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Takeover of Trafalgar windfall for Gammon

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Business is booming for Gammon Construction, Hong Kong's largest contractor, following the takeover of Trafalgar House by Kvaerner, the Norwegian industrial process company.

The firm, jointly owned by Trafalgar and Jardine Pacific, has received its first inquiry from Kvaerner for the construction of a pulp and paper mill in Indonesia.

'From Gammon's point of view, [the deal] will be quite a positive thing. We see the potential for some business coming out of the deal,' group managing director Martin Hadaway said.

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Gammon has a record order book with more than $13 billion worth of projects under way - 50 per cent up on 1994.

Turnover last year reached $6.75 billion, including its biggest civil engineering contract, a $2.7 billion slice of the Route 3 Country Park road tunnel and highway.

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'They [Kvaerner] are already working in Malaysia and Indonesia and have quite a big engineering office in Tokyo. We definitely see opportunities,' Mr Hadaway said.

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