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Eurovia

Developing mobility solutions for communities

Eurovia serves communities by developing mobility solutions that cover design, construction and maintenance of transport infrastructure and urban development projects. Its innovation policy is focused on improving the environmental impact of the resources and products used in roadworks and developing new functions for infrastructure, such as the positive energy road.

Eurovia returned to growth as its main markets recovered, notably in France, Central Europe and North America. It combined its strong regional roots, stimulating managerial system and ambitious innovation policy to consolidate its competitiveness in markets driven by substantial demand for transport infrastructure renewal.

2017 Key figures

420 companies

Manages and maintains
60,000 km of road systems

400 production plants

350 quarries

39,526 employees

Revenue: €8,112m

Transport infrastructure and urban development

Eurovia is a global leader in transport infrastructure and urban development. It builds and refurbishes roads, motorways, railways, urban transport lines and hard surfaces for airports and industrial and commercial facilities. It also delivers related works, including demolition, deconstruction, drainage, earthworks, utility networks and urban amenity projects.

Quarries

Eurovia is a European market leader in aggregates. It extracts, processes and markets both natural and recycled materials, and operates a network of more than 350 quarries producing 82 million tonnes of aggregates per year (of which Eurovia’s share is 57 million) and 150 recovery and recycling facilities. Eurovia’s share of reserves (*) amounts to 3.1 billion tonnes, or more than 50 years of output.

(*) Reserves controlled through ownership or royalty agreement.

Industrial production

Eurovia operates 330 coating plants supplying 20 million tonnes of asphalt mix annually as well as 50 asphalt binder plants. In addition, Eurovia produces road signage and road marking products (signs, gantries and paint).

Services

Eurovia manages and maintains 70,000 km of roads and railway networks under long-term contracts. It also services road signs, markings and safety systems, and maintains related facilities such as road equipment, green spaces and vegetation.

Eurovia’ competitive position

France

Eurovia is one of the leaders in the road and rail works market with Colas and Eiffage Infrastructures. The market is otherwise shared by a large number of local and regional contractors. Eurovia is market leader in aggregates, where its competitors include roadworks companies and cement groups such as LafargeHolcim, GSM (HeidelbergCement Group) and Cemex, along with several hundred local producers.

Germany

Eurovia GmbH is one of the sector’s main players with Strabag, in a market made up mainly of numerous regional players. In addition, Eurovia’s rail works subsidiary ETF has expanded into Germany by acquiring THG Baugesellschaft mbH.

United-Kingdom

Eurovia UK, through its subsidiary Ringway, is a major player in long-term road maintenance contracts. Its main competitors are Amey (Ferrovial group), Kier and Balfour Beatty. Eurovia UK also operates in conventional roadworks in competition with Balfour Beatty Carillion and Tarmac (CRH Group), Aggregate Industries (LafargeHolcim), Hanson (Heidelberg) and Conway.

Czech Republic

Eurovia CS is among the leaders in road and rail works. Its main competitors are Skanska, Metrostav and Strabag.

North America

In Canada, Eurovia is one of the major players in road infrastructure works in Quebec, Alberta and British Columbia through subsidiaries Eurovia Québec Construction, Carmacks and BA Blacktop. Its main competitors are subsidiaries of Colas and LafargeHolcim, as well as local companies.

In the United States, through subsidiaries Hubbard Construction and Blythe Construction, Eurovia is a market leader in the south-east alongside Archer Western Contractors (a Walsh Group subsidiary) and Lane Construction (Salini Impregilo Group) for construction works and Preferred Materials (CRH Group) for the manufacture and application of asphalt concrete.

Innovation

Eurovia’s innovation policy, involving everyone in the company and all opportunities to increase operational performance, also enhances its competitiveness. Its international research and development centre in Mérignac near Bordeaux won the Grand Prize in the VINCI 2017 Innovation Awards (see opposite) and Eurovia as a whole won five further prizes.

The innovation policy is particularly focused on environmental protection. It is designed to foster development of products and processes that improve the energy consumption and carbon footprint of the roadworks activity and recycling to conserve natural resources. Upstream, Eurovia’s network of 350 quarries and 400 production sites develops circular economy solutions based on local production and transport loops. For example, in the port of Fos sur Mer, France, Eurovia created a “virtual quarry” that produces 400,000 tonnes of aggregate from worksite spoil and recycled materials annually. Accessible by road, inland waterway and sea, the Fos sur Mer platform played a key role in removing spoil from Nice tramway underground works by sea and then processing and recycling it.

The participatory innovation programme is combined with partnerships linking Eurovia with the other participants in its ecosystem. Power Road® (see page 99) is a case in point. The positive energy road, initially devised by a local Eurovia works agency as an experiment, was further developed by Eurovia’s international research and development centre in conjunction with public- and private-sector partners working to model the process, carry out further experiments and perform trials under real conditions. The project, part of the French government’s Investissements d’Avenir (investment for the future) programme, is supported by the country’s Environment and Energy Management Agency (Ademe).

Similarly, the goal of the 100% recycled road project is to design the technical resources and materials needed to produce asphalt mix containing only recycled materials.

Perspectives

Eurovia’s order book at 31 December 2016 increased 4% from the previous year, suggesting a return to revenue growth in 2017.

In France, order intake in 2016 heralds a recovery, reflecting the fact that local authorities will soon have to invest in necessary road network maintenance and upgrade works. In the railway sector, 2016 was a transition year following completion of the South Europe Atlantic high-speed rail line project. ETF will now step up its redeployment into renovation of existing lines under multi-year contracts awarded by SNCF Réseau that are entering into force.

In the other European countries, activity is expected to remain buoyant in Eurovia’s two main markets: Germany, where major infrastructure renovation projects are now being launched; and the United Kingdom, where Eurovia can build on its local roots in both contracting and services. In Central Europe, infrastructure upgrade requirements are expected to generate further investments financed by European structural funds.

In North and South America, activity is expected to continue to grow in the United States, driven by major contracts awarded to the local subsidiaries and in the longer term by the massive investment announced by the new administration. In Canada, the effective launch of projects already booked and public road and rail expansion programmes should stimulate activity.

In this context, Eurovia will proactively pursue its international expansion strategy in rail works and a targeted expansion strategy in North and South America. In addition to acquisitions, there is scope for expansion along the value chain – upstream in infrastructure design and downstream in services – and for strengthening Eurovia’s integration capabilities under PPP projects developed in synergy with VINCI Highways, particularly in Germany and North America.

Meanwhile, Eurovia will step up innovation in its various business lines, from production of materials and works activities to maintenance and services. Innovations will boost the environmental value added of Eurovia’s products and processes and foster the emergence of new functionalities driven by expanded use of digital technologies.