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| Bilfinger takes step toward closer networking of its business In order to more intensively network its activities and leverage further synergy potentials, the international engineering and services group Bilfinger will integrate its Subgroup holdings into Bilfinger SE with effect from January 1, 2014. The company will also consolidate existing administrative functions, reduce costs, establish a more efficient management structure and thus secure its competitive position over the long term. Bilfinger will abandon its former Subgroup structure in order to more rapidly achieve synergy effects: The non-operational Subgroup holdings will be merged into Bilfinger SE and operational management will in future be conducted by 14 divisions within the SE. The divisions report directly to the Executive Board. The business segment structure remains unchanged. From financial year 2014, an output volume of about €400 million will be shifted from the Industrial business segment to the Power business segment. The Industrial business segment is divided into six divisions with a combined output volume of €3.6 billion: Industrial Maintenance Insulation, Scaffolding and Painting Oil and Gas Industrial Fabrication and Installation Engineering, Automation and Control Support Services The Power business segment consists of two divisions with an output volume of €1.7 billion: Power Systems Piping Systems The Building and Facility business segment is made up of four divisions with a volume of €2.3 billion: Building Facility Services Real Estate Water Technologies The Construction business segment consists of two divisions with an output volume of €1.1 billion: Construction Infrastructure Extensive centralization of administrative functions The newly-formed divisions are clearly focused on operations. Administrative functions which to date have been situated in Group headquarters and in the Subgroups will be streamlined and merged or organized into Group-wide shared service centers. With these measures, the duplication of efforts will be avoided and heterogeneous structures that have arisen in connection with the intensive acquisition activities of recent years will be standardized. The Group will thus become leaner and more efficient. At the same time, employee identification with Bilfinger increases. Reduction of sales and administrative expenses In addition to a greater level of efficiency in the operational business, the optimized structures, as already announced, will also lead to substantial savings in sales and administrative expenses. Over the next two years, implementation of the measures will result in the elimination of about 1,250 administrative jobs worldwide and, from financial year 2015, will yield annual savings in personnel costs of €80 to €90 million and reduce non-personnel costs by an amount in the low to middle double-digit million range. Bilfinger employs a total of 70,000 people worldwide. write your comments about the article :: © 2013 Construction News :: home page |