The business units Transportation Projects and Tunneling, and Infrastructure Alps Region assumed technical leader- ship of a joint venture set up to extend the U 3 metro line in Nuremberg. This EUR 38.5 million project involves the con- struction of the 1,200 meter long tunnel as well as the ex- pansion of two stations. HOCHTIEF Construction had pre- viously built a section of the Nuremberg metro network extension between 2001 and 2005.
Ports:
Kaiserschleuse lock, Bremerhaven
As leader of a joint venture, HOCHTIEF was awarded the contract to carry out Europe’s largest lock construction project, the Kaiserschleuse lock in Bremerhaven. The new lock in the overseas port of Bremerhaven will be 305 me- ters long, 55 meters wide and 13 meters deep. The con- tract was awarded for the first time by the competitive dialog* method, meaning that we first had to convince the client of our capabilities in detail. Construction work began
in April 2007 and is scheduled for completion at the end of May 2010. The contract is worth just under EUR 185 million. Flood protection, St. Petersburg (Russia)
A joint venture comprising HOCHTIEF Construction and another partner is involved in an extensive flood protection project in St. Petersburg. The two companies are building a dam designed to protect the greater St. Petersburg area from storm flooding. Inside the dam, a 730 meter long tun- nel will be built for road traffic. The contract, due for com- pletion in 2012, is worth a total of EUR 350 million. Container terminal, Gdansk (Poland)
After a construction period of 24 months, Poland’s largest deep-water container port was officially opened on Octo- ber 3, 2007. The Civil Engineering and Marine Works and HOCHTIEF Polska business units were responsible for the turnkey construction of the terminal, one of the highlights of which is an 800 meter long quay at which two large container ships can be handled simultaneously. The termi- nal also has a loading ramp for RoRo ships**. In addition, HOCHTIEF built two kilometers each of access roads and rail lines as well as an administration building, container loading station and workshop. The contract was worth approximately EUR 117 million.
Container terminal, St. Petersburg (Russia) A consortium headed by HOCHTIEF Construction is to build the Lomonosov Freight Terminal near St. Petersburg. Under the agreement signed by the consortium in 2007, the permit plan will first be drawn up before construction is begun. The EUR 230 million project was launched in Sep- tember 2007 and will be completed at the end of 2010. The terminal will have a quay length of 1,000 meters for a turn- over of a million containers per year, as well as a berth ca- pable of handling 300,000 cars.
*You will find further infor- mation on page 28. **These are modern trans- port vessels in which the cargo is driven onto the ship (roll-on-roll-off ship).
Container terminal Nqura, Port Elizabeth (South Africa)
HOCHTIEF Construction is the technical leader of a joint venture extending the Nqura deep-water port near Port Elizabeth, South Africa. In a project due for completion in November 2010, the quay wall is being extended by two berths for a container terminal. The project is worth EUR 38.6 million. HOCHTIEF Construction had previously built the port and two breakwaters in the industrial region at the mouth of the Coega River with the same partner in 2006. Energy:
Coal-fired power plant, Duisburg-Walsum Under a EUR 68 million contract from Hitachi Power Eu- rope, HOCHTIEF Construction is building a 750 megawatt coal-fired power plant in a project due for completion by the end of 2009. It includes all process buildings as well as a 181 meter tall natural draft cooling tower with integrated flue gas discharge.
Substitute fuel plant, Frankfurt am Main
For Infraserv, the operator of the Hoechst industrial park, HOCHTIEF Construction is carrying out core, shell and fin- ishing work on Germany’s largest substitute fuel plant with a throughput of 560,000 metric tons per year. The fuel con- sisting of non-recyclable plastics offers high economic and ecological efficiency. The project, worth just under EUR 25 million, began in October 2007. The construction work will be completed in September 2009.
Public-private partnerships (PPP)
Toll roads:
A4 expressway, Gotha/Eisenach
Under a contract from an operator consortium led by HOCHTIEF PPP Solutions and another partner, HOCHTIEF Construction will build an approximately 45 kilometer long toll road as a member of a joint venture. Work on the sec- tion of the A4 between Gotha and Eisenach began in Oc- tober 2007 and is scheduled for completion in 2011. The operator consortium will operate the PPP project for 30 years.
Schools:
Refurbishment, Frankfurt am Main
HOCHTIEF Construction is refurbishing four schools in the German banking capital for HOCHTIEF PPP Solutions in a project lasting until mid-2009. The contract is worth around EUR 90 million. Our subsidiary Streif Baulogistik is provid- ing temporary pavilions to allow school operations to con- tinue during the construction work. HOCHTIEF Facility Man- agement will subsequently operate the schools for 20 years.
New school, Cologne-Rodenkirchen
In a EUR 40 million project for HOCHTIEF PPP Solutions which got underway in October 2007, HOCHTIEF Con- struction is designing and building a new comprehensive school in the Cologne suburb of Rodenkirchen. The school will open to its approximately 1,200 students from fall 2009. HOCHTIEF Facility Management will manage the completed property until the year 2034.
Residential properties
Factory conversion, Baden-Baden
In a project scheduled for completion in mid-2008, we are redeveloping the Batschari Palais in Baden-Baden. The project includes the construction of 85 condominiums in four different styles as well as 65 rental apartments. The outer appearance of the former cigarette factory will be preserved, including facade, roofing and wooden win- dows. The value of the contract is nearly EUR 10 million. Wohnen an St. Gereon, Cologne
Under a EUR 9.1 million contract from AXA Investment Managers, HOCHTIEF Construction is building 31 upscale apartments in the center of Cologne in a project scheduled for completion in June 2008. Cooperative cost optimization in the bidding phase opened up attractive savings oppor- tunities.
Special-purpose properties
Forensic psychiatric hospital, Cologne
Our Northrhine-Westphalia business unit is building a fo- rensic psychiatric hospital on the site of a former barracks in Cologne. The EUR 22.9 million project is being carried
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In Austria, construction was green-lighted on the first PPP road proj- ect, the northeastern bypass around Vienna. HOCHTIEF Construc- tion is involved in the project as part of a joint venture, building an ap- proximately 51 kilome- ter long section of the so-called Y project. Streif Baulogistik is providing the necessary construction equip- ment.
out in accordance with the latest therapeutic and security standards. Construction work began in December 2007.
Main subsidiaries of HOCHTIEF Construction AG
Streif Baulogistik GmbH der
The subsidiary of HOCHTIEF Construction is focused on construction as well as construction-related infrastructure and logistics. The construction services provider is mainly engaged in providing project-specific combinations of serv- ices for construction site installation, administration and optimization of construction site operations. In doing so, it unlocks major time and cost saving potential for clients. Business at Streif Baulogistik in 2007 was characterized by a slight improvement in construction activity in Germany. The company performed better than expected. It succeeded in driving forward its targeted expansion and increasing its earnings in Germany. Work done in the rest of Europe coun- tries increased according to plan. The international share of total sales increased from 30 percent in 2006 to 34 per- cent in the reporting year.
Strategic partnerships coupled with the targeted entry into further European markets were behind the expansion in the reporting period. With the establishment of Streif Bau- logistik Austria in Vienna in July 2007, the company strength- ened its presence in the fast-growing Central and Eastern European region. In Ukraine, the company bolstered its po- sition in the crane hire business through two cooperation agreements. To better manage an increasing number of projects in Scandinavia, Streif Baulogistik opened a sales office in Denmark in November 2007. The already existing Streif Baulogistik Polska performed as expected in fiscal 2007 and further strengthened its position as market leader. With the newly established innovation and development center Streif Baulogistik Systems, the company presented itself for the first time as a manufacturer of system form- work. This will not only open up new customer segments
but also make the company less dependent on other man u- facturers as a formwork hire company. The newly devel- oped systems StreifLight and StreifTelos were launched on the market in the reporting period.
Growth in the Logistics Consulting & Management unit continued in 2007. The increasing importance of inte- grated, sustainable construction logistics was reflected in rising orders. In consequence, the unit achieved the ex- pected positive result.
In the reporting year, Streif Baulogistik rationalized its orga- nizational structures, streamlined its business processes and grew in a targeted way in Europe as well as in future markets. The order backlog increased by roughly 70 per- cent from the prior year—a good platform for future success. In 2008, a continuing slight improvement in building activity in Germany and increasing international business are ex- pected to promote growth. The strategic goals are to sta- bilize the core business and expand into further European markets. In addition, Streif Baulogistik will optimize and ex- pand its range of services. The company also intends to establish itself in non-European markets via its Energy & International Project Services unit.
Project highlights
Geothermal deep drilling system
In April 2007, Streif Baulogistik acquired a geothermal deep drilling system for the construction of geothermal power plants by HOCHTIEF Construction.* Streif Baulogistik as- sembles and disassembles, maintains and operates the system, supplies electricity for drilling operations and takes charge of energy supply and waste disposal.
Shopping center, Poland
Until August 2008, Streif Baulogistik Polska is providing five tower cranes for the construction of the Millennium Hall shopping center in the Polish city of Rzeszów. Our com- pany received the order directly from the investor Bogi and thus succeeded in acquiring an additional new customer.
*You will find further infor- mation on pages 13 and 21.
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Residential construction, Ukraine
Under a contract from a Spanish-Ukrainian investor group, Streif Baulogistik Ukraina is supplying three tower cranes for the construction of an upscale residential complex in the capital Kiev. The complex comprises five units, to be built consecutively. The cranes will therefore be in opera- tion until October 2010.
HOCHTIEF Polska Sp. z o.o.
Launched in 1996, HOCHTIEF’s Polish subsidiary is one of the leading building contractors in Poland. Ownership of HOCHTIEF Polska was transferred to HOCHTIEF Construc- tion in the reporting year. HOCHTIEF Polska serves the building construction and infrastructure markets. Its port- folio includes building offices, shopping centers, factories, roads, bridges, rail lines and port facilities. An example of the company’s work is Poland’s biggest deep-water con- tainer terminal, which went into service in the year under review.*
HOCHTIEF Polska also further enhanced and extended its position in construction management during the 2007 fis- cal year. The company achieved another marked increase in work done overall, exceeding expectations. This success is mirrored in a series of accolades awarded to HOCHTIEF Polska for many of its projects. In view of the favorable economic environment, the company expects to sustain the strong uptrend through fiscal 2008.
Project highlights
Shopping center, Poznań
The Galeria Malta shopping and leisure center in Poznań will be completed by the end of 2008. The center will offer 153,000 square meters of floor space housing some 200 shops, various restaurants, a multiplex movie theater and a fitness studio. There will also be parking for 2,000 cars. HOCHTIEF Polska is general contractor in the EUR 100 million development.
Residential complex Warsaw
The luxurious residential complex Casa Verde being built by HOCHTIEF Polska in the Mokotów district is one of the most modern apartment complexes in the Polish capital. Casa Verde includes 102 upscale apartments. The L -shaped building with a floor area of approximately 15,000 square meters has six floors on one side and nine on the other. The EUR 8.7 million project will be completed in August 2008. TV studio and offices, Warsaw
In spring 2008, TV broadcaster Canal+ moved into a new five-story office building including TV studio, customer ser- vice, conference rooms and a three-story underground parking garage. HOCHTIEF Polska developed and built the EUR 12.7 million building, which has a gross floor area of 8,120 square meters (above ground) and 6,780 square me- ters (underground).
Office building, Warsaw
HOCHTIEF Polska commenced building work on Agdar Plaza at the beginning of 2007. The ten-story office build- ing in Warsaw’s booming Mokotów district will feature un- derground parking, a large fitness center, a restaurant and a conference center accommodating up to 350 individuals. Due for completion in August 2008, the contract is worth some EUR 26 million.
Platinum Towers
HOCHTIEF is constructing the EUR 47 million plus 22-story apartment building Platinum Towers in the center of the Polish capital Warsaw in a project due for completion in August 2009.
Logistics center, Swarzędz
In December 2007, HOCHTIEF Polska completed building work on the expansion of a logistics center in the city of Swarzędz, near Poznań. The project involved erecting pre- fabricated warehouse buildings and staff rooms including the necessary installations. The contract was worth over EUR 30 million.
*You will find further infor- mation on page 30.
HOCHTIEF CZ a.s.
HOCHTIEF’s Czech subsidiary is one of the six largest building contractors in the Czech Republic. Part of the HOCHTIEF Group since 1999, HOCHTIEF CZ changed its name from HOCHTIEF VSB at the end of 2006. In the re- porting year, ownership of HOCHTIEF CZ was transferred to HOCHTIEF Construction. Fiscal 2007 saw the company further boost sales and earnings, continue the restructuring and strategic reorientation begun in the previous year as well as secure a number of major new contracts.
Project highlights
Expressway ring road, Prague
A further section of the new Prague ring road was subcon- tracted with HOCHTIEF CZ in the year under review. The contract worth a total of EUR 57.6 million poses various chal- lenges for the company, among other things with road, rail and tram traffic continuing throughout the building phase. The work is set for completion by the beginning of 2011. Radio station, Prague
HOCHTIEF CZ is the lead contractor in the modernization and reconstruction of the historic Czech Radio building in Prague. The aim is to retain the appearance of the old building while bringing amenities up to standard for a mod- ern radio station. The contract comes to EUR 19 million. Business and administrative center, Prague HOCHTIEF CZ is building the Trianon Center for HOCHTIEF Development Czech Republic. The EUR 27.8 million con- tract will be completed at the beginning of 2009. Office complex, Prague
HOCHTIEF CZ has secured the contract for a further pres- tige office complex, Prosek Point in the Czech capital, Prague. The contract for the three nine-story buildings is worth some EUR 31.7 million.
HOCHTIEF Russia
The Russian construction market continues to grow at a rapid pace. For this reason, HOCHTIEF has converted the former business office in Moscow into a business unit in order to reflect our growing presence in Russia. HOCHTIEF Russia is focused on infrastructure projects, such as air- ports and sea ports*, office properties, industrial and logis- tics buildings as well as retail centers, sports facilities and upscale residential construction. In addition, HOCHTIEF Russia operates as a construction manager in industrial construction. In the reporting year, the HOCHTIEF business unit significantly increased its workforce and acquired a large number of new orders, above all in the infrastructure sector. With a new independent unit, the company also extended its operations beyond the previous main areas of Moscow and St. Petersburg into the Russian regions.
Project highlights
Sheremetyevo airport and train station, Moscow In December 2007, HOCHTIEF Russia was awarded the contract to extend Terminal 2 of Sheremetyevo Airport. The HOCHTIEF business unit was also commissioned to handle general planning and turnkey construction of the airport train station. The approximately EUR 190.5 million project includes a four-track platform, parking deck, five- story office building as well as a gallery linking the station to Moscow’s airport. The new station connecting Shere- metyevo Airport with the center of Moscow will be com- pleted in 2008. HOCHTIEF Russia had previously built the airport’s 40,000 square meter Terminal C.
Various hydro construction projects
HOCHTIEF Russia worked on several major projects** in fiscal 2007. Russian business is developing extremely pos- itively for HOCHTIEF Construction in this area. HOCHTIEF Russia is also operating as a construction manager on several projects, including the construction of two cement plants near Moscow and Yekaterinburg.
*You will find further infor- mation on page 30.
**You will find further infor- mation on page 30.
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Durst-Bau GmbH
Established in 1948 and acquired by HOCHTIEF Aktien- gesellschaft in 1987, the Austrian building contractor, Durst- Bau, has been a subsidiary of HOCHTIEF Construction AG since 2002. The company is headquartered in Vienna and has a branch in Innsbruck. Its activities are focused on res- idential construction, refurbishing and upgrading as well as the fast-growing real estate development business. In ad- dition, the company has established itself as a key player in civil engineering, sewerage and alpine construction proj- ects in the Tyrol region.
Project highlights
Vienna Airport
In a joint venture with HOCHTIEF Construction, the com- pany is expanding the airport in the Austrian capital. The contract has a value of around EUR 61 million.
Hofmoklgasse/Rauchfangkehrergasse, Vienna In February 2007, our Austrian subsidiary began building a residential complex with 100 apartments and 100 parking spaces—a contract worth EUR 12.1 million.
Landgutgasse, Vienna
As part of a joint venture, Durst-Bau began building a turn- key residential complex with 240 social housing apartments and a doctor’s practice in early 2006. The 20,000 square meter, EUR 21 million project will be completed at the be- ginning of 2008.
HOCHTIEF Construction Austria GmbH & Co. KG
In addition to subsidiary Durst-Bau, HOCHTIEF Construc- tion has also had a business unit in Austria since 2005. As a result of the successful acquisition of several major projects by the Austria business unit, HOCHTIEF Con- struction Austria was established as an independent na- tional company in 2007.
The new company is a wholly-owned subsidiary of HOCHTIEF Construction focused on civil engineering, infrastructure and structural engineering projects. HOCHTIEF Construc- tion Austria therefore complements the building construc- tion activities of Durst-Bau. Corporate integration creates a foundation for increased involvement in the Southeastern European region as a whole.