Bilfinger to target new markets after merging two UK entities

Engineering and industrial services company Bilfinger will create a new €400 million (about $466 million) turnover business following the merger of its two core UK entities, in an effort to respond to a shift in market demand as the UK transitions to net-zero.

Warrington-based Bilfinger UK and Aberdeen-based Bilfinger Salamis will trade under the Bilfinger UK brand, creating one of the UK’s largest tier one contractors with 5,000 employees during peak periods and 14 onshore locations across the UK’s key industrial hubs, the company said on Wednesday.

Both businesses are part of international industrial services provider Bilfinger. The first one is a provider of integrated engineering and technical services to the process industry, employing more than 2,500 people operating across 10 UK offices. The second one is a provider of maintenance, modifications, and operations services to the oil and gas, energy, petrochemical, renewables, nuclear and utilities sectors covering onshore and offshore facilities across Europe, employing up to 2,000 people.

According to the company, the merger will combine the onshore and offshore capabilities of the two businesses, positioning it as a key contractor for delivering large renewable energy projects as the UK transitions to net-zero. It will also expand the services and solutions it can provide to customers in oil and gas, food and beverage, chemical, utilities and pharmaceutical.

The move will also support Bilfinger UK’s diversification and growth strategy as it targets new markets for its services. The business will be led by Sandy Bonner, executive president of the UK region for Bilfinger and managing director of Bilfinger Salamis. The merger will complete on 1 January 2022.

Bonner said: “The sectors we operate in are changing rapidly as the UK accelerates its energy transition. Combining the strengths of both businesses will create a unified proposition to respond to the shifts in market demand”.

He added: “The merger will position the company as a contractor of choice to deliver major renewable energy projects, strengthen our existing presence in our traditional markets of oil and gas and utilities and target growth in power, food and beverage, chemical and pharmaceutical.

“We’ve already been working together on projects for hydrogen plants, carbon capture facilities and onshore and offshore wind, and the move will enable us to face the market as one integrated engineering and maintenance, modifications and operations business”.