Babcock International Group PLC : £50 million contract with Aggregate Industries

18 June 2013

Babcock International Group PLC

£50 million fleet management contract with Aggregate Industries

Babcock International Group PLC (Babcock, the Group), the UK's leading engineering support services company, today announces that it has been awarded a £50 million, 5 year contract by Aggregate Industries, part of the Holcim Group, to provide a fleet management service for its heavy mobile equipment (HME) across its UK operations. 

The contract, which becomes operational immediately, is based on availability and is underpinned by service level guarantees. By using our proven method of delivery, Babcock will help Aggregate Industries, optimise the performance and reduce the ownership and management costs of its HME fleet of over 400 vehicles on 150 sites, enabling it to focus on its core operations of supplyingheavy building materials to the construction industry.

Through our Mobile Assets business unit, Babcock currently operates contracts to manage over 11,000 vehicles and 175,000 pieces of equipment for customers globally.  This includes a ten-year contract to manage Lafarge's HME fleets within the UK, US and Canada.  Our relationship with Lafarge continues to develop and we continue to progress discussions concerning additional Lafarge vehicle fleets in Canada and Europe.  Building on our proven capability, we are also progressing discussions with a number of other potential customers in the Mining and Construction sectors.

Peter Rogers, Chief Executive of Babcock said:

"I am delighted we have been awarded this contract by Aggregate Industries.  We look forward to working in partnership with Aggregate Industries to transform its fleet performance, sharing best practice and delivering long-term benefits.

This contract is particularly significant as it demonstrates that our unique whole life fleet management approach is being recognised by forward thinking organisations seeking competitive advantage."

John Bowater, Deputy Chief Executive of Aggregate Industries, said:

"Working with Babcock to provide our heavy mobile equipment maintenance highlights our commitment to expertise and efficiency. We are able to improve our performance continually through reliable machinery which, in turn, ensures an efficient and continued service for our customers. It means we can concentrate on what we do best - producing and supplying first-rate construction and infrastructure materials - leaving Babcock to support us with their maintenance expertise."

Enquiries

Babcock International Group PLC                                     020 7355 5300

Terri Wright, Head of Investor Relations

FTI Consulting                                                                      020 7269 7291

Andrew Lorenz
Nick Hasell

Notes to editors

Babcock is the UK's leading engineering support services company with revenue of over £3.2 billion in 2013 and an order book of £12 billion. Operating in both the UK and overseas, Babcock delivers critical asset, infrastructure and training support to many sectors, including transport, defence, energy, telecommunications and education.

We take great pride in the considerable depth and breadth of our people's expertise. Our c 26,000 skilled staff design, build, manage, operate and maintain assets that are vital to both our public and private sector customers. Our market-leading reputation is based on one key fact: Babcock is a partner that can be trusted to deliver.

Babcock has a proven track record of delivering world-leading management and engineering support services to vehicle fleets within the Mining and Construction, Airports, Emergency and Critical Services sectors.

Babcock's areas of expertise include:

·     Management, maintenance and optimisation of complex fleets of assets

·     Ensuring full support to front line operations

·     Response and resilience capability - from provision and training of fire fighters to onsite resilience

·     End-to-end management of baggage handling systems - from design through to installation, operation, maintenance and development

·     Airports IT systems

Our customer base is unparalleled across these sectors and include:

·     Mining and Construction: Lafarge and Aggregate Industries

·     Emergency and Critical Services: Metropolitan Police Service, London Fire Brigade and URENCO

·     Airports: Heathrow, Gatwick, Schiphol, Vancouver and Dubai Airports

·     Airlines: British Airways