Hundreds of jobs at Lagan under threat
Parts of top NI construction firm to go into administration
THERE are fears today for hundreds of jobs at one of Northern Ireland’s biggest construction firms.
It is understood that administrators are set to be appointed to a number of companies in Lagan Construction Group, which employs more than 500 people.
The company declined to comment yesterday but is expected to make an official announcement imminently.
Lagan Construction Group, chaired by Michael Lagan, is one of the largest civil engineering and construction firms here. It has built everything from roads to runways and hotels, and is currently erecting the new Ulster University campus in Belfast.
THERE are fears that hundreds of construction jobs in Northern Ireland are at risk, as a series of companies in one of the province’s biggest construction firms are expected to go into administration.
The Belfast Telegraph understands administrators are set to be appointed to a number of companies within the family-owned Lagan Construction Group.
It would affect a number of companies acting both locally and internationally.
Lagan Construction Group declined to comment on the matter yesterday evening but is expected to make an official public an- nouncement imminently.
One employee told the Belfast Telegraph that local staff at the Belfast-based firm had yet to be informed officially, but she believed her job and those of others were at risk.
Lagan Construction Group, chaired by Michael Lagan, is one of the largest civil engineering and construction businesses in Northern Ireland. It employs more than 500 people.
As well as local contracts, the group also operates across other regions in the UK and Ireland, and internationally.
Its current projects include the new Belfast campus for Ulster University, which has been hampered by delays.
Lagan Construction Group and Portuguese firm Somague were awarded a £150m con-
tract, part of the overall £250m budget, to complete the second phase of construction.
In November, it was reported that the scheme would be held up until 2019.
In January it emerged that legal proceedings had been issued
by Ulster University over the construction contract, which could delay things even further.
Last year it was also announced that Lagan Construction Group was one of four firms to be awarded a £100m contract to carry out improvement works for NI Water. The company was brought on board alongside BSG Civil Engineering, Farrans Construction and Meridian Utilities to carry out an upgrade of the utility provider’s water and wastewater services in Northern Ireland.
Lagan Construction Group’s web page features a number of its flagship projects, including the £130m contract for the A8 Belfast to Larne.
The works involved designing and converting 14.5km of the A-road into dual carriageway between Coleman’s Corner Roundabout and the Ballyrickard Road.
Others include a £4.2m Premier Inn at Victory Pier in Chatham and a runway for the RAF at Akrotiri, Cyprus.
Group turnover in the year to March 2016, at £225m, rose by 12% compared to the previous year, according to the latest accounts available.
Operating profits rose in line with turnover. Pre-tax profits, year on year, improved in 2015-16 to reach over £6.7m: more than double the previous year. Pre-tax profits rose to £7.5m.
Lagan Construction Group is a separate entity to Lagan Group which is unaffected by this development.
In 2010 the original group of Lagan companies separated and Lagan Construction Group is now led by Michael Lagan.
Lagan Group, owned by Michael Lagan’s older brother Kevin, is currently in talks to sell part of its business to Leicestershire-based Breedon Aggregates.