Aker Kvaerner Joins New Alliance with Lucite International in UK

Aker Kvaerner's AK Engineering Services business has joined the newly-formed Concord Alliance with Lucite International, a global leader in the innovation, design, development and manufacture of acrylic-based products. Under the alliance, the company will perform maintenance and construction services for Lucite International's Cassel Site on Teesside in the United Kingdom.

The Concord Alliance becomes fully effective immediately and closely follows the contract awarded to Aker Kvaerner in August 2004 by Lucite for Project Design services at its Cassel Works site.

The Concord agreement is an integrated alliance project between Aker Kvaerner, two other contractors and Lucite International: Cordell Group is providing pipework and fabrication services, and Hertel is providing scaffolding, insulation and civil engineering services.

Aker Kvaerner also provides planning, mechanical, electrical and instrumentation resource for term maintenance, projects and overhaul support at Lucite's Newton Aycliffe site.

The Concord Alliance will execute work valued at approximately GBP 5 million per annum. The integrated Concord Management team will jointly prepare, plan and execute work for Lucite International.

Nick Faase, Concord Project Director, says: "We have rationalised our contractor base and selected this alliance team to ensure we make the best use of the proven skills available from these companies; to reduce administration and costs; and, to instigate a performance-based contract with all parties working together for shared benefit. We are confident that Aker Kvaerner's, Hertel's and Cordell's considerable experience and strong track record in delivering the required life cycle solutions will support this alliance in achieving the improvements we need in work execution, efficiency and performance, whilst retaining the very highest HSE standards."

Mark Leggett, President of AK Engineering Services, concludes, "We have provided mechanical maintenance support, overhaul support, design and engineering services to a consistent high standard over the last five years and, through this alliance, we look forward to reinforcing the close and successful working relationship that we have established with Lucite International, Hertel and Cordell."

The contract involves TUPE (Transfer of Undertakings (Protection of Employment)) (ref. Note 4) of electrical and instrumentation personnel from the incumbent contractor. Aker Kvaerner's track record with TUPE and transition management were seen as a key benefit by Lucite International.

Resins produced at the Newton Aycliffe site are used in medical applications such as dentures, orthodontic devices and bone cements. The plant also produces highly specialised grades such as glass interleavants and solution resins for pressure sensitive adhesives.

Cassel Works is the largest monomer (methyl methacrylate) production facility in Europe. Lucite International is the world's leading producer of methyl methacrylate (ref. Note 5) and the only producer to have production facilities in the three major economic regions of Europe, Asia Pacific, and the US. Lucite International is the owner of the world-renowned Lucite® and Perspex(TM) brands.

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Posted 21/04/05

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