Pyeroy going nuclear to share in £2.4bn market

May 6 2008 by Peter McCusker, The Journal

A PAINT and construction company has secured work to decontaminate some of Britain’s ageing nuclear power plants as part of a strategy to diversify into a market worth billions of pounds.

Gateshead-based Pyeroy is currently on site at nuclear plants in Dunbar and Suffolk and says it is now positioning itself to bid for substantial additional work in a market worth £2.4bn a year for the next 35 years.

The company has recently appointed Malcolm Hood as director of its environmental services division to propel its expansion into this sector.

And it is understood the company will shortly announce it has secured major contracts with British Energy and the British Nuclear Group.

Mr Hood said: “Nuclear decommissioning work is gathering momentum and Pyeroy is well placed to win its fair share of business. The company’s expertise in asbestos remediation work, which has many similarities to nuclear decommissioning work, provides a great platform to move forward.

“There is a strong resource of skilled people from which we can draw and develop a dedicated team of specialists who will spearhead our growth and success in this exciting area of opportunity.”

The Journal recently revealed Pyeroy had landed some major new contracts already this year – including painting London Bridge – saying it expects to grow its turnover from £58m to around £90m by 2012, and then 10% year on year after that.

The company currently has 100 staff trained in asbestos removal and these staff are in the process of being trained in decontamination work. As the company secures more nuclear work, it anticipates the staff roster required to do this work will increase in this division to around 200.

Mr Hood explained the skills of its asbestos removal division were compatible with nuclear decommissioning and it was capable of conducting all aspects of site clearance, including the dismantling of the core structure.

The Government announced recently it is in favour of a new generation of nuclear power plants with the sites of the existing power plants favoured for new development.

Mr Hood believes the task of dismantling a plant such as the one at Hartlepool would keep 50 staff in work for seven years and be worth between £20m to £30m to Pyeroy. The company is already on-site at the Torness Power Station near Dunbar, Scotland, and the Sizewell B PWR facility in Suffolk, undertaking initial assessment and secondary containment work.

Mr Hood brings 30 years’ experience in nuclear industry to the post, having held several senior posts in the UK and North America with companies operating in the nuclear sector including, most recently, a director of North East-based Carillion Nuclear Services.

Hugh Pelham, managing director of Pyeroy, said: “Nuclear decommissioning is an area of major strategic growth for us, so Malcolm will be a key asset in winning more business. His extensive management experience and operational expertise will be invaluable.”