Nuclear war between Laing O'Rourke and Balfour

Laing O'Rourke is launching a major push into the nuclear sector in a bid to challenge Balfour Beatty's role as leading contractor in the £40bn market.

CJ understands that O'Rourke is hoping to extend its relationship with Olympic partner CH2M Hill to break into the decommissioning market.

The firm is also eyeing a massive expansion in its nuclear new build arm following work on its first £70m contract at Sellafield.

O'Rourke chiefs have already held a series of meetings with leaders of the Nuclear Industry Association to push their credentials. And the firm hopes its links with CH2M Hill will be a major advantage. The American engineering giant is part of the O'Rourke-led CLM consortium overseeing the London 2012 Games.

An O'Rourke source said: "It is a new area for us, but we can benefit from their expertise and they need to link up with a domestic firm to win UK contracts. We've already won our first job in the new build sector and will be looking to challenge the leading players."

Nuclear officials have told the firm that the nuclear market will be worth more than £40bn.

The source said: "Our understanding is that over the next 17 years the decommissioning market will be worth £1.2bn a year with new build worth roughly the same over the period."

O'Rourke's move comes as Costain and Sir Robert McAlpine both look for joint venture partners to help them bid for new build nuclear work.

Costain Nuclear director Paul Campbell said: "We are talking to other contractors with a view to securing a role in a consortium to construct one or more of these plants. These new builds are expected to be £500m-£600m. We normally look to form a consortium to do that size of package."

McAlpine corporate development manager Roger Hull said: "We are still keeping our options open."