HOCHTIEF Europe Division
- Restructuring continued systematically
- Clear improvement in German business in 2008
- Further boost for international business
- Growth potential tapped
Under the leadership of HOCHTIEF Construction, the
HOCHTIEF Europe division draws together the Group"s
portfolio of construction and construction-related services
in Europe, focusing mainly on building construction, civil
and structural engineering in selected countries in Western
and Eastern Europe. Moreover, HOCHTIEF Construction
also develops high-quality residential real estate. Outside
of Europe, the company operates as a general contractor
for large-scale projects. In addition, we offer numerous innovative
business models and services along the entire
construction value chain.
Additional restructuring measures introduced
In the year under review, the division continued to restructure
its German building construction operations, a process
begun in 2007, and launched additional measures to increase
profitability. For instance, return targets for new projects
were lifted, and pricing was adjusted strategically.
The goal is to compensate HOCHTIEF Europe for the concrete
value added created for its clients through innovative
technologies and services. For this reason, service and
solution packages of varying scope are now offered at different
prices.
HOCHTIEF Europe's strategy of focusing our turnkey construction
business on the partnership-based PreFair business
model, optimizing risk management and boosting
return
on investment targets clearly increased the quality of
earnings in the building construction business in Germany.
Thanks to the "Subguard"* insurance model tried and
tested at HOCHTIEF's subsidiary Turner, we are also protected
from subcontractor default.
Boost for international business
The international business saw above-average growth
rates, for example, thanks to projects in Greece, Eastern
Europe and South Africa. Development in the civil engineering
and infrastructure construction segments in particular
was extraordinarily positive during the past fiscal
year.
Enhanced cooperation throughout the Group
HOCHTIEF Construction is developing additional attractive
sales and earnings potential through continually enhanced
cooperation with other Group companies. For example,
the company works in partnership with HOCHTIEF PPP
Solutions on public-private partnership (PPP) projects.
This is underscored by numerous orders received in 2008,
such as the construction of the Maliakos-Kleidi and Elefsina-
Patras-Tsakona freeways in Greece. HOCHTIEF Construction,
HOCHTIEF PPP Solutions and HOCHTIEF Facility
Management have also become firmly established as a
seasoned team for public building construction projects
based on the PPP model.
Further progress in real estate development
business
HOCHTIEF Construction has become established as one
of the leading residential real estate developers in Germany
with the FormArt brand. This unit concentrates on
first-rate residential properties in exclusive locations. During
the year under review, a large number of projects were
completed and the construction of new residential buildings
begun.
Sustainable growth potential
As an innovative, profitability-focused company, HOCHTIEF<
Construction identifies new, high-growth segments at an
early stage and establishes itself in these markets. Renewable
energies and sustainable construction are among
these segments. We therefore further expanded our operations
in areas such as the market for offshore wind plants.
Together with HOCHTIEF PPP Solutions, we are one of
the top companies in the geothermal market. In addition,
HOCHTIEF is already the market leader in sustainable
construction.
