CITROEN has announced two new contracts worth a combined £6.5 million at showroom prices.

The deals, with Kier Sheffield LLP, part of Sheffield Council, and roofing company Copal Group, will see Citroen supply more than 550 commercial vehicles to the two companies.

Kier Sheffield has ordered more than 400 1.9D LX Berlingos, 1.9D Dispatch and Relay vans and tippers to replace its maintenance fleet. An additional 100 vehicles will be delivered through supplying dealer Springfield Citroen during 2004 and 2005.

The vehicles will run on a five-year, 40,000 mile HSBC contract hire agreement and David Sheridan, director at Kier Sheffield, said: 'Citroens have been specified for this major fleet replacement programme as a result of their long-term, proven low cost of operation, reliability, suitability for purpose.'

The Copal Group has taken delivery of 48 Citroen 1.9D Dispatch and Berlingos for use on new build housing projects throughout the Midlands and the north west of England.

It will distribute the vans across three of its sites in Staffordshire, Manchester and Leicester with plans to keep the vehicles for three years.