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Norse partners with Medway Council in £70m joint venture agreement

06 June 2013

Norse Commercial Services has signed the latest partnership in its portfolio of local authority Joint Venture Companies (JVCs), forming Medway Norse with Medway Council

Medway Norse will start trading on the 1 June 2013, providing FM that include cleaning, catering and maintenance for the council’s 140 buildings and for other local organisations.

The 10-year, £7 million a year agreement is the first of its kind in the South East. Geoff Tucker, Norse’s Sales Director, said: “We are delighted to be working with a progressive council like Medway, using our experience and commercial expertise to deliver cost savings, and at the same time preserving local jobs and maintaining high quality services.”

“Norse currently has 19 joint ventures with local authorities in the UK,” he added. “The business model is now well proven in helping our partners respond to budget cuts, while maintaining and improving frontline services. Medway Norse will also create income for the council by bidding for additional work.”

Medway Norse is committed to spending 40% of its budget with contractors who are small or medium sized local businesses, reflecting the firm’s commitment to supporting the local economy.

Medway Council Portfolio Holder for Finance Cllr Alan Jarrett said: “Medway Norse will allow us to continue to protect front line services for the people of Medway while providing value for money. This ground breaking joint venture, with a well-established company that understands the needs and operations of the public sector, offers an opportunity for Medway to share in the profits the joint venture company makes by attracting new contracts from across the South East.”

Norse Commercial Services is the UK’s leading service provider in this type of local authority JVC, and has a forward order book of nearly £1.8 billion.

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