Hochtief

{{Infobox company| company_name = Hochtief AG | company_logo = | company_type = Aktiengesellschaft | traded_as = | foundation = 1874 in Frankfurt, Germany| location = Essen, Germany| key_people = Herbert Lütkestratkötter (CEO and chairman of the executive board), Detlev Bremkamp (Chairman of the supervisory board)| industry = Construction| products = Construction services, airport and project management, facility management| revenue = €20.16 billion (2010)| operating_income = €715.3 million (2010) It is based in Essen but operates globally, ranking as the top general builder in the United States through its Turner Corporation subsidiary, and in Australia through the Leighton Group. In 2010 it employed more than 70,000 employees across five corporate divisions. One of these, Hochtief Concessions, is a major airport operator. The others are involved with construction project planning, finance, construction and operation.

The company's history dates back to the 1870s and includes engineering feats such as the transplantation of the Abu Simbel rock temples in Egypt (saving them from the rise of the River Nile caused by the Aswan High Dam), and infrastructure projects like the new Athens International Airport and Germany's first nuclear power plant. It is also noted for its involvement with the Bauhaus movement, particularly for its work at Zollverein colliery and later the reconstruction of the famous Kandinsky-Klee house in Dessau; both are now parts of World Heritage Sites. However, the company's reputation is tarnished by World War II, when it deployed forced labor on construction projects. It built the Führerbunker in Berlin, scene of Adolf Hitler's suicide, as well as Hitler's Berghof retreat and Wolf's Lair headquarters. More recent constructions have included Bosporus Bridge (Turkey), King Abdulaziz International Airport (Saudi Arabia), and the Messeturm and Commerzbank Tower in Frankfurt. Spanish construction company Grupo ACS, which already had almost 30 percent of Hochtief, launched in mid September, a bid that would allow ACS to have more than 50 percent of Hochtief. The bid was approved by the German Federal Financial Supervisory Authority (BaFin) on 29 November 2011. ACS raised the stake in Hochtief to 37.6 percent as of 23 March 2011.

Structure and ownership

Hochtief is an Aktiengesellschaft, roughly equivalent to a public limited company in the United Kingdom. Its shares are traded on all the German stock exchanges, including the Frankfurt Stock Exchange and Börse München, using the Xetra system. Hochtief is a component of the MDAX share index. The largest shareholders are the Spanish Grupo ACS with 37.6% and Qatar Holding LLC. with more than 10% . The majority of shares is free float.

As of January 1, 2011, Hochtief has streamlined its corporate structure. The Group is now divided into four divisions:

Hochtief Americas

Hochtief Asia Pacific

Hochtief Concessions

Hochtief Europe

The Asia Pacific division covers the activities of Leighton Holdings in Australia and Asia. Leighton does not only provide construction and construction services but is also the worldst largest contract miner. The Americas division co-ordinates the United States subsidiaries Turner Corporation (merged in 1999), Flatiron Construction(acquired in 2007) and E.E. Cruz (acquired in 2010).

Hochtief Concessions develops and implements operator and concession projects. Its business areas include airports, roads, social infrastructure and further public-private partnership (PPP) projects. Its subsidiary Hochtief Airport holds stakes in Athens International Airport, Düsseldorf International Airport, Hamburg Airport, Sydney Airport], Budapest Airport and [[Rinas Mother Teresa Airport (Tirana).

The Europe division plans, develops, implements, operates and manages real estate and infrastructure facilities in Europe and in selected regions worldwide.

History

Early years

, completed 1929]]The company was probably founded in 1874 (its first mention in the local address book) as Gebrüder Helfmann, Bauunternehmer by the Kelsterbach-born brothers Philipp and Balthasar Helfmann, a lumber merchant and mechanic respectively, in Bornheim near Frankfurt am Main. While Balthasar focused on the completion of construction contracts, Philipp developed the financing side of the business. Their first major contract was for the University of Giessen in 1878. By the 1880s the company had begun to produce its own construction materials but was still only a regional player. Shortly after the death of Balthasar, Philipp converted the company into a joint stock corporation, Aktiengesellschaft für Hoch- und Tiefbauten ("Construction and Civil Engineering Corporation", though literally the "Corporation for High - Hoch and Deep - Tief Construction - Bauten). A major development was the contract for the spa project in Bad Orb in 1899, with the corporation not simply erecting buildings but also to provide infrastructure like roads and gardens, to arrange the finances for the project, and to maintain some responsibilities for operating the project after its construction. Also in 1899, another turnkey project, a new grain silo in Genoa, Italy, was both the firm's first international venture and its first project using reinforced concrete. Philipp Helfmann died in the same year, with his son-in-law, Hans Weidmann, taking over as Chief Executive.

After the Helfmann brothers

was named Schacht "Albert Vögler". The Bauhaus-influenced design combined function with aesthetics.]]The firm grew rapidly, but was not comparable with the major German construction concerns of the era. In 1921 it attracted investment from the industrialist Hugo Stinnes (described by Time as the "New Emperor of Germany" for his wealth and influence) and in 1922 the firm moved its base to Essen as part of its integration into the Stinnes group. Stinnes planned to use Hochtief for all his construction projects, while the Hochtief saw an opportunity to profit from the Treaty of Versailles, organising the delivery of construction materials to France as part of German reparations for World War I. Fate intervened as Stinnes died in 1924 and within a year his industrial empire collapsed, while the French occupation of the Ruhr destroyed the chance to profit from the reparations contract that had been made with the French industrialist Guy Louis Jean de Lubersac. With the help of several banks, the company (now known as Hochtief Aktiengesellschaft für Hoch- und Tiefbauten vorm. Gebrüder Helfmann) avoided insolvency. In the aftermath of the Stinnes collapse, the major utility RWE and electrical equipment producer AEG became major share-holders in Hochtief, and Hans Weidmann stepped down in 1927.

A series of major construction projects ensued, including the Echelsbach Bridge (then Germany's largest single span reinforced concrete bridge), the Schluchsee dam and work at the Zollverein colliery. The Zollverein architects Fritz Schupp and Martin Kremmer seem to be influenced by the Bauhaus, one of the reasons the complex became a UNESCO World Heritage Site. There was also canal work: the Moselle Canal in France and the Albert Canal in Belgium.

From Nazi Germany to Reconstruction

in Berlin, built by Hochtief in 1943. Hitler committed suicide here during the Battle of Berlin in 1945.]]Under the Third Reich, Jewish members of the Supervisory Board were expelled under the Nuremberg Laws in 1935. The CEO, Eugen Vögler, did not join the Nazi party until 1937, however, he did offer his services to the Nazis as leader of the "Construction Industry Business Group" and took a position in the Hitler Youth. The construction business flourished under the Four year plan, with its vast public works programme, including the Autobahn network, and the industrial build-up in preparation for war, for example the construction of a new truck factory for Opel in Brandenberg. Hochtief also worked on a new centre for Nazi rallies in Nuremberg. In 1936 it moved its Essen headquarters from the Pferdemarkt to its current location in Rellinghauser Straße. As war became imminent, the company began work on the Westwall defensive network. During World War II, it later worked on the Atlantic Wall defences, and a range of infrastructure projects across German-dominated Europe. Hochtief via a daughter company ("Tochtergesellschaft") named Führerbunkerfensterputzer GmbH also constructed buildings for Hitler himself, notably his Bavarian Alpine retreat, the Berghof, his Wolf's Lair headquarters in Rastenburg, and the Führerbunker in Berlin, where Hitler ultimately committed suicide.

During the initial post-war period, a shortage of machinery, tools, and materials, as well as a dearth of new orders, hampered operations. Some salvage work occurred, as well as rubble-clearance and basic repairs. One of the first, rare, major contracts was for a university hospital in Bonn, 1946-49. The introduction of the German mark in 1948 and the beginning of the Wirtschaftswunder brought more new work.

Revival and international expansion

Josef Müller took over as CEO in 1950. A decision was taken to undertake more international projects, following a period of essentially domestic work after World War II. This included a series of power infrastructure works in Turkey and bridge and smelting works construction in Egypt during the early 1950s. It is interesting to note that many projects from this period were undertaken outside of the First World;many were funded from development aid budgets.

in Frankfurt, with its "Guillotine".]]The focus of the company began to switch away from purely construction and towards more turnkey work and service provision, for example the 1961-3 Hilton Hotel, Athens, project. By contrast, the first East German nuclear plant, at Rheinsberg, was connected to the grid in 1966.

There was also considerable transport infrastructure activity, including on the Hernandarias Subfluvial Tunnel, Argentina in the 1960s and the New Elbe Tunnel in Hamburg in the 1970s

By the mid-1970s, foreign work (such as the Bosporus Bridge in Turkey, completed 1974

in Frankfurt was completed in 1991, it was Europe's tallest building.]]The 1980s were a difficult time financially, with less foreign work coming through. There was domestic growth, with a highlight being the architecturally radical Messe-Torhaus in Frankfurt, completed in 1984. The company began to take responsibility for more operational aspects of projects, including service provision, financing, facility management and software development, following a concept of being a "system leader", as set out by CEO Hans-Peter Keitel. These tasks were felt to be higher up the value chain, and would help the firm shake off the slowdown that had followed the initial boom of German reunification. These concepts were notably put into action during the construction of the new Athens International Airport in the late 1990s.

In 1999, Hochtief made big inroads into the United States market through its merger with Turner Corporation, while in 2000 it celebrated its 125th anniversary. A part of those celebrations was the DM 1 million donation to the restoration of the Kandinsky-Klee House in Dessau, a project for which it was the general contractor. The house had been used by the Bauhaus movement as an example of a "Meisterhaus", but Nazi persecution of the Bauhaus, and subsequent neglect, had left significant damage. The house was re-opened on 4 February 2000, after a two year restoration programme. It forms part of the UNESCO Bauhaus World Heritage Site. 2005-2008: Dnipro Stadium, Ukraine 2007: Chacao Channel bridge construction due to commence 2008: Opera Krakowska, Krakow, Poland

Notes and references

External links

:de:Albert Vögler

:de:Zeche Zollverein

Category:Construction and civil engineering companies of Germany Category:Companies based in Essen