MT Højgaard Holding A/S: MT Højgaard Danmark enters conditional DKK 1.3bn contract with DSB

MT Højgaard Holding’s business unit MT Højgaard Danmark has entered a conditional turnkey contract with DSB for the construction of a train workshop with related railway facilities in Næstved. The contract value is DKK 1.3 billion. The contract will be unconditional when it has been acceded by Board of Directors of DSB on 25 August 2022 and the project has been approved in accordance with section 25 (1) in the Danish environmental assessment act on 30 September 2022.

The contract is part of DSB’s conditional and staged tender, which MT Højgaard Danmark won in the spring of 2021, cf. company announcement no. 23/2021 dated 30 March 2021. The tender is comprised of 3 phases:

Phase 0: Implementation phase including kick off workshop
Phase 1: Cooperation phase
Phase 2: Turnkey and execution phase

During phase 1, the construction and execution principles for the project have been jointly determined by DSB, MOE Rådgivende Ingeniører, MT Højgaard Danmark and the other involved parties, and these efforts have now entailed the signing of the turnkey contract in phase 2.

The workshop in Næstved will be used for repair and maintenance work on DSB’s recently purchased electric trains, trainsets and double-decker carriages. The 18,000-square-meter workshop will have 8 tracks. Construction work commences in January 2023 with expected handover of the newly established facilities to DSB in the summer of 2025.

MT Højgaard Danmark is currently establishing a similar workshop with related infrastructure near the central freight yard in Copenhagen for a total value of DKK 641 million. Further, MT Højgaard Danmark has won a staged and conditional tender for the construction of a workshop in Aarhus and modification of an existing workshop in Copenhagen, which will also service DSB’s electric trains. Both projects are currently in the cooperation phase.

”We are pleased with the close cooperation with DSB and the other parties in the first phase of the project, which we now look forward to designing and executing in the coming years. It is a strategic priority for MT Højgaard Danmark to enter into cooperation agreements like this where a high degree of openness enables us to generate value for the developer from the start while reducing the risk as we have a seat at the table before the turnkey contract is signed. The basis for decision becomes very accurate when we collaborate to define the construction and execution principles based on suggestions and input from architect, advisers and contractor. This working method releases a lot of energy, and we really believe in this way of doing things,” says Portfolio Manager at MT Højgaard Danmark, Søren Sørensen.

The contract does not change MT Højgaard Holding’s previously announced 2022 outlook, but it will contribute significantly to the group’s long-term, sustainable development in the coming years.

Contact: CEO Henrik Mielke and CFO Martin Solberg can be contacted on telephone +45 22 70 93 65.

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