Struggling Carillion named as contractor for HS2

News


17 Jul, 2017

Struggling Carillion named as contractor for HS2

Troubled contractor Carillion has been named as one of the winners of £6.6bn worth of contracts awarded by the Government for the development of the HS2 rail network.

Carillion is one of the consortia of companies designated to get contracts for construction preparation on the controversial high-speed line. Other successful firms include Costain and Balfour Beatty.

Last week, the company plunged into a financial crisis after it announced a shock profit warning. The firm said its debts had risen beyond expectations, while also announcing the departure of its chief executive.

The news sent its share price plummeting more than 70% across the week, wiping almost £600m off its market capitalisation, before it stabilised on Friday. In total, the HS2 contract will support 16,000 jobs and are expected to generate 7,000 supply chain contractual opportunities.

Transport secretary Chris Grayling, said: "As well as providing desperately needed new seats and better connecting our major cities, HS2 will help rebalance our economy.”

The deputy general secretary of the Trades Union Congress, Paul Nowak, said the awarding of the contracts was a “shot in the arm for Brexit Britain”.

He added: “It will provide thousands of decent jobs, billions in investment, and help close the north-south divide. HS2 is a real opportunity for British steel to shine. The next phase of HS2 should bring jobs and investment to the parts of Britain that need them most.

“Government must play its part, working with unions and suppliers to ensure that HS2 and other key infrastructure projects deliver the maximum benefit to the UK.”

Today's News - Brexit: Cabinet divided as Davis heads to Brussels