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When it comes to infrastructure, Elecnor is a master. Working only to the highest standards, the firm is at the cutting edge in Spain.
Elecnor has two main business lines: infrastructure and concessions. How do these areas of activity work, and how do they contribute to the company’s business volume?
Our business plan is based on these two areas of activity. In fact, the annual shareholders' meeting has recently approved the start of the reorganization process of the current corporate structure of the Elecnor Group through the spin-off of the former infrastructure business into the company called Elecnor Servicios y Proyectos. The aim of this operation is none other than the adaption of the group’s corporate structure to the operational reality with which we have been working for years. We are convinced that the new structure will facilitate the management and coordination of the various activities and will help to provide greater visibility for the companies, encouraging orderly growth in all of them. In any case, from an operational point of view, we will continue to function in the same way. Throughout the past two years, both the infrastructure and concession areas have expanded. In 2020, however, the infrastructure sector experienced greater development as a result of the pandemic. Elecnor is present in more than 50 countries. Therefore, due to the growth underway outside Spain, we adapt to the conditions of every market and preserve solid growth. The pandemic impacts all companies; nevertheless, this internationalization allows us to maintain our activity and to continue developing large projects, as they are regarded as essential activities in all those countries.
How has the pandemic affected Elecnor, and what measures have you taken in order to limit its impacts?
Despite the uncertainty caused by the pandemic, we have been able to manage the situation thanks to the support of our major customers, who have continued their essential activity and infrastructure investments. This has allowed us to maintain our own action and, of course, with the fundamental acknowledgements to our own people. The pandemic demanded an increased need for worker safety, which we took on board by investing in protective measures. To the investment of EUR11 million in 2020, we have to add more than EUR5 million of safety investment directly related to the pandemic. COVID-19 has affected us in every region, though mostly in countries where we have greater presence, such as Spain and Brazil. This is due to our commitment to safety, and our close monitoring of our safety records.
Can you elaborate on Elecnor’s expansion process, and what is the situation of these international projects?
We decided to expand our activities into international markets many years ago when we saw that, mainly due to public investment cuts. The business was not delivering the results expected in the local market. Given that we also had the resources necessary to implant ourselves into other countries, we started expanding into Latin America in the 1960s and gradually moved to other countries. The company first consolidates itself before expanding into other territories. We are currently developing renewable energy projects, specifically wind and photovoltaic solar projects, not only in Spain but around the world. This activity is a must for the company, and we aim to continue with its development. At the moment, we have both investment and constructions projects underway. For instance, in Australia, there are projects for the construction of power lines, but under the EPC scheme. Meanwhile, in Brazil, Chile, and Peru, we are also working on projects involving investments. We also have a department that caters to infrastructure in space. In fact, our subsidiary, Elecnor Deimos, carries out activities in space, notably the observation of Earth. We were the first private Spanish company to launch its own satellite of this type into space. Although it is not an important part of our turnover, it is interesting in terms of R&D and the subsequent usage of these technologies for other purposes.