The Balfour Beatty group announced today the formation of Balfour Beatty Engineering Services, a new operating company combining the resources of Balfour Kilpatrick and Haden Young.
Balfour Kilpatrick and Haden Young have up until now have operated as separate businesses within the group and the group's move may result in up to 70 redundancies.

A spokesman for Balfour Beatty said: 'With regards to redundancies, there is likely to be some duplication of roles, but early indications show that the number which may be at risk is between 50-70 employees. The total number of employees for BBES is some 3,500 people. If, following consultation, any staff do become at risk of redundancy we will do everything possible to redeploy them within BBES and the wider Balfour Beatty Group.

'We are close to announcing the senior team and will be reviewing the structure of their teams during the next few weeks'.

The new company is focused on the UK m&e engineering services market and has revenues of £600 million. It has been organised into four divisions: regional business, health and education, power systems and projects.

Balfour Beatty Engineering Services' managing director John Moore, said: 'Balfour Beatty Engineering Services is the largest organisation of its type in the UK, offering a range of services and capabilities unique in the mechanical and electrical market'.

The new firm's regional business division will deal in regional building services contracting, delivering m&e services for private commercial and public sector buildings across the United Kingdom.

The firm's health and education division has three in-house design and manufacturing centres specialising in modularised building systems.

The company's power systems division will concentrate its efforts on the power industry.

Its projects division will be responsible for large process-related schemes in the nuclear, power, petrochemical, pharmaceutical and infrastructure sectors. Notable projects within the portfolio include the Whitelee wind farm, the largest onshore wind farm in the UK and the delivery of mechanical and electrical services at the A3 Hindhead tunnel project.