Home > International Directory of Company Histories > Aegek S.A. - Public Powerhouse for the New Century

1. Printable Version
2. Download PDF
3. Cite this Page
4. Tweet This

Public Powerhouse for the New Century

In 1991, Aegek began constructing the underground power plant for the HEP dam at Thissavros. Also in that year, the company joined in the launch of another prestigious project, that of the construction of the new underground Metro in Athens, the largest construction project in Greece. Aegek later joined in on two additional phases of that project, extending its participation into the 2000s. In 1992, Aegek became part of the consortium building the Evinos Aquaduct, a project for the diversion of waters from the Evinos River to the Mornos Reservoir. This involved the building of an earthfill dam and the digging of a tunnel linking the river to the reservoir.

The Greek government stepped up its infrastructure spending in the 1990s, when the country joined the European Community. The increase in spending led Aegek to go public in 1993, listing on the Athens Stock Exchange. The public offering helped fuel the group's expansion objectives into the 2000s. Over the next decade, Aegek increased its scale more than tenfold, raising its annual revenues from the equivalent of about EUR 10 million to more than EUR 138 million ($150 million) at the end of 2003. Acquisitions formed a strong part of the Aegek's growth strategy. The company also began competing for its first contracts outside of Greece, notably in the Balkan states and Cyprus.

At the same time, Aegek continued to expand its range of competencies, in part through acquisitions, enabling it to diversify its range of projects. In 1995, the company joined in on the construction of the Tempi Railway Tunnel, which involved building a 12 kilometer stretch of high-speed railway linking Evangelismos and Rapsani along the new Athens-Thessalonika line. The following year, Aegek began work on the first of three phases of the Pathe Highway connecting Athens to Patras. This project included the construction of a railway tunnel and portions of the high-speed railroad connecting the two cities. In 1997, the company began work on another high-profile project, that of the construction of a Biological Research Center for the Academy of Athens. That project was completed in 2002. Aegek launched another major roadworks project in 1997 when it began constructing a 13-kilometer stretch of the Egnatia Highway from Grevena to Siatista.

The turn of the 21st century marked two major developments for Aegek. On the one hand, the company began a new series of acquisitions, such as its 1999 purchases of Ekter SA, another publicly listed construction group, and the engineering firm Omas SA. In 2000, the company acquired a stake in another engineering group, Efklides S.A., then, in 2001, acquired holdings in Etep SA and Meton SA, both construction companies. In 2002, Aegek continued its buying spree, picking up Odosimansi Technical Company, Axon Technical Company, and Oikodomiki SA. These three were then merged, with Diameter, into Aegek itself. By the end of 2003, the company had gained majority control of Meton and Efklidis, the latter of which was renamed Aegek Group SRL.

While pursuing its acquisition program, Aegek also launched a drive into the international construction market. In 1999, the company won contracts for two construction projects in Jordan—the Wala Dam, at the Al-Wala Wadi, and the Mujib Dam, at the Al-Mujib Wadi. In 2000, Aegek entered Rumania with the contract to build the Millennium Business Center in Bucharest, a project completed at the end of 2003. This contract led the company to step up its contracts in Rumania, which included a road improvement project on the highway between Timisoara and Lug, starting in 2002, and the repair of the DN2 roadway in southeastern Rumania, also starting in 2002.

Even as it pursued its international expansion, Aegek remained a leader in the Greek construction industry. Major projects included the construction of a new General Military Hospital in Thessalonika. Construction on that complex began in 2001, with completion expected in early 2005. Also in 2001, Aegek added the building of the Olympic Airways Hangar at the new Athens International Airport. In addition, the company picked up a number of projects related to the 2004 Olympic Games to be hosted in Athens.

In 2003, Aegek expanded its road-building operation with the launch of work on the Arta-Trikala Highway. Aegek's part of that project involved the construction of the entire roadway from the Pachtouri Tunnel up to Agia Kiriaki. By then, Aegek itself appeared on the highway to future success as a leading Greek construction and engineering company.

1. Introduction
2. Rebuilding Greece in the 1950s
3. Public Powerhouse for the New Century
4. Principal Subsidiaries
5. Principal Competitors
6. Further Reading
7. Copyright Page
8. About Page