Struggling Carillion named as one of nine HS2 contractors
Crisis-hit firm to undertake phase one of the HS2 rail line project
by Abi Moses on 19th July, 2017 and updated 19th July, 2017 10:44am
In a huge boost to struggling constructions giants, Carillion, the firm have been selected as one of the companies to undertake phase one of the HS2 rail line project.
Carillion have endured a turbulent couple of weeks with first their chief executive resigning and then witnessing a huge fall in its stock market value. The latest news will begin to ease the fears of its shareholders.
The firm were one of nine selected to complete major contracts on the project that has been valued at £6.6bn and expected to require a 16,000-strong workforce. Other firms selected include Balfour Beatty Group, Costain, Strabag and Skanska.
Given their ongoing turmoil, the decision to award a lucrative contract to struggling Carillion has been met with apprehension to say the least. Transport Secretary, Chris Grayling, who has been forced to defend the decision, said "They're part of a consortium - they're not alone in the contracts, and we've had secure undertakings from all the members of the consortium that they will deliver that contract. So, it's not where one businesses has to deliver, it's a group of businesses that have to deliver, and they've all committed to doing so. My wish is that Carillion get through their current problems, but we've made sure that it's not an issue for these contracts."
Although Carillion shares remain down a huge 76% so far in 2017, the latest news has boosted their market value on the FTSE 250 by 8% already on Monday.
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