MT Højgaard Holding’s business unit, MT Højgaard Danmark, has entered into a conditional turnkey contract with DSB for the construction of a railway workshop with associated railway facilities in Næstved. The value of the contract is DKK 1.3 billion. The contract will be unconditional when it has been signed by the DSB Board on August 25, 2022 and the project has been approved according to Article 25 (1) of the Danish Environmental Assessment Act on September 30 2022.
The contract is part of DSB’s conditional, staggered tender, which MT Højgaard Danmark won in spring 2021, cf. company announcement no. 23/2021 of March 30, 2021. The call for tenders includes 3 phases:
- Phase 0: Implementation phase, including inception workshop
- Phase 1: Cooperation phase
- Phase 2: Turnkey and execution phase
During phase 1, the principles of construction and execution of the project were jointly determined by DSB, MOE Rådgivende Ingeniører, MT Højgaard Danmark and the other parties involved, and these efforts have now resulted in the signing of the turnkey contract in stage 2.
The Næstved workshop will be used for repair and maintenance work on electric trains, oars and double-deckers recently purchased by DSB. The 18,000 square meter workshop will have 8 tracks. Construction work will begin in January 2023 and handover of the newly created facilities to DSB is scheduled for summer 2025.
MT Højgaard Danmark is currently setting up a similar workshop with associated infrastructure near the central freight station in Copenhagen for a total value of DKK 641 million. In addition, MT Højgaard Danmark won a staggered and conditional tender for the construction of a workshop in Aarhus and the modification of an existing workshop in Copenhagen, which will also serve DSB’s electric trains. The two projects are currently in the cooperation phase.
“We are pleased with the close cooperation with DSB and the other parties in the first phase of the project, which we now look forward to designing and executing in the years to come. It is a strategic priority for MT Højgaard Danmark to enter into cooperation agreements such as this where a high degree of openness allows us to generate value for the developer from the start while reducing the risk because we have a headquarters at the table before the turnkey contract is concluded. sign. The basis for decision becomes very precise when we collaborate to define the principles of construction and execution based on the suggestions and contributions of the architect, consultants and the contractor. This way of working releases a lot of energy, and we really believe in this way of doing things,” says Søren Sørensen, Portfolio Manager at MT Højgaard Danmark.
The contract does not change the outlook for 2022 previously announced by MT Højgaard Holding, but it will contribute significantly to the long-term sustainable development of the group in the years to come.
CEO Henrik Mielke and CFO Martin Solberg can be contacted by telephone on +45 22 70 93 65.
MTHH_Investor news 12Aug22