Skanska – growth in utilities as new orders total £165 million

Press release 10/12/2004 00:00 CET

Skanska’s utilities portfolio has increased with the award of two further telecommunications orders totalling £165 million.

The first, awarded to a Skanska Fujitsu joint venture has an estimated value of £130 million and is for the delivery of BT’s “Holistic Contract Option”, part of BT’s network upgrade.

The second contract awarded to Skanska is the renewal of a four-year, Fujitsu tier-two contract, serving BT in Scotland. The work will encompass replacement of the overhead telecommunications infrastructure such as telegraph poles and associated electrical upgrades and is valued at around £35 million.

Mike Putnam, Executive Vice President Skanska UK said,

‘This is a further significant step for Skanska in our aim to become one of the leading construction service providers for the UK telecommunications and utility sector.

‘Our relationship with Fujitsu has been developed over time and we are delighted that we have been able to extend the scope of our work together.

‘Infrastructure renewals work is at the heart of helping our customers provide their customers with the very best service. We understand that simple fact and are shaping our offer to meet those expectations.’

In June, Skanska signed a further estimated £200 million contract with BT, renewing its contracts to civil engineering utility works, underground cabling and jointing works and telecommunication overhead wire rectification services in the Yorkshire & Humberside and Thames Valley regions over a four-year period.