Budimex to invest PLN 300 million in green energy acquisitions over the next five years, says company president Artur Popko

In an interview with PAP Biznes, the president of Budimex revealed the company’s plans regarding potential takeovers of companies from the green energy sector. – We have planned PLN 300 million for acquisitions in the field of green energy over the next five years. The sooner we invest it, the happier we will be. However, we know that the takeover and purchase of a company is a long-term process and usually takes us several months – said Artur Popko.

Our expectation would be to invest around PLN 100 million in acquisitions this year green energy companies. On the other hand, we are working on other companies – from other segments – and I think that this is the period of the next three years – announced the president of Budimex.

Anyway, the company has already completed one of the acquisitions last month. Budimex has purchased Konstalex, a steel construction company.

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However, the company also has ambitions regarding the Latvian market. This is to be one of the first directions of foreign expansion. – On the Latvian market, we are in the tender procedure for the Rail Baltica railway line of 250 kilometers. This is a huge opportunity for us. This is a contract worth over PLN 20 billion – calculated Artur Popko.

– Due to the fact that this is a two-stage procedure, at the moment our company has been selected to submit the offer and to the scope of negotiations. However, this is the phase of the tender procedure, so we do not know what the final outcome of this procedure will be. We have the right equipment, people and experience. We really want to win this order – added the Agency’s interlocutor.

In his opinion, the short-term money will be in the infrastructure segment. This part is to develop the fastest by 2030. However, for the first 2-3 years, construction companies will suffer from inflation, which today remains at a two-digit level. In the long term, however, the market’s attention will focus on the energy sector.

His fears in the short term are caused by the imbalance in the number of announced railway tenders in two years. And also foreign competition.

Due to its development, Poland is still a large construction site. In many other countries, these investments are not so much. This is why a lot of companies from outside Poland have appeared, which submit offers in Poland at a very low level, below direct costs he pointed out.

– I believe these companies have not yet recognized exactly what the requirements of procurers are. This may lead to a situation where these companies will have a huge problem to end these contracts. And it really is very noticeable. At the moment, each tender, both road and rail, receives a dozen or so offers. These lowest offers are below direct costs, which is a very worrying phenomenon, said Artur Popko.

At the same time, he pointed out that due to inflation, the pressure on wages is very noticeable. – Last year, these wages in the construction industry increased on average at the level of 12.5 percent. We also increased salaries in our company. It also matters when it comes to the company’s results. We adapt to the market, because, of course, the company consists of employees. Our people are the most important – he assured.