GRANIT CONSTRUCTION STOCK CO. was founded as a “company for construction of roads for the requirements of the Socialist Republic of Macedonia” under a government decision of the S.R. Macedonia no. 1235/52 on November 24, 1952. In the following 57 years GRANIT has transformed from a socialist company to a public company by privatization in 1996, growing to become the largest Macedonian civil contractor. In the Yugoslav era GRANIT developed capacities for executing bigger projects and since Macedonia is too small to satisfy GRANIT’s full capacity the solution was to expand and participate in international projects. Today, GRANIT tries to maintain a balance between works execution home and abroad in order to continue to exist as one of the few companies responsible for the infrastructure development in the country as well as excel and gather knowledge from executing works abroad. Men who stand behind the name of GRANIT today, have one wish in common - to preserve all that has been created until now, so that GRANIT can step into the future even more granite-like. CEO Milkovski Straso
who we are
Corporate History 1952 •GRANIT was founded as a company for construction of roads for the requirements of the Socialist Republic of Macedonia 1963 •GRANIT is taking part in the reconstruction after the Skopje earthquake which levels the bigger part of the city to the ground 1969 •First contract abroad and first in the Middle East, Construction of the Homs- Salet highway in Syria 1972 •Takes part in the construction of the Zwentendorf nuclear power plant in Austria 1974 •GRANIT is awarded a contract to build a Kuwaiti military airbase (contract of 162.000.000, 00 USD) which is the first major project abroad 1975 •Takes part in the construction of the Altenwört hydropower plant in Austria 1979 •GRANIT enters the Libyan market constructing highways and streets in Benghazi 1981 •Project 202-B-2 military airfields (249.500.000, 00 USD) in Iraq •GRANIT wins its third biggest contract (93.500.000, 00 USD) in residential building in Maturate, Libya 1987 •Project 1100 - military airfield in Iraq 1989 •Rehabilitation of the Kuwaiti International Airport runway •Construction of a military airbase in Algeria
1993 •GRANIT wins the first project abroad after the collapse of Yugoslavia; construction of Novokuzneck Steel factory, GRANIT’s first project in Russia 1994 •Enters the Bulgarian market: contracts totaling 57.500.000, 00 USD 1996 •GRANIT was transformed into a joint stock company and became the first civil contractor with private capital in the country 1997 •GRANIT starts a Hotel at the Ohrid Lake with initial idea to act as a company retreat for the employees. Later to be opened for the public as well •Rehabilitation of Sarajevo airport •Rehabilitation of Sofia airport 1999 •Enters the Albanian Market - winning four contracts(ca. 60.000.000, 00) in 3 years period 2002 •Gamatroniks DOOEL is established by GRANIT as a subsidiary in order to manage a reinforced mash factory, the biggest cement plant in Skopje as well as a machine workshop part of a led and zinc mine in the Eastern part of Macedonia 2003 •Enters the Croatian market; contracts totaling 62.520.000, 00 EUR •Enters Ukraine market; contracts totaling 135.000.000, 00 EUR 2006 •GRANIT wins the rehabilitation of Pristine Airport, Kosovo 2008 •Project of 145 High school gyms totaling 58.280.000, 00 EUR 2009 •Construction of the State archive, Constitutional court and Archeological museum in Macedonia
Corporate Management GRANIT complies with the European Corporate Governance Code; the two-tier system comprised of the Executive Board that reports on behalf of the Supervisory Board is accustomed.
Shareholders Structure According to the Corporate Governance Code the shareholder’s structure of the 3.071.300, 00 bearer shares issued by GRANIT are displayed:
45% Free float
7% Pension Fund
35% Managemant
13% Share Fund
Organizational Structure
CEO
CEO Cabinet
Chief Operations Officer
International and Marketing Department
Organisational Unit 01 Bitola
Finance Department
Organisational Unit 03 Ohrid
Organisational Unit 09 Skopje
Commercial Department
Organisational Unit 11 Delchevo
Legal Department and Human Resources (&HR)
Organisational Unit Mehanizacija
Organisational Unit Ugostitelstvo
IT Department
Organisational Unit Laboratorija
GRANIT Throughout The World DNK
GRANIT’s first international project was the Homs-Salet road in Syria in 1969. This was the first attempt for GRANIT to work outside of Macedonia and establish itself as an international company. Since then it has been active and executed works in Austria, Kuwait, Libya, Iraq, Algeria, Russia, Bulgaria, Ukraine, Germany, Albania, Croatia, Bosnia and Herzegovina, Serbia and Montenegro. Today, GRANIT has a history as an international construction company with 40 years of experience with diverse cultures, customs and environments.
NLD
BEL
Currently GRANIT is executing works in Ukraine, Croatia, Albania and Kosovo within the scope of its core business, setting a personal record of laying 5000 tones of asphalt in a day in Ukraine, constructing 7 bridges in Albania and rehabilitating the Pristine airport in Kosovo.
CHE
Combining best engineering practices, methods, techniques, designs and ideas from the past and present are what GRANIT is made of. Today GRANIT has grown into a company where teamwork and maximal engagement with the clients is strongly encouraged, using up the whole potential in all of the activities.
ia
Alger
EST
RUS
LAT SWE LIT
BLR
POL
DE
UKR
CZE SVK
AU
SLO
MDA
ROU
HUN
IRAN
HR SRB
BIH
BG MNE
KOS
ITA DONIA
MACE
TUR
ALB
SYRIA
IRAQ
GR
AIT KUW
Libya
Our People GRANIT’s management characterizes employees as ambitious and self-motivated and exercise self-control. Employees at GRANIT enjoy their mental and physical work duties. According to head of HR department, to them work is as natural as play. They possess the ability for creative problem solving, while their talents are maximum utilized in problem solving cases. Given the proper conditions, employees seek out and accept responsibility and exercise self-control and self-direction in accomplishing objectives to which they are committed. We believe that by giving the right conditions, most people will want to perform well at work. The satisfaction of doing a good job is a strong motivation. Our managers are open to a more positive view of workers and the possibilities that emerge. Developing climate of trust with employees that is also required for human resource development is the essential part of our human resource strategy.It’s here through human resource development that is a crucial aspect of our organization. This includes managers communicating openly with subordinates, minimizing the difference between superioremployee relationships, creating a comfortable environment in which employees can develop and use their abilities. This climate includes the sharing of decision making so that employees have a saying in decisions that influence them. GRANIT continues to invest in the constant development of our employees professional and personal skills. We believe that giving our employees more responsibility allows them to grow.
Employee Structure 6% Engineers
13% Administration
81% Workforce
3% Mining engineers 1% Hydro engineers
4% Chemical engineers 1% Trafic engineer
2% Geodetic engineers 13% Mechanical engineers
42% Civil engineers 6% Electrical engineers
28% Architects
Minimizing impact from our activities on the environment is of key importance, ISO 14001:2004 registration is achieved on all of our construction sites and plants. Safety is of outmost importance to both our own and the general public: OHSAS 18001:2007 Quality management and improvement, performance management, measurement of performance are the pillars of our organization. EN ISO 9001:2000 registration is what we take very seriously and work in order to excel.
what we do
Main Activities GRANIT’s core business in both the domestic and international market is roads, bridges and airports construction. While residential, public and administrative as well as industrial buildings are also part of GRANIT’s portfolio, construction of such is only practiced in our domestic market.
Road Construcution Road Construction is the core business field for GRANIT. For 57 years of active operation, GRANIT has constructed over 820 km of highways, 6064 km of roads, excavation and filling in hundreds of millions cubic meters of earth, and building-in several million tons of asphalt. On these constructions, hundreds of kilometers of embankment and thousands of kilometers of drainage systems were reconstructed. GRANIT undertakes projects of different sizes. Skopje ring road, Kiev - Lvov road rehabilitation as well as Macelj - Zagreb - Lipovac highway rehabilitation are some of GRANIT’s most notable projects.
Construction of Skopje - Tetovo motorway, Section Grupchin - Skopje, Macedonia, 1999 - 2002
Construction of Skopje ring road, Macedonia, 2003 - 2009
Construction of interchange Hipodrom, Macedonia, 2005
Reconstruction of Corca - Capshtica motorway Albania, 1999 - 2001
Construction of Kukes - Morine road, Albania, 2006 - 2009
Construction of interchange Veliko Trnovo, Bulgaria, 1998 - 1999
Rehabilitation of M06 Kiev - Chop motorway, Section I, Ukraine, 2002 - 2005
Rehabilitation of Kiev - Chop motorway, Section II, Ukraine, 2005 - 2008
Derevach Kiev - Chop ring road, Ukraine, 2007 - 2008
Reconstruction of Zagreb - Beograd motorway, Section II Ljipovaljani, Croatia, 2004 - 2005
Construction of motorway Rijeka - Zagreb, Section Kikovica - Ostrovica, Croatia, 2006 - 2007
Reconstruction of Zagreb - Sisak motorway, Section Velika Gorica - Bushevac, Croatia, 2007 - 2009
Bridge Construction GRANIT has constructed over 2300 bridges in its existence, both in country and abroad, making the company develop capacities and knowledge in the bridge construction. Parts of the bridges are a concrete reinforced, and part pre-stressed. They are constructed as passageways on highways, roads, streets, railways, as well as passage ways over rivers and urban areas. Construction of three bridges Veliki Svib, Mali Svib and Melnik on the highway Rijeka Zagreb links the capital with the Croatian Riviera. While the construction of one over pass and 7 viaducts with total length of 1400 meters on the Kukes-Morine motorway contributes to the development of the Albanian roads network. Rehabilitation of over 50 bridges in Ukraine is just a part of the rehabilitation of Kiev - Chop motorway. As well recent days the company has been active in country by reconstructing of 54 bridges on E75 motorway that links Macedonia with its north and southern neighbors.
Veliki Svib bridge, Croatia, 2006 - 2007 Construction of three bridges on the highway Rijeka – Zagreb
Viaduct Nr.7, Albania, 2006 - 2009 Construction of one over pass and 7 viaducts on the Kukes - Morine motorway
Viaduct Nr.2, Albania, 2006 - 2009 Construction of one over pass and 7 viaducts on the Kukes - Morine motorway
Rehabilitation of bridge, Macedonia, 2007 - 2008 Rehabilitation of 32 bridges on E75 motorway, Section Skopje - Veles
Bridge Nr. 22, Macedonia, 2008 - 2008 Rehabilitation of 22 bridges on E 75 motorway, Section Demir Kapija - Gevgelija
Construction of Kalimanci bridge, Macedonia, 1995 -1996
Airports construction GRANIT managed to transfer the experience gathered with the construction of airports in Iraq, Bosnia and Herzegovina, Kuwait, Algeria and both main airports in country Skopje and Ohrid. Despite successful experience in construction of airports the company has been involved in reconstruction of the runway, taxiways and aprons on the Skopje and Ohrid airports, as well as on Sofia airport. Nowadays GRANIT plays crucial role in the reconstruction process of Pristine airport by extension of the main runway, building modern taxiway and aprons.
Airport Iraq Rehabilitation of the B-2 military airfields, Iraq, 1981-1981
Airport Kuwait Rehabilitation of the Kuwaiti International Airport runway, Kuwait 1989 – 1989
Airport Ohrid Rehabilitation of Ohrid airport, Macedonia 1990 – 1990
Airpot Skopje
Reconstruction of Skopje airport, Macedonia 1993 – 1993
Airport Saraevo
Rehabilitation of Sarajevo Airport, Bosnia and Herzegovina 1997- 1997
Airport Pristine
Rehabilitation of Pristine airport, Kosovo 2006 – 2008
Hydro Construction For a half a century of our existence GRANIT has built many hydro technical structures of all kinds in Macedonia: Concrete dams, embankments for river control, irrigation system and water supply system. The company is proud of continuous contribution into the building and development of the national electric power system. GRANIT took part in the construction of Kozjak hydropower plant with capacity of 100MWh. Concrete dam Sveta Petka not far from the capital enables production of additional 27,66MWh that is enough to satisfy the capital household needs and some part of the capitals industry. Knezevo earth-rock dam with its 1.7mil m3 of embankments will contribute additional 22.5mil m3 useful water accumulation to the hydro system Zletovica.
Ratevska reka dam, Macedonia, 1972-1972
Sv. Petka dam, Macedonia (in construction)
Knezevo dam, Macedonia (in construction)
Building Construction Although GRANIT is specialized in road construction, we can proudly say that our company is the leading company in our country for residential and commercial building construction. In the last 20 year GRANIT has built 84 public and private schools, 307 industrial buildings and 653 commercial buildings. The building construction projects such as the State archive, Constitutional court and Archeological museum in Macedonia and the project for construction of 145 elementary and secondary school gyms are part of GRANIT’s portfolio.
Macedonian telecomunications headquarters, Macedonia, 2000 - 2001
Customs Headquarters, Macedonia, 2003 - 2004
Honda show room, Macedonia, 2008 - 2009
Plants and production facilities GRANIT’s strategy is to be economically independent and self-sufficient for most of its basic resources therefore securing resources such as rock, concrete and asphalt is of outmost importance.
Plants GRANIT operates 24 concrete plants with capacity from 15 m3/h to 180m3/h, and 12 asphalt plants with capacity from 40 t/h to 320 t/h. Quarries GRANIT has a concession on 14 stone quarries for production of crushed stone fraction, controlling approximately 78 Million tons of permitted aggregated reserves in the country.
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The annual aggregated production for 2008 was approx. 650.000 tons, 2007 was approximately 270 000 tons, for 2006 was approximately 700 000 tons. Production facilities GRANIT owns manufacturing and maintenance plants and production factories located throughout the whole country: • Production of separated natural sand and gravel. • Production of wood construction elements. • Reinforcement mesh factory. • Finishing and craftsmen works. • Construction equipment maintenance and repairs plant. • Production of bricks and roof tiles.
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• Exploitation of marble and production of marble tiles. • Exploitation and production of elements from natural clay.
Photo 1 Concrete plant, capacity 180m3/h Photo 2 Asphalt plant, capacity 320t/h Photo 3 Asphalt plant, capacity 155t/h Photo 4 Quarry Brazda
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Photo 5 Reinforcement mesh factory
Machinery Logistics and equipment are one of the key assets of GRANIT. GRANIT’s Mechanical department counts 600 employees who operate and perform maintenance on the machinery. GRANIT’s machinery and equipment park accounts for 599 pieces of construction machinery and 22 cranes.
Short Financial Overview Revenues abroad and in country for last 5 years
10.000,00 0,00
2004
2005
2006
2007
53.600,00
55.647,00
60.179,61
49.511,39
20.000,00
60.505,54
30.000,00
41.505,46
40.000,00
48.467,97
50.000,00
69.121,29
60.000,00
63.815,03
70.000,00
58.33 6,71
in thousĐ°nd EUR
80.000,00
abroad In country
2008
Consolidate revenue and distributed profit in last 5 years
6.417,00
109.248,00
109.691,00
5.688,00
20.000
4.366,00
40.000
102.008,00
60.000
3.742,00
80.000
112.284,00
100.000
2.240,00
120.000
127.458,00
in thousĐ°nd EUR
140.000
0
2004
2005
2006
2007
2008
revenues distributed profit
Average distributed profit per employee in last 5 years
3,01 2,67
2,5
1,32
1,5 1 0,5 0
1,73
2
distributed profit per employee
0,77
in thousĐ°nd EUR
3
2004
2005
2006
2007
2008
Working abroad in 2008
13,02% Albania
7,61% Kosovo 43,32% Ukraine
Ukraine Croatia Kosovo Albania
36,04% Croatia As a % of Abroad Revenue 2008
GRANIT CONSTRUCTION STOCK CO. Dimitrie Cupovski 8, 1000 Skopje, Macedonia tel +389 2 3218 700 | granit@granit.com.mk | www.granit.com.mk