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Keller lands £35m Russian residential deal

Keller Group has announced a deal worth around £35m for the preparation of a complete excavation pit for one of Russia’s leading real estate development, construction and building materials companies.

The contract is part of the development of a new 46,000 sq m residential complex located in central Moscow.  The development will comprise several multi-storey buildings constructed above shared, two-level underground parking for some 1,800 cars. 

Keller will be responsible for the construction of approximately 17,000 sq m of diaphragm wall to provide excavation support, together with the associated strutting, earthworks, dewatering and foundation slab. Support for the project will come from Poland, where Keller has completed a number of excavation pits.

Work is expected to commence shortly and to complete in spring 2014.

Last month, Keller said in its 2012 results that European markets were “very challenging”, with operating profit down 73 per cent to £2.2m, returning a 0.6 per cent margin, after a £2.8m first-half loss.

Its UK division, which is focused on two major projects at Victoria Station and Crossrail, had reported operating losses in 2010 and 2011 but returned to profit in 2012 and represents just 5 per cent of revenue, or around £60-£65m.

Keller chief executive, Justin Atkinson said: “This award comes on the back of several smaller contacts in Russia completed by Keller in recent years, including the foundations for the ice rink in Sochi for the 2014 Winter Olympics. It is encouraging to see our business gaining traction in this growing market.”

“The construction of complete excavation pits is a good example of how we continue to broaden the range of services we offer to meet our customers’ total foundation requirements. This contract win also illustrates the success of our strategic initiative to increase our exposure to major projects.”

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