Plants segment



Directors’ report

Engineering & Plant Construction

The Plants segment, through the subsidiaries FISIA Italimpianti and FISIA Babcock Environment (Germany), includes the operation of plants for the desalination of seawater, fume treatment and waste-to-energy processes.

Until 31 December 2013, the Plants segment also included the activities of the Chinese company Shanghai Pucheng Thermal Power Energy Co. Ltd., 50% owned by FISIA Babcock and consolidated according to the proportional method. In line with the process of leveraging the Group’s non-core assets, launched in October 2012, during the reporting year, the Group completed the sale of its investment held in the subsidiary Impregilo International Infrastructures NV for a total consideration of approximately €65 million (at the exchange rate on the date of sale). The transaction described did not reveal any significant capital gains or losses compared to the carrying value recognised in the consolidated financial statements at the date of sale.

In accordance with the guidelines in the 2013-2015 Business Plan, the activities concerning the Plants segment in December 2013 were aimed, on the one hand, at recovering the assets of the subsidiary Fisia Italimpianti that are still involved in disputes - both within the SUW Campania projects and in the context of a number of projects related to desalination plants in the Persian Gulf, for which major litigation has been commenced in previous years with the clients - and, on the other, at developing the activities of the subsidiary Fisia Babcock Environment in order to seize the best opportunities for development of the entire segment, while maintaining its leadership in currently strategic market segments for the German company.

The volume of production reached in the Plants segment in 2013 amounted to €112.7 million.

The table below shows the details of the order backlog at 31 December 2013 of the Plants segment:

(€ millions) 
Area/CountryProjectResidual backlog at 31 December 2013Percentage of totalPercentage completion (%)
Fisia Italimpianti  
Middle East Jebel Ali L2 2.4 1% 98.8%
Middle East Ras Abu Fontas B2 3.3 1% 98.3%
Middle East Jebel Ali M 7.8 3% 99.0%
Middle East Jebel Ali M - spare parts 8.5 3% 1.9%
Middle East Ras Abu Fontas A1 2.9 1% 99.1%
Middle East Shuaiba North 2.2 1% 99.4%
Middle East Shuaiba North - spare parts 9.2 3% 50.6%
Middle East Takreer Cbdc 11 4% 46.1%
Total Fisia Italimpianti   47.3 15%
Fisia Babcock  
Germany Datteln REA 2.1 1% 94.0%
Germany Moorburg - ESP 1.6 1% 96.0%
Germany Manheim Block 9 RRA 12.2 4% 85.0%
Netherlands Maasvlakte Block 3 REA 1.1 0% 97.0%
Turkey Yildizlar Orta FGD 1.1 0% 17.0%
Panama Paco - FGD 3.7 1% 74.0%
Poland Plock FGD 36.5 12% 7.0%
United Arab Emirates Takreer - SWFGD 5.1 2% 19.0%
  Other abroad 1 0% n.a.
Fume treatment   64.4 21%
Russia Moskau WtE 92.5 30% 18.0%
Germany Ruhleben Wte 1.6 1% 98.6%
Germany Wuppertal K 13 EfW 1.9 1% 92.0%
Sweden Linköping EfW 49.7 16% 4.0%
Finland Tampere EfW 33 11% 5.0%
China Haidian EfW 8.3 3% 43.0%
China Hefei 3/4 EfW 5.3 2% 4.0%
Italy Other Italy 0.2 0% n.a.
  Other abroad 1.4 0% n.a.
Waste to energy   193.9 63%
  Italy 0.1 0% n.a.
  Foreign 3.7 1% n.a.
Other   3.8 1%
Total Fisia Babcock   262.1 85%
Total PLANTS   309.4 100%

In the current financial year, FISIA Babcock Environment (FBE) secured two large contracts in Finland and Sweden worth approximately €90 million. The first relates to a new WTE plant in Tampere to be rolled out in 2015 which will have a waste disposal capacity of 180,000 tons/year. The contract was commissioned by Tampereen Sahkolaitos Oy, which has generated and distributed electricity since 1888 in Tampere, one of the first European cities to set up a municipal electricity company. The second contract is for the construction of a new boiler (62 KV) in an important university and industrial centre in Linkoping. It will be the core of a new waste incineration line, which is set to go into operation in 2016, as part of the existing WTE plant in Garstadverket, which has a current incineration capacity of 260,000 tons a year. The customer is Tekniska verken i Linkoping (TvAB), one of the  largest municipal energy suppliers in Sweden.