Gordon Dunne, who will be Keltbray Structures’ managing director, has taken a minority stake in the business, with Keltbray Group taking on the remaining 80 per cent.
The new business was created after the wider Keltbray Group purchased some of Dunne Group’s assets after the latter fell into administration in July.
The concrete arm will be headed up by Keltbray MD John Price, who will now have the additional role of Keltbray Structures chief executive.
Speaking to Construction News, Mr Price said Mr Dunne was the “perfect person” to run the new business, with the support of the wider Keltbray Group.
“Gordon Dunne knows an awful lot about concrete frames and delivery, he’s been doing it for a very long time and understands concrete through and through,” he said.
Mr Price confirmed Mr Dunne had taken a 20 per cent stake in the company – a decision that was made separately from the asset acquisition, he added.
Asked whether he had concerns about the future relationship between Mr Dunne and Dunne Group creditors, Mr Price said: “Gordon has been in business for a long time and has paid a lot of bills during that period of time. Unfortunately he’s gone into administration [but] the deal that we’ve done with the receiver is a good deal for the creditors that exist.”
Keltbray Structures has a target turnover of £50m by the end of 2017, with a workforce of around 250.
Mr Price said it would look to grow this at a “controlled rate” thereafter.
The decision to set up a concrete arm came at the request of clients, who were increasingly asking for “a concrete option”, Mr Price said.
“A lot of clients have been asking us for some time for a concrete option and then there was an opportunity to do it with the demise of Dunne,” he said.
Keltbray had intended to set up a concrete arm before Dunne Group fell into administration but the company’s collapse allowed the demolition giant to move into that market quicker.
Mr Price said there was a good market for concrete frames in Scotland as well as opportunities for Keltbray Group’s other offerings.
“We are looking at demolition up in Scotland on the oil platforms and have done work on the gas receiving facility in Aberdeen,” he said.
The new business will offer two work streams: a standalone concrete frame offer, where Keltbray has not been involved in the preceding trades; or bolting on the concrete offering as part of a package.