Carillion woes ‘no impact on city’

Carillion flood defences at the River Don by Forgemasters.
Carillion flood defences at the River Don by Forgemasters.
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Construction company Carillion has moved to reassure Sheffield staff and clients that it is “business as usual” after a financial crisis saw its value plunge £845m.

The company has a call centre on Park Square roundabout and is main contractor on a £19m contract – part funded by business – to build flood defences along a five-mile stretch of the River Don in the Lower Don Valley.

It was appointed in August 2015 and is said to be nearing the end of the work.

The firm, which employs 43,000 people worldwide, last week announced losses on four major contracts. It also said it was withdrawing from three markets in the Middle East and halting work on public private partnerships. The news led to £845m being wiped off the value of the company and the departure of its chief executive.

A spokesman insisted all existing contracts were continuing as normal, including in Sheffield.

The firm was this week announced as a winner – as part of a joint venture – of a bid to design and build part of the HS2 route.

The government was forced to seek assurances from Carillion’s partners that they can step in to deliver on the work if necessary.

A spokesman for HS2 Ltd said it was “confident” in the joint venture.

He added: “Obviously in the light of last Monday’s announcement by Carillion, HS2 has carried out additional due diligence.”