China State Construction Engineering Corp (CSCEC) is reportedly considering investing up to US$ 2 billion to acquire a US construction company and expand its presence to the North American market.Chinese state-owned contractor said two unnamed potential acquisitions had been identified, including one with annual revenues of around US$ 1 billion, according to a report by Bloomberg.
Speaking in Hong Kong, Vice President Chen Guocai said CSCEC needed to balance and diversify its business. He said the company also planned to target public-private partnerships in the US over the next five years and grow the proportion of its US revenues from 5% to 15%.CSCEC at a Glance
China State Construction Engineering Corporation (CSCEC), with the State Administration of Building Construction as its precursor, was established in 1982. CSCEC is one of the few state-owned enterprises with construction and real estate as its core business that has grown up through market competition without occupying large amount of state investment, national resources and business patents.
For decades, under the administration of the Central Government, the guidance of higher authorities and assistance of various circles of society, CSCEC has, by loyally practicing Deng Xiaoping Theory, the important thoughts of “Three Represents” and scientific outlook on development, operated in both domestic and international market, participated fearlessly in competition, had the courage to innovate, and finally grown into the largest construction and real estate conglomerate and the building construction contractor in China. As the largest transnational construction company in the developing countries and the largest house builder in the world, CSCEC has for many years occupied the key position in China’s international contracting business.
CSCEC had conducted its business operations in more than 100 countries and regions around the world. At present, it operates in 27 countries and regions worldwide, and in China, its business spreads all over the territory except in Taiwan. From its establishment in 1982 to the end of 2010, CSCEC’s accumulated contract value and total turnover reached RMB 3 trillion and RMB 1.8 trillion respectively and its total assets in 2010 exceeded RMB 380 billion, deservedly ranking the first in the construction sector in China. CSCEC has been listed among world top 225 international contractors since 1984 and it ranked 22nd in 2010. CSCEC has entered the list of fortune global 500 since 2007 and it ranked 187th in 2010.
China Construction is one of the most integrated construction and real estate conglomerates in China with longest history of specialized operation and market-oriented management. It possesses a complete industrial chain of construction product covering technical R/D, survey and design, construction contracting, property development, equipment production and property management. China Construction is the only construction enterprise in China holding 3 Special Qualification Certificates for building construction, road construction and municipal works respectively.
CSCEC is well known in the world by undertaking super high-rise, giant, novel, special purposeful and important projects. It has completed at home and abroad many large or super large projects that are of tight construction period, high quality and great difficulty in execution. The management philosophy and brand image of “we are committed to quality through performance; green construction creates friendly environment；safe operation brings better life ” are widely admired.
China Construction has always taken scientific management and scientific and technical progress as the engines for enterprise’s sustainable development. By 2010, China Construction had won 53 national prizes for progress of science and technology, 23 Zhan-Tianyou prizes for civil works and over 700 provincial (ministerial) prizes for progress of science and technology. China Construction possesses more than 100 national construction methods and over 600 intellectual property rights including various patents. It also holds 150 Luban Prizes, the highest prize in China’s construction sector and 133 prizes of national excellent projects. China Construction has obtained the most prizes in the sector in China.
CSCEC has, as a central enterprise, firmly performed its political, social and economical responsibilities. It creates approximately 800,000 job opportunities for the society each year and has led about 2.5 million people from these 800,000 households into well-off life, making a great contribution to the social harmonious development of China.
CSCEC has positively promoted capital operation and innovative development. In 2007, CSCEC initiated in alliance with three enterprises of the fortune global 500, namely China National Petroleum Corporation, Baosteel Group Corp. ltd. and Sinochem Corporation, to form China State Construction Engineering Corporation Limited (China Construction). China Construction was successfully listed in Shanghai Securities Exchange on July 29th, 2009 and the financing capital exceeded RMB 50 billion. In 2010, CSCEC further optimized its business distribution by successfully restructuring Xinjiang Construction Engineering Group.
Confronting new development opportunities and complicated situation in the new century, CSCEC will, following the demand of “fostering world top-ranking enterprise with most competitive strength in international market” and pursuing the strategic goal of “one most, two enters and scientific development,” firmly persist in reform and innovation, quality assurance and value creation, positively promote the optimization of management structure and business distribution, and actively practice the strategic moves of “specialization, localization, standardization, informatization and internationalization”. CSCEC will stride forward towards the goal of becoming the most competitive construction and real estate conglomerate in international market