Report: rock crushing plants in poor condition

Landsverk’s three rock crushing plants and its two asphalt plants are critically worn down, according to the company’s condition report.

According to the report, which was written in March this year, DKK 82 million will be needed over the next two years to keep the company’s five production plants running.

All five units are in urgent need of repair and renovation. For instance, the main jaw crusher in the Lambareiði plant in Eysturoy was shut down earlier this year due to safety concerns, and according to Landverk’s report, it is only a matter of time before this happens again in one or more of the plants.

The report adds that Landverk informed the Ministry of Transport of the urgent need for repairs as early as September last year.

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Landsverk has had its fair share of difficulties over the past couple of years, with three major building projects running significantly over budget. 

The Glasir educational centre in Tórshavn ran DKK 100 million over budget, and the new H-building at the National Hospital, which is still in construction, is DKK 152 million over budget to date.

And repair and renovation costs for the old asphalt plant in Sund, near Tórshavn, now deemed unusable, cost DKK 48 million, which is more than the price of building a new plant.

Indications of further troubles ahead

While police authorities are looking into these three cases of overspending of taxpayers’ money, it appears that further problems may emerge in the near future.

Newly appointed CEO of Landsverk, Sigurd Lamhauge, was not available for comment yesterday.

Finance minister Jørgen Niclasen says he is waiting for a new condition report from Landsverk before he decides what do to about the situation.

Translated by prosa.fo