Construction giant Carillion – the main contractor behind Aberdeen’s bypass – is to go into liquidation, putting thousands of jobs at risk.
The stricken company, which employs 20,000 workers across Britain, said crunch talks over the weekend aimed at driving down debt and shoring up its balance sheet had failed to result in the “short term financial support” it needed to continue trading while a deal was reached.
Carillion is the lead consortium partner of the £745 million Aberdeen Western Peripheral Route – however, Transport Scotland said today’s announcement would not impact the delivery of the project.
A spokesman said: “We expect that any impact on the AWPR will be mitigated by the fact that the Carillion’s construction partners are joint and severally liable and as such, the other two construction partners remain fully responsible for the completion of the works.
“Aberdeen Roads Limited, the construction joint venture for the project, confirmed recently that they remain committed to the delivery of this project.”
Carillion is a key supplier to the Government and has contracts in the rail industry, education and NHS.
Philip Green, chairman of Carillion, said: “This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.
“Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others who have worked tirelessly over this period.
“In recent days, however, we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision.
“We understand that HM Government will be providing the necessary funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcon-tractors and suppliers.”