OCTAGON in TOP 100 ROMANIAN CONSTRUCTORS drawn by Business Construct

Over 3.4 billion euro in turnover, profits exceeding 230 million euro and 34,000 jobs – these are the main coordinates of the biggest 100 constructors that were active on the local market in  2013. Construction industry is dominated by Romanian players, accounting for about 60% of the top 100 constructors, but the biggest profit share, almost 150 million euro is cashed by foreign groups from Italy, Austria or Germany, active on the local market, Business Construct writes. The magazine drew up a top of the first 100 constructors in Romania in 2013, according to turnover.

OCTAGON CONTRACTING & ENGINEERING ranks on the 55th position with a 20 million euro turnover in 2013 a spectacular growth against 2012 when the turnover was 8 million euro. The main projects performed by OCTAGON in 2013 were Hermes Business Campus (7-9 Dimitrie Pompeiu Blvd.) and Green Court Bucharest (2-4 Gara Herastrau Street), both located in Bucharest, as well as Shat Al Basra Electric Power Plant (Basra- Irak).

The first top 10 positions in the ranking are filled by:
⦁    Strabag S.R.L. - turnover = 233 mil. euro
⦁    Straco Grup- turnover= 140 mil. euro
⦁    Hidroconstructia- turnover = 136 mil. euro
⦁    Delta ACM 93- turnover = 123 mil. euro
⦁    Euro Construct Trading 98- turnover = 105 mil. euro
⦁    Tirrena Scavi Condotte Cossi- turnover = 93 mil. euro
⦁    Strabag A.G. – turnover = 91 mil. euro
⦁    Tehnologica Radion- turnover = 81 mil. euro
⦁    Tehnostrade- turnover = 77 mil. euro
⦁    Astaldi Spa- turnover = 72 mil.euro

In the almost 9 years of activity OCTAGON was geotechnical works contractor for 4 of the first 10 players: Straco Grup, Strabag S.R.L., Euro Construct Trading 98 and Astaldi Spa.
The top was drawn up based on the turnover reported at the end of the year and includes information about the net profit or loss and the headcount of each company. The 2012 financial results are also presented in parallel for a full perspective of the business evolution. The data provide a view of the way in which the local construction market evolved last year, considering that the industry has lost about 40% of its value since 2009, due to investment cut, both in the public and private sector.

The turnover of the biggest 100 players last year declined by almost 10% against 2012, while the cumulated net profit almost tripled, to over 230 mil. euro. This was due to the fact that the construction works volume dropped triggering a decline of the constructors’ business as well. The companies focused on optimizing their business and opted for cost cuts, Business Magazin also writes.

Cost cuts reflected best in the evolution of the employee number. The 100 constructors had around 34,000 employees in total last year, after letting go 5,000 people against 2012.
An analysis of the constructors based on the capital nationality shows that of the 100 top firms, around 40 have mainly foreign shareholders, the turnover of these companies totaling 1.4 billion euro, a 7% decline against the previous year. At the same time, foreign constructors had almost 5,800 employees last year, 800 people less than in the previous year. These data reveal that foreign managed with 17% of the employees of the top 100 constructors to generate 41% of the turnover, resulting into better productivity.