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Senergy buys Econnect's profitable parts
1 November 2008
In Britain, energy services company Senergy has bought the consulting and technology businesses of grid connection specialists Econnect. But while Senergy rescued Econnect's more profitable divisions from administration, 36 employees who worked in the troubled construction parts of the business lost their jobs when bankruptcy administrators were called in. Econnect was involved with 85% of all wind projects commissioned in the UK last year. It was when the company diversified away from its core capability of grid integration of renewables and into construction that it encountered problems caused by contract cost overruns. Senergy, which is based in Aberdeen and has a history in the oil and gas sector, says Econnect is an "excellent strategic fit" with its ambitions to build a global, diversified energy services business. The deal includes Econnect's 37-strong team in Hexham, Northumberland, as well as its overseas activities in Ireland, Australia and New Zealand. Econnect's 50 staff will continue to be headed by its founder, Guy Nicholson, and the firm will retain its identity as a subsidiary of Senergy Alternative Energy, the group's expanding sustainable energy business. The division's managing director, Nial McCollam, calls the deal "a merger between two like-minded companies." Senergy is expanding its expertise and the range of services it can offer, while Econnect is going forward with the backing of an experienced and successful firm, he says. From Econnect, Guy Nicholson adds: "Our work together in offshore renewables has already shown us that they are committed to, and focused on, expanding their offering in the renewable energy market."
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