Siemens today announced the award of a major contract supporting the employment of more than 250 people to independent Humber-based business Clugston as part of its huge Hull development.
The family-owned business has been selected to build a 12,300sqm service and logistics facility at Hull’s Alexandra Dock which will support a wind turbine blade factory already under construction at the site.
The building will house facilities for the service and maintenance of wind turbines as well as the storage of parts and equipment required in pre-assembly and operational phases. It will also be the logistics hub for Siemens’ UK onshore and offshore service business.
Clugston, based in Scunthorpe, said it would draw on its extensive local workforce and supply chain to retain and create jobs within the region.
Shaun Cray, Siemens’ General Manager, Real Estate and Construction, for the Hull project, said:
Clugston supplied the most competitive bid, in terms of programme and price, as well as proposing an innovative engineering solution to deliver enhanced value to Siemens, in order to secure this contract against significant competition from other high-quality regional and national construction companies.
We are very pleased to be able to award a major contract to a company with a long history in the Humber region and, once again, deliver on our commitment to support local procurement wherever possible.
Construction of the facility will begin in November and is due to be completed in early autumn 2016.
Steve Radcliffe, Managing Director of Clugston Construction, said:
As a local business whose involvement in the Humber area stretches back almost 80 years, we are excited to be playing a part in building this facility which will play such an important role in the growth of the offshore wind industry and establishing the region as the centre of renewable energy in the UK.
In delivering this scheme we will draw upon our local construction skills and supply chain which will create further economic benefits for the region.
As members of UK Build, the trade body formed to represent main contractors and specialist sub-contractors, we support the drive to promote the economic advantages of using local construction skills and resources. This is based on evidence that every £1 spent on construction output generates £2.84 of total economic activity, with much of that retained locally due to the structure of the construction industry.
To achieve this, we will draw on existing relationships, established over many years, with regional suppliers and host a ‘meet the buyer’ event to create additional local opportunities.
Siemens’ Hull Project Director Finbarr Dowling said:
We are delighted to be able to reward a trusted and innovative company within the region with a major contract to deliver a key element of our Hull project.
Siemens has made a bold move in bringing a new manufacturing industry to the UK which will create 1,000 jobs directly and many more during construction and within supply chains, as well as acting as a major catalyst for investment and growth.
This announcement is a further demonstration of how Siemens is generating substantial local employment and delivering significant economic benefits within the Humber region, even before our world-class facilities in Hull become operational.
Clugston was founded in 1937 by the father of the present Chairman, John Clugston, and this year recorded the highest turnover in its history at just over £250m. Clugston employs more than 500 people, with its head office and support operations in Scunthorpe, significant employment in Yorkshire and the North East, and operations across the UK.
The company has been listed in the London Stock Exchange’s “1,000 Companies to Inspire Britain” and the “Sunday Times Top Track 250” and “Yorkshire’s Fastest 50” growth rankings. This year the company also claimed the Construction News Health and Safety Initiative Award.
Notable recent Clugston projects have included completion of the £9.5m Humber University Technical College (UTC) in Scunthorpe, which opened earlier this month. Clugston is also one of the employer sponsors of the UTC, which will focus on engineering and renewable energy skills to support the region’s economic development.
The service facility construction contract is the latest evidence of Siemens’ commitment to invest in the local and regional economy.
In July Siemens announced the appointment of leading UK contractor VolkerFitzpatrick to build its Hull blade factory, with around 200 jobs created during construction. VolkerFitzpatrick has committed to employ 40% of total labour for the project within a 50-mile radius with 25% from within a 20-mile radius. VolkerFitzpatrick has also awarded a major sub-contract for electrical and mechanical services to Hull-based Neville Tucker Heating Limited.
Earlier this month Siemens announced it had awarded a £1 million contract to Hull College Group which will see the conversion of an existing college facility in Hull to train the blade factory workforce over the next two years and support the company’s ongoing training needs.
With partner Associated British Ports (ABP), Siemens is investing £310m in the Hull project – the city’s biggest ever inward investment. Siemens will employ around 1,000 people on the site, the majority within the blade factory. Information about many of these opportunities is available on the Green Port Hull website at http://greenporthull.co.uk/siemen
Mr Cray added:
The Clugston appointment is the final piece in the development jigsaw for the Hull project. The harbour regeneration works being delivered by contractors appointed by ABP are well advanced and VolkerFitzpatrick is making good progress on the blade factory.
With this appointment we have completed the pre-construction activities and are now into the phase of delivering the harbour and buildings ready for operational start in autumn 2016. Everything is now in place to deliver all the Hull facilities within our project timeframe.
Further information about the Siemens Hull project is available at siemens.co.uk/hull.