Big shake up as Laing O’Rourke restructures

Laing O'Rourke chairman and CEO, Ray O'Rourke

Laing O’Rourke has updated its organisation structure and announced three new operating units – engineering, asset and commercial - and a new management structure following a strategic review of the business.

The review and refocused operating plan, now approved by the company’s board, is aimed at developing a new five year business plan for its European operations and the new management structure will be charged with achieving a 5% margin by 2018. The company says it is focused on major projects and strategic frameworks and delivering certainty for its clients.  

Writing to staff, chairman and CEO Ray O'Rourke, said: “Since April, the European business portfolio has been organised to be a streamlined business, which is operationally focussed, putting projects at the heart of everything, and placing the best delivery people on them, supported by a lean and effective functional overhead. This will drive greater control and productivity through all operations.”

The new company's three new operating units will be lead as follows: 

Engineering Enterprise – this will comprise the group’s construction and infrastructure project delivery businesses, Expanded, The Middle East and Canada, and be led by Paul Sheffield as managing director, reporting directly to Laing O’Rourke’s chairman and CEO, Ray O’Rourke.  Liam Cummins will head up Construction, John Wilkinson, Infrastructure, Declan McGeeney, Expanded, and Mark Andrews will lead Middle East. 

Asset Businesses – This will comprise Explore Manufacturing, Crown House Technologies and Crown House Manufacturing, Select Plant and Logistics, and Procurement and will be led by Stephen Harley as managing director, again reporting directly to Ray O’Rourke.  Nathan Dijkstra heads Concrete Products, Paul McNerney heads up Crown House Technologies, CHM, and Select, Jurrien Heynan will lead Logistics and Andy Bacon heads up Procurement. 

Commercial Function – This will be led by Barry Dye as the group commercial director, who is also a member of the group executive committee. Dye will be supported by a number of direct reports across the commercial function including Work Winning, Commercial Management and Legal.  

The restructure represents a significant promotion for the firm's former Europe hub boss Paul Sheffield, who is now leading Laing O'Rourke's construction operations. Other  key moves include Steve harley, who joins the main board after just two years with the company and Barry Dye, who also joins the board.

In tandem with the changes, the planned sell-off of Laing O’Rourke’s Australia business is continuing in line with expectations. The company expects that the sell-off will further strengthen the group’s balance sheet and enable it to focus on its core engineering and advanced manufacturing agenda. 

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