Spanish Infrastructure Firm Acciona Boosts Overseas Profile

Spanish Infrastructure Firm Acciona Boosts Overseas Profile

Spanish Infrastructure Firm Acciona Boosts Overseas Profile

Infrastructure and renewable energy firm Acciona is one of Spain’s most successful ambassadors overseas, operating in over 30 countries on five continents. From building hospitals in Mexico to bridges in Canada and wastewater treatment plants in Portugal, Acciona is a global industry pioneer.

In 2012, revenues from outside Spain accounted for 42 per cent of the company total.

Over the last year, Acciona has continued to boost its international portfolio. In October, it won a contract worth about 800 million euros to build an underground train line in the state of Ceara in Brazil.

The project is part of the country’s aggressive infrastructure investment drive as it prepares to host the 2014 World Cup and the 2016 Olympic Games.

Brazil offers Acciona strategic opportunities not just in infrastructure, but also in renewables and water services. Diversifying its business has been the cornerstone of the company’s internationalisation.

ACCIONA: A TRANSFORMATION STORY

Less than a decade ago, Acciona was one of Spain’s leading building firms riding the crest of the property boom wave at home.

But in 2004-2005, it underwent a transformation, realising that the incipient wind power business was a faster growing industry than construction.

The defining moment for Acciona’s reinvention was its acquisition of wind and hydraulic assets from Spanish utility Endesa in 2009. The 3.6 billion euro deal catapulted Spain to the top of the M&A league table in the European renewables industry, and Acciona became a household name.

The construction and operation of water, wastewater treatment and desalination plants soon became another string to Acciona’s bow as it boosted its expansion plans with major projects and investments in the water services sector.

SPREADING RISKS TO BEAT THE CRISIS

Acciona’s strategy for spreading its business and geographical risks, combined with its ability to identify and explore new growth industries, has helped the firm weather the crisis and remain one of Spain’s foremost business corporations. It has focused on enhancing its overseas profile in high growth areas like Latin America and Asia-Pacific, as well as in more mature markets like the US.

The Middle East is also on the company’s radar. It is one of the world’s biggest markets for the desalination and water treatment sector due to the region’s acute shortage of fresh water. Last year, Acciona won its first contract in the United Arab Emirates to design, build and operate a desalination plant.

With an office in Dubai since 2007, the firm is in pole position to take advantage of renewed activity in infrastructure and water tenders in the Persian Gulf’s biggest economies as they emerge from the shadow of the global financial crisis.

For more information on diversifying your business or overseas expansion, contact corporate law firm Argali Abogados.

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