Troubled construction multinational Royal Dutch Bam has ruled out a sale of its Irish arm as part of a group-wide cost-cutting drive intended
to save €100 million.
Its local division, Bam Group Ireland, yesterday said that it has won a €14.4 million contract from Dublin Institute of Technology to design and build a research facility at the college’s base in Grangegorman on the capital’s northside.
It has also emerged that Nico de Vries, chief executive of its Dutch parent, has told analysts there are no plans to sell the Irish operation as part of the multinational’s restructuring.
Royal Dutch Bam embarked on a €100 million cost-cutting programme in July after revealing that problem projects in Britain and Germany had left it facing heavy losses in its contracting arm. It warned this could include the sale of individual assets and businesses.
Question of sale
Reports indicated that the Irish business was one of those it was considering putting on the block and a group spokesman said it was not ruling such a move in or out. Asked directly if a sale of Bam Group Ireland was still being considered, Mr de Vries said: “No.”
The parent lost €6.6 million before tax in the first half of the year as a result of the difficulties it encountered in Britain and Germany. The Irish division earned revenues of €306 million last year.
Its latest contract with DIT will create about 150 building jobs. The work is scheduled to be finished in 12 months’ time.
The 4,414sq m centre will include laboratories, seminar rooms and offices over six storeys. It will be split into two units, an environmental health sciences institute with facilities for 90 full-time research students, and a facility that will have space available for rent to external companies.
Motorway upgrade
Bam Group Ireland is working on the €250 million upgrade of the N7/N11 motorways. Last year it won a number of projects similar to that recently awarded by DIT in
Galway
and Cork. Chief executive
Theo Cullinane
said the company was delighted to be awarded another such development.
“This facility will be a state- of-the-art working environment to facilitate scientists, students and external industry collaborators, maximising the impact of the research and ultimately driving innovation and job creation,” he said.
