Skanska Signs $120M Construction Contract for Indiana Manufacturing Project
- Feb 07, 2012
February 7, 2012
By Barbra Murray, Contributing Editor
Industrial Contractors Skanska, the resulting entity of Skanska’s acquisition of Industrial Contractors Inc. just one month ago, has entered into its first contract. The company, a unit of Skanska’s civil division, Skanska USA Civil, will provide construction services for a project in Indiana under the $120 million deal.
Work has already gotten underway on the development, for which Industrial Contractors Skanska will furnish construction services for maintenance and capital projects for the endeavor. The company is on track to complete the assignment in December 2014.
In its announcement of the $120 million contract, Industrial Contractors Skanska did not offer further details about the undertaking. However, a real estate services firm that worked closely with the company when it operated as Industrial Contractors Inc., speculates that given the current state of the industrial market in Indiana, the project is most likely linked to the energy sector.
“Something of that size, I would say, may be related to the energy division, one of the power plants,” Ken Newcomb Jr., president and co-manager of Evansville, Ind.-headquartered F.C. Tucker Commercial, told Commercial Property Executive. “We’ve got a lot of power plants in this area that are switching over and going to the new scrubbers and the new cleaners and updated technology to be able to use Midwestern coal. So I think that may be a possibility.”
Taking into consideration the presently positive conditions in certain areas of Indiana’s industrial sector, more and more sizeable civil contracts could be on the horizon for Industrial Contractors Skanska, Newcomb believes. “They’re very qualified to do that type of work, and there are a lot of industrial plants within the Midwest that need those services.”
Skanska’s acquisition of Industrial Contractors and the subsequent formation of Industrial Contractors Skanska enabled the national construction company to enter the industrial sector in the Midwest overnight. However, Skanska’s activities so far this year extend well beyond the Heartland. In late January, acting through its Skanska USA Commercial Development division, the company acquired a 43,000-square-foot parcel in Seattle’s burgeoning South Lake Union neighborhood. And at the beginning of the year, Skanska entered into a design-build agreement with the Santa Clara Valley Transportation Authority to build a 10-mile extension of the Bart system in Northern California.