Interserve and Atkins have formed a joint venture with China State Construction Engineering Corporation (CSCEC) 8 and 2 respectively to deliver Wanda One’s £400m One Nine Elms scheme, further reinforcing China’s ongoing investments in the UK’s construction industry and the nation’s property and infrastructure.


The two divisions of the state owned Chinese construction and engineering giant act autonomously being able to compete against each other for projects around the world, however it was seen as highly likely that a Chinese operation would take major role in the development which is being headed up by Wanda One – a subsidiary of Chinese property giant Dalian Wanda.


Interserve has previously announced that they are looking to diversify their operations and revenue streams stating: “Part of our strategy is to combine our investment, development and project management skills to finance and deliver selective private sector commercial developments.”


It’s an interesting indication of how Chinese players like to operate and those businesses that are able to forge sound relationships or even joint ventures with China’s construction firms are likely to feel the benefit from the anticipated inward investment that appears to be about to flow into London (and the rest of the UK) from the “Eastern Dragon”.


If partners in previous investments follow, these partnerships will be long serving, however the Chinese players will likely transition to a more rounded standalone presence in both the development and construction market.


By using local companies in this manner it enables the Chinese firms to get a firm feeling for the market, utilise the existing supply chain and market intelligence whilst later allowing them to later inject their own suppliers into the market, creating further competition which must surely be a good thing for the UK’s construction contracting and construction supplies market.


Chinese contractors also have a strong reputation and exceeding their client’s expectations when it comes to delivering projects on (or ahead) of time, and although the UK’s landscape is very different from a regulatory perspective which may slow down the possibilities for as much speed this dedication to completing on or ahead of time will likely creation a competitive force in the UK’s construction market