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Tue May 11 2021

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Kier in line for two more Highways England regions

20 Dec 16 Kier is in final negotiations with Highways England to take over maintenance services for Areas 6 and 8, covering East Anglia and the East of England.

Kier’s contract is expected to start on 1st April 2017 but run for just two years, initially.

Amey currently has old-style asset support contracts (ASCs) for both regions, which it has had since April 2014 under deals worth up to £40m a year.

Last week Kier won a 15-year contract, valued at £140m, for repair and maintenance services on Area 13 of the Highways England network, covering Cumbria and north Lancashire. [See our previous report here.] Kier is currently the incumbent operator for Area 13.

Kier’s success in this market follows its £265m acquisition of Mouchel last year, a deal was driven by Kier’s desire to get into highway maintenance.

Chief executive Haydn Mursell said: "We are pleased to have secured the Area 13 contract and look forward to the completion of the negotiations around Areas 6 and 8. These awards reflect Kier's ability to tailor its services to Highways England’s evolving delivery model, as well as maintain the group’s leadership in the growing UK highways management and maintenance market. We look forward to working with the Highways England team.”

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