Group Five eyes Russia, North America projects
Group Five says its strategy is strongly focused on expansion in Africa, with selected projects in Russia and Northern America also possibly on the horizon, Engineering News reports.
Outgoing CEO Mike Upton says the South African construction industry saw what appears to be “a false dawn” a year ago, but that “the last few months had been tough”, with the market going through “quite a difficult period”.
There have been pockets of activity, such as in the building and health sectors, with the power and water sectors showing signs of improvement.
However, the transport and infrastructure markets have weakened markedly, with margins under pressure and few significant tender awards.
“If we rely on the South African market, we would be going backwards,” notes Upton.
He believes there are opportunities for Group Five in Africa in the power and transport concessions and contracting environment. These include renewable projects.
Projects being pursued include a R4-billion Ghana gas project, as well as geo-thermal opportunities in Kenya.