Royal BAM Group will focus on construction projects within Europe, the construction company said on Thursday. BAM makes the decision because of the bad prospects for BAM International. The worldwide operating branch of the construction company is heading for a half-year loss of 60 billion euros.
Especially new projects in the oil and gas sector are not forthcoming, the company says. About 600 people are employed at BAM International. Some of them can stay on to realize the remaining international projects.
The business department is currently working on twelve jobs across the world. These will be completed after which the activities of BAM International will be wound up. Agreement has yet to be reached on this with the unions and works councils.
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 EUR 130 to 150 million for the first half year. The expected red figures from BAM International are included therein.
In addition, the company has to collect a charge of 40 million euros. That is how much BAM had 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. Finally, the effects of the corona crisis are reflected in BAM's half-year figures.