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