Imtech UK’s water, waste and energy (WWE) division is understood to be under threat of administration, with 69 jobs lost if it goes under.
WWE is part of the wider UK and Ireland group of 2,500 employees whose future has been secured by investment from a private equity firm. But sources have told Construction News that WWE was not included in the deal and had entered administration.
A spokesman initially confirmed the news but it is understood talks are now ongoing over the future of the business, with contractors including Galliford Try and Laing O’Rourke possibly employing some of the staff.
Sources said another 120 agency staff would lose work with Imtech UK as a result, but this has not been confirmed by the company and a spokesman declined to comment.
WWE works in strategic planning, design, construction and commissioning of mechanical and engineering systems, along with operation and maintenance of UK infrastructure assets. It has worked on schemes including Crossness Sewage Treatment Works and the Howdon Advanced Digestion plant.
Shanks recruited a Ros Roca/Imtech joint venture in January 2013 to oversee an anaerobic digestion plant as part of its 25-year waste deal with Wakefield Council. The Green Investment Bank provided up to £30.4m of senior debt to the project, alongside a syndicate of commercial banks.
The Dutch parent, Royal Imtech NV, filed for bankruptcy in August, and the newly appointed trustees announced the UK business had been saved after investment from Endless LLP, which is expected to acquire Imtech’s Ireland business shortly.
The deal will see Imtech UK & Ireland become an independent business separate from the group, led by the existing management team and with around 2,500 employees. It takes Endless’s revenue across its portfolio to more than £3bn.
Imtech managing director Paul Kavanagh said: “We are delighted to be securing existing jobs and a long-term future for Imtech UK & Ireland.
“The business remains in a good position, with a significant order book and large projects to deliver for our clients. With the existing management team in place, we are confident we can continue to grow the business.”
An Endless spokesperson said: “Imtech UK & Ireland are profitable, well-run businesses which, through no fault of their own, have experienced a short period of uncertainty following their Dutch parent’s insolvency.
“That was caused by troubles at the German subsidiary. We are moving quickly to provide Paul [Kavanagh] and his team with the funds they need to get this profitable business back to normality and properly capitalised again.”
- A version of this report was first published by our sister title Construction News
*Original article appeared on sister title, Construction News