Tsk

COMPANY PROFILE

2015

TSK Group

http://www.grupotsk.com | T: +34 9 8513 4171

TSK – the Spanish EPC company that is steps ahead of the rest Editorial: Ajuanne Payne

TSK Group – a Spanish company with one of the most impressive track-records for engineering, procurement and construction projects in the energy, industrial, environmental and minerals handling sectors. With 30 years of experience in the industrial and energy sectors and a worldwide expertise, we talk to Santiago Del Valle, Managing Director for Sales at the group, about milestones at the company and some of the exciting projects on the horizon for TSK. TSK Group has been in operation for nearly 30 years and specialises in turnkey industrial projects, the majority of which are within the Energy sector. It is a public limited company, established in 1986 and the result of a combination

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between the electrical engineering and electrical installations divisions at ERPO Group – the first engineering company listed on the Spanish Stock Exchange. TSK was acquired from ERPO Group by its current shareholders

in 1999 and swiftly moved on to the next stage of its progression towards being the EPC contractor they are today.

Initially focusing on turnkey installations of water treatment plants, today TSK boasts engineering, procurement and

TSK Group construction expertise in the fields of power generation, solar thermal installations, oil and gas, electrical and control infrastructures, solar P.V., I.T., environmental and mining projects.

Spain is a world-leader in renewable energies, has a highly developed wind-energy and hydroelectric sector and is the fourth largest manufacturer of solar technology in the world. It has on average more hours of sunshine than nearly all European countries which, along with the increased focus on renewable energy production over the last few decades, has led to Spain becoming a world leader in the field of solar technology and enterprise. It was the first country globally to require the installation of photovoltaic (PV) technology into new buildings back in 2005 and its energy

businesses are leading the industry the world over.

TSK Group have made a significant contribution to Spain’s position as one of the leading countries in renewable energy, emerging from this culture of innovation to become an engineering company at the forefront of some of the more significant energy projects in recent years. Part of this can be attributed to the company’s ability to adapt and its international reach. They have conducted projects in over 30 countries worldwide and have a turnover of over €450 million, 16% more than the previous year and with 95% of TSK Group’s business coming from outside of Spain.

“I will say that in 2003 TSK had already started its transition into the international market with setting up subsidiaries in Venezuela and

Morocco.” Explains Del Valle, who has a 20 year history with the group.

Shortly after setting up these subsidiaries, TSK Group began working in the solar photovoltaic industry and further subsidiaries were set up in Nicaragua, Chile and Brazil in 2008, when the group embarked on their first thermosolar projects. Further to this the group started expanding into the Middle East in 2010, carrying out projects in India, Saudi Arabia and Bangladesh.

One significant project, which reached completion in May of last year, was the TAI Durango photovoltaic plant constructed by TSK and the first part of a solar complex that will eventually reach a total production capacity of 100MW. The TAI-I project will power 8,000 homes in the region while creating employment

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opportunities for locals.

“The project for EOSOL was very important to us and continues our work in South America. We have had a very successful experience with this company in Spain and it was great for us to participate in this project” More recently, TSK Group’s energy and development arm signed three new contracts in Brazil that will engage them in the region for the next three years.

Del Valle goes into more detail on the new developments: “We have three offices in Brazil and are very active in the region. We are participating in a project for EDP - it is a hydroelectric plant in AMAPA, close to a similar plant we worked on before.”

TSK will be involved in the electromechanical assembly of the plant, with turbines

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supplied

by Alstom.

The electricity generated will be 220MW once completed.

TSK is nearing completion on the construction of five wind farms belonging to GESTAMP, a Spanish company, and has been awarded the EPC construction of a Substation

by EDP for the wind farms the company is building in Rio Grande do Norte. The EDP project involves the evacuation of energy generated by the wind farms with a capacity of 138 KV. The company has been contracted to participate in a further five wind farms by FURNAS – a Brazilian stateowned company that produces 10% of the country’s electricity.

The total combined cost of these projects is nearly €32 million.

A number of acquisitions have been made by TSK Group over the years that have

contributed to the company’s continued growth. They are the main shareholder in listed company, Duro Felguera – another EPC contractor with similar expertise to TSK, after purchasing a 16% share back in 2000. They acquired Irelsa and Ingemas, engineering firms, in 2007.

“Currently our main area of business is in energy. In conventional energy and renewables, I can say we are one of the leaders in the market” Mr Del Valle explains, “Last year we acquired a German company, Flagsol, which specialises in solarthermal power plants” Flagsol, a German engineering company with its expertise in thermal solar plants, was acquired in 2013 and re-named TSK Flagsol Engineering GmbH. The acquisition further displays the company’s drive towards having significant expertise in all the industry sectors they service.

To date, TSK Flagsol has been involved in the construction of 10 plants in countries like Spain, Morocco, Egypt and South Africa, with a combined power of 750MW. Flagsol was involved in the construction of the world’s first parabolic trough power plants in the U.S. in the 1980’s. It is very much focused on the R&D of parabolic trough technology, the newest innovation being the HelioTrough collector – an energy-efficient and more cost effective product than what was previously available.

TSK has actively made strategic decisions in order to stay ahead of the pack and to cement its position within the

TSK Group ever-evolving energy market.

They describe themselves as a “strong international presence in engineering and industrial construction” and have grown to the point of directly employing 750 skilled employees with the specific technical knowledge needed for all their services.

This year, TSK will be working for EDP again in Spain to prolong the life of their coal power stations there. Working in partnership with Mitsubishi Hitachi Power Systems, TSK will be working on the construction of DeNOx systems at two of EDP’s power stations which will not only improve efficiency, but reduce emissions of nitrous oxides by 80%.

“These are very important projects for us”, says Del Valle.

“We are in a joint-venture with Mitsubishi-Hitachi and EDP will be the first company to use a DeNOx system in Spain. It will be valuable for us to reinforce our relationship with a very important company such as Hitachi.”

It is a testament to TSK’s capabilities and the quality of their work that they have consistently worked on highprofile, tailored engineering and industrial construction projects of the last decade, in such a competitive market.

“We are a private company, which gives us more control of course. We have experience in delivering fast-track projects.”

Explains Del Valle: “another important thing to say is that we consider ourselves as an engineering company. Of course we operate within all areas when it comes to our projects – from installation to

operation and maintenance, but we are very committed to the engineering.

“In five years’ time we see ourselves as being one of the most important EPC companies in the market.”

The company plans to further consolidate and expand their operations in the Middle East in the coming years in order to better service the market there and to attract more projects within the oil and gas sector.

Most importantly, perhaps, is the human expertise needed to advance in the fairly young renewables sector, as well as maintaining their business in the more conventional energy

industries. The key to success for TSK lies very much with the knowledge and expertise of its 750 staff.

Santiago Del Valle sums up what has been central to TSK Group’s continued success: “I think the key to success has been how the business was managed. Obviously, the projects and acquisitions, etc. but the CEO, one of our shareholders, and his son is in the business as well, have really progressed the company.

It is a wonderful thing definitely.

The people are the most valuable assets of the company – and that’s the main reason for our success.”

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