Atkins signs MoU with Chinese contractor

Atkins has signed a memorandum of understanding for global strategic cooperation with a major Chinese contractor.

Discussions between the parties about specific projects have already started.

The agreement with China Communications Construction Company (CCCC) is seen as marking the start of a long-term partnership between both parties. In addition, Atkins and China Harbour Engineering Company (CHEC), a subsidiary of CCCC, have signed a global cooperation agreement to foster their strategic partnership.

CCCC collectively with its subsidiaries is the first large state-owned transportation infrastructure group entering the overseas capital market. As a subsidiary, CHEC has been developing and operating the overseas business on behalf of CCCC.

“The strategic global tie-up between Atkins and Chinese contractor CCCC, and its international arm, China Harbour Engineering Company, follows hard on the heels of the JV between British contractor Carillion and Beijing Construction,” says Graham Robinson, director, global construction perspectives and global business consultant at international law firm Pinsent Masons. “This is only the start of what is yet to come, with investment in UK infrastructure and real estate from China expected to grow significantly over the next decade.

“We expect to see further global tie-ups between the larger Chinese contractors, some of whom are the largest in the world and who operate globally, and some of our most prized consultants in the UK, and their British contracting counterparts. UK consultants are some of the most globally diversified.

“Understanding of international design standards, management and understanding the regulatory, procurement and contractual environments globally are skills that China is looking to acquire.”

Sun Ziyu, vice president of CCCC said: “CCCC is committed to further grow our business abroad, according to our mission of ‘consolidating foundations and building roads’ and the vision of ‘unblocking the world’. Having a strategic partner who can bring in world-class consultancy, knowledge and experiences will help us achieve our business growth abroad and bring synergy for both parties to unlock more opportunities.”

Mo Wenhe, chairman of CHEC, said: “CHEC has over 10,000 domestic and international employees, undertaking US$10bn-worth of projects, and continues to strive for further growth. The cooperation with Atkins is vital for us to maintain our leading position as an international contractor and gain more competitiveness in the global market.”

Professor Dr Uwe Krueger, Atkins’ chief executive officer, said: “CCCC has a strong commitment to developing the transportation infrastructure business in China and abroad as well as providing its customers with consistently high quality services and products. CHEC has an extremely strong portfolio in undertaking large-scale projects abroad. Atkins has extensive experience to plan, design and deliver large-scale and challenging infrastructure projects around the globe, particularly in the transportation sector. There are synergies in the service offering and we share the same value of bringing a consistently high standard of service to our client.”

Chris Birdsong, Atkins’ chief executive officer for Asia Pacific, added: “I am confident the strategic cooperation with such strong partners will bring benefit and opportunities for all parties to grow.”