Costain Announces Key Changes
7 June 2010
The Costain Group has made several key changes in line with its
recently announced strategy 'Choosing Costain'.
The Company is combining, with immediate effect, the existing
Environment and Community Divisions into a single enlarged Division
(click here to view the structure
PDF) which will focus on new opportunities particularly in the
water and waste markets and meeting the needs of the existing
long-term customer relationships.
Alan Kay, formerly Chief Operating Officer, will be Managing
Director of the new Division in addition to retaining his
responsibility for the Group-wide co-ordination of health and
safety initiatives, design management and engineering. David
Jenkins, previously Managing Director of Environment, is retiring
early due to ill health and Alex Vaughan, Community MD, now becomes
Corporate Development Director with responsibility for shaping and
growing the Group in line with the objectives set out in the
'Choosing Costain' strategy. Alex will play a key role in the
acquisition, disposal and allocation of resources in alignment with
'Choosing Costain'.
Andrew Wyllie, Costain Chief Executive, said: "'Choosing
Costain' is a strategy for further profitable growth based on our
established success and provides an ambitious vision for the
development of the Costain Group.
"Our vision is to be one of the UK's top solutions providers,
with the scale and resources to meet successfully the increasingly
complex and challenging needs of our major customers.
"Costain will continue to focus its efforts on customers with
major multi-billion pound strategic investment programmes which,
irrespective of economic environments, are core to the UK's
sustainable 'life support systems' and are therefore deemed
essential.
"Over the next decade, we believe that those programmes will be
primarily in three growth markets:-
- Infrastructure - particularly highways, rail and airports
- Environment - particularly water and waste
- Energy and Process - particularly nuclear, power, and
hydrocarbons & chemicals
"Our large customers are imposing increasingly strict criteria
in selecting their preferred contractors. In particular, customers
are looking for contractors capable of providing the full
'life-cycle' of services. This process is in turn creating
significant barriers to entry. In order to succeed, it is essential
that Costain has the scale and ability to deploy the resources
required by such customers.
"Consequently, Costain will look to build on its current
strengths - and broaden and improve the quality of earnings streams
- by accelerating the development of an integrated front-end
engineering consultancy, and care and maintenance operations to sit
either side of our proven strength in construction:
Consulting - one of the fastest growing areas
of the Costain business
Construction - strong market position with world
class expertise in delivering major complex projects
Care - operations and maintenance, already
13% of our Group order book
"The 'Choosing Costain' strategy provides significant
opportunity for growth by developing our capability across the full
life-cycle of products for our customers. In addition, we are able
to deliver an over-arching solution through a concession or private
finance approach.
"Resources will always be targeted on those opportunities that
provide the greatest potential return at an acceptable risk
profile.
"In conclusion, I would like to thank David Jenkins for over 40
years of service to the business. We have, as a Company, achieved
much in recent times. Now these changes will ensure that we are
well positioned to capitalise on future opportunities and continue
our successful path."
Ends