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Babcock awarded £50mn HME fleet management contract with Aggregate Industries

Aggregate Industries has awarded Babcock International Group a £50 million (€58.35 million) five-year contract (with a five-year extension option) to provide a fleet managed service for its heavy mobile equipment (HME) within the UK. Babcock is using ALCAMiE, its proven method of delivery, to optimise the performance of over 400 HME located across more than 150 sites.
June 18, 2013 Read time: 3 mins
Aggregate Industries awarded Babcock International Group fleet managed service UK
Aggregate Industries has awarded Babcock International Group a contract to provide a fleet managed service for its heavy mobile equipment in the UK

1707 Aggregate Industries has awarded 4287 Babcock International Group a £50 million (€58.35 million) five-year contract (with a five-year extension option) to provide a fleet managed service for its heavy mobile equipment (HME) within the UK.

Babcock is using ALCAMiE, its proven method of delivery, to optimise the performance of over 400 HME located across more than 150 sites.

Babcock says that the customised toolbox of systems and processes will benefit Aggregate Industries through delivering granular data that will drive strategic decisions, help reduce ownership costs and enable the customer to focus on its core operations.

Further, Babcock’s says its independence within the sector, coupled with global supplier experience, will leverage additional advantages for Aggregate Industries through ensuring the right equipment at the most competitive price, securing better warranty terms and through continuing to source new market products and equipment for the benefit of their customer, regardless of manufacturer or supplier.

The contract sets service level guarantees, based around availability, that underpin Babcock’s performance in managing Aggregate Industries’ HME. The service also offers the optional supply of additional services and the management and procurement of ground engaging tools (GET) and tyres. In delivering the contract, Babcock will manage a number of workshops and transfer across to their team a small number of employees that are critical to service delivery.

 John Bowater, chief financial officer for Aggregate Industries, said: "Working with Babcock to provide our heavy mobile equipment maintenance highlights our commitment to expertise and efficiency. We're able to continually improve our performance through reliable machinery which, in turn, ensures an efficient and continued service for our customers. It means we can concentrate on what we do best - producing and supplying first-rate construction and infrastructure materials - leaving Babcock to support us with its  maintenance expertise."

Keith Holland, Babcock’s Mining and Construction director, said: “We are delighted to be awarded this key new contract with Aggregate Industries, and look forward to partnering with them in transforming their fleet performance, sharing best practice and delivering long term benefits.

“This contract is particularly significant as it demonstrates that our whole-life fleet management approach is resonating with forward-thinking organisations seeking competitive advantage.”

Babcock currently manages close on 30,000 vehicles and over 176,000 equipment stock lines globally, including a ten-year contract to manage Lafarge’s HME fleets within the UK, US and Canada. Babcock’s Mining and Construction team spans the UK, North Europe, North America and Australia as the organisation looks to new territories to deliver its proven capability in managing fleets.

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