Balfour Beatty PLC Balfour Beatty JV awarded HK$12.88bn contract (7471W)

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RNS Number : 7471W

Balfour Beatty PLC

24 August 2020

News Release

24 August 2020

BALFOUR BEATTY JOINT VENTURE AWARDED HK$12.88 BILLION (c. GBP1.27 BILLION) HONG KONG INTERNATIONAL AIRPORT EXPANSION CONTRACT

Balfour Beatty, the international infrastructure group, today announces its 50:50 joint venture, Gammon, has been awarded a four-year HK$12.88 billion (c. GBP1.27 billion) contract for the expansion of Terminal 2 at Hong Kong International Airport, by the Airport Authority Hong Kong.

Gammon will be responsible for the expansion of the main Terminal 2 building and construction of interconnecting bridges, mechanical and electrical works as well as associated viaducts and roads.

The expansion of Terminal 2 forms part of the Three-runway System project at Hong Kong International Airport, which on completion will allow for both arrivals and departures from one terminal and increase overall passenger capacity.

Leo Quinn, Balfour Beatty Group Chief Executive, said: "This award marks Gammon's second significant contract for the Airport Authority Hong Kong this year and the largest single contract ever awarded to Gammon.

"Through leveraging wide-ranging engineering expertise and offsite and modular construction approaches Gammon has secured a material share of the Hong Kong market which continues to look favourable with significant infrastructure opportunities ahead."

In the first half of 2020, Gammon secured the HK$7.2 billion (c. GBP760 million) major tunnel contract at Hong Kong International Airport to deliver tunnels and associated works for an automatic people mover and baggage handling system on behalf of Airport Authority Hong Kong.

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Notes to editors:

-- Balfour Beatty (www.balfourbeatty.com) is a leading international infrastructure group. With 26,000 employees, we provide innovative and efficient infrastructure that underpins our daily lives, supports communities and enables economic growth. We finance, develop, build and maintain complex infrastructure such as transportation, power and utility systems, social and commercial buildings.

-- Our main geographies are the UK, US and Hong Kong. Over the last 100 years we have created iconic buildings and infrastructure all over the world including the London Olympics' Aquatic Centre, Hong Kong's first Zero Carbon building, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.

-- Gammon Construction (www.gammonconstruction.com), headquartered in Hong Kong, is a 50/50 joint venture between Balfour Beatty and Jardine Matheson, the Asian-based conglomerate. The two companies have worked in partnership since 2004 to forge a reputation for delivering high quality projects for customers throughout China and Southeast Asia. Gammon's capabilities extend over the full project life cycle, from initial site survey and design through construction to commissioning and ongoing maintenance.

-- Gammon's current project portfolio includes the HK$7.2 billion major tunnel contract and the intermodal transfer terminal contract for Hong Kong International Airport, the 'Tuen Mun-Chek Lap Kok Link - Northern Connection Tunnel Buildings, the HK$2.6 billion electrical and mechanical works contract for the Highways Department of the Government of the Hong Kong Special Administrative Region, the construction of the Kai Tak West Section of the Central Kowloon Route in Hong Kong for the Government of the Hong Kong Special Administrative Region worth HK$6.2bn and the HK$2bn contract to build Hong Kong's first year-round, all-weather waterpark for Ocean Park Corporation.

-- Significant projects Gammon has completed in the last two years include the HK$4.75 billion manufacturing facility contract on behalf of the Hong Kong Science & Technology Parks Corporation, the HK$2.9 billion luxury residential scheme for Gold Topmont Limited and the HK$5.5 billion theatre project for the West Kowloon Cultural District Authority.

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August 24, 2020 02:00 ET (06:00 GMT)