities on the Sellafield site; from project management, design, engineering, procurement, installation, and construction management through to inactive commissioning.
The processing plant is part of Sellafield's wider programme to prepare hazardous nuclear waste for storage and disposal. It will also process waste recovered from other facilities on the Sellafield site once they are decommissioned.
In a separate statement Balfour Beatty said its Major Projects business will provide a broad range of expertise including civil engineering, construction and mechanical and electrical capabilities, and supply chain management.
Work is scheduled to begin in the fourth quarter of 2014.
The Box Encapsulation Plant project is designed to treat Magnox reactor waste currently stored at Sellafield by containing it in concrete and getting it ready for long term storage. The BEP will receive, segregate and encapsulate hazardous waste already stored on the Sellafield site.
Shares in AMEC were Monday morning trading 0.99% higher at 1,117.00 pence per share. Balfour Beatty trades 22.78% lower at 173.68 pence per share after the FTSE 250-listed construction group said Monday that it expects its Construction Services UK division to take another GBP75 million hit to its profit this year and said it has appointed auditors KPMG LLP to undertake a detailed independent review of the contract portfolio within the business.
By Alice Attwood; [email protected]; @AliceAtAlliance
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