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The fallout of the lingering economic gloom both in Spain and abroad is that banks are continuing to tighten their purse strings when it comes to lending and are demanding more for their money. The crisis has therefore restricted project start-ups and led to a slump in business, reflected by the widespread drop in viable opportunities.

Despite this widespread market instability, Abengoa’s Engineering and Construction Division  has once again responded superbly on course with company strategy, closing the year  with a total of €3,526 M in revenues, marking a 53.2 % increase in sales despite the  precarious economic and financial climate, largely on the back of the company’s efforts to  diversify business and territories and its promotional drive."

CSP tower plant at SanlĂșcar la Mayor (Seville)

Abengoa offers its engineering and constructions customers a wide range of solutions relating to energy, transportation, telecommunications, industry, services and the environment. It provides groundbreaking solutions in clean energies and champions sustainable development by applying its considerable technological know-how to the following areas:

  • Design and construction of electrical power plants based on renewable energies, capable of generating thousands of MWh (megawatts hour) of clean energy.
  • Design and construction of biofuel plants to help combat climate change.
  • Design and construction of cleaner and more efficient power plants.
  • Design and construction of energy efficient power lines to help curb energy consumption..

Comahue-Cuyo interconnection Section of power line heading south

With engineering and construction being the cornerstone of Abengoa business, the company’s mission in this field could essentially be defined as the design, engineering and construction of:

  • Transmission systems and power generation plants.
  • Water treatment and desalination plants, hydro power facilities and waste treatment.
  • Industrial infrastructures and installations associated with conventional and high-speed railway.
  • Telecommunication systems.

Abengoa aims to become an international market leader in the engineering and construction of power and environmental infrastructures and industrial installations on the path towards sustainable development.

Engineering and Construction embraces activities in which the division has over seventy years of experience in the market. It specializes in the performance of complex turnkey projects (EPC: Engineering, Procurement and Construction): CSP plants, hybrid solar-gas plants, conventional power plants and biofuel facilities; hydro infrastructures, including large-scale desalination plants; power transmission lines and critical infrastructure control systems, among others.

The division has cemented its presence in no less than 32 countries on all continents, adapting its structure to meet local social, cultural and economic conditions but without ever losing sight of its corporate social responsibility with the surrounding area. It is therefore able to understand and adapt to the different needs of each community in which it carries out its different lines of business.

Abengoa’s growth model is rooted in its market credibility, its technical, financial and managerial prowess, its ability to seek out and secure strategic alliances, its social responsibility and its technological leadership.

The company expects to report high growth from its projected investments for the coming years. Its growth is based on leadership and knowledge of the contracts it secures and the associated risks, and also on its financial structure and strategic alliances.

Acceptance testing at the ABB factory (Asea Brown Boveri) in Ludvika (Sweden) on one of the seven 500 kV (HVDC) - 600 MW - 600 Tm converter transformers

The engineering and construction division bases its growth on a three-stage model that has proved hugely successful to date: the know-how acquired from third-party projects enables it to reduce the risks associated with new internal projects performed by the company itself (concessions), while the references obtained from these internal projects allow Abengoa to secure new third-party projects. This virtuous circle is one of the keys to Abengoa’s success.

In line with this vision, the engineering and construction division aims to cement this position of international leadership and extend it to the other sectors flagged as strategic priorities. The division’s strategy for 2012 therefore involves:

  • Maintaining its position of international leadership in the engineering and construction of power transmission lines and electrical infrastructures.
  • Cementing its position as an international benchmark in EPC projects for renewable power plants, particularly in the fields of solar energy and biofuels.
  • Honing its skills in the environment sector, focusing on both water and waste.
  • Continuing to grow in the industrial installations sector, where it already boasts a solid international presence.

The engineering and construction division also has a heavy international slant, with Abengoa targeting markets from across the globe:

  • Latin America, where the sharp growth forecast for the coming years offers clear opportunities, especially given the company’s excellent positioning within the region, with Abengoa being the region’s fourth largest international contractor according to the ENR ranking.
  • North America. Huge opportunity in the USA and Canada. This is in fact a key region where the company is currently expanding its presence: at present, more than ten Abengoa companies already have a permanent base in the region.
  • Eastern Europe. Abengoa is firmly committed to this region, which promises much for the future.
  • Middle East and Asia. Although Abengoa has less experience in these regions than in others, it expects to report heavy growth thanks to its know-how and prior experience in other territories.
  • Other regions such as Australia, South Africa, Turkey, etc.

Transmission towers on the ATE IV line. Towers for the ATE IV Curitiba-Bateias power line