11th Sep 2007 09:33
Babcock International Group PLC11 September 2007 11 September 2007 Babcock International Group PLC Network Rail supplier consolidation Babcock International Group PLC, the leading support services company, welcomesthe announcement from Network Rail today that Babcock's rail division, FirstEngineering, has been selected as one of four main contractors to deliver trackrenewals in the UK. The contract areas awarded to First Engineering are Scotland and the North Westof England. This award is a significant increase to First Engineering'sexisting track renewal business with Network Rail and comes at the end of a sixmonth process undertaken by Network Rail to reduce the number of suppliers fromsix to four in the interests of greater efficiency. The contract is expected to have a value of £85m per annum. Network Rail has anoption to progressively extend the contract up to 2014. The contract will beeffective immediately and it is expected that a number of staff will transfertheir employment to First Engineering during the impending transition phase. Peter Rogers, Babcock's Chief Executive, commented: "We are delighted to receive the news that following a comprehensive review,Network Rail has selected First Engineering as one of its four UK partners todeliver track renewals. We look forward to working with Network Rail to achievefurther improvements in the UK's rail infrastructure." - Ends - Contacts: BabcockPeter Rogers, Chief Executive Tel: 020 7291 5000Bill Tame, Finance Director Financial DynamicsAndrew Lorenz Tel: 020 7269 7121Susanne Yule This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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