KVAERNER, the Anglo-Norwegian engineering group, yesterday sold all of its building and civil engineering businesses for £4.7 bn Norwegian kroner (£356m).

The decision is the latest in a cost-cutting programme which has seen the firm's announce closure plans at its Port Clarence yard on Teesside, and the sale of its Cleveland Bridge operation in Darlington.

The sale to Swedish firm Skanska will include Kvaerner's UK construction business, employing 5,000 including 130 at the former Whessoe International Ltd site in Darlington, which it purchased in May this year.

But Kvaerner's president Kjell Almskog said he did not expect any job losses as a result of the sale, with Skanska keen to gain a foothold in the British market.

"This is a business that has been doing well in the UK and which I believe will continue to do well," he said.

"I do not see any reason to suggest there will be any loss of jobs."

The news is the latest chapter of a huge shake-up at Kvaerner. At the end of 1999 Kvaerner decided to close Port Clarence because it ran out of orders. More than 3,000 were employed for the final contract, the Triton floating production storage and offloading vessel.

The site has still not been sold but Kvaerner indicates that it expects to sell the yard and is in talks with a possible buyer.

Last year a management buyout saw Cleveland Bridge's future guaranteed.

Kvaerner will exit building and civil engineering to concentrate on its oil and gas businesses and developing industrial process technology