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Vienna, 29 September 2008 The Management Board of STRABAG SE, the largest construction company in Central and Eastern Europe, decided to put on hold the plans to expand the cement activities outside the core markets for the time being. The Board justifies this step with the expected and partly already apparent price decrease for cement in Russia. This traces back to the fact that import tariffs on cement were abolished and that the capacities in cement production have been expanded.
“The decision does not impact our aim to double the output volume in Russia each year for the next years. Our strategy in Russia and the outlook for the financial year 2008 are still valid”, Hans Peter Haselsteiner, CEO of STRABAG SE, stresses.
Furthermore, the construction of the first own cement plant in Hungary was build according to plan. The investment volume is € 230 million. The plant shall commence production with an annual capacity of 1 million tons in the third quarter 2010.
“In the worldwide financial crisis it is our most important task to stay financially flexible and independent. With an equity ratio of 35 % this is the case. In the current financial markets environment we have to select our investments carefully”, comments Haselsteiner the Board’s decision.
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STRABAG SE is one of Europe’s leading construction groups. With about 66,000 employees, STRABAG expects to generate a construction output volume of € 13.4 billion in the 2008 financial year. From its core markets of Austria and Germany, STRABAG is present via its numerous subsidiaries in all countries of Eastern and South-East Europe, in selected markets in Western Europe and on the Arabian Peninsula. STRABAG’s activities span the entire construction industry (Building Construction and Civil Engineering, Transportation Infrastructures, Tunnelling) and cover the entire value-added chain in the field of construction. More information is available at www.strabag.com
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