Sisk's Polish partner hits money speed bump on €305m project
The Polish partner of Sisk, Ireland's biggest construction company, in a €305m road building project has dramatically gone into Poland's equivalent of examinership.
PBG, Poland's third largest construction company, cited rising asphalt, cement, fuel and steel prices -- the key components of road-building -- as the reason for its financial difficulties.
This has wiped out or greatly reduced profit margins for all construction projects in Poland, which overheated in the run-up to the Euro 2012 championships, creating a crisis in its building sector.
PBG is currently working on a 50-50 joint venture between it and Sisk with Roadbridge, the Limerick civil engineers, on the A1 motorway project in Poland, which includes six major interchanges, 88 bridge structures, six toll plazas and 10 motorway service areas.
"Sisk Roadbridge are fully committed to completing the three road projects in Poland, the first of which will be delivered this month," Sisk said. "We are working closely with the Polish roads authorities and PBG on a completion strategy for the remaining two projects targeted to complete in December."
PGB is in ongoing talks with its creditors about how it will emerge from examinership. The Polish government is also considering providing assistance for restructuring the country's ailing builders including PGB.
The Sisk group, which has interests from medical devices to African resources, began a review of its construction division John Sisk & Son in 2011.
Sisk confirmed in a statement this had led to the departure of John Sisk & Son Ireland's long-standing managing director Tom Costello, who had worked extensively in Poland; and the retirement of Paul Wilson, MD in the UK.
Garry Crabtree, ex-boss of Vinci plc, has been appointed head of John Sisk & Son.
Sisk group CEO John Nagle said the new unified structure "will allow us to have one common approach across all geographies and to deploy our expertise in areas that generate the best results for our clients".
Sunday Indo Business