Balfour Beatty Construction Services UK restructure
16 May 2012
Balfour Beatty plc today announces the next step in the implementation of its strategic focus and efficiency programme, detailed at the full year announcement in March, through a restructure of its Construction Services UK business.
The changes will ensure that we increase our focus on the needs of our customers and on growth sectors, and that we enhance our leading market position, while emerging from the current downturn in UK construction as a more operationally efficient business.
The new business will operate through three business streams and will better integrate our service offering to customers. Centralised support functions will also be introduced. This model, which will become operational from January 2013, consists of:
- Major infrastructure - focused on complex projects in key sectors such as energy and transportation.
- Regional mechanical & electrical - across all sectors.
- Regional civil engineering and building - providing locally delivered, flexible and fully integrated civils and building services through partnerships and frameworks to our strategic customers.
A new senior leadership team, which will be announced at the end of May, will take the new business forward during a transition period which will run through to January 2013. The existing management team across our Construction Services UK operating companies* will remain in place during the transition period.
Regrettably, a redundancy programme will be required to effect the changes in the business and we estimate that of the 12,000 employees within Balfour Beatty Construction Services UK, approximately 650 roles will be made redundant. Operational employees involved in project delivery will not be affected.
Mike Peasland, CEO of Balfour Beatty Construction Services UK, said:
“This operating model will sharpen our focus on growth sectors and ensure the seamless integration of our capabilities for our customers as well as giving us the opportunity to create a more efficient structure.”
Balfour Beatty plc
Tel +44 (0)20 7216 6911
Notes to Editors:
1. Balfour Beatty (www.balfourbeatty.com) is a world-class infrastructure group with capabilities in professional services, construction services, support services and infrastructure investments.
We work in partnership with our customers principally in the UK, continental Europe, the US, South-East Asia, Australia and the Middle East, who value the highest levels of quality, safety and technical expertise.
Key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail).
The Group delivers services essential to the development, creation and care of these infrastructure assets including project design, financing and management, engineering and construction, and facilities management services.
Balfour Beatty employs 50,000 people around the world.
2. *Balfour Beatty Construction Services UK consists of Balfour Beatty Construction Scottish & Southern, Balfour Beatty Construction Northern, Balfour Beatty Major Civil Engineering, Balfour Beatty Regional Civil Engineering, Mansell and Balfour Beatty Engineering Services.