J Murphy & Sons (Murphy) will take over Carillion’s UK projects with National Grid, following the collapse of the construction giant last month.
Murphy today (7 February) announced it has acquired Carillion’s UK power framework business for an undisclosed sum.
The agreement means the firm will take over Carillion’s position on National Grid’s electricity overhead lines, substation and underground cable framework contracts.
These frameworks will see Murphy work with National Grid to deliver planned replacement and refurbishment schemes on National Grid’s 33kV to 400kV transmission network spanning England and Wales.
Murphy has also become the new joint venture partner of Eltel forming the MEJV on the overhead line and T Pylon framework.
John Murphy, chief executive at Murphy, said: “This represents an excellent strategic fit for the business, allowing us to bring a full range of services across the power sector for our customers both in the UK and internationally.”
David Brewer, group strategy director, added: “At Murphy, we believe that private ownership creates a natural alignment of the interests of our customers, owners, employees and suppliers. We all benefit from a sustainable business, managed for the long term. Our success is founded on strong values and investing to develop deep engineering and direct delivery capability. This is an environment where the power business we have acquired today can thrive.”
A spokesperson for National Grid, said: “We look forward to working with Murphy on delivering vital electricity infrastructure to help secure Britain’s future energy needs. This will build on our long and successful record of working with them on cables, substations, gas pipelines and compressors.”
The National Grid projects Carillion was working on include a new build overhead line between the Canterbury North 400kV substation and a new 400kV substation at Richborough in Kent, which is designed to connect the Nemo interconnector to the grid.
Carillion employees will join Murphy, to “broaden the energy infrastructure services” offered to its power customers.
John Murphy added: “We have a strong sense of purpose, committed to improving lives by delivering world class infrastructure. I’m pleased to be able to work with our new partners Eltel to continue supporting National Grid and deliver essential energy infrastructure.”
National Grid moved swiftly to allay fears that delivery of its infrastructure projects with Carillion had been put at risk when the company went into liquidation.
Former Carillion chairman Philip Green, who was in post when the firm went into liquidation, has said he takes the blame for the collapse of the company.
Earlier this week, the official receiver in charge of the remains of Carillion announced 452 former staff will be made redundant.
The second wave of redundancies has taken the total number of job losses to 829 so far.