Dutch construction firm Royal BAM Group is due to cease activities outside of projects outside Europe, the company announced on Thursday. This comes as the company’s international branch suffered a loss of roughly €60 billion over half a year.
BAM
Photo: BAM Group
They announced that new projects in the oil and gas sector are not forthcoming, meaning many of the firm’s 600 workers will soon find themselves out of work. However, the also announced that some of them will be able to stay on to assist in the remaining international projects.
The business department is currently working on twelve jobs across the world. Once these jobs have been finished, the activities of BAM international will be wound up.
BAM have yet to come to an agreement with the unions and work councils on how many staff they will need to keep on the make the transition.
When the news was announced, the construction company also issued a profit warning for the entire BAM Group. The company expects to report a pre-tax loss of approximately €130 to 150 million for the first half of the year. The expected red figures from BAM International are included therein.
In addition, the company has to collect a charge of €40 million, which amounts to the total BAM lost to the settlement with the city council of Cologne earlier this week due to problems with the construction of a metro line that caused the building of the city archive to collapse.
The company are also expected to have been heavily affected by the ongoing coronavirus crises, although exact numbers are yet to be revealed.
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