The story
Founded by Balthasar Helfmann and Philipp Helfmann in 1873.1
History
Founding and early years
In 1873, brothers Philipp Helfmann (a bricklayer) and Balthasar Helfmann (a locksmith), originally from Kelsterbach, founded the company Gebrüder Helfmann in Frankfurt am Main. While Balthasar was responsible for the completion of construction contracts, Philipp developed the financing side of the business. Their first major contract was for the University of Giessen in 1878. By the 1880s, the company had begun to produce its own construction materials but was still only a regional player. Shortly after the death of Balthasar, Philipp Helfmann transformed the company into a joint-stock corporation for building construction and civil engineering named Aktiengesellschaft für Hoch- und Tiefbauten (Construction and Civil Engineering Corporation) in 1896, just before the German Stock Exchange Act came into force.
A major development was the contract for the spa in Bad Orb in 1899, where the order included not just construction of the buildings, but also provision of infrastructure like roads and gardens, arrangement of finances for the project, and maintenance of some responsibilities for operation after the construction. Also in 1899, another turnkey project, a new grain silo in Genoa, Italy, was both the firm's first international venture and its first project using reinforced concrete. Philipp Helfmann died in the same year, with his son-in-law, Hans Weidmann, taking over as Chief Executive.
After the Helfmann brothers
The firm grew rapidly, but was not comparable with the major German construction companies of the era. In 1921, it attracted investment from the industrialist Hugo Stinnes (described by Time as the "New Emperor of Germany" for his wealth and influence) and in 1922, the firm moved its base to Essen as part of its integration into the Stinnes group. Stinnes planned to use Hochtief for all his construction projects, while Hochtief saw an opportunity to profit from the Treaty of Versailles, organising the delivery of construction materials to France as part of German reparations for World War I. Stinnes died in 1924, and within a year his industrial empire collapsed. With the help of several banks, the company (now known as Hochtief Aktiengesellschaft für Hoch- und Tiefbauten vorm. Gebrüder Helfmann) avoided insolvency. In the aftermath of the Stinnes collapse, the major utility RWE and electrical equipment producer AEG became major shareholders in Hochtief, and Hans Weidmann stepped down in 1927.
A series of major construction projects ensued, including the Echelsbach Bridge (then Germany's largest single span reinforced concrete bridge), the Schluchsee dam and work on the Zollverein colliery.
From Nazi Germany to Reconstruction
From 1933 onwards, the structures of the Third Reich influenced Hochtief's business activities. Jewish members of the supervisory board were expelled under the Nuremberg Laws in 1935. In 1937, CEO Eugen Vögler joined the Nazi Party (NSDAP) and served as leader of the Construction Industry Group as well as an honorary squad leader of the Hitler Youth. The construction business flourished under the four year plan, with its vast public works programme, including the Autobahn network, and the industrial build-up in preparation for war, for example the construction of a new truck factory for Opel in Brandenberg. Hochtief also worked on a new centre for Nazi rallies in Nuremberg. In 1936, it moved its Essen headquarters from the Pferdemarkt to its current location on Rellinghauser Straße. As war became imminent, the company began work on the Westwall defensive network. During World War II, it worked on the Atlantic Wall defences, and a range of infrastructure projects across German-dominated Europe. Hochtief also constructed buildings for Hitler himself, notably his Bavarian Alpine retreat, the Berghof, his Wolf's Lair headquarters in Rastenburg, and the Führerbunker in Berlin, where Hitler ultimately committed suicide.
After 1939, the firm began to use forced labour extensively on its projects, as did many other German industrial companies at the time. Hochtief's slave workers suffered from malnutrition, beating and constant abuse.
1945–1966
After the collapse in 1945, Hochtief lost both its international business and its branches in East Germany. Under the leadership of the new CEO, Artur Konrad, operations continued. One of the first major contracts was for a university hospital in Bonn, between 1946 and 1949. The introduction of the Deutsche Mark in 1948 and the beginning of the Wirtschaftswunder brought more new work.
Josef Müller took over as CEO in 1950. A decision was made to undertake more international projects, following a period of essentially domestic work after World War II. This included a series of power infrastructure works in Turkey and bridge and smelting works construction in Egypt during the early 1950s. Many projects from this period were undertaken outside of the First World, often funded from development aid budgets.
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The company gained international recognition for the relocation of the Abu Simbel rock temple (from November 1963 to September 1968, planned by Walter Jurecka, former head of the international division) and the Mandulis Temple of Kalabsha (1961 to 1963). These UNESCO World Heritage sites had to be relocated due to the construction of the Aswan High Dam.
1967–1989
From 1967 onwards, the company's focus shifted away from purely construction services towards turnkey construction and related services, exemplified by the Hilton Hotel in Athens.
By the mid-1970s, the international business accounted for only a small portion of the company's activities. Most work was domestic, driven by Germany's strong economic growth, with a particular strength in power plant construction. This included the construction of the Federal Republic of Germany's first nuclear power plant, Kahl Nuclear Power Plant, near Dettingen am Main. The construction contract had been awarded by AEG, which had been commissioned by the utility company RWE to build the plant. The plant began to feed its electricity to the grid in June 1961. By contrast, the first East German nuclear plant, at Rheinsberg, was connected to the grid in 1966. During the 1960s and 1970s, the company also executed significant transport infrastructure projects. Notable examples include the Raúl Uranga Subfluvial Tunnel in Argentina, the Elbe Tunnel in Hamburg, and the Bosphorus Bridge in Istanbul.
After the 1973 oil crisis, the company benefited from the unexpected wealth of oil-exporting countries. By 1980, foreign work accounted for more than 50% of Hochtief's business. A major factor was the contract for the turnkey construction of King Abdulaziz International Airport (completed in 1981), the largest airport in Saudi Arabia, located in Jeddah, and the most valuable contract Hochtief had ever been involved with. The aesthetics of the architecture of the airport is highly rated, and it has several unusual features, including Terminal Three, used only during the Hajj, reserved for pilgrims travelling to Mecca. It has a tent-shaped fibreglass roof, contains a mosque, can accommodate 80,000 travellers at once, and is believed to be the largest terminal in the world.
1990–2007
After German reunification, the company benefited from the construction boom, although by 1993, slowing economic growth led to increased competitive pressure. Under the leadership of Hans-Peter Keitel initially, and from 2007 Herbert Lütkestratkötter, the company underwent a restructuring. While construction remained the core business, Hochtief also began offering additional services as a construction provider, including the planning, financing, and operation of buildings. Acquisitions were made to support these new business areas. To further this, Hochtief founded new companies and acquired Australia's Leighton Holdings and the US-based Turner Construction.
In 2004, Hochtief transitioned from a subsidiary to a publicly traded company: the sale of the majority shareholder RWE's shares gave Hochtief a new international shareholder structure. By 2005, around 80% of the company was in free float. Through the acquisition of service companies Siemens Gebäudemanagement and Lufthansa Gebäudemanagement, Hochtief Facility Management, a subsidiary, expanded from 800 to approximately 4,500 employees in 2004. In 2007, Hochtief acquired Flatiron, a provider of infrastructure projects in the United States. Hochtief is also represented in the Gulf region through the Habtoor Leighton Group, a Leighton subsidiary.
Loss of independence
In 2005, August von Finck, through his Custodia Holding, acquired a stake in the company, which was increased to 25.08% in 2006. In March 2007, the Spanish construction group Actividades de Construcción y Servicios (ACS) purchased Custodia's shares for €72 per share, with the transaction amounting to over €1.26 billion. Subsequently, ACS acquired more shares, holding 29.9% by September 2010. On 16 September 2010, ACS announced a public takeover bid for the remaining shares, offering an exchange of eight ACS shares for five Hochtief shares. On 29 November, BaFin approved ACS's takeover of Hochtief. In December, Qatar Holding from the Emirate of Qatar subscribed to a reserved capital increase, acquiring nearly 9.1% of the shares. After improving the offer to nine ACS shares for five Hochtief shares, ACS announced in January 2011 that it held over 30% of Hochtief's shares following the conclusion of the takeover bid. By June 2011, ACS held slightly over 50% of Hochtief's shares, as shares held by Hochtief itself were voting shares attributed to ACS.
Restructuring and reorganisation
In May 2013, Hochtief sold its airports division to Canada's Public Sector Pension Investment Board for €1.1 billion. At the same time, Hochtief began restructuring its loss-making European activities in 2013: The Group spun off the construction business, which had previously been bundled into one unit, into four largely autonomous companies and cut up to 1,000 jobs, primarily in Germany.
In February 2014, the 50% stake in the real estate company Aurelis Real Estate, a former subsidiary of Deutsche Bahn, was sold to an investor consortium led by the private equity firm Grove. Further sales of smaller business units followed. In May 2015, Hochtief's offshore business was sold to GeoSea, a subsidiary of the DEME Group. However, Hochtief strengthened its activities in the Asia-Pacific region, increasing its stake in the listed Australian subsidiary Leighton Holdings Limited from approximately 58% to 69.62% in 2014.
As part of the reorganisation, the company was renamed from Leighton Holdings to Cimic Group in April 2015.
Developments from the 2020s onwards
In 2022, Juan Santamaría Cases assumed his position as CEO of the company, succeeding Marcelino Fernández Verdes. In 2023, Hochtief, together with EWE, was awarded funding under the German government's Deutschlandnetz initiative to establish and operate charging points for electric vehicles.
Timeline of notable construction projects
Projects Hochtief has been involved in include the Elbphilharmonie in Hamburg, the Gotthard Base Tunnel in Switzerland and the project planning of the Burj Khalifa in Dubai. Hochtief has also worked on various airports, such as those in Frankfurt, Athens, and Warsaw, as well as several expansions of the German motorways. International bridge construction projects include the Øresund Bridge and the Bosphorus Bridge.
1878–1879: University of Giessen, Giessen
1927–1932: Zollverein colliery (Shaft XII), Essen
1927–1928: Predigtstuhl Cable Car, Bad Reichenhall
1928–1929: Echelsbach Bridge, near Echelsbach, Bavaria
1929–1931: Schluchsee Dam, Schluchsee, Black Forest
1930–1934: Albert Canal, Belgium
1938–1945: Projects included the Westwall and Atlantic Wall defenses, and Hitler's Berghof, Wolf's Lair and Führerbunker
1946–1949: Bonn University Hospital, Bonn
1952–1956: Sariyar Dam, Ankara, Turkey
1954–1964: Vianden Pumped Storage Plant, Vianden, Luxembourg
1958–1961: Kahl Nuclear Power Plant, Dettingen am Main
1960–1969: Hernandarias Subfluvial Tunnel, Argentina
1961–1963: Hilton Hotel, Athens, Greece
1963–1968: Abu Simbel temples transplanted, Egypt
1968–1972: Frankfurt Airport, Frankfurt
1969–1975: New Elbe Tunnel, Hamburg
1970–1974: Bosphorus Bridge, Turkey
1974–1981: King Abdulaziz International Airport, Jeddah, Saudi Arabia
1981–1984: Mosul Dam, Iraq
1984–1985: Messe Torhaus, Frankfurt am Main
1988–1991: Messeturm, Frankfurt am Main
1990–1992: Terminal One, Warsaw Airport, Poland
1994–1996: Commerzbank Tower, Frankfurt am Main
1996–2000: Athens International Airport, Greece
1996–2000: Øresund Bridge, Copenhagen and Malmö, Sweden
1998–2000: Kandinsky-Klee house restoration, Dessau
2001–2016: Gotthard Base Tunnel, Erstfeld, Switzerland
2002–2004: Katima Mulilo Bridge, Zambia and Namibia
2004–2008: Opera Krakowska, Kraków, Poland
2005–2008: Dnipro Stadium, Ukraine
2007–2016: Elbphilharmonie, Hamburg
2009–2011: Lake Champlain Bridge, Crown Point, New York and Chimney Point, Vermont
2009–2012: Berlin Ostkreuz station, Berlin
2011–2017: Queensferry Crossing, Edinburgh, Scotland
2014–2019: Expansion of King Khalid International Airport, Riyadh, Saudi Arabia
2016–2020: SoFi Stadium, Los Angeles, California
2017–2020: Remodelling od the State Opera, Prague, Czech Republic
Start 2019: The Spiral, New York City
Start 2019: Sydney Metro: Pitt Street Station, Sydney, Australia
The company is also working on the Chacao Channel bridge due to be completed in 2025.
From Wikipedia’s article on Hochtief, shared under CC BY-SA 4.0.5