Hochtief forms nuclear JV with Costain and McAlpine

Foreign firms are targeting British contractors in a bid to win a slice of the UK's £40bn new nuclear programme.

The news comes as German contractor Hochtief is tipped to join forces with Costain and Robert McAlpine's new nuclear joint venture.

Meanwhile, German firm Bilfinger Berger and French contractor Eiffage are also courting UK construction firms in a bid to muscle in on the UK's new nuclear market. Likely partners include Kier, Skanska, Morgan Est and Carillion.

Costain/McAlpine's move to bring Hochtief on board - a seasoned nuclear new build player - will strengthen their chances of winning new nuclear work, particularly from German energy giants RWE and EON.

Both RWE and EON are planning to build at least four new nuclear reactors in the UK after jointly buying suitable sites at Wylfa in Wales and Oldbury in South West England last month.

RWE is already preparing its construction plans. Teams of UK contractors are to meet RWE's new nuclear procurement team over the next two weeks to present their skills and capabilities. Sources say Hochtief will be attending as part of a team including Costain and Robert McAlpine. All three firms declined to comment.

Other teams expected to attend include Balfour Beatty with Vinci; Bouygues with Laing O'Rourke; Kier in joint venture with BAM Nuttall; Carillion; Skanska; and Morgan Est.

It is unclear, as yet, whether RWE and EON will join forces to procure the construction element of their new nuclear plants in the UK. However, the two companies last week announced that they are planning to set up a "legal entity" following their joint venture to buy UK sites on which to build their nuclear plants.

Meanwhile, EDF continues to vet UK contractors for its £700m new nuclear package. The French firm has issued prequalification questionnaires for two civils packages - a £100m preparatory works contract, which will be let this autumn and a civils package, estimated to be up to £600m, which will be let by the end of the year.