Weir aims for Iraq contracts

PUMP-MAKER Weir Group has joined hundreds of British companies trying to win lucrative contracts to redevelop war-torn Iraq.

As many as 600 UK firms are seeking subcontracting work from US groups, which have already won prime contracts under a $1bn (£650m) US government programme.

Engineer Bechtel has a £410m deal to restore power, water and ports in a country which is still plagued by fears over security. Bechtel is prepared to subcontract up to 95% of its work, leaving room for groups such as Weir.

Scots group Weir earns a substantial part of its sales in the Middle East. Sales fell 7.6% to £394m in the first half, partly due to the continuing tensions.

Pre-tax profits fell from £22m to £20.1m with dividends ahead 3% to 3.35p. The shares fell 1 1/2p to 274 1/2p.

Chief executive Mark Selway is hopeful for the future and believes Weir's 'credentials in the region will give us a passport to some further business'. It already has a contract to assess the rehabilitation of Iraqi oilfields.

CBI director Andy Scott, who sits on a DTI working group that co-ordinates British firms' efforts in Iraq, said UK companies have won about £20m of the £100m subcontracting work so far awarded.

The DTI is focusing on six main areas of opportunity - education and training, power, healthcare, oil and gas, telecoms and water, Scott said.