VolkerWessels reports setback for OpenIJ construction
VolkerWessels reconfirms outlook for 2017
Koninklijke VolkerWessels N.V., a market-leading, multi-branded construction company in the Netherlands, takes an additional substantial provision regarding the OpenIJ construction project in IJmuiden. VolkerWessels reconfirms its outlook that full year EBITDA and net result from continuing operations will increase and expects full year EBITDA margin to be in line with its medium term objectives.
Rijkswaterstaat awarded the OpenIJ consortium the contract to design, construct, finance and maintain a new sea lock at IJmuiden in mid-2015. The contract value is approximately €600 million. Construction activities are carried out by a 50/50 joint venture between BAM and VolkerWessels. Based on the latest project reports it became evident that the expected loss on the construction of OpenIJ in IJmuiden is higher than previously anticipated.
The loss mainly relates to the redesign of the two caissons (the construction holding the lock doors) to prevent torsion and cracking during immersion. The new design specified reinforced caissons and heavy temporary structures. Recent implementation works revealed significantly higher costs for specialist materials and equipment and personnel over the prolonged construction period.