The Company and the Group are implementing their development strategy in many areas.
Apart from the assignments within the 2016–2018 strategy, in 2018 the Project Execution Segment will be consistently executing the tasks commenced in 2017, concerning flexible response to changes in the business environment.
Undertaking new developments will largely depend on legal regulations and associated opening of investors to new projects. Operating activity of the Project Execution Segment in 2018 will be focused on optimization of organizational structures and their work to adjust to the changing market environment and the internal needs of the Segment. Market analysis reveals the maintaining low profitability in the key operating areas of the Project Execution Segment. With such market trends it is necessary to carefully select tenders for project in the sphere of interest of the Segment, and also to target the development of activity and resources at searching for orders in the thermal energy and mechanical markets and in traction infrastructure. Particularly in the heating industry, where because of lack of investment for many years, both in respect of general overhauls and necessity to adapt to the environmental requirements, focus will be given to thermal energy development. Having considered derogations of the EU laws, the Management of the parent company expects recovery in this sector of industry.
Having the above situation in mind, the Project Execution Segment will be forced to prepare for the challenges, which includes strengthening of all teams involved in acquisition of orders and subsequent contracting.
Summing up, in 2018 growths are expected in segments related to construction of complete facilities, mostly construction of biomass or gas fueled small generating plants performed on a turnkey basis.
Refraining from investments in 2017, as well as protracting of tender processes by investors bring about a kind of uncertainty, which, however, is regarded by the Management as a chance for increasing the volume of orders, particularly for general contracting. Our policy in respect of directions of growth in the industrial sector depends, among others, on the contracts in progress, such as the outcome of the “Metathesis” project or other turnkey projects being currently performed, strategic for acquiring of knowledge, expertise, references and opportunities for further participation in industrial projects of this scale.
Recently adopted strategy, which assumes targeting at turnkey industrial projects, shall be continued and adjusted when needed, and the main goal is to achieve the best possible position of the Group in effect of the performed contracts. Therefore, decisions about configuration in which the Project Execution Segment is going to bid for general contracting industrial projects must be taken with consideration to availability of resources and progress of works on the above mentioned contracts.
Main directions of development of export of services include East European markets: Ukraine, Moldova, Belarus and Baltic States. The Group’s offer for these countries will first of all include services of general contractor or turnkey contracts covering services and products. Establishing cooperation with local subcontractors and companies which are already present in these countries will be one of the priorities. The target group includes large state owned enterprises from the power industry, such as grid operators and power distributors and sellers.
Strategy of the Automation Segment consists in creating added value owing to provision of specialist, unique engineering expertise in target market segments, particularly in the area of power generation, distribution and transmission and industrial plants which have their own power generating facilities. ENERGOTEST sp. z o.o. perceives its competitive advantage in possibility of providing comprehensive services in combination with products of its parent company, following the “product generates a service” or “service creates a market for the product” approach.
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