Annual Report of ACS Group - Grupo ACS

International Markets
The ACS Group carries out its Construction activities in various geographical
markets, being the United States and Poland the countries where the
ACS Group mainly reinforced its presence in 2009.
The United States
According to a study by the University of Massachusetts-Amherst, over US
$290,000 million are invested each year in the maintenance and development
of infrastructures. This high figure for investment, mainly in maintenance,
comes from the enormous base of non-residential public infrastructures which
now exists in the United States, the value of which is over US $8,000,000
million, an extraordinary asset reserve which underpins the future growth of
the world’s leading economy.
Since 1980, investment in civil works in the United States has grown at a rate
below that of the evolution of its GDP, meaning that systematic deterioration of
its infrastructures has occurred, especially in hydraulic works and railways.
The Obama administration has identified this deficit and, to boost investment,
is developing an infrastructure programme which is forecast to generate
2,500,000 jobs in the first two years of his legislature.
It is estimated that the additional need for funds to bring American
infrastructures up to date exceeds US $100,000 million per year and that the
execution of these projects would represent a significant contribution to
growth in employment and to American GDP in the short term.
According to the American Recovery and Reinvest Act (ARRA), over US
$787,000 million will be invested in health and infrastructure improvements,
tax reductions and economic stimulus. Up to August 2009, only 19% of this
stimulus had been laid out.
Poland
The second market in which ACS is growing its presence at an international
level is Poland. Investment in civil works in this country grew by 22% in
2009 and actual output was over €17,500 million. Euroconstruct estimates
that the evolution of activity in Poland will continue to grow at the same rate
in 2010 and that total investment in infrastructures will total €21,500
million (equivalent to 40% of the activity forecast from Spain in civil works).
There are three reasons supporting these forecasts for growth in activity.
Firstly, the resistance of the Polish economy to the global crisis, with a GDP
which grew by 1.1% in 2009 and forecast growth for 2010 of 1.8%
according to the IMF.
Secondly, the existing deficit in infrastructures in comparison with
neighbouring countries, especially in roads and highways, which has
resulted in a powerful commitment from the Polish Government, as over
1,200 kilometres of roads have been developed in the country in the
last 5 years.
And thirdly, a significant development and investment plan anticipating
investment of over €82,000 million before 2013, with one short-term
objective (the UEFA Euro 2012 football tournament) and one mediumterm
objective (the construction of a high-speed railway line).
Poland for ACS is a country in which to carry out projects under concessions
and civil works projects to assist in the execution of its important
infrastructure plan. The country’s main objective at present is to achieve
convergence with the European Union during this decade.
An investment of US $80,000 million is planned specifically in infrastructures.
Outstanding among these are the development of high-speed railway lines,
innovative solutions to improve urban public transport (such as those carried
out by Dragados for the New York Subway) and an incomparable plan for
hydraulic works against natural disasters in the south of the country.
Furthermore, an increase in investment with public-private participation will
take place through the development of transport concessions similar to those
already carried out by states such as Florida, Texas or California.
Over the next few years, the United States will continue to be a reference
and growth market for the ACS Group in the development of civil works
infrastructure. This will be fundamental to maintaining an appropriate level
of internationalisation and diversification to increase profitability and reduce
risk in the Construction activity.
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Activity Report
Construction