Kentons has moved to the city to show its commitment to the Yorkshire Water ring main scheme.

The utility services contractor, which is carrying out the work on the ring main and various distribution mains for Yorkshire Water, was recently acquired by international engineering, construction and services group Balfour Beatty for £28 million.

The firm has moved its regional head office to Low Moor to help Yorkshire Water complete its three year, £75 million overhaul to improve the environment, upgrade rusty pipes and provide customers with a better quality product.

Colin Kelly, regional director of Kentons, said: "In opening our new regional office in Bradford we reinforce our long-term commitment to the people of Bradford.

"We look forward to further developing our relationships with the local community."

Yorkshire Water is delighted with the move as it says it shows not only the firm's commitment to the scheme, but also means money and time will be saved - a benefit which will be passed on to customers.

Kentons provides asset maintenance and replacement services for the gas, water and waste water sectors, including investigation, design, construction and commissioning.

The Balfour Beatty deal comprised a payment of £18 million for Kentons shares and £10 million of net debt.

Mike Welton, Balfour Beatty chief executive, said of the deal: "I am pleased to add Kentons, a quality business with a strong position in its markets, to our extensive network of infrastructure support services businesses.

"Kentons, together with John Kennedy, which we acquired in October of last year, and the work of our Power Networks business in the electricity sector, constitutes a major force in the UK utility services market.

"We believe that this market will continue to grow as customers respond to the need to upgrade and enhance their existing systems and to outsource an increasing range of services."

Kentons is forecasting sales in the 12 months to April 30 2002 of £65 million and operating profits of approximately £4.4 million. It employs 1,200 people throughout the UK.

The firm has a forward order book of £190 million and is preferred bidder on a further £75 million of work. Its clients include Transco, Northumbrian Water, United Utilities, the Scottish water authorities and Mid-Kent Water.

The addition of Kentons to Balfour Beatty gives it annual sales of around £250 million and an order book of more than £450 million in the utilities sector.