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Carillion wins £320m of Network Rail contracts

Carillion has secured two contracts with Network Rail for maintenance and upgrade works worth more than £320m.

Both contracts are on the London to Corby route, the largest of which is the £260m Midland Mainline Electrification programme which the contractor will be carrying out in a JV with Powerlines Group.

The other deal on the same line will see Carillion renew and maintain existing track and infrastructure over the next two-and-a-half years, with an expected contract value of £62m.

Last week Construction News revealed that Network Rail had met with Carillion bosses to seek reassurances after the contractor revealed a £1.15bn pre-tax loss for the six months to 30 June 2017.

Speaking about the new contracts, Carillion interim CEO Keith Cochrane said: “We are pleased to have agreed these awards with Network Rail, demonstrating that we continue to have the support of key customers and win important new contracts.

“The group faces significant challenges, but we remain focused on executing our disposals programme, taking cost out and strengthening our balance sheet.”

Carillion has endured a torrid year so far with its half-year loss attributed to problem contracts for its construction and support services arms.

The company shocked the industry two weeks ago when it announced that Andrew Davies would join Carillion from Wates to become its permanent chief as the company attempts to turn its fortunes around.

These new contract wins come as Construction News revealed this week that the contractor has exited a service deal with RBS two years early, resulting in job losses. 

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