- Global design and engineering firm Stantec has won a contract with Agratas, Tata Group’s battery business, to design a £4 billion (C$6.86 billion) battery cell manufacturing facility in the United Kingdom
- The facility will produce high-quality, high-performance and sustainable battery cells to power hundreds of thousands of electric vehicles
- Stantec is a global sustainable engineering, architecture and environmental consulting firm
- Stantec stock has added 44.14 per cent year-over-year, 255.21 per cent since 2019, and more than 35,000 per cent since inception in 1996
Global design and engineering firm Stantec (TSX:STN) has won a contract with Agratas, Tata Group’s battery business, to design a £4 billion (C$6.86 billion) battery cell manufacturing facility in the United Kingdom.
The facility, which will be on the Gravity Smart Campus, will produce high-quality, high-performance and sustainable battery cells to power hundreds of thousands of electric vehicles and will create up to 4,000 jobs over the project’s lifespan, in addition to thousands more across the supply chain.
The project represents one of the largest manufacturing investments in U.K. history, with the factory set to become one of the largest of its kind in Europe. The undertaking’s grand scale is a befitting testament to the Tata Group‘s 30 global companies, which generated approximately US$150 billion in combined revenue in 2022 and employ more than 1 million people.
What services will Stantec provide?
Stantec’s contract with Tata spans architecture, mechanical, electrical, plumbing, structural, and civil engineering services, as well as risk management, planning compliance, and BIM management, all with the goals of optimizing production flows while continuing to generate robust shareholder returns.
Drees & Sommer, a Stantec partner, will provide clean room/dry room design services, while other third-party consultants will perform fire protection engineering and building control services.
An established history of profitability
Earlier Thursday morning, Stantec released record 2023 earnings results, including adjusted diluted earnings per share (EPS) of C$3.67, an increase of 17.3 per cent from 2022. The company is projecting double-digit EPS growth in 2024 backed by “high levels of activity in all regions,” according to the earnings report.
The news is no surprise from the C$12.95 billion market cap company, which has been profitable every year over the past five years. It has grown net income by almost 7x over the period from C$47.40 million in 2018 to C$331.2 million in 2023.
Management insights
“The Agratas facility will be pioneering in battery cell production, addressing demand in the advanced manufacturing space in the U.K. head-on, while benefiting productivity, the climate and the economy,” Gord Johnston, president and chief executive officer of Stantec, said in a statement. “Stantec has strong capabilities in the advanced manufacturing space, and we look forward to working closely with Agratas to provide our significant breadth and depth of experience and support the successful completion of its project.”
“We look forward to working with Stantec to design the U.K.’s largest battery cell manufacturing facility. Using state-of-the-art technology, our facility will power the transition to electric mobility and clean energy storage,” added Joe Hibbert, Agratas’ vice president of capital projects. “Our partnership with Stantec is the next step in our mission to deliver best-in-class battery solutions for our global customers.”
About Stantec
Stantec is a global sustainable engineering, architecture and environmental consulting firm helping clients manage aging infrastructure, demographic and population changes, climate change and more.
Stantec stock (TSX:STN) is down by 1.15 per cent, trading at C$113.82 per share as of 10:44 am ET. The stock has added 44.14 per cent year-over-year, 255.21 per cent since 2019, and more than 35,000 per cent since inception in 1996.
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