Hochtief

Infobox_Company
company_name = Hochtief AG
company_
company_type = Aktiengesellschaft (Xetra: [http://deutsche-boerse.com/dbag/dispatch/en/isg/gdb_navigation/home/Content_Files/20_overview_pages/cp_sp_overview_xetra.htm?module=InOverview_Equi&wp=DE0006070006&foldertype=_Equi&wplist=DE0006070006&active=overview&wpbpl= HOT] )
company_slogan =
foundation = 1874 in Frankfurt, Germany
location = flagicon|Germany Essen, Germany
key_people = flagicon|Germany Dr. Herbert Lütkestratkötter, CEO & Chairman
num_employees = 46847 (2006)
industry = Construction
products = Construction services, airport and project management
work done = profit €16,72 billion (2006)| homepage = [http://www.hochtief.com www.hochtief.com]

HOCHTIEF Aktiengesellschaft (FWB|HOT) is Germany's largest construction company. [http://www.hochtief.com/hochtief_en/hochtief?id=1501 Hochtief investor relations website] , accessed 16 February 2006] 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. [ [http://www.hochtief.com/img/content/presse/pressemit/ht_portrait_0905.pdf Corporate Portrait] , Hochtief website, accessed 16 February 2006] As of 2006 it employs more than 46,000 employees across five corporate divisions. One of these, HOCHTIEF AirPort, is a major airport operator. The others are involved with construction project planning, finance, construction and operation. Work done in 2006 was €16,72 billion, with more than 80% coming from operations outside Germany. [ [http://www.hochtief.com/hochtief_en/hochtief?id=174 HOCHTIEF annual report 2006] , HOCHTIEF annual report website, access 26 September 2007] ]

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), [http://www.hochtief.com/hochtief_en/115.jhtml The rescue of Abu Simbel, 1963-1968] , Hochtief website, accessed 16 February 2006] and infrastructure projects like the new Athens International Airport [http://www.hochtief.com/hochtief_en/542.jhtml System leadership and the public-private partnership from 1990 onwards, Page 2/5] , Hochtief history website, accessed 16 February 2006] and Germany's first nuclear power plant. [http://www.hochtief.com/hochtief_en/103.jhtml From the master-builder to the construction corporation (1966-1989), Page 2/3] , Hochtief history website, accessed 16 February 2006] It is also noted for its involvement with the Bauhaus movement, [ [http://www.hochtief.com/hochtief_en/73.jhtml Sponsoring: Close links with the Bauhaus] , Hochtief website, accessed 16 February 2006] particularly for its work at Zollverein colliery [http://www.hochtief.com/hochtief_en/111.jhtml Zollverein coal mine in Essen, 1929-1931] , Hochtief history website, accessed 16 February 2006; [http://www.worldheritagesite.org/sites/zollverein.html further information] on http://www.worldheritagesite.org/ accessed 16 February 2006] and later the reconstruction of the famous Kandinsky-Klee house in Dessau; [http://www.hochtief.com/hochtief_en/132.jhtml The Kadinsky-Klee House] , Hochtief website, accessed 16 February 2005; [http://www.hochtief.com/hochtief_en/135.jhtml Restoration] , Hochtief website, accessed 16 February 2006; [http://www.worldheritagesite.org/sites/bauhausweimardessau.html Bauhaus and its sites] , http://www.worldheritagesite.org/, accessed 16 February 2006] 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. [http://www.hochtief.com/hochtief_en/98.jhtml Politicization of the construction industry (1933-1945), Page 4/4] , Hochtief history website, accessed 16 February 2006] It built the Führerbunker in Berlin, scene of Adolf Hitler's suicide, as well as Hitler's Berghof retreat and Wolf's Lair headquarters. [http://www.hochtief.com/hochtief_en/97.jhtml Politicization of the construction industry (1933-1945), Page 3/4] , Hochtief history website, accessed 16 February 2006] More recent constructions have included Bosporus Bridge (Turkey), [http://www.hochtief.com/hochtief_en/117.jhtml Bosphorus Bridge in Turkey, 1970-1974] , Hochtief history website, accessed 16 February 2006] King Abdulaziz International Airport (Saudi Arabia), [http://www.hochtief.com/hochtief_en/104.jhtml From the master-builder to the construction corporation (1966-1989), Page 3/3] , Hochtief history website, accessed 16 February 2006] and the Messeturm [http://www.hochtief.com/hochtief_en/119.jhtml Exhibition center tower in Frankfurt am Main, 1988-1991] , Hochtief history website, accessed 16 February 2005; Structurae|id=s0000123|title=Messe Tower] and Commerzbank Tower [http://www.hochtief.com/hochtief_en/126.jhtml Commerzbank in Frankfurt am Main, 1994-1996] , Hochtief website, accessed 16 February 2006; Structurae|id=s0000122|title=Commerzbank Tower] in Frankfurt.

tructure 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. [ [http://www.hochtief.com/hochtief_en/148.jhtml Key figures on HOCHTIEF shares] , Hochtief investor relations website, access 16 February 2006] ] The largest shareholders are the spanish Grupo ACS with 30% and Rasperia Trading Ltd. with 10%, a company owned by the Russian tycoon Oleg Deripaska. The majority of shares is free float. [ [http://www.hochtief.com/hochtief_en/hochtief?id=737 Shareholder structure] , Hochtief investor relations website, accessed 26 September 2007]

The five divisions of Hochtief are:
*HOCHTIEF Development
*HOCHTIEF Construction Services Americas
*HOCHTIEF Construction Services Asia Pacific
*HOCHTIEF Construction Services Europe
*HOCHTIEF AirPort

They comprise the operational units. HOCHTIEF Development and HOCHTIEF Airport provide services globally, the other three are regional. Their names may be slightly misleading: for instance, the Asia Pacific division also covers the activities of Leighton Holdings in Australia. Leighton does not only provide consturction and construction services but is also the worldst largest conrtract miner. The Americas division co-ordinates the United States subsidiary Turner Corporation (merged in 1999). The division also runs the Brazilian and Argentinian subsidiaries, HOCHTIEF do Brasil S.A. and HOCHTIEF Argentina S. A.Group structure details at [http://www.hochtief.com/hochtief_en/66.jhtml Corporate strategy] , Hochtief website, accessed 16 February 2006; Details of the merger with Turner at [http://www.turnerconstruction.com/corporate/content.asp?d=1204 The Turner Corporation Announces Merger With HOCHTIEF AG] , Turner Corporation press release, 16 August 1999, accessed 16 February 2006]

HOCHTIEF AirPort is an airport management business that has consolidated Hochtief's interests in the privatisation and operation of airports since 1997. It holds stakes in Athens International Airport, Düsseldorf International Airport, Hamburg Airport, Sydney Airport and a new concession agreement covering Rinas Mother Teresa Airport (Tirana). [ [http://www.hochtief.com/hochtief_en/hochtief?id=476 Hochtief AirPort website] , accessed 16 February 2006]

The Development division consists of five different subisiaries: HOCHTIEF PPP Solutions develops, finances and operates public infrastructure projects, for example schools and toll roads. HOCHTIEF Projektentwicklung develops real estate projects. Deutsche Bau- und Siedlungs-Gesellschaft (Debausie) concentrates on asset management, HOCHTIEF Property Management, as the name implies, on property management. HOCHTIEF Facility Management provides technical, commercial and infrastructure service for facilities and properties [ [http://www.hochtief.com/hochtief_en/148.jhtml HOCHTIEF Development] , HOCHTIEF structure, access 26 September 2007] ] [ [http://www.hochtief.com/hochtief_en/200.jhtml?pid=7764 HOCHTIEF Property Management] , HOCHTIEF press release, access 26 September 2007] ]

History

Early years

. [ [http://www.hochtief.com/hochtief_en/88.jhtml Establishment of the "Aktiengesellschaft", (1896-1921), Page 5/5] , Hochtief history website, accessed 16 February 2006]

After the Helfmann brothers

became major share-holders in HOCHTIEF, and Hans Weidmann stepped down in 1927. [ [http://www.hochtief.com/hochtief_en/92.jhtml Under the influence of the Stinnes Group, (1921-1933), Page 4/6] , Hochtief history website, accessed 16 February 2006]

A series of major construction projects ensued, including the Echelsbach Bridge (then Germany's largest single span reinforced concrete bridge [http://www.hochtief.com/hochtief_en/111.jhtml The Echelsbach Bridge] , Hochtief history website, accessed 16 February 2006; Structurae|id=s0000516|title=Echelsbach Bridge, accessed 16 February 2006] ), the Schluchsee dam [http://www.hochtief.com/hochtief_en/93.jhtml Under the influence of the Stinnes Group, (1921-1933), Page 5/6] , Hochtief history website, accessed 16 February 2006] 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. The iconic Shaft 12 at the colliery was named after Albert Vögler, CEO of the Vereinigte Stahlwerke AG, which was owner of the colliery since 1926. [The claim that Shaft 12 was named after Vögler appears unsourced on the German Wikipedia article, as live on 16 February 2006.] There was also canal work: the Moselle Canal in France [ [http://www.hochtief.com/hochtief_en/94.jhtml Under the influence of the Stinnes Group, (1921-1933), Page 6/6] , Hochtief history website, accessed 16 February 2006] and the Albert Canal in Belgium. [http://www.hochtief.com/hochtief_en/112.jhtml Albert Canal in Belgium, 1930-1934] , Hochtief history website, accessed 16 February 2006]

From Nazi Germany to Reconstruction

, where Hitler ultimately committed suicide.

After 1939 the firm began to use forced labour extensively on its projects, as did many other German industrial concerns at the time. The consortium-led nature of construction projects obscures the firm's exact involvement, as does the destruction of many records.

During the closing stages of the war, most of the company's branch offices were destroyed, and employees in the East fled the Soviet advance. The head office in Essen suffered a direct hit from a bomb in March 1945, and regional offices and construction centres in Danzig, Halle, Katowice, Königsberg, Kraków, Leipzig and Magdeburg were lost as the territory they were in was allotted to Poland or the Soviet Zone of occupation. As Eugen Vögler was on the run from the new authorities, he was replaced as CEO by Artur Konrad. [List of centres lost, and appointment of Konrad, taken from [http://www.hochtief.com/hochtief_en/99.jhtml Reconstruction (1945-1966), Page 1/3] , Hochtief history website, accessed 16 February 2006; Vögler's suicide, with date of death, appears unsourced on his German Wikipedia biography, , as live on 16 February 2006.]

During the initial post-war period, a shortage of machinery, tools, and materials, as well as a dearth of new orders, hampered operations. [ [http://www.hochtief.com/hochtief_en/100.jhtml Reconstruction (1945-1966), Page 2/3] , Hochtief history website, accessed 16 February 2006] 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. [http://www.hochtief.com/hochtief_en/101.jhtml Reconstruction (1945-1966), Page 3/3] , Hochtief history website, accessed 16 February 2006]

Revival and international expansion

budgets.

A high profile success for the company came in the 1960s, again in Egypt. The rising waters of the River Nile (a result of the construction of the Aswan High Dam) threatened the ancient Abu Simbel temple complex. The entire site was dismantled and reassembled 200 m further from the river, and 65 m higher, at a cost of around US$36 million. [Estimated cost is given, unreferenced, in the Abu Simbel article.]

[http://www.uic.com.au/] , accessed 16 February 2006]

There was also considerable transport infrastructure activity, including on the Hernandarias Subfluvial Tunnel, Argentina in the 1960s [http://www.hochtief.com/hochtief_en/114.jhtml Paraná Tunnel in Argentina, 1961-1962] , Hochtief history website, accessed 6 February 2006] and the New Elbe Tunnel in Hamburg in the 1970s [http://www.hochtief.com/hochtief_en/116.jhtml Elbe tunnel in Hamburg, 1969-1975 and 1997-2003] , Hochtief history website, accessed 16 February 2006]

By the mid-1970s, foreign work (such as the Bosporus Bridge in Turkey, completed 1974) was accelerating while domestic orders were receding, according to the company's annual report of 1975. By 1980, foreign work accounted for more than 50% of Hochtief's business. A major factor was the contract for King Abdulaziz International Airport (completed 1981), the largest airport in Saudi Arabia, and the most valuable contract Hochtief had ever been involved with. The architecture of the airport is highly rated aesthetically, and it has several unusual features, including Terminal Three, used only during the Hajj, reserved for pilgrims travelling to Makkah. It has a tent-shaped fibreglass roof, contains a mosque, can accommodate 80,000 travellers at once, and is believed to be the largest terminal in the world. [Uncited sources, King Abdulaziz International Airport article, as live on 16 February 2006]

in 2003.

The 1990s brought an opportunity expand operations in the airport management sector, as many countries privatised their airports. When Warsaw Frederic Chopin Airport needed upgrading in the early 1990s, LOT Polish Airlines was unable to afford the cost, so a complex financing arrangement was established whereby a bank would pay Hochtief two thirds of the costs to upgrade the airport, while the airline assigned to the bank the revenues from aircraft using Polish airspace for a period. [http://www.hochtief.com/hochtief_en/120.jhtml Warsaw International Airport, 1990-1992] , Hochtief history website, accessed 16 February 2006] 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. [ [http://www.hochtief.com/hochtief_en/542.jhtml System leadership and the public-private partnership from 1990 onwards, Page 2/5] , Hochtief history website, accessed 6 February 2006]

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.

Timeline of notable construction projects

*1927-1932: Zollverein colliery (Shaft XII), Essen
*1928-1929: Echelsbach Bridge, over the Ammer River, near Echelsbach, Bavaria
*1929-1931: Schluchsee dam, Schluchsee, Black Forest
*1930-1934: Albert Canal, Belgium
*1938-1945: Projects included the Westwall and Atlantic Wall defences, and Hitler's Berghof, Wolf's Lair and Führerbunker
*1946-1949: Bonn University Hospital, Bonn
*1952-1956: Sariyar hydroelectric plant, Ankara, Turkey
*1958-1961: Kahl Nuclear Power Plant, Dettingen am Main
*1960-1969: Hernandarias Subfluvial Tunnel, Argentina
*1961-1963: Hilton Hotel, Athens, Greece
*1963-1968: Abu Simbel temples transplanted, Egypt
*1969-1975: New Elbe Tunnel, Hamburg
*1970-1974: Bosporus Bridge, Turkey
*1974-1981: King Abdulaziz International Airport, Jeddah, Saudi Arabia
*1984-1985: Messe-Torhaus, Frankfurt am Main
*1988-1991: Messeturm, Frankfurt am Main
*1990-1992: Terminal One, Warsaw Airport, Poland
*1994-1996: Commerzbank Tower, Frankfurt am Main
*1996-2000: Athens International Airport, Greece
*1998-2000: Kandinsky-Klee house restoration, Dessau
*2004: Katima Mulilo Bridge, Zambia and Namibia [ [http://www.klausdierks.com/Namibian_Roads/Zambezi_bridge.htm Website of] Dr. Klaus Dierks [http://www.klausdierks.com/FrontpageMain.html] , first Deputy Minister for Works, Transport and Communication in independent Namibia, involved in the planning and negotiations for the bridge, accessed 15 February 2005.]
*2007: Chacao Channel bridge construction due to commence [This date was given, unreferenced, in the Chacao Channel bridge article.]

Notes and references

External links

* [http://www.hochtief.com/hochtief_en/hochtief?id=1 Homepage] of Hochtief AG
* [http://www.hochtief-airport.com/airport_en/0.jhtml Homepage] of HOCHTIEF AirPort (airport management division)
* [http://www.hochtief.com.ar/ Homepage] of HOCHTIEF Argentina S.A. (Argentinian subsidiary)
* [http://www.leighton.com.au/ Homepage] of Leighton Holdings (Australian subsidiary)
* [http://www.hochtief.com.br/ Homepage] of HOCHTIEF do Brasil S.A.(Brazilian subsidiary)
* [http://www.turnerconstruction.com/ Homepage] of Turner Corporation (United States subsidiary)
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