ZUE: new contracts and acquisitions

2010-08-31

The ZUE group recently submitted the most competitively-priced bids in two large tenders concerning railway track modernisation. The company also considers acquisition of a road or power company, as reported by ISB.
Two contracts worth a total of PLN 724m (€181.9m) can be concluded in September 2010 – as a consortium leader and a member of two consortia, ZUE submitted the best bids in tenders concerning repair of the Ciechanow-Mlawa and Biadoliny-Tarnow road sections. The company's management expects that the consortia in which ZUE participates will be awarded the contracts, meaning that the group will obtain 70% of revenue from these projects. The group also plans to expand into the segments of municipal road infrastructure or the power sector. Accordingly, ZUE intends to focus on organic growth and grow through acquisition of companies operating in these market sectors. The company also hopes to obtain around PLN 30m (€7.5m) from disposal of real estate in Krakow and Zakopane, which is owned by PRK Krakow (a company acquired by ZUE).
The ZUE group estimates its share in the municipal transportation infrastructure (mostly trams) in Poland at 30%, while its share in the railway infrastructure stands at 10%. The company's management hopes to maintain this position and secure large contracts in the coming years.

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