Hidroconstructia’s bid to enter new markets comes after in 2011 the company held the top position in the ranking of the biggest Romanian-held building companies by revenue and in 2012 slid to the fifth position of the same ranking as its revenue dropped by almost 40%, to EUR140 million, according to Finance Ministry data.
The revenue decline was mainly triggered by the insolvency of Hidroelectrica, one of the company’s most important clients.
As a matter of fact, 2012 was the weakest of the past 8 years for Hidroconstructia as revenue went down below the 2005 level, while its headcount fell by almost 2,700 employees. In 2000, the company was among Romania’s 50 largest companies by revenue, having over 12,000 employees at that time, according to ZF information.
Hidroconstructia is not the first Romanian builder that goes to the Kurdish region of Iraq for projects as domestically construction investments have dwindled in recent years.
Two years ago, Hidroconstructia also opened a subsidiary in Germany, in Kircheim, after having set up a subsidiary in Oberboihingen of the same state.
The representatives of Hidroconstructia, a company controlled by the management and employees, did not answer ZF’s request for information on the bids filed for Iraq projects by edition close.
The company’s attempt to win contracts abroad comes as it recently got a syndicated loan of EUR60 million from a consortium made up of BRD-Groupe Societe Generale and Allianz-Tiriac Asigurari to fund its working capital.
(English version by Catalina Apostoiu)