Austrian rail firm Powerlines has saved around 220 Carillion jobs after it bought out the collapsed contractor’s stake in a joint venture with one of its subsidiaries.
The acquisition sees Powerlines take over Carillion’s 50 per cent stake in Carillion Powerlines, a joint venture between Carillion and subsidiary SPL Powerlines, giving it full control of the JV.
Powerlines has already begun transferring Carillion’s 220 staff to SPL Powerlines. The group said the deal would secure the long-term future of 300 staff across both companies.
The acquisition ensures the continuation of two large-scale Network Rail electrification schemes worth more than £300m: the Midland Main Line electrification, and the Shotts Electrification programme between Edinburgh and Glasgow.
Network Rail handed the Midland Main Line deal to the JV in October last year following two profit warnings at Carillion. The contract involves the electrification of the Midland route between London and Corby.
The Shotts contract is for the delivery of 74 km of electrified line between Holytown Junction and Midcalder Junction, which will enable electrified trains to run between Edinburgh and Glasgow Central station by 2019.
Carillion Powerlines was created in 2014 by Carillion and SPL Powerlines to target work on Network Rail’s multi-billion-pound electrification programme.
Powerlines Group chief executive Gerhard Ehringer: “The takeover of the shares previously owned by our former UK joint venture partner is an important milestone for Powerlines Group in general, and in particular for the sustained development and positioning of our business in the UK.
“We now intend to work very closely with our customer, Network Rail, towards the successful completion of our projects.
“Personally, I am especially delighted to note that this takeover will enable us to secure the jobs of our employees on a long-term basis.”