Engineering & Plant Construction



Director’s Report

Plants segment

The Engineering & Plant Construction segment, headed by FISIA Italimpianti and FISIA Babcock Environment (Germany), includes the operation of plants for the desalination of sea water, fume treatment and waste-to-energy processes.

Until 31 December 2013, the Plant segment also included responsibility for the activities of the Chinese company Shanghai Pucheng Thermal Power Energy Co. Ltd., 50% owned by Fisia Babcock and consolidated on a proportionate basis. In line with the process of realising the non-core assets of the Group, which was begun in October 2012, at the end of 2013 the Impregilo Group completed the sale of the shareholding held by its subsidiary Impregilo International Infrastructures N.V. for approximately € 65 million (at the exchange rate on the date of sale). This transaction did not generate any significant differences of an economic nature compared to the carrying value recorded in the consolidated financial statements at the time of sale.

In accordance with the guidelines contained in the Impregilo Business Plan 2013-2015, the activities of the Plant segment in December 2013 were marked, on the one hand, by recovery of the assets of the subsidiary Fisia  Italimpianti which are still  undergoing litigation - relating to the Campania USW projects and to certain projects involving desalination plants in the Persian Gulf, and which in previous years have involved major legal proceedings with the clients - and on the other hand, by development of  the activities of the subsidiary Fisia Babcock Environment in order to seize the best opportunities for exploiting the whole sector, while maintaining leadership in the market segments which are currently of strategic importance for the German company.

The Plant segment’s revenue amounted to € 149.2 million for the year (€ 222.0 million) and the operating profit totalled € 0.3 million (€ 21.0 million for the previous year).