A group led by Hochtief AG secured a 1.3 billion-euro ($1.5 billion) contract to expand Riyadh airport as Germany’s largest builder increases its focus on infrastructure projects.
Hochtief has a 55 percent stake in the joint venture, which also includes Shapoorji Pallonji Mideast and Nahdat Al Emaar, the Essen, Germany-based company said in an e-mailed statement. The work to upgrade two existing terminals has already started and should be completed by May 2019.
Since majority owner Actividades de Construccion & Servicios SA appointed him CEO in 2012, Hochtief Chief Executive Officer Marcelino Fernandez Verdes has unravelled a decade-long push into services to concentrate on infrastructure and mining contracts. He has sold airport-operating and residential development businesses while using proceeds to extend ACS’s control over Hochtief with a series of share buybacks.
Hochtief will serve as the technical and commercial lead for the Riyadh airport expansion project.