Carillion Joint Venture (JV) has won two new contracts with the Defence Infrastructure Organisation (DIO) worth £158 million.

The partnership has secured the HESTIA North, and Scotland and Northern Ireland Soft Facilities Management Multi Activity Contracts.

The deals will run over and initial five-year period and involves delivering soft facilities management services including catering, retail and leisure, together with hotel and mess services.

The North contract will employ around 1,500 people, covering 130 military establishments. It is due to go live at the beginning of January next year.

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The Scotland and Northern Ireland Region deal covers a further 103 military establishments and will employ around 1,030 people. It will go live this November.

The contract awards follow on from Carillion securing the South East and London contract with DIO earlier this year.

Despite having a core revenue value of £158m, Carillion JV has the opportunity to double this figure through catering and retail sales.

Carillion Interim Chief Executive, Keith Cochrane, said: "We are delighted to be awarded these contracts. The DIO is a key support services customer with whom we have built a long-term successful partnership. We are committed to building on this relationship and on our position as a leading supplier to the DIO by using our core skills and capabilities to deliver high-quality services.

"These contracts play a critical role in supporting our armed forces and they have a number of unique aspects that require a specific, regional focus. They will enable us to create further training and employment opportunities for ex-services personnel in support of our commitment to the Armed Forces Corporate Covenant."

(LM/MH)