The collapse of the UK’s second-biggest construction firm Carillion seems set to reverberate around the world.
The collapse of the construction giant raises major questions over big projects involving the company in Canada and Dubai.
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Carillion ran into trouble at the beginning of this year after losing money on big contracts and running up huge debts of around £1.5bn.
Carillion has 43,000 staff worldwide — just under half of those (20,000) in the UK.
In the UK Carillion is involved in major projects such as the HS2 high-speed rail line, it’s the second biggest supplier of maintenance services to Network Rail, and it maintains 50,000 homes for the Ministry of Defence.
Recent Carillion projects completed before the liquidation in the UK include the £400m Battersea Power Station Phase 1 redevelopment, the Library of Birmingham and the Anfield Stadium Expansion.
Carillion in Canada
Carillion employed some 6,000 people in Canada until last week. The company was the country’s largest road service contractor, responsible for plowing and maintenance along 40,000 kilometres of highways in Ontario and Alberta.
The company also is involved in construction projects in the country.
Carillion was working on the ongoing renovations of Toronto’s Union Station — although the city parted ways with the company in 2014 over ballooning costs and performance issues.
A subsidiary of the company, Outland, manages remote works camps across Canada for mining, forestry and oil and gas firms.
Meanwhile, a property services division of Carillion looks after some of Canada’s largest hospitals, airports, malls, commercial buildings and educational institutions.
In the Middle East Carillion has been involved in the development of the Dubai Festival City, the Royal Opera House in Oman, a major phase of the Msheireb Downtown Doha project in Qatar and the Cairo Festival City development in Egypt.
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Now its development of the Expo 2020 Dubai looks at risk.
Carillion was appointed to construct hundreds of thousands of square miles of buildings, in a contract worth around $673m.
The work was scheduled to begin in March 2017 and is scheduled for full completion in mid-2019.