The Swiss-Swedish engineering conglomerate is to sell its m&e contracting division. The move is part of the firm's strategy to recoup billions of dollars of debt before the end of 2002.
Following pressure to strengthen its balance sheets and generate a substantial part of the $1.5 billion reduction in net debt promised by the end of 2002, ABB has announced the sale of its Building Systems operation.

This move will effectively remove ABB from the electrical and mechanical contracting market in the UK. Building Systems had earlier this year swallowed the m&e contracting division ABB Building Technologies in an initiative designed to consolidate its diverse portfolio of businesses.

The Building Systems operation accounts for more than 10% of the company's revenues and employs around 18 000 staff worldwide. It forms one part of the ABB manufacturing and consumer industries division.

Jurgen Centerman, ABB chief executive, sees the move as necessary to ensure that the company can refocus on smaller but higher margin markets concentrating on power and automation technology.

"We want to build businesses where you can grow volumes without necessarily having to grow the resources at the same pace," said Centerman.

At the time of going to press, ABB's UK group communications manager Karen Wilds could add no more details to the news of the sell off. She said: "The process has only recently started, with the announcement on 24 April.

"As far as we are concerned it is business as usual in the UK. Our main task is to complete contracts and projects on time and to budget, fulfilling our obligations to existing clients."

…while NG Bailey restructures…
N G Bailey is restructuring its Bradford-based Major Projects division at a cost of 26 jobs.

The company has stated that it regrets that there had to be redundancies as a result of the restructuring, but that it is offering alternative employment within the company where possible, as well as agreeing voluntary redundancy packages with staff.

In a written statement the company says that the restructuring has not been forced due to any industry downturn but, on the contrary, it is in fact due to the growing strength of its regional branches, and their increasing ability to effectively manage larger projects.

Martin Bailey of N G Bailey & Co said: "As our branches have evolved there is less need for a specific Major Projects division. Large contracts are now handled efficiently at regional level. We will be concentrating Special Projects, instead, on projects that have specialist requirements and supporting our regional operations.

"Reorganising our business in this way enables N G Bailey & Co to consolidate and develop its plans for the future."

Over half of the redundancies will be voluntary.

…and Hills Electrical & Mechanical recruits
Hills Electrical & Mechanical is stepping up its drive to recruit new staff. The family-owned firm is planning to take on 200 new staff this year across all levels, from managers and support staff to site supervisors and operatives, in both mechanical and electrical disciplines.

The recruitment drive comes in answer to Hill's substantial year-on-year growth. The company is expecting its turnover to rise by 30% to around £80 million in 2002. This follows a similar rise last year that netted work worth £65.5 million.

Hills' managing director David Hill said: "This performance is even more impressive when it is contrasted with the problems some other m&e contractors have been experiencing. There is certainly no sign of any slowdown at Hills."

To the year ending 30 June 2001, the company employed 960 full-time staff. It recruited 140 staff last year and 160 in 1999.

Much of the increased business is in areas where Hills is traditionally strong such as commercial, retail and residential sectors. David Hill has set a target of £100 million annual turnover by 2003.

Source

Electrical and Mechanical Contractor