Hercules Site Services PLC (AIM:HERC) said it has entered into an agreement with Amey Highways Limited to be its sole supplier of suction excavator services to the National Highways Area 7 contract.
As part of the agreement, Hercules will supply suction excavators and “skilled operators” to Amey for three years for an initial £2mln, according to a statement.
The technology labour supply company said the agreement will be reviewed every three years or earlier, if required, and is in line with its objective of maintaining a high utilisation rate across its suction excavator fleet.
"This agreement with Amey is an excellent validation of our suction excavator services strategy, which has seen us rapidly expand our fleet over the past 12 months,” said Hercules’ chief executive Brusk Korkmaz.
“We will soon have one of the largest fleets in the UK, positioning us to capture strong demand being driven by the fact that suction excavators can safely and efficiently excavate significant quantities of materials or debris, while reducing the risk of service strikes.”
Hercules said it is expecting more deliveries of suction excavators in March, increasing its fleet to 30 from 20.