Costain Group
Encyclopedia
Costain Group plc is a British construction and civil engineering
company headquartered in Maidenhead
. It was part of the original Channel Tunnel
consortium and is involved in Private Finance Initiative
projects.
and his future brother-in-law, Richard Kneen, left the Isle of Man
and moved to Liverpool
as jobbing builders. The partnership lasted until 1888 when Richard Kneen left and Richard Costain's three sons (Richard, William and John) joined him. By the time of the First War, Costain had expanded through Lancashire and into south Wales where it built houses for munitions workers.
After the First War, Costain began to develop housing estates in Liverpool on its own account, primarily to offer continuity of employment to its workforce. With housing sites in Liverpool in short supply, Richard Costain sent his son William down to London to find new sites. He purchased the Walton Heath Land Company and in 1923 the separate business of Richard Costain & Sons was formed. Several executive estates in the Croydon
area were developed in the mid 1920s. In 1929 William died: the other two brothers remained in Liverpool and William’s son, Richard Rylands Costain, was sent to run the London Company. Under him, Richard Costain & Sons expanded its housing building large estates all around London, the largest being a site for 7,500 homes in South Hornchurch, started in 1934. Perhaps the best-known development of all was Dolphin Square
completed in 1937.
In 1933 the London-based Richard Costain was floated on the London Stock Exchange
; the Liverpool business was not part of the flotation. By then, Costain had completed over 4,000 houses in the London area, some at prices up to £4,000. Costain continued to expand its private housebuilding and it was described as "one of the largest speculative housebuilders and estate developers in this country before the war."
Following the flotation, Costain moved into civil engineering and worked first on the Trans-Iranian Railway
and then at Abadan, Iran for BP
. Losses on the railway, on Beckton sewage works and the costs of Dolphin Square caused financial problems, and Costain had to look for alternative funds when Barclays withdrew its overdraft facilities.
The Second War saw Costain carrying out extensive military work including airfields and ordinance factories, and it was one of the contractors on the Mulberry Harbour
project. After the War, building controls precluded any substantial return to private housebuilding and Costain took its wartime construction expertise overseas: by the mid-1950s as much as 60% of turnover was overseas. Some small estate development was undertaken but it was not until the acquisition of the Rostance Group of Nottingham in 1962 that private housebuilding resumed on any scale. Helped also by the acquisition of the Blackpool firm of R Fielding in 1969, Costain was building around 1,000 houses a year by the early 1970s.
The substantially increased revenues that accrued to the oil-producing states led to a construction boom in the middle east in the 1970s. Costain was a major beneficiary, particularly in the Emirates, and within a decade profits increased from little more than £1m a year to £47m. In the face of such overseas largesse, domestic housing activity declined. In the 1980s, recognising that exceptional middle east profits could not continue, Costain sought to redeploy its extensive cash balances into coal mining, international housing and commercial property. However, over-expansion in the late 1980s led to high gearing just as international markets were turning down, problems exacerbated by a disaster in Costain’s American coal mine. Substantial losses were incurred in the early 1990s and asset sales followed leaving Costain as a predominantly construction-oriented business.
Costain Energy & Process is the division responsible for the engineering and construction of energy-sector based projects. Based in Manchester
, it is active in Natural Gas Storage
activities in the UK.
Projects undertaken by or involving the Company have included the Dolphin Square
apartments in London
completed in 1937, a section of the Trans-Iranian Railway
completed in 1939, Dubai International Airport
completed in 1960, the Deep Water Harbour
at Bridgetown
, Barbados
completed in 1961, the Thames Barrier
completed in 1984, the Channel Tunnel
completed in 1994, the Tsing Ma Bridge
in Hong Kong
completed in 1997, the Cardiff Bay Barrage
completed in 1999 and the King's Cross Western Ticketing Hall
completed in 2006.
Civil engineering
Civil engineering is a professional engineering discipline that deals with the design, construction, and maintenance of the physical and naturally built environment, including works like roads, bridges, canals, dams, and buildings...
company headquartered in Maidenhead
Maidenhead
Maidenhead is a town and unparished area within the Royal Borough of Windsor and Maidenhead, in Berkshire, England. It lies on the River Thames and is situated west of Charing Cross in London.-History:...
. It was part of the original Channel Tunnel
Channel Tunnel
The Channel Tunnel is a undersea rail tunnel linking Folkestone, Kent in the United Kingdom with Coquelles, Pas-de-Calais near Calais in northern France beneath the English Channel at the Strait of Dover. At its lowest point, it is deep...
consortium and is involved in Private Finance Initiative
Private Finance Initiative
The private finance initiative is a way of creating "public–private partnerships" by funding public infrastructure projects with private capital...
projects.
History
The business was founded in 1865 when Richard CostainRichard Costain
Richard Costain was the founder of Costain Group, one of the United Kingdom's largest construction businesses.-Career:Born and brought up in the Isle of Man, Richard Costain moved to Crosby where, in 1865, he founded a small but well-equipped construction business...
and his future brother-in-law, Richard Kneen, left the Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
and moved to Liverpool
Liverpool
Liverpool is a city and metropolitan borough of Merseyside, England, along the eastern side of the Mersey Estuary. It was founded as a borough in 1207 and was granted city status in 1880...
as jobbing builders. The partnership lasted until 1888 when Richard Kneen left and Richard Costain's three sons (Richard, William and John) joined him. By the time of the First War, Costain had expanded through Lancashire and into south Wales where it built houses for munitions workers.
After the First War, Costain began to develop housing estates in Liverpool on its own account, primarily to offer continuity of employment to its workforce. With housing sites in Liverpool in short supply, Richard Costain sent his son William down to London to find new sites. He purchased the Walton Heath Land Company and in 1923 the separate business of Richard Costain & Sons was formed. Several executive estates in the Croydon
Croydon
Croydon is a town in South London, England, located within the London Borough of Croydon to which it gives its name. It is situated south of Charing Cross...
area were developed in the mid 1920s. In 1929 William died: the other two brothers remained in Liverpool and William’s son, Richard Rylands Costain, was sent to run the London Company. Under him, Richard Costain & Sons expanded its housing building large estates all around London, the largest being a site for 7,500 homes in South Hornchurch, started in 1934. Perhaps the best-known development of all was Dolphin Square
Dolphin Square
Dolphin Square is a block of private apartments and business complex built near the River Thames at Pimlico in London, between 1935 and 1937.At one time, the huge development was home to more than 70 MPs, and at least 10 lords...
completed in 1937.
In 1933 the London-based Richard Costain was floated on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
; the Liverpool business was not part of the flotation. By then, Costain had completed over 4,000 houses in the London area, some at prices up to £4,000. Costain continued to expand its private housebuilding and it was described as "one of the largest speculative housebuilders and estate developers in this country before the war."
Following the flotation, Costain moved into civil engineering and worked first on the Trans-Iranian Railway
Trans-Iranian Railway
The Trans-Iranian Railway was a major railway building project started in 1927 and completed in 1938, under the direction of the Persian monarch, Reza Shah, and entirely with indigenous capital. It links the capital Tehran with the Persian Gulf and Caspian Sea...
and then at Abadan, Iran for BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
. Losses on the railway, on Beckton sewage works and the costs of Dolphin Square caused financial problems, and Costain had to look for alternative funds when Barclays withdrew its overdraft facilities.
The Second War saw Costain carrying out extensive military work including airfields and ordinance factories, and it was one of the contractors on the Mulberry Harbour
Mulberry harbour
A Mulberry harbour was a British type of temporary harbour developed in World War II to offload cargo on the beaches during the Allied invasion of Normandy....
project. After the War, building controls precluded any substantial return to private housebuilding and Costain took its wartime construction expertise overseas: by the mid-1950s as much as 60% of turnover was overseas. Some small estate development was undertaken but it was not until the acquisition of the Rostance Group of Nottingham in 1962 that private housebuilding resumed on any scale. Helped also by the acquisition of the Blackpool firm of R Fielding in 1969, Costain was building around 1,000 houses a year by the early 1970s.
The substantially increased revenues that accrued to the oil-producing states led to a construction boom in the middle east in the 1970s. Costain was a major beneficiary, particularly in the Emirates, and within a decade profits increased from little more than £1m a year to £47m. In the face of such overseas largesse, domestic housing activity declined. In the 1980s, recognising that exceptional middle east profits could not continue, Costain sought to redeploy its extensive cash balances into coal mining, international housing and commercial property. However, over-expansion in the late 1980s led to high gearing just as international markets were turning down, problems exacerbated by a disaster in Costain’s American coal mine. Substantial losses were incurred in the early 1990s and asset sales followed leaving Costain as a predominantly construction-oriented business.
Structure
Costain's activities are organised into three areas: Environment (water, marine, waste, education, health & retail), Infrastructure (highways, rail, nuclear, tunnelling & airports), and Energy & Process. This replaces the four former divisions that made up the company: Civil Engineering, Building, COGAP & International.Costain Energy & Process is the division responsible for the engineering and construction of energy-sector based projects. Based in Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
, it is active in Natural Gas Storage
Natural gas storage
Natural gas, like many other commodities, can be stored for an indefinite period of time in natural gas storage facilities for later consumption.- Usage :...
activities in the UK.
Major projects
Dolphin Square
Dolphin Square is a block of private apartments and business complex built near the River Thames at Pimlico in London, between 1935 and 1937.At one time, the huge development was home to more than 70 MPs, and at least 10 lords...
apartments in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
completed in 1937, a section of the Trans-Iranian Railway
Trans-Iranian Railway
The Trans-Iranian Railway was a major railway building project started in 1927 and completed in 1938, under the direction of the Persian monarch, Reza Shah, and entirely with indigenous capital. It links the capital Tehran with the Persian Gulf and Caspian Sea...
completed in 1939, Dubai International Airport
Dubai International Airport
Dubai International Airport is an international airport serving Dubai, the largest city of the United Arab Emirates. It is a major aviation hub in the Middle East, and is the main airport of Dubai. It is situated in the Al Garhoud district, southeast of Dubai...
completed in 1960, the Deep Water Harbour
Port of Bridgetown
The Port of Bridgetown , is a seaport in Bridgetown on the southwest coast of Barbados...
at Bridgetown
Bridgetown
The city of Bridgetown , metropolitan pop 96,578 , is the capital and largest city of the nation of Barbados. Formerly, the Town of Saint Michael, the Greater Bridgetown area is located within the parish of Saint Michael...
, Barbados
Barbados
Barbados is an island country in the Lesser Antilles. It is in length and as much as in width, amounting to . It is situated in the western area of the North Atlantic and 100 kilometres east of the Windward Islands and the Caribbean Sea; therein, it is about east of the islands of Saint...
completed in 1961, the Thames Barrier
Thames Barrier
The Thames Barrier is the world's second-largest movable flood barrier and is located downstream of central London. Its purpose is to prevent London from being flooded by exceptionally high tides and storm surges moving up from the sea...
completed in 1984, the Channel Tunnel
Channel Tunnel
The Channel Tunnel is a undersea rail tunnel linking Folkestone, Kent in the United Kingdom with Coquelles, Pas-de-Calais near Calais in northern France beneath the English Channel at the Strait of Dover. At its lowest point, it is deep...
completed in 1994, the Tsing Ma Bridge
Tsing Ma Bridge
The Tsing Ma Bridge is a bridge in Hong Kong. It is the world's seventh-longest span suspension bridge, and was the second longest at time of completion. The bridge was named after two of the islands at its ends, namely Tsing Yi and Ma Wan . It has two decks and carries both road and rail...
in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
completed in 1997, the Cardiff Bay Barrage
Cardiff Bay Barrage
The Cardiff Bay Barrage lies across the mouth of Cardiff Bay, Wales between Queen Alexandra Dock and Penarth Head. It was one of the largest civil engineering projects in Europe during construction in the 1990s.-History:...
completed in 1999 and the King's Cross Western Ticketing Hall
King's Cross St. Pancras tube station
King's Cross St. Pancras is a tube station in the London Borough of Camden, on the London Underground network, serving both King's Cross and main line stations. It is in Travelcard Zone 1. It is the fourth busiest station on the system and serves more lines than any other...
completed in 2006.