THE BIRTH OF A GLOBAL GROUP 1985–2015 ACKNOWLEDGEMENTS

This is a story driven by passion.

In invoking these thirty years, each a milestone in the development of the constantly evolving group, I sincerely thank the reader for taking the time to look through this anniversary overview of the Altrad Group, which has always moved with the times and demonstrated its ability to anticipate the future.

I would also like to express my gratitude to everybody from the past and present who have helped the company become what it is today.

I know their abilities, I know how the “Group” spirit lives within them, and I commend their dedication.

Mohed Altrad, CEO

© Actes Sud, 2015 Creation: www.homework.fr - Photos: B. Azorin - L. Carte - Denisismagilov, Fotolia - DR - EY - R. Spang - Arnholdt - Altrad Balliauw - Altrad Benelux - Altrad Fort - Altrad Italia Altrad Mefran - Altrad Mostostal - Altrad Plettac France / P. Tournaire - Altrad Poland - Altrad Saint Denis - Beaver84 - Belle Group - Generation (UK) Ltd / C. Watson Hertel - Hofmaninger - Irbal - Jalmat - Mefran Collectivités - NSG - Plettac Assco - Plettac Iberica - Samia Devianne - Soframat - TRAD Group / www.acw.uk.com J.-L. Gaidon, Winelia - Editorial collaboration: Pierre Blondeau - Translation: Jonathan Sly - Copy editing: Bronwyn Mahoney … what constitutes the dignity of a craft is that it creates a fellowship, that it binds men together and fashions for them a common language. For there is but one veritable problem – the problem of human relations.

We forget that there is no hope of joy except in human relations. If I summon up those memories that have left with me an enduring savour, if I draw up the balance sheet of the hours in my life that have truly counted, surely I find only those that no wealth could have procured.

Antoine de Saint-Exupéry

The future belongs to those who believe in the beauty of their dreams

Eleanor Roosevelt CONTENTS

PREFACE: THE PSYCHOLOGY OF BUILDING ...... 011

THE ALTRAD STORY: 30 YEARS

THE CREATION OF THE GROUP ...... 014

In figures ...... 018

In dates ...... 022

THE GROUP GOES INTERNATIONAL ...... 048

YEARS OF CHANGE 2009–2014 ...... 076

OPENING THE WORLD 2015 ...... 101

POSTFACE: ANOTHER PATH ...... 105 PREFACE

THE PSYCHOLOGY OF BUILDING

uilding a business is a unique experience. A direction began to appear, an outline. Many images may be used to explain it, We had the momentum, a course of action: Bbut the one that appeals to me is that of acquisition, stabilization, synergy, growth. creating an artwork. These were the cornerstones, foundations in Obviously a company does not develop in the search of a structure, a future. This future took same way as a book is written or as marble shape through adversity, the fruit of accretion; is sculpted. But if such a venture does not it was a structure composed block-by-block, years seek immediate profit, the similarities with which then spread internationally, beginning art begin to show. Both are long struggles with Europe. All the while we constantly ans involving deep commitment and great pride strove to enhance internal organization and as the work takes form: each innovation consolidate this diversity. reinforces the edifice, each growth sees it rise. Thus the outline took on substance, We see the life force that flows from the and the work it harboured became consolidation, coordination and solid effort the Group we know today. As of all the men and women involved. We it took form, its characteristics must guide the work, support its progression became more defined, directing and toward maturity. organizing itself without conscious This is how, over the years, the Altrad Group input. It was no longer a cluster of has appeared to me. fellow travellers; it now employed Initially, I confess, I had no definite plan. Of over a thousand people. While it was course, I was driven by an ambition to do less dependent on one man’s will, its “something”, or I never would have awoken foundations became more solid, its my inner-entrepreneur. energy more dynamic. But in acquiring my first company, in Florensac in 1985, I had no desire to found an international group on it. I just wanted to help it on its way and let it grow. The adventure appealed to me, a challenge for both myself and the people in the factory now dependent on me. Years passed and Florensac took on other plants; each time I used the same approach, and went through the same processes as at the beginning. The risks I had taken then could be repeated elsewhere and a pattern soon emerged: rather than acquire for the sake of acquisition, I had to find coherence. Not only did new acquisitions have to operate in the same sector, they also had to be complementary and be able to work together. THE PSYCHOLOGY OF BUILDING PREFACE

The moment finally came when I became simply as moneymaking machines; they also Not only is passion beneficial for companies aware of the autonomy of the work I had merit consideration as works in themselves. because people with a passion for what they fashioned; I couldn’t say however when Companies have a social role to play in the do will always seek to surpass themselves, but this change took place, as it happened regions where they operate. They help people it also benefits the men and women living so gradually. set down roots, hence the importance of it. Any imbalance appears surmountable, Today, in any event, an important stage respecting different cultures within our Group. reinforcing rather than harming competition. has been reached. The Group now seems Such ambitions can only take form if those A company can only be viable and develop sufficiently solid to take care of itself. As responsible feel a passion for their business in a sustainable way if, beyond their basic surprising as this seems, it is also a source of and the work they create. If a business can duties, employees find sufficient resources to secret satisfaction. Many sacrifices have been be compared to an artwork it is thanks to develop their own passion. necessary over the last thirty years, which the collective input of all involved. And here have been justified in the results. passion takes on a special significance. No one Mohed Altrad, CEO The future is never guaranteed. Autonomy is can ignore the imbalance created between a no promise of longevity; the latter depends business’s structure, in the abstract sense, and on constant daily endeavour. But the simple its personnel. knowledge of the Group’s maturity now Productivity must be encouraged constantly, makes me confident for the future. to create a competitive structure so that the business can live and survive. While * competition is vital, it is a mistake to impose it unilaterally. Talk of “passion” may seem unusual. Imposing anything is never profitable or In the last few decades, the “machinery that worthwhile. Such an attitude is an error of breaks men” has gradually given way to a new, judgement. We end up believing that it is more complex concept of interdependency, beneficial to impose constraints, challenges which has blurred boundaries. Obviously and ambitious objectives in order to bring out profit remains the vital requirement for a the best in people. company; the intensity of competition is a We forget however that people who arrive sufficient reminder of this. It is not, however, at their destinations draw their force from the only horizon and the economy ensures personal motivation: interest, vanity, individual that this vision is constantly changing. satisfaction, ambition or … passion. Of all Once passion was frowned upon. To moralists motivations, passion is the most noble and it meant limitation. Those enslaved to a most sustainable. But it contains something passion, whatever its nature, were incapable more: a person living their passion is elevated of reasoning and ready to sacrifice even their by it. own existence. Thus passion had no place Interest and ambition are not concerned by in economics, a world based, above all, on the task at hand. They are but private vices rational calculation. that are profitable to businesses according The relationship to passion has developed to Mandeville’s phrase, “private vices, public more positive connotations in the collective virtues”; indulgence in them however consciousness, especially when it finds fulfilment improves no one. People who feel passion in a work. Hence we now talk of passion in also feel a bond with their work. The further terms of artistic or political commitment. their work progresses, the more people It is time to integrate passion into our idea of mature. Their success is their own and their companies. They should no longer be viewed personal success is reflected in the work.

12 13 THE ALTRAD STORY

THE CREATION OF THE GROUP

1985–1996

ur story begins in a village in the following years, with one or two acquisitions Hérault region of France, where a small per year. Rather than obeying some Oconstruction business was struggling preconceived master plan, each acquisition for survival in a sector in the throes of crisis. represented a fresh opportunity. Each had its Mohed Altrad knew nothing of the sector, and own story, requiring personal attention and even less about manufacturing scaffolding. special treatment, and each found its own Welcome to Florensac! For a man from the place in his heart. Mefran, Socform, Mib, Mag, world of IT and miniaturisation, the discovery Etem, Sodetub, Ateliers de Saint-Denis and the of steel processing plants was a culture shock. many others that followed, are not just names Their presses, forming tools, acid baths. A on a list. They are individuals, each with their world of pure force that he would have to own personalities. They are members of a appropriate if he were to master it. He did family, our family, better known today as the better: he learned to love the building trade, “Altrad Group”. until it became his true passion. Opportunity became a strategy for external conquest, as intuition and swift decision- In the presence of an entrepreneur who making metamorphosed into a solid, structured respected their culture, his new partners felt process of acquisition and integration. Quality fresh hope. Mohed Altrad immediately set out in management was just as important as the to restructure the company without changing acquired company’s balance sheets, fostering its foundations. Structural costs were re- the development that we know and that we evaluated and resources decentralised, now see to be relevant and efficient. thus enabling enhanced availability, client Today the development of industrial groups proximity, operational control of construction, no longer obeys the law of the survival of the rigorous budgetary monitoring and financial fittest; what counts is a productive mindset. stabilisation. These became the cornerstones This is the culture and spirit of Altrad, of Altrad management. Mefran became amongst which our most important values are a laboratory where the future Group subsidiarity and entrepreneurial autonomy, successfully drew up its blueprint for acquiring risk management and encouraging risk and integrating companies. taking, which allow better adaptation to The following year a growth opportunity arose the world . through the purchase of another regional Altrad’s takeover model was so effective that company’s assets and the creation of a in the first five years it not only developed its subsidiary in Italy. This pattern continued in the scaffolding division, but also diversified into

15 THE CREATION OF THE GROUP THE ALTRAD STORY

the sale and manufacture of cement mixers Audacity and courage carried the Altrad and other similar machines, which it now project. Courage is the art of starting and dominates as world leader. Mohed Altrad restarting; it manifests itself, mainly, through then took two key decisions that were perseverance. crucial for the future: the acquisition of two Courage is not the absence of fear; it is the service companies and the expansion of the ability of a subject to confront fear, to master customer base, notably the creation of the it and overcome it. Being courageous implies local authorities division, Collectivités. acknowledging there is a danger, whether The 1990s began with a deep financial crisis. physical, social, emotional, economic or Demand declined, recession hit home: it was financial. Courage implies conquering the a difficult period, during which the human self; it takes us beyond some hindrance within factor predominated. A company must, by the self, born of fear. definition, be profitable – it is the minimal For the Altrad Group, courage is also condition for survival. But profit is made synonymous with selflessness, altruism through and for the men and women working and generosity. for the company. Without these people, Despite its unique structure and organisation, profit does not exist. Human concerns were, the company is part of the vast global economic therefore, Mohed Altrad’s priority. system, and is therefore vulnerable to crises, This is how the family of companies managed emergencies, uncertainty, and internal and to overcome this critical phase, and was external dangers that threaten its very existence, able to, in 1993, ahead of others, resume its development and its balance. To confront its development, acquiring struggling these vulnerabilities, the Altrad Group has companies. Anticipation, awareness of shown exemplary courage and determination opportunities and responsiveness were the both individually and collectively. cornerstones of this success. Managerial courage has ten different criteria: Effective management during this first recession the ability to confront reality, trust others, enabled the Group to sustainably integrate diverge from those incapable of success, the ideas that would become its strength: challenge the status quo, test limits, live and operational efficiency, fair value, limitation promote your own values, make decisions, of structural costs and rigorous budgetary tell the truth, take calculated risks, and to management. be yourself. The ensuing years reinforced the structure Managerial courage is in the making of and enabled Altrad to invest in acquisitions decisions: what makes a decision difficult is of companies working with local authorities, the fear of its consequences. while diversifying into the props and Thus managerial courage is in the will and shoring sector. The constant quest for ability of a director or manager to appraise synergies and rationalization helped the the repercussions of their decisions, choices, years Group master better than anyone else its actions or non-actions. ans development resources and to become, The Altrad Group strives constantly to create through self-financing, the French leader the conditions in which courage can be in the manufacture of equipment for the expressed, so that it can spread, through construction industry. Its regional dimension the development of a culture of courage. It gave way to a national company, with a is this culture that has enabled the Group solidly built network. to flourish.

16 17 IN FIGURES

1985 17 MILLION EUROS TURNOVER

260 EMPLOYEES France France

Italie Italy

18 19 IN FIGURES

Pays-Bas Belgique The Netherlands Belgium

2015 Allemagne France Germany France 1.8 BILLION EUROS TURNOVER Pologne Grande-Bretagne Poland 17,000 EMPLOYEES Autriche Great Britain Austria

Hongrie Hungary

Roumanie Romania Ireland Irlande

Azerbaijan Azerbaijan

China Chine

Thailand United states Thaïlande États-Unis Vietnam Vietnam

Malaysia Malaisie Bahrain Bahreïn Singapore Portugal Singapour Portugal

Qatar Oman Australia Qatar Oman Australie Spain United Arab Emirates Espagne Italy Saudi Arabia Emirats arabes unis Italie Arabie saoudite Slovenia Croatia Slovénie Croatie

Tunisia Tunisie

20 21 IN DATES

2001 • Creation: Altrad Groupe Logistics, THIRTY YEARS OF Altrad Dis, Altrad International ...... 060 2002 • Acquisition: Baumann-Mostostal 48% ...... 062 PASSION AND GROWTH • Creation: Altrad Baumann, Altrad Baromix 2003 • Acquisition: Arnholdt ...... 064 2004 • Creation: Altrad Plettac Assco, Altrad Plettac Production, Altrad Elévation, Altrad Plettac France, Altrad Plettac Iberica, Altrad Havico, Altrad Liv ...... 066 • Acquisition: Mefran ...... 024 2005 • Acquisition: Famea ECA, Vedif, Fort, Fort Canada, 1985 • Creation: Mefran Italia Altrad Alucon, Baumann-Mostostal 52%...... 068 1986 • Acquisition: Socform ...... 026 • Creation: Altrad Richard Fraisse, Altrad Industrie, 1987 • Acquisition: Mib, Mag ...... 028 Altrad Financement, Altrad Color Evolution • Creation: Mefran Collectivités 2006 • Acquisition: Vabor, Balliauw, Faradit ...... 070 1988 • Acquisition: Etem, Sodetub ...... 030 • Creation: Altrad Asia, Shandong Altrad 1989 • Acquisition: Ateliers de Saint-Denis, Zhongyuan Trade co, Altrad Cédria brands: Vito, Océane, LB, Richier Béton ...... 032 2007 • Acquisition: Guy Noël, Roederer Distribution Solutions ...... 072 1990 • Merger: Ateliers de Saint-Denis with Socform, Mag with Mib ...... 034 2008 • Creation: Altrad Comatex ...... 074 1991 • Merger: Etem with Sodetub ...... 036 2009 • Acquisition: Belle Group ...... 080 1992 2010 • Acquisition: Limex ...... 082 1993 • Acquisition: Michel Frères ...... 040 2011 • Acquisition: Agrimotor, Rodisola, AnD, Beaver 84, NSG ...... 084 1994 • Acquisition: Anjoumétal ...... 042 • Partnership: Montpellier Hérault Rugby 1995 • Acquisition: Samia, Soframat ...... 044 2012 • Acquisition: Generation, Poujaud, Jalmat, Hofmaninger, 1996 • Acquisition: Devianne Duquesnoy ...... 046 Bragagnolo, Atika, Servindustria, MTD, Socacen, Camac, 1997 • Acquisition: Lescha Maschinenfabrik, Bada, Eurotol, Europea ...... 052 Garrone, Comi Service...... 086 • Merger: Soframat with Etem 2013 • Acquisition: Spectra, Trad...... 090 1998 • Acquisition: Rennepont ...... 054 2014 • Acquisition: Star Events, Profix...... 092 1999 • Acquisition: Lérin, Sacem, Conmix’s clientele and Semme ...... 056 • Award: EY French Entreprise of the Year • Creation: Altrad Collectivités • Acquisition: Dessa, Hertel...... 094 • Merger: Samia and Devianne Duquesnoy’s sales forces • Award :EY World Entrepreneur of the year 2000 • Acquisition: Spomasz ...... 058 2015 • Creation: Altrad Tunisia • Merger: Altrad Holding with Altrad Développement

22 23 > 1985

ACQUISITION CREATION 1985 Mefran Mefran Italia

In July 1985, following liquidation, Mefran After this first acquisition, Mefran Entreprise WORLD Entreprise buys out Mefran’s assets: introduces unique management and Mikhail Gorbachev begins perestroika the majority of its staff, its brands and restructuring methods. The subsequent (restructuring) and glasnost (transparency), putting an end to the arms race with subsidiaries, production tools and stocks. history of acquisitions and equity the USA. Created in the 1950s, Mefran was a healthy investments proves this policy to be both The Jordanian-Palestinian agreement, the regional company. Despite public subsidies, consistent and judicious. The acquisition Amman Accord, is signed and quickly a downturn in the construction sector made of Mefran Italia’s equity foreshadows the undermined by a series of attacks, including it vulnerable. Group’s international vision. the hijacking of the Italian cruise liner, the Payment for Mefran (F4M/€0.6M) is staggered Achille Lauro. over four years. Banks and public authorities * Garry Kasparov becomes world chess show little faith in such entrepreneurial risk. champion. A sales force is developed: 65 exclusive “I’m a recent recruit so I’m unaffected and commissioned sales representatives by the company’s history. The fresh hope EUROPE visit a scattered clientele of 100,000 that motivates the employees is due to Spain and Portugal join the EEC. tradesmen and SMEs with ambitious both the resources the entrepreneur has The first Schengen Agreement is signed objectives: 7 visits and 3 new clients per provided and to the respect he has for between Germany, Belgium, France, day. A debt recovery company, CCA, our culture. Structural costs have been Luxembourg and the Netherlands. formed in December 1985, provides back reviewed and operational control has up for Mefran Entreprise’s strategy. been prioritised – budgeting, rigour FRANCE and financial stability (payments were Bernard Hinault wins his fifth Tour de a chronic problem for Mefran). A more France, the last Tour de France to be won grassroots approach has replaced the by a Frenchman. The competition becomes company’s centralised sales division more international. (which was divided into five sections).” An Anglo-French consortium is created to build the Channel Tunnel.

The bombing of the Rainbow Warrior (Greenpeace – Auckland harbour) by French secret services shocks the international community.

A FULL RANGE OF INNOVATIVE PRODUCTS AND SERVICES FOR OUR CLIENTS AROUND THE WORLD

24 25 > 1986

ACQUISITION 1986 Socform

The Mefran Group develops an excellent The acquisition of a new form of distribution WORLD reputation thanks to its robust materials and by resellers lays the foundations for the The nuclear accident in Chernobyl signals high-quality products featuring innovations Altrad Group. This distribution mode is the dire state of the Soviet economy. introduced by its research units. It’s maxim: better adapted to foreign markets and The Challenger space shuttle explodes safety and productivity. promises good prospects for growth. shortly after take-off. Mefran Entreprise becomes market leader The diverse distribution system (direct sales The price of oil falls below 10 dollars a in tubular scaffolding and expands in and retailers) requires compliance with strict barrel: Saudi Arabia’s production surplus three areas: the creation of scaffolding marketing rules based on differentiation in (the Oil Glut) stimulates economic growth. complements, broadening its client base brands, product characteristics, price and to industry and local authorities, and various distribution networks. EUROPE penetration into large urban markets. In late 1986 the creation of a holding company With Spain and Portugal’s inclusion, the EEC Following this trend, the takeover of helps consolidate the Group’s structure now has 12 members. Socform brings new perspectives, a broader following Mohed Altrad’s acquisitions of The Single European Act is signed, revising range of products and a production facility equity in different companies, including the Treaty of Rome of 1957. that is swiftly assimilated into the Group. Mefran Suisse. The new skills enrich Mefran Entreprise. FRANCE Production facilities are based solely in the A vast privatisation programme is south of France. undertaken, bringing the French treasury 100 billion francs through public share offers. Public banks (Société Générale, Paribas, Banque du Bâtiment et des Travaux Publics) and large construction companies (Saint-Gobain) are key sectors to be sold off.

The share offers attract nearly 20 million households.

A STRATEGY FOR EXTERNAL CONQUEST ALLIED WITH CONSTANT RESEARCH FOR SYNERGIES AND RATIONALISATIONS WITHIN THE GROUP: THE KEY TO DEVELOPMENT OF A WORLD LEADER

26 27 > 1987

ACQUISITION CREATION 1987 Mib, Mag Mefran Collectivités

The policy of customer-base diversification, Mib’s own production unit is closed down. WORLD begun in 1986, is consolidated with the The Altrad Group creates a sales company The Earth’s population reaches 5 billion. creation of Mefran Collectivités, a structure employing Mib personnel and signs an The uprising by Palestinian youth against that successfully targets France’s 35,000 outsourcing contract with the creator of the Israeli army in the Gaza Strip marks the French local authorities, while boosting the Mib for production. beginning of the Intifada. workforces in factories. The Group now has a national sales network Efficient production, coupled with Mefran’s with Socform in the south, Mag in the Paris EUROPE distribution network enable swift supply region and Mib in the Rhône-Alpes. The Hungarian economy is radically of traffic barriers and podiums for public Encouraged by the prospect of the larger restructured. The relative political and events. Immediate profitability enables the European market and the other major economic liberalisation opens up trade relations with the West. business to grow rapidly. group’s diversification policies, Altrad The takeover of the companies Mag and begins diversifying its activities and testing The Airbus A320 makes its maiden flight. then Mib are strategic, strengthening the its limits. With over 400 pre-orders, and 10,000 to come, the Airbus becomes the world’s Group through resellers and providing second-best-selling aircraft after the nationwide coverage through offices across With promising profit forecasts for all Boeing 737. the country. Mag has no production facility. companies and improved turnover across the

Like Mefran Collectivités, the Mag takeover board, the prospects for 1988 look good. FRANCE strengthens factory workforces and expands The opening of Futuroscope, “the park of the Group’s product range, introducing the Future”, a space dedicated to teaching, shoring props and trestles to the same research and leisure in Poitiers. Despite clientele. In parallel, Mib’s light scaffolding its location, the park goes on to become France’s second park in terms of turnover, range develops Mefran’s offer for artisans behind Disneyland Paris. (painters and decorators). Affected by events on Wall Street, the Paris stock exchange experiences two Black Mondays in October, stirring memories of the 1929 crash.

Birth of a major group in the luxury industry: LVMH.

INNOVATIVE SOLUTIONS FOR OUR CLIENTS

28 29 > 1988

ACQUISITION 1988 Etem, Sodetub

The policy of external growth continues Internal structures are further consolidated WORLD through the acquisition of Etem and of via the implementation of budgetary controls The Japanese economy experiences massive Sodetub, considerably reinforcing the and the rationalisation of production sites. growth driven by exports and domestic demand. Group and its catalogue. The Altrad Group thus lays down solid Etem produces support structures for large- foundations for the difficult years ahead: The international markets see the launch of scale construction projects (scaffolding, strict budgetary control, development of the first Russian loan since 1917. shoring towers) from the Lot-et-Garonne hire activities (which are more resilient than The UN creates the Intergovernmental Panel region and offers extensive experience in production activities), and the creation on Climate Change (IPCC) to study global warming. working with major construction companies of strong synergies in production on the (Bouygues, Eiffage, etc.) as well as experience Mefran Entreprise and Etem sites. Following the Armenian Earthquake (25,000 dead), the UN adopts the principle: with major international projects. The nature “Humanitarian assistance to the victims of its clientele means it has a strong technical * of natural disasters and similar emergency sales force. In addition, Etem leases its situations”. scaffolding in France. “We only take over companies that know Sodetub is a scaffolding hire business covering how to do things and do them well, but that EUROPE the Parisian market. Its professionalism in lack, for various reasons, the commercial A cooperation agreement is signed between assembly and disassembly bring significant dynamism or financial and technical the EEC and the member states of the Gulf added value to the Group’s hire activities, resources needed today. Every business that Cooperation Council. enabling it to provide a full range of joins us retains its characteristics and skills, At the Luxembourg Summit, EEC Finance scaffolding offers. and we work to enhance its qualities.” ministers decide to liberalise capital This swift growth is assisted by the input of movements. major capital investors, BNP and Paribas, to a total of 4%. FRANCE The reputation of these key partners and The Paris stock exchange is reformed and the importance of their business network the previous management company is ensure solid support for the Group and the dissolved, a measure driven by the need to compete with exchanges worldwide possibility of high-quality recourse. A new welfare allowance, the RMI, is created to combat rampant unemployment, financed by a new solidarity tax on wealth (ISF).

WORLD LEADER ACROSS ALL OUR TRADES

30 31 > 1989

ACQUISITION Ateliers de Saint-Denis, brands: 1989 Vito, Océane, LB, Richier Béton

The multi-sector diversification of previous Streamlining manufacturing becomes a WORLD years is refocused on similar fields and priority, requiring modernisation of plants The signing of the Canada-United States synergies at the heart of the Group’s activity. and optimal stock management. Free Trade Agreement lifts customs restrictions between the two countries. The process continues with the acquisition As its scaffolding and accessories divisions of the Ateliers de Saint-Denis (Vito, Oceane, are already covered by other subsidiaries, An extensive plan to clean up the US banking sector brings back memories of Loire Betonnière), the French leader in Ateliers de Saint-Denis now begins to 1933 and the New Deal. cement mixers. produce only cement mixers. Ateliers de Saint-Denis consolidates the Solutions are tried as and when needed, The Voyager 2 probe flies over Neptune, the last planet of the solar system. Group’s position through its sales network, and such difficulties provide the Group with which provides access to individual considerable experience for devising and The Exxon Valdez oil spill brings ecological catastrophe to the coast of Canada. customers via major retailers (Castorama, implementing the efficient management Mr. Bricolage, Point.P, Gedimat, etc.) practices now in operation. An unidentified protester blocks the As the Group’s diversity reaches a new level, progress of a column of tanks in China’s Tiananmen Square. it is also confronted by past difficulties. Everything must be reconsidered. Efforts The Dalai Lama, Tenzin Gyatso, wins the Nobel Peace Prize. are made to ensure coherence throughout the Group’s operations, specifying each company’s mission, reorganising sales teams, EUROPE restructuring ranges and production sites, The fall of the Berlin Wall leads to the fall of and updating management structures. the USSR. The liberation movement spreads rapidly in Eastern Europe.

FRANCE A property bubble develops as the price per metre square doubles in four years.

The successive inaugurations of the Grand Louvre, the Louvre Pyramid and the Opéra Bastille put Paris in the spotlight. Michelin becomes world’s number one tyre.

AN AGILE MANAGEMENT STRUCTURE RELIANT ON INDEPENDANT SUBSIDIARIES EQUALS A STRONG ENTREPREUNERIAL CULTURE

32 33 > 1990

MERGER Ateliers de Saint-Denis with Socform 1990 Mag with Mib

The year sees the clarification of activities The social impact of these changes WORLD around four distinct structures: direct sales, (downsizing) is treated ethically. Nelson Mandela is freed: it is the symbolic sales via specialist distributor networks, end of apartheid in South Africa. Mandela continues negotiations (held in secret since materials for local authorities and hire The Altrad Group is obliged to regularly 1984) with F. W. de Klerk and the apartheid activities. make adjustments and rationalizations, to government.

A targeted use of brands is implemented. best deal with the years to come. A large Iraqi forces invade Kuwait. The United Each brand has its own range, adapted for drop in planning permissions and building States launches Operation Desert Shield. its own clientele. A new range of cement projects marked the late 1980s . Troops, tanks and combat aircraft are sent mixers is designed for DIY retailers: basic, to Saudi Arabia. light, multicoloured models. Internal and external growth are two parts Altrad refocuses operations onto clients, of the same whole. EUROPE while restructuring production facilities and The Group sets out to create hubs of activity With the reunification of Germany, West their management entities. around companies with their own distinct Germany absorbs East. The total bill for the Ateliers de Saint-Denis merges with appeal. In order to succeed, the Altrad Group integration of the planned economy into a free market economy comes to DM1,000 Socform, Mag and Mib, leading to major focuses on both external development – billion. industrial investments, like Vito’s rapid- increasing market share and diversifying In England, the reform of local rates, colour change paint line. its ranges – and internal development, via known as the Poll Tax, brings the demise of The Socform and Etem factories are stimulation of its subsidiaries’ untapped Margaret Thatcher, author of the restoration transferred to Mefran. At the Socform potential. of liberalism in the UK. factory the building of certain machines is taken over by an association encouraging FRANCE social integration through employment. As French welfare expands, a new social charge is levied to help finance it (CSG), applying to all income groups, whether wage earners or otherwise.

Violent rioting breaks out on French suburban housing estates, a sign of a chronic malaise among immigrants.

A number of major rivals in various sectors merge:

- the airline companies Air France, UTA and Air Inter;

- the water providers: Lyonnaise des Eaux and Dumez.

LONG-TERM DEVELOPMENT IN A COMPLEX ENVIRONMENT: ECONOMIC CYCLES AND COMPETITIVE LANDSCAPES

34 35 > 1991

MERGER 1991 Etem with Sodetub

The Altrad Group’s restructuring continues. The new company struggles to find a WORLD Its nascent services division is proving scaffolding range suitable for its hire and The first Gulf War enables the evacuation unprofitable, despite the Group’s close services activities. The national context does of Kuwait. attention and its huge potential for not help: clients prefer buying products Operation Desert Storm neutralises the development. rather than hiring them. The construction Iraqi army and brings the coalition swift victory. Questions are posed about its After close appraisal, the buyout of industry is in crisis, with a large reduction in real effectiveness. Sodetub and Etem’s services operations construction projects. help the Altrad Group rethink its national Etem’s sales activity, which has transferred Mount Pinatubo volcano erupts bringing global consequences; temperatures around presence: scaffolding yards, hire agencies, to Mefran, retains its brand and product the world cool by an average of 0.6°C over management methods, etc. range. the next three years. Three services agencies are created in southern and western France (Venelle and The Altrad Group rightfully begins to take EUROPE Bordeaux, respectively) as well as in Paris. a more prominent place on the French The USSR and Yugoslavia break up The development of this activity is made economic landscape. Its fundamentals, following demands for independence from more difficult by the absence of financial however, remain fragile in a lacklustre their constituents. resources and experience. environment. The creation of the EBRD will help reform The merger of two companies proves to the economy of the former Eastern-bloc be a culture shock. Sodetub is a small-scale countries. family-owned company, poorly organised, with few procedures and methods. Etem is FRANCE still suffering from the loss of its production Edith Cresson becomes the first female plant and its commercial network, recently prime minister of France. transferred to Mefran. And now its services CGE becomes Alcatel-Alsthom. division is to merge with Sodetub! A bill is passed to tackle alcoholism and cigarette addiction, prohibiting smoking in public buildings and controlling advertising.

WORLDWIDE DEVELOPMENT: LESS VULNERABILITY TO LOCAL ECONOMIC FACTORS, DEPLOYMENT IN HIGH-GROWTH ZONES; MONITORING OF GLOBAL CLIENTS, SOURCING, CONTROLLED PRODUCTION COSTS

36 37 > 1992 1992

The financial crisis, which began in 1990, This is the first recession the young Altrad WORLD hits France. The construction sector, the Group negotiates and the experience helps 117 heads of state and government leaders Altrad Group’s main operating area, is develop its resistance, making it more meet in Rio de Janeiro for Earth Summit to define three areas for sustainable deeply affected. 1992 sees a drop in robust. It is a steep yet necessary learning development: the environment, society and turnover of around 30%. curve for all involved, to aid the Group’s the economy.

Banks are reluctant to invest, despite the survival and its long-term development. China officially opens to a “socialist market Group’s stable finances. Financial institutions Operational efficiency, value assessment, economy”. shun the Altrad Group and borrowing tight budget management and cost The disintegration of Yugoslavia gives way becomes practically impossible. limitations become the company’s new to wars in Croatia and Bosnia-Herzegovina. The Group’s debts have been cut by half cornerstones. Dubrovnik, a UNESCO heritage city, is since the 1989/90 financial year, without The Altrad Group’s ability to anticipate destroyed. The city is defiant; its slogan: any further borrowing. The share of working prepares it for the challenges to come. “Liberty is not sold for all the gold in the world.” capital (WC) is reduced by almost 40% over the same period. * The second round of the Algerian legislative elections is cancelled to avoid the possible Financial management requires extra victory of the Islamic Salvation Front. The vigilance and careful deployment in order to “To anticipate any further downturn in military takes power. resize the Group. activity, we took advantage of the 1992/93 Priorities are re-evaluated. The Group is financial year to lower the company’s break- EUROPE forced to lay off a third of its workforce and even point, taking stock of all areas in all The Maastricht Treaty is ratified by reduce stocks by 30%. Investments come to our companies. referendum after heated discussions in a halt. We lowered the break-even point by over various states.

11 million francs, i.e. roughly 4% of the The Common Agricultural Policy is reformed Group’s consolidated turnover.” to adapt to changes in agricultural markets over the past thirty years and the financial possibilities of the EEC.

FRANCE The homeless charity, “Restos du cœur”, is registered as a charity by the French state.

The status of dock workers is reformed.

The Matra, Hachette and Lagardère group is created covering a broad range of industries: space, defence, communication, media and publishing.

INTEGRATION OF HIRE AND SERVICES, RECURRING ACTIVITIES, PROVIDE FACTORIES WITH ADDITIONAL OPPORTUNITIES

38 39 >

ACQUISITION 1993 Michel Frères

The Altrad Group has proved itself; though Michel Frères has its own direct sales WORLD the scars are visible it emerges from the network and a retail network. The Oslo Accords demonstrate desire for recession better than many in the sector, The takeover of Michel Frères’s assets is peace between Israel and the PLO, who sign letters of mutual recognition. Hamas reacts whose poor management has put them in an opportunity. For the employees and by attacking the settlers, and Israel retaliates a weak position. managers it is a hard blow. against Arab populations.

The experience gleaned and results achieved Michel Frères joins the Group as part of its Russia plunges into recession. President over the last few years give the Group a already existing rationalisation policy. Boris Yeltsin encounters opposition from distinct competitive advantage, facilitating The direct sales network is retained. The the Duma but finally prevails after dissolving new growth. distribution network is closed down, due to parliament and the election of a new one. The recession forces many in the sector a limited product range. file for bankruptcy. Such is the case with The skies begin to clear, but doubts and EUROPE Mefran’s long-time “enemy”, Michel Frères. uncertainty remain on the horizon. The European Monetary System (EMS) is The, company, created in the 1950s, is troubled by speculative attacks on the most located a few kilometres from Florensac. vulnerable currencies, and so introduces a new fluctuation band within the EMS of Michel Frères’ scaffolding range is similar to 2.25% to 15%. The measure brings a halt Mefran’s, however it has one competitive to speculation. advantage: its modernised production line The opening of the single European market producing steel and aluminium footboards. enables the free movement of capital, merchandise and services within Europe.

FRANCE With the French economy in recession, unemployment, already a chronic problem for the last ten years, rises sharply.

A second wave of privatisation sees the sell- off of 21 national assets.

Mobile phones make their first appearance on the French market.

Although still nationalised, the Banque de France becomes independent.

DEVELOPMENT OF HIGH ADDED PRODUCTS AND SERVICES FOR BETTER DIFFERENTIATION

40 41 > 1994

ACQUISITION 1994 Anjoumétal

Company bankruptcies fall by almost 7%, Ongoing consultation between subsidiaries WORLD especially in the construction and public is the focus of concerns. Altrad instigates The North-American Free Trade Agreement works sector and business services, a first an annual seminar bringing together all (NAFTA) eliminates customs barriers between the United States, Canada and since 1989. the Group’s executives, which becomes Mexico. As the recession eases, aggressiveness in an integral part of the Group’s calendar. Genocide begins in Rwanda just as the the market is often a sign of the end of a The event fosters coherency and builds United Nations ratifies a vast reduction in cycle. Anjoumétal, a struggling competitor, relationships between companies. It helps the number of peacekeepers on the ground. falls victim to the situation. The company the smooth running of operations between The fundamentalist Sunni Muslim Taliban specialises in products for local authorities companies and provides support for movement begins its “holy war” against the and its range of “Platforms” is well strategic changes to the Group’s operations. government in Kabul. respected. Cohesion between directors is especially

It is the Group’s first acquisition in the local reinforced, a good sign of the Group’s EUROPE authorities area. The Altrad Group takes over unity when confronted by the challenges of The Channel Tunnel is inaugurated. the brand, certain assets and some staff. national and international competition. The Altrad local authorities division is now The first meeting of governors of the * European Monetary Institute takes place, an enhanced by the input of a new product intermediary body the paves the way for the range, skills and clientele. single European currency, monetary union The takeover inaugurates a series of “Consolidating what we had, while also and the creation of the European Central acquisitions, and the future fulfils the hope leveraging development opportunities and Bank. this buyout generates. resolving integration issues concerning new Quality is declared the year’s priority. For acquisitions was a huge challenge. FRANCE the Group it is an essential condition Quality, financial independence and control The Chauvet cave is discovered in the of longevity and penetration in certain were vital issues for the year.” Ardèche department, a treasure trove of markets, especially abroad. cave art from the Aurignacian period dating back 36,000 years

Draconian measures are taken to reduce the budget deficit.

The Crédit Lyonnais bank falls victim to risky management practices in recent years and the unsatisfactory control of ad hoc authorities.

CONSTANT IMPROVEMENT TO PROCESSES AND PROCEDURES IS AN INTEGRAL PART OF THE ALTRAD GROUP’S MANAGEMENT PHILOSOPHY

42 43 > 1995

ACQUISITION 1995 Samia, Soframat

The resumption of the Group’s investment The second, Soframat, specialises in WORLD policy reflects a desire to ensure a new stage formwork and shoring and was very hard The World Trade Organisation (WTO) is of growth. hit by the downturn in the construction created in Geneva, an intergovernmental group of 77 member states set up to Two new companies join the group, Samia sector. This weakening, coupled with its regulate trade under the GATT agreement. and Soframat. high debts, led to bankruptcy. The central body provides a permanent The first, Samia, has a long-established By expanding its range Altrad extends its organisation to replace the system of reputation providing products for local influence in the construction equipment temporary contracts. authorities and performances. Despite market. In South America, MERCOSUR is set up, a the innovative designs and materials of its Soframat’s integration into the Group is regional common market involving Brazil, Argentina, Paraguay, Uruguay, Chile and products, the company has not managed to facilitated by its vast rental stock, a nearly Bolivia. avoid liquidation. amortised fixed asset. Soframat opens Altrad takes over most of its assets, its the door to major construction projects in commercial network and brands. competition with large enterprises. EUROPE Recovery is swift thanks to lower fixed costs, The Altrad method for recovering companies Europe expands from 12 to 15 members with the entry of Austria, Finland and a motivated workforce and the development is now known and proven. Sweden. of synergies with the Group’s subsidiaries: * The plan for a single common currency Altrad Collectivités and Anjoumétal. takes form. The “euro” is due for Today Samia is one of the Group’s most introduction 1 January 1999. dynamic subsidiaries. “This year is part of a continuous consolidation and development. With the The oldest British bank, Barings Bank, goes bankrupt following a single trader’s risky resumption of investments, it demonstrated positions on derivatives markets. our maturity and sharper thinking.”

FRANCE The social climate deteriorates due to lingering unemployment and job insecurity. The country experiences a wave of strikes. All partners agree that the welfare state requires immediate financial reform but bill debated in parliament is not to the liking of public enterprises.

Paris and Lyon fall victim to a wave of terrorist attacks.

INTEGRATION OF THE NOTIONS OF OPERATIONAL EFFICIENCY, VALUE, STRUCTURAL COST LIMITATION AND BUDGETARY RIGOUR

44 45 > 1996

ACQUISITION 1996 Devianne Duquesnoy

The Altrad Group consolidates its position The year sees reappraisal of the Altrad WORLD among local authorities by taking over Group’s local authorities division from two The Internet takes off (10 million computers Devianne Duquesnoy. The Roubaix-based perspectives: cross-functional products and connected compared to 100,000 in 1990). business is over one hundred years old. Its the transferral of production to different The first ministerial conference of the World building is old, but has a vast surface area. sites, with a low break-even point. Trade Organisation (WTO). In 1996, world trade reaches 6,000 billion dollars, i.e. Its production facilities however require Extension of the Group enables it to promote 21.5% of the world’s GDP. modernisation. talent, offering greater career opportunities. Its product range meets the quality The triumph of the market economy boosts the globalisation process. criteria. Part of its catalogue is for electoral * purposes – ballot boxes and polling booths; the remainder is similar to that of Mefran “We continued our projects begun the year EUROPE Collectivités, Samia and Anjoumétal. before. The IT system was updated and At the European summit meeting in Dublin, By reducing fixed charges and revising the linked up with a sales force equipped with the European Fiscal Compact is set in place and will apply to all states adhering to the product portfolio, recovery is swift and laptops. After a year of study, Managment euro. Devianne Duquesnoy becomes instantly software was linked with Design software.” The emergence of mad cow disease results profitable, like all other companies to join in the slaughter of many herds due to fears the Group. of contamination.

FRANCE With the takeover of UAP, the AXA Group, itself a result of a series of mergers, becomes the second largest insurance group in the world.

France stops its nuclear testing.

OFFENSIVE DEVELOPMENT STRATEGY WITH THE SUPPORT OF LOYAL PARTNERS

46 47 THE ALTRAD STORY

THE GROUP GOES INTERNATIONAL

1997–2008

rom the creation of the Italian subsidiary, to consolidate the cement-mixer division, until Mohed Altrad knew, even before a plan now limited to Ateliers de Saint-Denis, first Fhad been formed, that the Group’s path came in Italy, then in Germany and Poland. The would lead to international takeovers. But two-stage international expansion strategy there was something more, in the story of was then proposed: an initial experimental his own life, in his experiences, that made approach, with the acquisition of a subsidiary, it even more inevitable: leaving the desert enabling the Group to understand and steppes to live in the city, he understood the quickly and productively test the viability of immense wealth confrontation with another new markets; resources were then made culture can bring, when we discover it, learn available to make inroads into these markets. to respect and love it. Instinctively Mohed A series of tools were created: Altrad Altrad was thus infused with what would Tunisia in 2000 and Altrad Asia in 2006, for later become his great strength. economically sustainable production; Altrad His first discovery was that companies are Groupe Logistics in 2001, to create a network not only economic tools; they also have a connecting sites and territories; and finally cultural role to play among communities in in the same year, Altrad DIS, to expand the which they flourish. This dimension must be influence of local international subsidiaries on embraced or else companies risk losing touch peripheral markets. with the men and women who are – second Internal and external growth were, as always, lesson – at their heart. Thus for Mohed Altrad two parts of the same whole. it became doubly vital, on economic and The Group also decided to unify activities human scales, to expand the Altrad family around companies with some complementary internationally. forces in operation. To successfully create these connections, the Altrad Group combined With the purchase of dozens of businesses external growth, based on its increasing and business assets throughout Europe, market share and diversification of its offer, as well as many new creations, this family and internal growth based on stimulation the of companies became the Altrad Group. untapped potential of its subsidiaries. Acquisitions remained, primarily, focused on The cement-mixer division, with its roots core activities, production and sales, until in Ateliers de Saint-Denis, was the first to 2005. The Group’s first lesson in Europe were benefit from this strategy; from developing thanks to the Italian subsidiary, which served locally, the company became a world leader as a bridgehead from 1997. The opportunity in only fifteen years (1997–2012). Significant

49 THE GROUP GOES INTERNATIONAL THE ALTRAD STORY

acquisitions in economically dynamic markets hold onto what they had gained was to open with a respect for differences – of nationality, and regions, like the German and English up to others and seize the chance to improve. language and religion. markets, enabled this development. These It is within this spirit that all members, were rapidly followed by acquisitions in the * regardless of site, profession or hierarchical Iberian Peninsula and Eastern European position can find their place and recognise countries (Hungary and Romania). The Ignoring the existence of the unique and each other. All forms of interaction, at every fifteen “little” years were marked by a diverse is not possible, particularly not level and by all available means, regardless of second recession, deep and lasting, which within a company. You cannot deny them time and place, should foster this ambitious had a serious impact on the construction by brutally imposing a single culture – a goal and be encouraged towards this end. sector, while establishing the Group’s global common practice in the economic world, This is the only way to create a context where leadership in this field. suppressing expression in the name of cultural differences can be promoted and From 1999 the scaffolding division followed economics’ primacy – or organise their where respect is a natural, spontaneous reflex, the same route – Italy, Germany and Poland, coexistence with adaptive measures, even if an instinctive way of being and doing. Only then Benelux and the Iberian Peninsula. done in sincere respect for others. human exchanges are able to project, support Via the creation of production subsidiaries This may seem trivial when the company is and elevate this shared reality, built together the scaffolding division also expanded into a global group. However, leaders sometimes for the benefit of all: the Altrad culture Eastern European countries (Slovenia and spend a lot of time boasting of the number of This managerial philosophy began with Hungary). It took only six years for the Altrad different nationalities around the boardroom the simple fact that before its integration Group’s scaffolding division to become the table, as though counting trophies, rather into the Group, each business already has European market leader. than creating a context where performance its own unique culture, history, values, The range expanded: the wheelbarrow can thrive through difference. Valuing cultural ethics, strategies, language, community and division – rooted in France with the Richard- specificity requires courage and daring. This psychology. Fraisse subsidiary – first internationalised into also means (re-)considering the company’s Throughout its history the Altrad Group has Benelux, then Austria and Italy. men and women as assets rather than demonstrated its commitment to this principle Later the acquisitions of the cement-mixer liabilities, going beyond numbers to afford of dynamic, positive integration, which not companies Belle and Atika (UK in 2010 and employees their rightful place. only ensures the preservation of the acquired Germany in 2012, respectively), then the The true wealth of a business is derived from company’s culture, but also takes advantage wheelbarrow company Bragagnolo (Italy these differences, especially when a business of this to enhance and develop its own in 2012) completed the Group’s product is expanding and diversifying. They are not global culture. diversification acquisitions, marking aidle illusions, limits to overcome, obstacles to As proof, contrary to general business return to its original markets, which it surmount or situations to tolerate: they have practices, following acquisition the had mastered perfectly. This was a logical a real value. management team usually remain in place, continuity of earlier developments, but it Promoting cultural differences is the only affording an important sense of belonging. also brought a change in scale. Where in positive, proactive position possible. the past the Group had been able to draw As in a cement mixer, the Group’s goal is to on experience to help the streamlining and combine disparate materials (cement, sand, growth of each new family member, now gravel and water) into a coherent whole, years more was necessary and the onus was on capable of adapting to variable constraints – ans new horizons. In order to grow, the Group the fluidity of liquid, the malleability of mortar also had to change. and the solidity and durability of stone itself. How to respond to this new challenge? Applied to the scale of the Group, this Mohed Altrad followed the same principles same strategy led to the creation of the that had always guided him: dynamism, life “Altrad spirit”, founded on strong, unifying and growth. Only this way could everyone common values: independence, combined

50 51 > 1997

ACQUISITION MERGER Lescha Maschinenfabrik, Bada, Soframat with Etem 1997 Eurotol, Europea

The rate of acquisitions accelerates. 1997 is Further upstream, and in the same vein, WORLD a dynamic year. The Altrad Group takes over the takeover of Eurotol, a major local Hong Kong is transferred to Chinese control four businesses, two in France and two in subcontractor enables the Group to take – having been a British colony since 1842 – according to the terms of the Treaty of Europe. control of Michel Frères’ entire production Nanking. chain. Eurotol specialises in metalworking Recession bites in South Korea and the The number one German cement-mixer and surface treatment. These takeovers Republic is forced to ask the IMF for manufacturer, Lescha, located near Munich, now mean the Group has secured the whole assistance ($60 billion). has not escaped the crisis in the sector, production pipeline. At the UN conference on global warming in which also affects the whole of Germany. Mefran Italia strengthens its position in Kyoto, 160 countries agree to a reduction Lescha has a modern factory with quality Italy by taking over Europea, a company of 5.2% in greenhouse gas emissions machinery, and a highly qualified workforce. well known in the cement-mixer market. before 2012. During the takeover, the Altrad Group It offers products that complement those strives to reduce the production facility’s of the Group. Its distribution network EUROPE costs, despite the low takeover price. The and commercial scope via direct sales are In response to the increase in workforce is reduced and debt eliminated. definite bonuses. unemployment and under pressure from The Group makes commercial innovations, its 15 member states, the European Union adopts a budget stability pact with creating an entry-level range for mass * a social chapter. This is the Amsterdam retailers (GSB) to complement the high-end Compromise, which also prepares for the products sold via distributors. “Apart from our takeover dynamic and the EU’s expansion to include Central and maturity of our integration processes, the Eastern European Countries (CEEC). Bada is an important distributor for the Group was actually functioning on several brand, and one of Michel Frères’ key wavelengths. Each takeover offered more FRANCE customers. Its buyout means taking on heavy than fresh opportunities. It also offered us A law establishing a 35-hour working week unpaid debts, but it is also an opportunity to the chance to complement aspects of sales is approved by the French parliament. extend the Group’s geographical perimeter and production, and to extend our ranges National service is abolished in France and and add valuable commercial skills. and networks.” replaced by the compulsory Defence and Citizenship Day.

The water providers, Lyonnaise des Eaux and Compagnie de Suez, merge.

REINFORCEMENT OF MANAGERIAL SKILLS: ANTICIPATION, AGILITY, CONTROL OF ENVIRONMENTAL CHANGES, RAPID DECISION MAKING

52 53 > 1998

ACQUISITION 1998 Rennepont

Since its genesis, the Group has improved In considering the Group’s development, the WORLD the safety standards of its equipment. impact of the monetary revolution to come Russia’s regime meets with its biggest crisis Manufacturing processes have been should not be forgotten, with the imminent since the break-up of the USSR, aggravated by social unrest and recession. improved, and productivity and working switch to the euro affecting all economic conditions have also been a part of this agents, especially European companies. Two 25-year-old Americans launch Google, same dynamic. The Group has developed The Group prepares for the change to a powerful Internet search engine. and implemented good practices in industry the euro. Despite the complexity of the and commerce, economising resources and procedure, the switch is ultimately set to EUROPE respecting its workforce. Quality, ambition facilitate the flow of capital. Monetary union 11 countries adopt the single currency. and results have been the watchwords. contributes to commercial dynamism and The European System of Central Banks (ESCB) becomes an umbrella for the Central Rennepont, a leading manufacturer and intra-European competition is an essential European Bank (CEB) and central banks distributor of high-end shoring props and part of strategy. of the European States, including those a division of a larger group specialising in outside the eurozone. sawmill products, flounders as a result of The euro is introduced on to financial the crisis in the sawmill sector. markets and is due to become a single The Altrad Group takes over its assets currency in February 2002. and workforce, and swiftly sets about investments. Rennepont’s collaboration FRANCE with the Group’s sales network soon brings Assassination of the Corsican prefect, stability and, in line with expectations, the Claude Érignac. company grows. Rennepont brings the Sell-off of the French state’s last remaining Group valuable know-how, and in the wake assets in the finance sector. GAN is taken of the Soframat takeover, it makes inroads over by GROUPAMA, while Crédit Mutuel into the large enterprise market. takes over CIC. France wins the football World Cup for the first time in its history.

THE CLIENT IS AT THE HEART OF PREOCCUPATIONS: EXPERTISE, OPENNESS, RESPONSIVENESS, ANTICIPATION, EMPATHY, AVAILABILITY AND INVOLVEMENT

54 55 > 1999

ACQUISITION CREATION MERGER Lérin, Sacem, Conmix’s clientele and Semme Altrad Collectivités Samia and Devianne Duquesnoy’s 1999 sales forces

1999 proves to be an eventful year. The Internationally, Altrad Italia strengthens its WORLD formal creation of Altrad Collectivités, local presence, joining the export market via Following the financial crisis of summer the local authorities division, enables its acquisition of Connemix (in central Italy). 1997 in Southeast Asia and certain South American countries, regulations are set in rationalisation of operations, creating The company outsources its production. place for international financial markets: different divisions for commercial networks, Export is clearly its priority, while serving a new prudential rules, the control of hedge products and the segmentation of its share of the Italian market. funds and monitoring of monetary policies. clientele with a range of catalogues. The WTO summit in Seattle constitutes The takeover of Lerin (in the Nantes region), * a fresh start, with hopes and fears of a company in good financial health, globalisation and all its conflicts of interests. Consensus is, at best, minimal. supplements the Group’s extensive range “It is not the Group’s aim to be a giant of with products and accessories for the the industry. We have managed to stay loyal agricultural sector. to our core business, while carrying out a EUROPE The Group also buys out Sacem, a shoring ripple-effect strategy, gradually spreading 1 January sees the adoption of the euro, an prop manufacturer based in Clermont- our national and international presence. Our important building block in the construction of Europe. Ferrand, and merges it with Rennepont. strategy is based on indisputable expertise The merger sees a revision of product in managing growth, whether internal Portugal transfers Macau to China. catalogues, sales networks and customer or external, intra-Community or not. All segmentation. Sacem’s production facilities stakeholders find advantages.” FRANCE are transferred to Rennepont. The “Internet” bubble boosts the stock The takeover of Semme, one of the exchange. The CAC 40 rises 5,000 points Group’s rivals in the scaffolding assembly in one day. In early March a complex stock market battle takes place as BNP attempts and dismantling, enables it to expand its a counter takeover of Société Générale presence in the Parisian region to service Paribas, who had announced their merger a activities. month before. Over 13 years, the state has issued 400 billion shares through the partial or total sell-off of 18 companies.

An oil-spill from the Erika tanker pollutes the Finistère coast.

After heated debate, the Civil Solidarity Pact (PACS) offers same-sex couples civil union status.

THE STRENGTH OF AN INTEGRATED GROUP IN ALL THREE TRADES OF THE VALUE CHAIN: MANUFACTURE, DISTRIBUTION AND SERVICES. ALTRAD IS ALONE IN CHOOSING THIS DIRECTION

56 57 > 2000

ACQUISITION CREATION MERGER Spomasz Altrad Tunisie Altrad Holding 2000 with Altrad Développement

A new factory is built in partnership with a The Group’s streamlining continues with WORLD large Tunisian industrialist. The creation of the merger of its two holding companies, The greatly feared Millennium Bug does not Altrad Tunisia is an important stage in the which had been created for fiscal, legal materialise, but costs businesses billions of dollars in preventative measures. globalisation process. Massive importation and accounting purposes. This dual level of from China brings unfair competition for consolidation begins to prove costly. Stock exchanges reach record levels as a result of the Internet bubble, before losing some products. The steady erosion of up to 80% of their value in the years to margins obliges a drop in production costs. * follow. Altrad Tunisia’s inception proves effective: The Russian submarine Koursk sinks with the subsidiary develops a solid place in “Absorbing other companies cannot be an 118 sailors on board. the Group, and becomes a strategic asset. end in itself. You have to have an idea of The second Intifada begins in Palestine. Turnover progresses steadily, driven by the the kind of homogeneity you are trying to Group’s expansion. The company has a achieve, which requires taking control of modest workforce of just over 120 people. the value chain. The group found itself in EUROPE The takeover of Spomasz, the number one an opportune position thanks to its proven The plan to combat the Mad Cow epidemic Polish producer of cement mixers, allows and credible strategy based on production sees the banning of bone meal across Europe. the Group to extend its presence in Europe. capacity, an ability to innovate, product Spomasz has a special role in Poland as a quality and tailored communication. The AIRBUS joins forces with several European military supplier. It belongs to the state, dynamics of the previous four years has led aeronautical firms to become EADS. providing it with silos and pressure cookers. to the doubling of turnover, to €122M, The privatisation of Spomasz is subject to while maintaining a significant return FRANCE a call for tender coinciding with Poland’s on investment.” Following a referendum, the length of the entry into the EU. It is viable but reforms French president’s mandate is reduced from seven years to five. are needed, including modernisation and a change of culture. The workload is low. The 35-hour working week becomes Efforts undertaken bring the necessary law for businesses with more than 20 employees. changes and ensure its development. An Air France Concorde flying to New York crashes into a hotel near Roissy: 113 people die.

VIGILANT GOVERNANCE: TRANSPARENCY OF FINANCIAL INFORMATION. RISK MANAGEMENT, ETHICAL RULES, INTERNAL CONTROL AND ADMINISTRATIVE INDEPENDENCE

58 59 > 2001

CREATION Altrad Groupe Logistics, Altrad Dis, 2001 Altrad International

Thanks to its visionary spirit, Altrad begins In the same vein, the Group creates a WORLD the third millennium with a calm and specific brand, Altrad Dis, targeted at In the United States, the September 11 confident outlook. distributors and wholesalers of products for attacks kill more than 2,700 people, marking a new era of international “Life is built every morning”* 2001 sees local authorities, a target as yet unexplored. terrorism and the resumption of conflict in more companies and brands created to fulfil Afghanistan. the business plan. * The Russian MIR space station breaks up The company’s network of production and in the Earth’s atmosphere. distribution sites requires more efficient “The industrial structure has not been frozen connectivity for greater fluidity at a reduced in recent years. Its simplification has enabled EUROPE cost, as rates for transport and logistics have us to focus the Group’s industrial core. To facilitate access to new members, the increased. We have to defend this core by consolidating European Council decides to create a Altrad Logistics is created to optimise costs our foundations and resources across the convention in order to reform institutions. and services, both for customers and within board. It has become increasingly clear that Greece joins the eurozone. the company. The company can now call the Group’s growth can only come from its on a wide palette of partner transport internationalisation.” The European Commission decrees an embargo on British cattle following the companies. discovery of foot-and-mouth disease. In parallel, each subsidiary manages its * The Group’s slogan at the beginning of the millennium own exports. The growth of the Group’s international turnover requires a structured FRANCE and efficient strike force. From the outset, The explosion of the AZF factory in Toulouse kills 30 people, with thousands injured. The Altrad International becomes the spearhead petrochemical company TOTAL is blamed. of the Group’s presence outside France. Parliament passes the “Taubira law”, which The acquisition of multiple international acknowledges slavery as a crime against subsidiaries requires a series of different humanity. plans for adaptation to each market. A law governing new financial regulations Selective inventory control is implemented to for companies (NRE) is passed, and prevent international and local subsidiaries published in the official gazette for from competing. corporate social responsibility.

FLEXIBLE ORGANISATION WITH A LOOSE AND DECENTRALISED HIERARCHY FOR IMPROVED RESPONSIVENESS, TO SIMULATE CREATION AND INNOVATION

60 61 > 2002

ACQUISITION CREATION 2002 Baumann-Mostostal (48%) Altrad Baumann, Altrad Baromix

The Group is in fine working order. Newly The second acquisition concerns the British WORLD created subsidiaries (logistics and international company Baromix. Great Britain’s second Ingrid Betancourt, Colombian presidential development) enhance its already strong biggest cement-mixer manufacturer is a candidate, is kidnapped by the FARC. industrial network. Investments can begin rival of Belle, a major English cement-mixer Shanghai is elected as home to the 2010 again. producer. Baromix matches the Group’s World Expo. It is the first time in 150 years that a developing country is to host the The year’s first acquisition is Baumann, norms and product synergy is achieved. event. a major player in the scaffolding and These two important acquisitions are the construction industry equipment sectors in first in the major European countries. The Germany and with a modern and efficient impact on the Group’s financial stability is EUROPE manufacturing plant in Poland, jointly owned neutral, and even, in terms of cash flow, Euro notes and coins are distributed in the 12 eurozone states. with Mosostal, a leading steel producer. positive. Appraisals and budget forecasts The company is very similar to Mefran, prove correct and the companies soon grow. The Prestige tanker sinks off Galicia with equivalent products and distribution producing a vast oil slick from the Spanish coast to Finistère. networks. An exclusive distribution network * operates in Germany and for exports. The Baumann group has had decades of “Developing abroad is not a religion for us. FRANCE growth and profitability, but the construction Far from it. It is the translation of the vigilance In the space of five months, both President Jacques Chirac and Paris mayor Bertrand sector’s crisis has severely undermined it. with which we monitor opportunities Delanoë survive assassination attempts. With both Lescha and Baumann in arising elsewhere. If an opportunity to Germany, Altrad consolidates its position, consolidate our product range or improve President Chirac is re-elected in the presidential elections of 2002 with a expanding and intensifying its presence in the efficiency or coherency of our already majority of 82% of the vote, a result Austria, Switzerland and northern Italy too, existing networks arise, we take it.” unusual for a western democracy, in presenting opportunities to pass product response to the republican front blocking ranges between networks. the extreme right. The Eiffel Tower records its 200 millionth visitor since opening to the public.

CO-RESPONSIBLE MANAGEMENT WITH RIGHTS AND DUTIES: A LIMITED RESTRICTION ZONE FIXING RULES AND PRINCIPLES, AN EXPANSIVE DEPLOYMENT ZONE DEFINING THE SPACE FOR FREEDOM

62 63 > 2003

ACQUISITION 2003 Arnholdt

Buying out Arnholdt is a major gamble. The strategy turns out to be a stroke of genius. WORLD The Group’s hire and services division Altrad is quickly making its mark in the hire The American space shuttle Colombia (Sodetub, Soframat, Semme, Etem) compete and services sector, effectively preparing for disintegrated with seven crew members on board. directly and indirectly with some of the clients the Group’s future. In the coming economic who purchase the Group’s products to sell crisis, the Group’s second, these activities will As part of the Iraqi crisis, an Anglo- on to their own clients. Such activity remains prove more resilient than others. American military operation is launched. sufficiently low key to avoid their discontent. The year marks the beginning of great The Cotonou Agreement is signed by With its network of agencies and national changes: the transformation of an industrial the EU and 77 African, Caribbean, and Pacific (ACP) states to replace the Lomé coverage, the takeover of Arnholdt changes group in the process of internationalisation Convention. everything. into a global service provider, with a strong Talks at the WTO conference in Cancun, The hire and services division is in danger production base. Mexico break down. of becoming a threat to the Group’s clients. The Group decides to transgress all * marketing theories, which suggest closing EUROPE the division. Altrad does not have the same “Seizing an opportunity to strengthen Former French president Valéry Giscard d’Estaing proposes his reforms for influence in rental as its competitors and power by taking advantage of a rival’s EU institutions, in actuality a draft cannot realistically grow without a high-risk weakness is justified. constitutional treaty for the future initiative on its part. The future of the hire The conditions and compliance with of Europe. division is still uncertain despite its potential. objectives of each acquisition is researched Sales still dominate: sales practices are in-depth, so that the transplant successfully FRANCE ingrained. takes hold.” France declines to join forces with the These conditions of uncertainty reign when United States in invading Iraq.

Altrad buys out this key subsidiary from a Like elsewhere in Europe, summer is German group. marked by a severe heat wave. The number of deaths is estimated at 15,000 people, mostly elderly.

RIGOROUS CASH MANAGEMENT IS ESSENTIAL TO THE GROUP’S CONQUEST STRATEGY AND PRESERVATION THROUGH PERIODS OF CRISIS

64 65 > 2004

CREATION Altrad Plettac Assco, Altrad Plettac Production, 2004 Altrad Elévation, Altrad Plettac France, Altrad Plettac Iberica, Altrad Havico, Altrad Liv

The Group’s international vocation takes on From the position of challenger, the Group WORLD its full meaning this year. Acquisitions allow becomes the de facto European leader 2004 is declared the International Year to the Group to attain critical mass, supported in scaffolding. Its image is reinforced by Commemorate the Struggle against Slavery and its Abolition; commemorating the by over twenty external growth operations. its good reputation in the sector and its bicentenary of the beginning of slavery’s Altrad takes over Plettac, the second biggest quality products. abolition in America and the declaration of scaffolding manaufacturer in Europe. The Existing commercial networks open up independence in Haiti and slavery’s abolition Group wins a call for tender involving over previously inaccessible markets. The Group in that new country. 40 potential buyers. Plettac fail because of its is able to consolidate its immediate presence The Spirit space probe beams back the first policy of finacing insolvent clients. Crisis in and impact on markets in several European photos of the planet Mars. the construction sector and the reunification countries, especially Germany. Plettac’s A devastating tsunami in Southeast Asia of Germany change the context. export policy enables inroads into a dozen claims more than 225,000 victims. Plettac’s assets are comprised of a other European countries. Nokia creates the first cell phone with an production facility (APP) and a distribution Altrad also launches a new range of lift integrated camera. network (APA). tables, under the Altrad Elevation brand. Facebook launches its social network. The most recent of its two production facilities is most likely the world’s most * EUROPE modern and best equipped. The EU expands from 15 to 25 members; The Group also buys out Plettac’s Belgian, “External growth remained compatible with all ten new members signed the Treaty of French and Spanish subsidiaries. Havico the Group’s financial capabilities, as new Accession on 16 April 2003. becomes Altrad Benelux, providing subsidiaries did not lack underlying assets, Explosions in Madrid cause over 200 deaths distribution in Belgium and the Netherlands. and their activities didn’t encounter any with more than 1,500 wounded. The Group also purchases Liv, a Slovenian- major interruption.” based manufacturer and distributor of concrete mixers and weelbarrows covering FRANCE the territory of the former Yugoslavia. The monumental 2.5 km long Millau Viaduct, spanning the Tarn Valley, is inaugurated by President Jacques Chirac.

A bioethics law banning human cloning is voted through the National Assembly.

The battle against discrimination continues: 40 businesses sign the Diversity Charter. France creates the Equal Opportunities and Anti-Discrimination Commission (HALDE), chaired by Louis Schweitzer, Renault’s former CEO.

GENERAL INTEREST DOMINATES WITHOUT CONFLICTING WITH INDIVIDUAL INTERESTS

66 67 > 2005

ACQUISITION CREATION Famea ECA, Vedif, Fort, Fort Canada, Altrad Richard Fraisse, Altrad Industrie, 2005 Altrad Alucon, Baumann-Mostostal (52%) Altrad Financement, Altrad Color Evolution

All the Group’s activities experience growth The takeover of two businesses sees the WORLD this year. local authorities division expand. Famea The death of Pope John Paul II causes great The takeovers of Richard-Fraisse and Fort Eca is created to take on board the assets emotion worldwide. enable Altrad to become European leader of Agen-based Famea and Eca: commercial Hurricane Katrina hits Louisiana in the in wheelbarrows, a sector that faces a assets and a factory specialised in tubular United States, leaving 1,200 dead. sustained fall in prices. New large specialist products. It also buys out Vedif, a specialist retailers in DIY and gardening and the arrival in products for local authorities. EUROPE of low-cost products from China disturb the In scaffolding, the Group takes over After a “no” to the referendum to balance of a sector already facing crisis. Plettac’s last remaining subsidiary. Altrad the European Constitution, deemed This is the case with Richard, created in the Alucon (Hungary) specialises in aluminium: “unreadable” by some, Europe is left without a constitution. 1950s near Bordeaux, which had just taken footboards, as well as mobile and fixed over Fraisse. scaffolding. For the first time a woman, Angela Merkel, Altrad takes over all assets and begins In acquiring the remaining 52% of the presides over the future of Germany. major restructuring. The Group retains only shares, the Group takes total control of After 35 years of conflict, the IRA lays down the Libourne site and outsources certain Baumann-Mostostal, the leading scaffolding its arms. components. Altrad networks replace producer and service provider in Poland. distributor sales network. The company It is a major exporter throughout Eastern FRANCE returns to profitability and becomes Altrad Europe. Two teenagers being pursued by police are Richard Fraisse. In addition, the Group also begins to offer electrocuted in a substation. The rioting Fort, a Dutch company based in Tiel, and new services to facilitate sales to certain their deaths trigger in urban areas spreads throughout the country. its Canadian subsidiary undergo the same customer, with financing through Altrad process. Finance. The largest passenger plane in history, the Airbus A380 is revealed to the fascination Altrad Saint-Denis creates the Color of all. Designed for long-haul flights, the Evolution brand of cement mixers: a catalogue craft is capable of transporting 555–853 of lightweight attractively designed products passengers, depending on its configuration, for painters and decorators. and has an autonomy of 12,500 km, i.e. New York to Hong Kong.

TRUST IS ESSENTIAL

68 69 > 2006

ACQUISITION CREATION Vabor, Balliauw, Faradit Altrad Asia, Shandong Altrad Zhongyuan 2006 Trade co, Altrad Cédria

The Group has the resources to deal with The acquisition also provides opportunities WORLD globalisation’s effects, in particular the for its production subsidiaries. The hire Global exports exceed 10,000 billion dollars; virtually unrestrained price competition. division makes inroads into the closed globalisation is in full sway. The creation of Altrad Asia enables effective market of large-scale plants, such as in the Germany remains the leading exporter sourcing in China. Raw materials and petrochemical and nuclear industries. ahead of the United States, a place that China takes over in the course of 2006 with products once sourced in Europe are now Vabor, a wheelbarrow manufacturer in the addition of Hong Kong. available at lower costs. Altrad Asia conducts Belgium, is integrated and reorganised in quality controls to guarantee meeting the collaboration with Altrad Fort. Vabor is Muhammad Yunus, who founded a microcredit body for the poor and marginal Group’s rigorous requirements. profitable from the first year of its takeover. in Bangladesh thirty years before, wins the Altrad Asia also takes majority control of The development of Altrad Cedria Nobel Peace Prize. Sazt to secure supply sources. Through its consolidates Altrad Tunisia’s manufacturing success, Altrad Asia confirms its strategic potential. EUROPE importance the Group. The Group experiments with a vertically The Euronext and New York stock The takeover of Balliauw, a Belgian family integrated operation, taking over the exchanges merge. group, marks a decisive turning point in German company, Faradit, one of the last services and position Altrad as a significant surviving creators of tubes from steel. FRANCE player in Europe. Balliauw is specialised Musée du Quai Branly, dedicated to in service provision to industry, such as * indigenous arts, is inaugurated in Paris in scaffolding and insulation, on the Benelux the presence of the UN Secretary-General, market. Its French subsidiary operates in “Our products and services have to cover Kofi Annan. the same sector. Balliauw owns another all uses and sales possibilities; above all they La Banque Postale is created, taking over subsidiary that provides construction have to appeal to major industrial plants as the French post office’s financial services. services. well as international projects. The buyout of Balliauw responds to this need.”

FREEDOM AND PASSION: “DARE TO DO”, THE FREEDOM TO ACT AND INITIATIVE AS CORE VALUES

70 71 > 2007

ACQUISITION 2007 Guy Noël, Roederer Distribution Solutions

The previous year was marked by Altrad’s Guy Noël’s takeover of Roederer only WORLD strong international expansion. several months after its own integration is The subprime crisis hits subprime mortgages Its reputation is excellent, while the external proof of the operation’s success. Roederer in the United States, the precursor to the financial crisis and global recession in 2008. growth strategy is consolidated by good is a small wheelbarrow assembler supplying results among new acquisitions. New the French market. The company’s products Apple launches its latest star innovation, the iPhone outside the United States; subsidiaries experience swift, or immediate incorporate various components from China touchscreen, Internet connection, GPS, etc.; profitability, coupled with respect for their and target large retailers. its high price makes it prohibitive to many. own cultural diversity. Altrad becomes a key South Korea’s Ban Ki-Moon takes over from actor in the sector, and is much admired for * Kofi Annan as UN Secretary-General. its buyout and integration policies. This is what drives shareholders at Guy “The moment had come, it seemed, to Noël, France’s last remaining cement-mixer implement a more comprehensive governance EUROPE manufacturer, to offer Altrad the opportunity framework, based on partnerships and Even though the European Union’s functioning is still limited since the rejection to take over their company based in the a balance between free enterprise and of the constitution, it continues to expand: Ain region. The due diligence phase, regulation, performance and the respect 27 members with the entrance of Bulgaria between audits and negotiations, proves of rules.” and Romania. the company’s compatibility, and acquisition ensues. FRANCE There is instant synergy with Altrad Saint- In October, the French government Denis at all levels: merger of distribution creates an environmental commission, the networks, optimisation of production sites “Grenelle de l’environnement”, focusing on three aspects: global warming, reducing and rationalisation of product ranges. pollution and preservation of biodiversity. After Liv, Lescha and Baromix, the takeover of Guy Noël brings restructuring of The management boards of Gaz de France and Suez agree to merge. An energy giant the cement-mixer sector in Europe and is born. worldwide. Only a handful of independent rivals survive.

CULTURAL DIFFERENCE AS A CORE VALUE: RESPECT OF ALL AND INTEREST IN EVERYONE

72 73 > 2008

CREATION 2008 Altrad Comatex

In spring the construction and real estate The company is soon merged with Altrad WORLD situation in Spain sets alarm bells ringing. Romania, the Romanian subsidiary of Guy Not unexpectedly, the financial crisis In Germany, Altrad Lescha has to cope with Noël, bought out a year before. gradually sets in for the long term. Massive state intervention is deployed to deal with the ongoing drop in planning permissions. Similarly, mergers between the Group’s the banking and financial crisis. Production output is adapted to this companies take place in Belgium (Altrad – Barack Obama is elected the United States’ new environment. Havico and Vabor) and Tunisia (Altrad Tunisi first black president. Commodity prices soar and the effect and Cedria). on catalogue prices is not helped by The Group also lets go of Altrad Fort, its low demand. The Group leans more on Canadian subsidiary, and its German tube- EUROPE Altrad Asia and systematically encourages manufacturing factory. Remarkably, the president of the European Commission, José Manuel Barroso, competition among suppliers. announces that, “the strong euro is a sign The Group records a huge drop in profits in * of confidence in the European economy. the autumn, affecting all sectors apart from .... If the European economy was not sales to local authorities and scaffolding “A strategy of vigilance and responsiveness performing so strongly, the euro would not be at this level.” hire, which proves more resilient. is prescribed to all sectors and subsidiaries. The hire activity remains stable, buoyed We have accelerated efforts in reducing Belgian-born Soeur Emmanuelle, an unparalleled example of dedication to the by long-term contracts with big industries production costs, maintaining only the service of the poor, dies. and major construction projects, as well as investment necessary for preserving building schemes implemented by some manufacturing capacity at the highest states to stimulate the economy. productivity level. The workforce, FRANCE The Group joins forces with a Romanian distribution modes and stock levels have The world’s most powerful particle accelerator is inaugurated on 21 October at partner to create Altrad Comatex in been adjusted accordingly.” CERN on the Franco-Swiss border. Scientists Romania. Cement-mixer and wheelbarrow hope the new tool will reveal the secrets assembly for the Romanian market sees an of matter. increase in imports of components from the The French film Bienvenue chez les Group’s own plants. Ch’tis breaks box-office records with in excess of 20 million viewers.

A HUMANIST APPROACH TO BUSINESS: “BUSINESSES ARE HUMAN CONSTRUCTS, MADE BY PEOPLE FOR PEOPLE”, WHERE INDIVIDUALS FLOURISH

74 75 THE ALTRAD STORY

YEARS OF CHANGE

2009–2014

uring the 1990 financial crisis Altrad these were stemmed by the Group’s rigorous successfully managed to integrate approach. Conversely, other companies in the Dnotions of operational efficiency and sector, weakened by their own problems in fair value into the Group over the long term, their own contexts, benefited from the Altrad while limiting structural costs and bringing Group’s financial autonomy and acquisition in the strict budgetary controls necessary for expertise. the Group’s internationalisation. This change of scale, allied with its constant drive to The Altrad Group thus defined an offensive streamline operations and control finances, development strategy for the resilience of its led the Group to develop other types of activities. products for the construction industry. Sales In 1988 the acquisitions of Etem and networks were structured for each sector of Sodetub, specialised in services, set the activity, facilitating distribution of new product groundwork. It was with the acquisition of lines. At the same time, new subsidiaries Arnholdt in 2003, however, that interest developed a genuine sense of belonging, as in these activities became concrete, laying benefiting from the added value brought by down the foundations of a new strategy respect for their cultural identities and the that culminated in the takeover of Balliauw continuity of management structures. Hence in 2006. Altrad remained faithful to its principles and The 2008 crisis proved to be a full-scale crash values and continued to build with and for test, revealing how far the Group had come, the people who are its linchpins. while providing the stimulus to progress. Its ability to anticipate proved invaluable. The The 2008 crisis brought great upheavals Group also demonstrated its resistance in within the Group. Recession hit long and hard, the face of adversity, for the second time, bringing significant changes to the Altrad which strengthened investor confidence. The Group’s activities. It reacted swiftly however, Group was operational, while others were and anticipated the possible consequences. destabilised. Production was the most affected, while Acquisition projects followed a similar path to service industries remained steady or even the earlier period of international expansion. experienced growth. After Arnholdt and Balliauw had enabled the To this point, construction activity remained Group to install service industries in Germany subject to changing environments and the and the Benelux countries, the Group now risks of the still-fluctuating markets, but focused on another major market, the highly

77 YEARS OF CHANGE THE ALTRAD STORY

dynamic United Kingdom, while spreading It is generally acknowledged that durable Information passed onto personnel about the across France and Spain. In record time – four and efficient companies are those that Group’s strategies, goals and activities must years – the Group made a series of attractive inspire a strong feeling of belonging in their be understandable and inspiring. A workforce acquisitions in the areas of service provision personnel. Some may wonder whether this should feel respected and acknowledged by for industry (Generation, Trad, Beaver 84, sense of belonging is a genuine strength or a their superiors. Tasks should be stimulating. NSG, Poujaut Group, Jalmat, Servindustria, throwback to another age that has somehow Missions and responsibilities should be clearly etc.) and live performance (Spectra, Star managed to remain fashionable. Some may defined and explained. Acknowledging a Event, etc.). wonder whether it can genuinely guarantee job well done and the commitment involved The acceleration of acquisitions and the success of an enterprise. Statistics tell us requires openness and kindness. The hunt for associated changes were possible due to the however that the firms that can rely on the full these two implicit languages is a key factor in steadfast support from investment banks and commitment of over 90% of their workforce a company’s success. investors, until development reached a peak outperform those whose commitment levels Major change is only possible if the structure in 2012–13. fall to below 60%. draws its strength from cohesion and The Group took on a different dimension. The feeling of belonging describes how belonging. Its business risks were calculated and attached employees feels to their place of controlled leading to greater development, work. It is an emotional bond that is developed geographical expansion and a broadening by a specific form of management, one that in its range of activities. Mohed Altrad was encourages employees to adopt the best also crowned French Entrepreneur of the practices to benefit both the organisation and Year in 2014 and EY World Entrepreneur themselves. It implies a fulfilling emotional of the Year in 2015. The values advocated relationship involving the same rules and and implemented by and for the people of qualities as interpersonal relationships: good the Group are acknowledged worldwide, emotional ties, long-term loyalty, personal and translated with the same success to satisfaction, a strong basis of trust, reciprocity, Montpellier Hérault Rugby Club – a finalist in tolerance, giving and taking, and a positive, France’s rugby union championship decider constructive critical perspective. in the first year that Mohed Altrad took over Everybody has a fundamental need to as president in 2012. feel part of a group. People like to know their place, feel useful, to be recognised. * In companies the workforce needs to feel integrated, and management has to take The idea of belonging implies two an important lead: it has to set the tone, complementary notions: being a part of the provide direction and define values so that Group, and participating, namely ownership information is transmitted throughout all of a project so as to effectively be co-designer subsidiaries at every level. Leading by example of it (everyone is a part of the whole but the inspires confidence, which is indispensable whole is more than the sum of its parts). for allowing a strong feeling of belonging to years Belonging implies involvement, and involvement develop. To the Altrad Group, the dynamic of ans means action. Belonging is not to be static; belonging has great importance. It has whole it is dynamic. How then is this feeling of range of resources at its disposal to develop belonging created? How is a static attitude strong relationships with its subsidiaries and transformed into a dynamic movement? partners. The emphasis on quality products, What is the impulse that can be set in customer service and efficient management motion? are essential but not sufficient in themselves.

78 79 > 2009

ACQUISITION 2009 Belle Group

Despite freezing most of its investment Belle has subsidiaries in Poland, Spain and WORLD budget in 2008, the Group has the potential France. Belle France and Altrad Saint-Denis The International Year of Astronomy commemorates the works of Galileo to bounce back when necessary. In spite of quickly collaborate. The Polish structures who, 400 years ago, discovered sunspots, a 20% drop in business, its business model and assets merge with Spomasz to form Jupiter’s four largest satellites and the proves successful in a situation of sudden Altrad Poland. Belle Spain’s structures and moon’s craters. crisis. assets are closed and taken over by Altrad EUROPE The acquisition of the Belle group early in Plettac Iberica. A new strain of influenza A, H1N1 (swine the year marks a return to investment. With flu) emerges in Europe, causing the 90% market share, Altrad becomes the clear * World Health Organisation (WHO) and leader and virtually the sole producer on the government health authorities to react. British cement-mixer market. Seven years “The Belle group’s integration has brought FRANCE after its takeover, Baromix, the Group’s first a solid foothold in the United Kingdom A public broadcasting law bans advertising foothold in the English market, is integrated that will help us develop our scaffolding on public stations after 8 p.m. into the new entity, Belle. activities, which are not strong there. Belle provides Altrad with a range of Increasing scaffolding sales in the UK will be high-end products for cement processing one of our most difficult challenges but also (compacters, dumpers, etc) and expands its the most promising for the year ahead.” customer base to the hire companies and construction equipment dealers. Belle products are distributed by Altrad’s European networks. Belle’s integration in the midst of an economic and financial crisis justifies major restructuring. In the first months its production, sales networks, logistics, and the after-sales and administrative services are reorganised.

COHESION AND TEAM SPIRIT: CONCERTATION AND THE POOLING OF EXPERTISE TO SURPASS THE SUM OF INDIVIDUAL ABILITY

80 81 > 2010

ACQUISITION 2010 Limex

The policy of external growth continues, The second buyout brings in 67% of WORLD despite the continuing crisis. Acquisition of a Portuguese family company, Irbal, a It is a year of natural catastrophes, during two competitors strengthens the Group’s cement-mixer manufacturer, with strong which nearly 300,000 people are killed worldwide. Haiti is struck by a violent international position. export capabilities (Algeria, Angola, Spain, earthquake, which transforms many districts The first is the takeover of Limex (Croatia), France, Libya, Morocco, Romania, Russia, into open cemeteries. The World Bank a specialist in the sale and production of and Slovakia). With exports accounting for cancels Haiti’s debt. barrows and cement mixers. Limex has great over 80% of turnover, they provide a cushion Apple announces the release of the iPad, a potential but its management methods against the more sluggish Portuguese market. digital tablet with the features of Macintosh have it fixed in permanent financial crisis. The merger coincides with the father computers and iPhones. Restructuring takes place at all levels, and its passing the reins to his son, in a context of India enacts legislation making school three subsidiaries are directly integrated into world financial crisis made more perilous compulsory and free for all. the Altrad Group’s local subsidiaries: Altrad by the Portuguese economy’s structural Lescha in Germany, Altrad Saint-Denis in weaknesses. EUROPE France and Altrad Alucon in Hungary. Herman Van Rompuy becomes the Alongside previous acquisitions (Richard * European Council’s first full-time president. Fraisse, Fort, Vabor, etc.), Limex’s inclusion puts Lech Kaczyski, president of the Republic the group in an enviable position. Through “Learning to think about the Group, means of Poland, his wife and several other strong synergies the new conglomeration learning to trust. We see the importance government and prominent figures are is able to lower the break-even point and of everybody, whatever their role. The killed when the plane taking them to commemorations for the Katyn massacre improve profitability among each of the company cannot be reduced to a head in Russia crashes. Group’s subsidiaries. who decides and manages. It appears as

a complex body of which no organ can be neglected. Managers driven by passion FRANCE bring together men and women committed The Grand Paris project begins to take shape. The project aims at bringing Paris to the same adventure.” into the 21st century by involving local authorities in projects relating to the economy, town planning, culture and the environment.

UEFA selects France to host Euro 2016.

“CHANGE IS IN OUR GENES.” CONTINUOUS IMPROVEMENT IS A SOURCE OF PROGRESS. OUR ENVIRONMENT REQUIRES FLEXIBILITY, ADAPTABILITY AND RESPONSIVENESS. WE CONSTANTLY CHALLENGE OURSELVES

82 83 > 2011

ACQUISITION PARTNERSHIP 2011 Agrimotor, Rodisola, AnD, Beaver 84, NSG Montpellier Hérault Rugby

As acquisitions intensify, the Group Group), an acknowledged force in services to WORLD undertakes vertical integration of its most the chemical and oil industries, consolidates The Arab Spring, which began in Tunisia resilient sectors such as hiring and services. Altrad’s presence in the UK services sector. in late 2010, continues in almost all Arab countries. These revolutions employ Agrimotor, a Hungarian company producing The takeover of the Montpellier Hérault non-violent protests and modern cement mixers is one of the last product- Rugby (MHR) club is part of Mohed Altrad’s communication methods – Internet, mobile diversification acquisitions. Most of the own story, part of the fundamental values phones and satellite TV. Transitions are company’s sales are in the Ukrainian market. of the sport: respect, loyalty, fighting spirit difficult. In Egypt and Tunisia discussions about the new constitution are marked by Altrad Agrimotor takes over its main and team spirit. Mohen Altrad personally confrontation in parliament and violence in assets: the business, brand, machinery and takes over the youngest club in the Top 14 the street. buildings. A subcontracting contract with a in France, the toughest league in the world. former partner enables custom fabrications. Its modern sports complex, built in 2007, EUROPE The business’s commercial development is hosting Top 14 and European Cup games, An explosion in Oslo kills 8 and the disturbed by conflict in Ukraine. is renamed Altrad Stadium. massacre on Utøya kills 69 (most between In contrast, the takeover of Xervon Slain Mohed Altrad becomes the majority 15 and 16 years old). The attacks, is part of a new approach. The Spanish shareholder and club president. Profe­ perpetrated by a 32-year-old Norwegian fanatic, are shocking. The Norwegian prime company (part of the German Xervon group) ssionalism at every level, both on the field and minister, targeted in the attack, manages specialises in services to the industry, such off, takes MHR to the finals of the Top 14 in to escape. as scaffolding and insulation. An overhaul his first year at the helm. Eurozone heads of state instigate the Euro of accounts and development strategies pact, introducing closer coordination of aids recovery. economic policy. Altrad Balliauw takes over AnD, a company founded in Belgium by former executives of FRANCE the Group, specialising in services for new Christine Lagarde is appointed managing constructions and renovations (assembly/ director of the IMF. disassembly). The business is immediately An 11 billion euro austerity plan is merged with Euroscaff, a subsidiary in the instigated to limit the public deficit. The same business as Altrad Balliauw. deepening of the financial crisis and the fall The Group takes over Beaver 84, a company in growth impose new fiscal measures. renting scaffolding and other similar The Intouchables attracts a box office of equipment. A major actor in England, it 19 million. has a large stock of equipment that Altrad reinforces with its investment capacity and a range of modern, high-quality scaffolding. The acquisition of NSG (Northern Scaffold

A STRONG VISION FOR THE FUTURE: THE GROUP’S MAIN OBJECTIVE IS LONG-TERM SUSTAINABILITY

84 85 > 2012

ACQUISITION Generation, Poujaud, Jalmat, Hofmaninger, 2012 Bragagnolo, Atika, Servindustria, MTD, Socacen, Camac, Garrone, Comi Service

Development targets have a new dimension The Poujaud group is a top-level player in WORLD with the takeovers of major service services to industry and construction. The Vladimir Putin resumes the Russian companies. Naturally the acquisition of holding company manages four subsidiaries presidency following an interlude as prime minister, while in the United States Barak interesting industrial companies also (Poujaud, Socacem, Comi and Garonne), a Obama is re-elected. Putin soon stirs up continues. dozen agencies in France, and a number nationalist feelings by talk of possible Generation is a promising company of premises on the site of industrial clients. expansion. operating in Great Britain, specialised in the Altrad overhauls and simplifies its financial The music video for Gangnam Style by the hire and sale of scaffolding. Altrad becomes structures, while merging others. These Korean singer Psy is viewed over a billion the majority shareholder retaining the provisions are complemented by the times on YouTube. founders on the board. An input of funding adoption of the Altrad Charter. and implementation of the Altrad charter In Austria, the Group takes over EUROPE provides Generation with the underpinning Hofmaninger, specialised in the production Growth of GDP in the eurozone is –0.3%. to embark on a period of dramatic growth and distribution of wheelbarrows. The France performs relatively well (0.5%) in profits, boosted by the availability of a business has its own automated industrial behind Germany (0.6%) and England (0.8%). Elsewhere recovery begins, with a high-end scaffolding range developed by facility, enabling responsiveness and worldwide average of 3.5% (2.1% in the Altrad Plettac. competitive cost price. The acquisition USA) and nearly 10 points in China.

The Group also acquires MTD in England, of its assets sees the creation of Altrad The Bank of Spain announces that the Q4 a company specialised in the hire and Hofmaninger. recession is the sixth consecutive negative installation of scaffolding for local Collaborations with Altrad Richard Fraisse, quarter for the country’s GDP, which has still authorities. Its regional presence model Fort and Bragagnolo bring a decent level of not recovered from the bursting of the real estate bubble in 2008. is applied in other areas of the country. profitability to all. MTD and NSG implement a number of In northern Italy, prior to takeover The cruise ship Costa Concordia sinks off administrative and financial collaborations. Bragagnolo has similar problems to Italy’s island of Giglio after its captain takes his vessel too close to the shore in order to MTD’s own highly successful managing Hofmaninger. The creation of Altrad admire the coastline. director is Tracey Hutton, one of the rare Bragagnolo enables the acquisition of women in this male world. all assets, while workshops and offices FRANCE In France, the Group takes over 60% of are leased from the Bragagnolo family. France celebrates the tercentenary of the Jalmat, a major actor in formwork, shoring Collaborations established with the philosopher Rousseau, who advocated and accessories. Management retains a Group’s wheelbarrow division and the close man’s inherent goodness. stake. An overhaul of the financial structure Slovenian neighbour Altrad LIV significantly Jean Dujardin becomes the first Frenchman and a reduction in operational costs bring reduce production costs. Altrad Italia takes to win an Oscar for Best Actor. the company satisfactory profitability. The over distribution of Bragagnolo products, merger of some of its activities with Altrad thus limiting commercial costs. The merger Soframat-Etem (ASE) creates a coherent of Altrad Bragagnolo and Altrad Italia ensemble. optimises administrative costs.

A RESPONSIBLE ACTOR: LONG-TERM INVESTMENT, SECURITY, QUALITY, SOCIAL AND ENVIRONMENTAL RESPONSIBILITY, TERRITORIAL GROUNDING

86 87 > 2012

The Group also integrates Atika, the last remaining German producer of cement mixers. On takeover, work is begun with Altrad Lescha to harmonise production, sales and administration. The Atika range for gardening professionals is immediately incorporated into catalogues across the Group’s networks. Altrad Asia’s support enables Atika to make real productivity gains, reinforcing the Asian sourcing initially envisaged for most of its products. Altrad consolidates its positions on the Iberian market with the acquisition of Servindustria in Tarragona. Servindustria operates in the same sector as Altrad Rodisola, so the companies merge. This Iberian market enables Camac, another new acquisition, to take a key role in the manufacture and distribution of cement mixers and lifting equipment for construction. The business is drained after a long period of crisis in the sector across the country. Its assets and production facilities are partly transferred to Altrad Plettac Iberica and partly to Altrad Irbal (in Portugal), thus cancelling most fixed costs.

* “Reinforced by its business model, the Group retains its dynamism despite difficult economic conditions. The choice of its operations for external growth, the constant streamlining of its sites and the strengthening of management practices are crucial in this respect. In terms of investment, we could never have achieved the levels required without the input of funds made available by our financial partners who are responsive to our rigorous management and who respect our business plan.”

88 89 > 2013

ACQUISITION 2013 Spectra, Trad

Vertical integration continues, stimulated by The year’s second acquisition is Spectra, WORLD the efficiency of the Group’s policy. 2013 specialised in the sale, hire and installation This is one of the ten hottest years recorded is marked by two acquisitions, a relatively of safety and signalling equipment, as well since the introduction of standardised temperature recording (1880); the previous calm year in comparison to 2012. as equipment for staging live performances. record was in 2010. The Group strengthens its presence in the Spectrais taken over by one of the Group’s Whistleblower Edward Snowden leaks United Kingdom with the acquisition of subsidiaries, Beaver 84. revelations about the NSA’s illicit activity. the British Trad Group, specialised in the sale and hire of scaffolding, and associated * Benedict XVI is the first ever pope to announce his resignation. services. It is one of the best performing groups in “Time passes, the months flow by, but the Nelson “Madiba” Mandela dies in Johannesburg. Mandela was one of the Great Britain and Altrad buys out over two- word ‘crisis’ always returns. But crisis situation historic leaders of the struggle against thirds of its capital. Its management retains are never felt at the same time and with the South Africa’s institutional political system a minority shareholding and remains in same intensity in each country. The Group’s of racial segregation (apartheid) before place. The group is organised around three international expansion has never been solely becoming the country’s president. activities. Its sale and hire of scaffolding in driven by the search for new markets for our the construction sector made it a serious manufacturing base in France. It reflects a EUROPE rival to Altrad Generation. Its activities are desire for broad diversification of external In Greece the government unilaterally completed by the sale of safety equipment. production. The policy we have followed decides, without parliamentary approval, to The Trad Group has a network of agencies has proven highly judicious for cushioning close national television, leading to protests throughout the world, especially in Europe, across the United Kingdom. the jolts of economic conditions and been a and general strikes in Greece. As is the case for all new subsidiaries, the source of opportunities leading to external Altrad Group provides invaluable stimulus growth.” through capital investment, application of FRANCE its charter of values and the supplement of France commits troops to the conflict in Mali. Operation Serval begins. 4,600 troops a high-end scaffolding range. The results are deployed on the ground, alongside are immediate and the new acquisition sees Malian forces, to fight the jihadi groups double-digit growth. MOJWA and AQIM. Publicis merges with the American giant Omnicom for 26 billion euros. The merger with the world number two comes as a surprise to the whole advertising sector. A fresh series of mergers and acquisitions begins in France (Essilor, Schneider Electric, etc.), though far from the levels seen before the crisis.

THE SPIRIT OF CONQUEST, MARKED BY AN ACCELERATION IN ACQUISITIONS, GENERATING AN IMPORTANT DYNAMIC FOR CHANGE

90 91 > 2014

ACQUISITION AWARD 2014 Star Events, Profix EY French Entrepreneur of the Year

Having taken a resolutely European His peers in France vote Mohed Altrad “EY WORLD Your first job? direction, the Group flourishes due to its French Entrepreneur of the Year 2014”. It is again one of the ten hottest years on As a five-year-old, without father or mother, unique dual character. The Group’s activity is The Group is regularly in the news, but 2014 record. The average global sea surface my first business was to hire my bicycle to temperature is also at a record high, despite well defined, providing both equipment and is a year of recognition. While Altrad is known the presence of El Niño. my friends in order to purchase books and hire services to the construction industry. regionally and nationally for its performance, pencils. The Constituent Assembly of Tunisia adopts Short-term economic trends in one country growth and exports, this award distinguishes a new constitution. can be offset elsewhere. Its organisation is the course of the company and its creator. Two words to describe yourself? entirely focused on growth opportunities The Entrepreneur of the Year award goes Hardworking and determined. and the quest for optimum responsiveness beyond economic, financial, social and EUROPE to economic uncertainties. All acquisitions commercial criteria, and issues of vision or Protest movements in Ukraine bring hope What makes a good entrepreneur? of freedom to which its Russian neighbours help consolidate the present and provide strategy, as evidenced by the jury’s questions: bring a swift halt. The stand-off between Ambition. potential for the future. Ukraine and Russia sees the latter annex The takeover of Star Event supplements Crimea, on the pretext of protecting its A piece of advice you still follow today? Beaver 84 and Spectra as Altrad Group’s residents. An offensive by separatists in the Believe in what you do. east of the country ensues. live events division in Great Britain. The sale and hire events equipment business joins Your inspiration for the Group? Spectra in the Group. FRANCE Be passionate and pragmatic. The government announces the creation of a social welfare plan to provide more Your sources of financing? welfare support for the economic crisis the country is experiencing, and also presents Free cash flow and controlled debt to avoid measures for saving 50 billion euros. the red zone.

You most difficult experience and the lessons you learnt? Making decisions alone during difficult periods. If you believe in yourself, you emerge wiser.

How have you kept your business innovative and entrepreneurial? Initiating and instigating, organising and maintaining an innovative, entrepreneurial spirit at all levels. Acting in the interests of all.

If you weren’t where are now, what would you do? Working for charities or humanitarian aid. We support over thirty charities: La Ligue national contre le cancer, Médécins Sans Frontiers, children’s’ charities, etc.

SUCCESSFUL INTEGRATION RELIES ON MANAGEMENT OF LOCAL TEAMS, STRATEGIC COHERENCE, GOOD RELATIONSHIP DYNAMICS AND TRANSACTIONS AT THE RIGHT PRICE

92 93 > 2015

ACQUISITION AWARD 2015 Dessa, Hertel EY World Entrepreneur of the Year

2015 began slowly, with the takeover of Hertel offers a wide range of services to WORLD Dessa, an English company specialised in industrial clients, while Altrad’s services The International Year of Light and Light- the design, manufacture and installation activities are mainly focused on installing Based Technologies is a chance to celebrate the many scientific achievements in the of temporary roofing for scaffolding, thus access solutions and insulation. field of optics, notably the millennium adding very technical and high-quality anniversary of Arab scholars’ great products to Altrad’s already impressive Hertel brings valuable new expertise to the discoveries in the 10th century, the catalogue. Manufacturing is outsourced. Altrad offer – anticorrosion and the installation anniversary of the discovery of lasers in 1960, and the use of fibre-optics in and maintenance of mechanical parts. telecommunications in 1965. * The access solution division has benefited The creation of the Eurasian Economic from its integration into manufacturing Union sees the return of the dream of an On 16 March 2015 one major operation activities, bringing access to quality expanded Russia. The idea is based on the changes the Group’s dimension: the scaffolding at lower prices. Since it joined European Union and was the brainchild of acquisition of Hertel, a world leader in access the Group, Hertel has benefited from the Vladimir Putin when he was Russian prime minister. solutions, insulation, corrosion protection and same conditions. mechanical-systems maintenance. Hertel’s offshore activities are not taken over. The addition of Hertel has instantly provided EUROPE The acquisition is complicated and requires the equivalent of fifteen years of the normal, Syriza’s radical left win the Greek legislative permission from the Belgian, Dutch and oragnic progression of the Altrad Group. elections, leading to a showdown with the partisans of austerity (the EU and IMF). German merger-control authorities. Altrad plus Hertel together have a turnover Questions remain whether Greece will be of more than 1.8 billion euros. The new able to pay back its debt and whether it will Since its creation, the Altrad Group Group’s size and visibility make it an leave the euro. has always aimed to be a leader in its unrivalled force with its commercial and core businesses, seeking to extend its financial partners. FRANCE geographical influence to reduce its Two terrorist attacks, on the satirical vulnerability to economic cycles, while Founded in Amsterdam in 1895 by a German magazine Charlie Hebdo and a Jewish making the most of growth opportunities in immigrant, the Hertel group was originally supermarket, take place in Paris at the beginning of the year. A whole series of the best-performing economies. a service provider to shipyards. After World republican marches, with the slogan “Je War II, the group moved into industrial suis Charlie”, are held throughout France in The acquisition of Hertel is within this maintenance, first in the Netherlands then commemoration of the victims. dynamic; it enables the Group to become throughout Europe. In the 2000s the group the leader in the services to industry sector started developing beyond Europe. in the major European countries. The economic crisis brought significant financial problems between 2010 and 2014. To complement Altrad’s strong presence in Restructuring operations were undertaken, France and Spain, Hertel adds a significant which refocused and cleaned up operations position in the Dutch and German markets. before integration into the Group. Much Both Altrad and Hertel have activities in remains to be done to improve performance, Belgium and the United Kingdom, where however. together they emerge as the unrivalled leader. Hertel also brings a strong presence to 75% of activities are based in Europe (UK, emerging markets, such as the Middle East, Germany, Belgium and the Netherlands) the Caspian, Southeast Asia and Australia, and 25% outside Europe (Southeast Asia, with controlled risk, since their main clients Australia, Middle East and Caspian). in these areas are major oil companies. All the group’s services are provided to industrial sites. Processing industries, such The two groups complement each other as the chemical industry, account for 50%, perfectly in terms of their commercial oil and gas companies account for 30%, divisions. and energy (power plants) for 20%.

94 95 > 2015

Operational directions in each zone (UK, stimulate direct exchanges between the Germany, Belgium and the Netherlands, two groups’ entities in commercial and Southeast Asia, Australia, Middle East and operational areas. Caspian) are very autonomous, with an operations model close to that of the Altrad At the occasion of the acquisition of Hertel, Group’s entities. the group was able to rely again on its long standing partners : equity investors, banks The integration of the Hertel group is and bondholders with whom relationships perfectly in tune with our values. of trust and mutual esteem have been Hertel is not a juxtaposition of entities established for many years, and who operating in distinct geographical zones, renewed their support enthusiastically. but a fully-fledged group with over 120 Through their accurate eyes, the shareholders years of history and a strong culture based representatives and the independent board on values of security, customer service members have highly contributed in helping and the appreciation of its employees’ us crossing this major stage in the group’s contribution. Hertel has also developed development. great expertise that distinguishes it in its areas of activity. The holding company in Rotterdam was conserved, streamlined and refocused on its new missions: the preservation and development of the Hertel culture and identity; the definition and implementation of strategy; and the application of Altrad’s management principles and procedures. Reaching growth objectives and profitability in the medium-term remain the ultimate goal. The Altrad and Hertel holding companies, together with the operational entities, jointly conducted the budget procedure essential to the group.

Management control is performed by combining both groups’ complementary skills: Altrad’s expertise in cash management and operational control, Hertel’s expertise in the legal and financial management of major projects. Red zone operations, that is those requiring prior authorisation, have been established involving both Hertel’s and Altrad’s holding companies. Financial reporting, control and performance improvement of operational entities are carried out directly by Altrad’s holding company as part of its missions. The participation of Hertel’s managers in in Group seminars and in Progress Units

96 97 > 2015

Year 2015, an award that acknowledges his was an extraordinary contrast between that West, whether he is Bedouin, Arab, French exceptional career and the Altrad Group’s moment and what I had lived as a child. I or all three at once. exceptional success. It is the first time that a managed to explain this in two minutes. I gain a sense of serenity from everything French CEO has won the award, leading to The answer unsettled the jury. One of them we have built, even if I’m not totally sure high acclaim from the French press and on told me that from that instant his mind was who I am. Had I been Corsican or Breton, social networks. made up. I would have had solid roots, and I’d know where to find them in a couple of hours. LE FIGARO: The Altrad Group’s CEO LES ÉCHOS: The jury is also sensitive It’s not at all like that with the desert. It’s reaps the awards to the personal dimensions of a situation I’m living pretty well. I try to fill EY’s chairman in France, Jean-Pierre entrepreneurs. … How did you share any emptiness around or inside me through Letartre, hailed the “exceptional career” of what inspires you? encounters. a businessman born into a nomadic Syrian My story is unique and miraculous. You just tribe and who has “proved his courage, have to look at my career – starting life in LES ÉCHOS: A key feature of your WEOY perseverance and audacity”. Mohed Altrad’s the Syrian desert in very difficult emotional success is the company’s social and route is atypical. and material circumstances before myself environmental responsibility, around in this gathering of entrepreneurs in this the idea, dear to organisers, of “giving MIDI LIBRE: What has been its effect on beautiful place in Monaco … something back”. How do you give you? Naturally the person I have become back a part of what Altrad has created Recently there was the Charlie Hebdo wonders whether he is from the East or to the company? attack. This prize is way of say “I am I set out from the principle written down Charlie”. The award doesn’t actually belong in the group’s charter, that a business “Mohed Altrad of Altrad Group from France to me personally. When the award was cannot be disconnected from its land. It named EY World Entrepreneur Of the Year”, announced, the name “Altrad” wasn’t is made up of people who cannot just Times Square, New York 2015 . mentioned. All that was said was that be considered in their company context, France is the winner. That is a great source because when they leave, they become of pride to me. citizens once more. One of the company’s most important contributions, which is MIDI LIBRE: Have these four days in integral to its success, is to pay attention Monaco been some of the toughest to employees beyond the time they clock you’ve ever lived? in and clock out. This means I have to be It was tough. I had 20 minutes to convince attentive to everyone’s concerns, to their the jury, including two minutes to sum up children’s problems, to their misfortunes, my life. I had to focus on the essentials. But without necessarily interfering in their lives. how? I told them I felt like I was 3,000 years This means that a company should be there old, from my early life in the desert to sitting during the difficult times people go through, in their company in a magnificent setting those times we need help. today. There is nowhere more luxurious than Outside the world of work, people generally the Hermitage Hotel. It is so beautiful. There need you, because you have the means to help them: single women who have been beaten, children who have been abandoned or disabled. Part of the company’s wealth is donated to over thirty charities, in which I’m personally involved and to which I provide constant assistance, not only MOHED ALTRAD: through material contributions, but also as a presence, through words. A business without this dimension deprives itself of WORLD ENTREPRENEUR something important. OF THE YEAR 2015

98 99 THE ALTRAD STORY

OPENING UP THE WORLD

2015…

years he artificial boundaries between the and helps it penetrate mature markets, like Group’s companies have disappeared. Australia, or those that are emerging, under ans TFoundations for mutual understanding, controlled risk conditions and in compliance a process of continual learning and sharing, with the Group’s values. have been laid through multiple transversal The size and visibility of the Altrad Group now exchanges. Unlike companies in the past, who makes it a privileged and essential partner for were hostages of their certainty or prisoners financial and commercial institutions. of their obsessions with identity, the growth and affluence of the Group’s companies has The title of Rémi Bezençon’s 2008 film The today opened the way to a new dimension, First Day of the Rest of Your Life summarises built on the appeal of others and a love of the challenges facing the new Group. difference. Our role is to encourage diversity Everything remains to be built, and Altrad is and give form to the fundamental plurality now equipped to achieve its destiny. From the that creation brings. The time has now come rock comes the stone that builds the wall. to bring together the one and the many, to The wall makes the building. The latter has surpass our respective limits and find the right been built slowly and patiently, methodically values on which to found our lives together, and precisely, as in the days of the pyramids, to meld our imaginations and find fresh cathedrals and great mosques. horizons, beyond the frontiers of yesterday. The building has been consecrated; this And to give another face to the future. is clear from the two awards, “French Entrepreneur of the Year 2014” and “World The new global dimension ushered in by the Entrepreneur of the Year 2015”. It now needs acquisition of the Hertel group has given to be developed … together. For the “whole Altrad powerful leverage to build oases of life, is always greater than the sum of the parts”, places that foster the realization of dreams in as system theory notes . “Take part and be satisfying work. For thirty years the Group a part of” this new direction and directions: has developed in a controlled, judicious way Pathways to the Possible, as Altrad’s code of in relative but deliberate serenity, for the values is called. people that compose it and thanks to them. The American scholar and political Thus they too can benefit from its products theoretician, John H. Schaar perfectly and services. With the recent acquisition of expresses our philosophy: “The future is the Hertel group, Altrad has gained fifteen not some place we are going, but one we years: it guarantees Altrad a leading position are creating. The paths are not to be found,

101 OPENING UP THE WORLD THE ALTRAD STORY

but made. And the activity of making them who decide. When we endure, we do what changes both the maker and the destination”, has to be done. If, however, we decide to through a process of positive feedback. invent, then we dare. Daring rather than doing is difficult; it implies * a degree of ignorance. Daring is born when It is often said that economics can be reduced there is something we don’t know, or when to figures. Of course budgets, assessments, that ignorance has been tamed, when analysis and projections are formulated in ignorance ceases to be powerlessness in our curves and figures. Arithmetic and geometry minds. are any group’s daily bread. Curves and figures are only one aspect of our reality, and It is perhaps disconcerting to use the word the reality they describe, in their own clear, “ignorance” in the same sentence as a but partial way, is a human reality to which business like the Altrad Group. But ignorance men and women have contributed, created – our ignorance of what the future will by them and for them. bring – is the blind spot in our theories and management. We fear ignorance, we avoid In our business, the human factor is not one it, and we strive constantly to diminish it. It variable among others. Classical or neoclassical seems like a flaw but it is actually a challenge. economics would have it otherwise. Under the It becomes a hindrance to decision making homo economicus denomination, humans while providing the perfect opportunity belong to a predictable system as economic to decide. Ignorance of the future is the actors defined by the rationality of their human part of our company. This is what we choices. Even from a more refined perspective, must learn to confront. If we only acted in which takes into account people’s passions the wake of infallible predictions we would or information deficits, homo oeconomicus not be entrepreneurs. We could not create is still an assignable variable. Whatever their anything new. We could not make decisions. conformities, however, humans are unique We could not forge our futures. By “we” I in their unpredictability. Which means that mean those entrepreneurs who personify fitting them into a system is impossible. their project, not the speculators who seek Humans are decision makers. They invent a only profit. Those with long-term vision. future that cannot be mapped out through Those who are primarily interested in making the past or the present. And this ability is their businesses last. humanity’s wealth. As the saying goes: “We are not what the Decisions do not happen in a vacuum. world make us, but what we make of what An array of data – economic, financial, the world makes us.” social, organisational and who knows what else – shapes the environment years surrounding decisions. We move in a world Mohed Altrad, CEO with a plethora of operating instructions. But ans these instructions are not absolute. They do not bind us. They are available to us when we decide. We can either endure them or we can measure them and use them to invent unexpected solutions. In both cases, it is we

102 103 POSTFACE

ANOTHER PATH

ALIA VIA

Fontaine-de-Vaucluse. He is at the crossroads where anything is possible. e is fond of gathering his thoughts in Submerged by the roar of the nearby river, this Provençal town, through which he thinks of his future. Not even a future. It is Hmany poets have passed, from Petrarch time to start over, he thinks. to René Char. It is so unlike the desert of his Start afresh, springing forth like the water of youth yet so close to the kind of sheltered the Sorgue, to bring form to the tumultuous solitude he seeks. He walks down in the early river of life of which he still knows nothing. morning, sits on a rock and contemplates the Usually this does not frighten him. For that green water of the resurgence. It is hard to matter, he is no more frightened today than believe that this huge reservoir is a spring! At in the past. He is perplexed. the foot of the cliff the water is so deep and He has had to start and start again so so calm before it charges out to the windmill many times that it feels almost inevitable; a and beyond. A constantly renewed, living constraint with him since childhood that he water. Like a life, he sometimes tells himself; cannot shake off. a happy life. He was born with no place. Not in the He has come alone today, at this matutinal sense of “a place of our own” as we might hour. imagine, but rather “the” place that a child, He had wandered through the predawn teenager, or man occupies but that was never glow, an unfocused chiaroscuro from which bestowed. A place he could not even claim the contours of the rocks stand out like to fill. filigree. The air is fresh, moist, almost cold. If he had accepted the fate reserved for him he The footpath completely empty. would never have begun anything. He would He sits overlooking the spring, waiting for have remained in the margins, crushed and sunrise, feet in thin air. In accord with his powerless. For reasons he cannot remember current feelings. – no doubt due to a combination of pride, It has been a month to the day since he put circumstances, encounters, and a certain an end to his commitments. Some say on a dose of imagination – instead of buckling in whim; as happens to someone who suddenly the wind, he resisted, and set out to build breaks from their past. It would be more what fate had refused him. accurate to say that he has renounced that He had his work cut out! which is not, or that has ceased to be, real, Feet dangling in mid-air, he knew, at that very those commitments that weighed him down. moment, that he had not built anything.

104 105 ANOTHER PATH POSTFACE

He had faced the movement of dissolution certitude, hunkering in heart of the storm, He was chasing a desire, though, with place amidst the tumult, “his” place? that had dragged him down. He had drafted that in the evening they would reach port, willpower as his guide. This willpower did not Yes! out directions. He had begun and begun safe and sound, tired but happy. have profit as its goal but was a means to build Despite the ferment, the answer is yes. He has again. He had even completed some of his a scaffold. It was this willpower that projected found a place, one that he never expected. Not drafts: his studies, his profession, but he had Ten years later – ten years already! – he would him into the future. It drew up plans for a place that belongs only to him, disregarding never found “his” place. contemplate the resurgent fountain as still after the storm, beyond the present horizon, the rest, but a place among others, in the A cry makes him look up. He cannot see the and silent as rock, totally detached from the stretching it further. service of others. Like the captain who never bird it came from, only a pink light becoming world. This long, lonely hour still haunts him. Some naysayers muttered that it was all about sleeps before reaching dry land. deeper. Amidst the din, it is an ever-returning luck, opportunity and happenstance. Other The lamp in the cabin flickers out then Beginning again is not hard. counterpoint. In times of trouble, it has often sceptics wondered if perhaps he was creating bursts back into life. The day is at its peak. What preoccupies him, feeds his solitude, and reassured him. the impossible because he simply did not There are many hours before evening and justifies his pilgrimage here is his project for a A whole hour spent dreaming of a work, a realise it was impossible. arriving at port, many challenges he is ready work of art; his need. He cannot keep drafting construction spacious enough to live in. He knew deep inside that there was another, to overcome. for ever. He cannot perpetually take flight. He He wandered off without any precise idea, more elementary cause. For personal motives, feels a need to build a work, somewhere to find but with the conviction that he had a project a private thing, he had a passionate desire * his place, somewhere giving him “a” place. to fulfil. And as he walked against the tide of to build. And this passion is what drives What kind of thing? He has no idea. sightseers who had begun to appear, cleaving entrepreneurs. It is this passion that stirs The room slowly fills. He didn’t come to find answers but fresh through them like a ship through waves, he them, presses them to commit and keeps He has deliberately chosen a conference energy. had the sudden feeling that if this work of his them at the helm, giving them the strength centre lost in the pine trees, far from the were to take form – and it had to – it would not to relinquish. This personal motive fed into roads and from the “press and oppression”. * be extraordinary. his function. Everything is clear, transparent. A glass Ten years later, this very abstract feeling He plunges inside himself, while the ship building with a wood and metal frame, The sea is dark, rough and violent. It is mid- became concrete. topples into the abyss. His heart tightens. That playing on the reflections of light and sky. morning, but the ship’s lights are on. Mephitic For ten years he has been building. Like a sense of hanging over a void before crashing Behind the large bay windows, you can smell rolls of clouds, heavy and tormented, blacken master builder, he cuts the wood, adjusting down. The moment before impact, struggling the musky scent of the pine trees heightened the day. each wooden batten to raise a solid, to stay afloat, before surging up again. by the late September warmth. And if you The ship pitches, plunges and recovers in a powerful building in view to constructing and venture beyond the knoll to the edge of the deafening roar. Its prow cleaves the rugged strengthening an incredible industrial activity. To confront the squalls not only must his bougainvilleas and breathe in deeply, the salt air waves; their furious white spume sweeps the And the structure rises. willpower be strong but he also needs values. It of the nearby Mediterranean is a surprise. bridge. Steeped in flurries of drizzle, engulfed Not without bumps and not without clashes, is values that ensure coherence and longevity. There is a holiday feel to these scents and to the beneath its envelope, soused in the demented not without toil and struggle. Not without And for the challenges ahead, above all, gentle light that strikes a stark contrast with the swell, the ship rises for a moment before howling winds and the crash of the blades of to demonstrate courage and perseverance, studious atmosphere of the days ahead. plunging back into the abyss, in a strident the fragile skiff. both integral to commitment. We might add He appreciates the breaks, oppositions, when shriek, primed for the next impact. Nobody believed he had a chance. honesty: not lying to yourself. they are free from conflict. He himself is He could not sleep. He took over the wreck of a business. He When the boat lurches and rolls, when the forged of disparities, dissonances, multiple He clings to the small table in his small cabin was a novice; he knew nothing of the art waves strike, you have to rely on your crew legacies. He knows the wealth of this diversity. to avoid being washed away. of navigation. He had never sailed the ocean mates; even though nothing is simple, if efforts In the meantime, a diverse audience bustles His thoughts, like everything, toss, fragment of industry or of the economy. What’s more made do not bring guaranteed success, then about, an unsettled enthusiastic crowd, a and collide: fleeting glimmers, scraps of he was a foreigner; a man from the desert you have to look to each other. Babel of languages and nationalities. memory, faces that come and go at the whim where water is a miracle. The weather In a sunny corner he reads and rereads his of the elements, to the sound of the cracking was against him; storm, clouds and heavy Another violent jolt. As though never-ending. inaugural speech. It is an exercise in which he of the hull. squalls. Alongside many other reasons that is well versed. Transitory images incapable of soothing would have made even the most stubborn He shores and shapes, as he decided to do that For several years now the Group’s seminar his sense of apprehension, no less than the quit long ago. morning ten years earlier, but has he found a has been held in autumn. Recent months are

106 107 ANOTHER PATH POSTFACE

appraised, the perspectives for the coming but with no more substance than that, as he even after so many years. But it does not have except for transmission, to ensure prolonged months discussed. was not sure himself. the power to order and spirit away the other existence to those involved.” He flicks through the document distributed to The years of struggle, effort and perseverance worries whose insistent voice rings loud. He looks up at the sky as it whitens and turns all participants. he navigated to raise the Group to his A time comes when passion is chastened. pink. With its columns of figures, complex coloured dimension have revealed an unexpected Maybe rather than a sign of fear, this is the He is proud of what he has accomplished. diagrams, curves, projections, developments, its depth: like a cathedral. beginning of wisdom.” He hoped – a hope born to the rhythm of series of baroque names, initials and acronyms, There, the work is collective, not that of stones being laid, of recovery and of expansion it is a cathedral, an architecture, rather, like this one man alone. It does not spotlight only its He lays down his pen. as the structure consolidated – that this day glass house, anchored on solid foundations, creator but forges and shares a space where Evening inevitably falls. The shadows would arrive. The day he could say: “What that elevates and dances before his gaze. everyone can find their place, everyone who lengthen. Parts of the garden have already I have created, to which I have contributed, The hubbub from the audience reminds him has collaborated in all professions: from the shaded. The oleander groves draw back into can now stand up on its own.” that this cathedral is but a facade, a sign and mason to the carpenter, from the treasurer calm obscurity. The thuja hedges darken. He both hoped and feared this day. indication of a more real cathedral, that of to the sculptor, from the assistant to the Their green turns to lead. Only the foliage of “Thirty years! A lifetime! I have barely the men and woman before him who are contractor. the hundred-year-old ash still reaches to the seen the years pass. Immersed in work, settling down and awaiting his presentation. sky and the leaves at its peak capture the final sometimes buried in it. Constantly meeting Hundreds of people from all horizons, from As the Group grew, so the palette of rays of the sun, glowing at the close of day. the demands.” Europe and elsewhere, working together, values, the indispensable cement that holds In the family home, dinner is being prepared. His hand becomes still. He cannot find building together. everything together, also grew. This does not Behind the walls of the property, the final the words. How much has changed since Fontaine-de- mean that effort, solidarity and commitment flurries of movement sound out before the “Everything that begins must end.” Vaucluse, and even that epic journey on a ceased to be important. Challenges are silence of the night. We always build sub specie aeternitatis. But raging sea. always there. Size changes nothing. But He has withdrawn. we know we are not eternal, we are in the Years have passed. Another ten. The work new challenges emerged: how to organise He has chosen this twilight hour to surrender process of becoming, we begin and end, we he had dreamt of, without imagining its diversity without cancelling out its wealth, to his meditations. are born and die. “Under the guise of eternity” form, has taken shape. What was merely a how to articulate and order all parts without He has started writing notebooks again. is one way of bypassing this condition. local business has become an international casting them in a single mould. Cultures and “Writing” is a big word; he throws ideas What becomes of a work that one suspects group with subsidiaries, services, sites and their original qualities had to be respected. down on paper in the hope that language will come to an end at any moment? Would multiple branches. Consultancy and dialogue were required rules and constraints will formulate them and it simply be a work? Would it be so lucky to It would be vainglorious to claim that his to create a balance to preserve autonomy offer meaning. achieve such a status? work has been accomplished. Nothing is as much as possible. So that the men and He is not convinced they will. Perhaps the time has come to retire. The ever complete. Everything always needs new women who contribute to the business feel These blank-paged notebooks are an idea torments him. It looms in his heart as a beginnings, expansion, development. This at home, so that they feel the desire to build opportune place for fiction. Even memories phantasmagoria of abandon. work, more than any other, and this dynamic this communal cathedral as they would have take a different, more literary turn here. Deep inside him, he feels he will miss the has become his way of life. done their own private chapel. Fiction however does not say things as they human adventure. There is something Ordinarily, when we speak of works, we think are, nor as they should be. It strokes against exhilarating in its progress, its growth, its joys. of writers or artists. We imagine that a work But this is not an issue yet. The sun is high in their possibilities, ventures into their thickets When he received the ultimate accolade, the is the creation of one person alone, through the pure afternoon sky. The doors slide open. and undergrowth. title of World Entrepreneur of the Year, it was which they are tested and revealed. But that Silence falls. He is about to give his speech. But he has found no other way to set down not of himself that he first thought. It was supposes that the creator is in sufficient And address everyone, present and absent, thirty years of labour. The blank page is like of the Group that was rewarded through possession of himself to take the stage who partakes in the building process so that the green waters of the resurgence, the him, and of all those who made that success and build the theatre where his persona, a the edifice may rise. movement inside, the words and phrases possible, and who he represented. combination of authenticity and fiction, will “A time comes when one says: that is enough, surge from the depths; nobody knows where find its arena and audience. the future is merely a repetition of the past. they are going. It is sometimes harder to end than begin. This was the vague idea he nurtured to begin Juvenile passion peters out. It does not disappear. “I saw my work grow and become There are always words to redress, phrases to with. Because it is the most commonly held, For me and in me, at least, it is always present, autonomous. It does not need me anymore, correct, passages to strike out, ideas to refine.

108 109 ANOTHER PATH

An author, however, has to know when to stop amending, and put a full stop to his manuscript. He pushes his notebook away. The sun has disappeared behind the horizon. He gets up. It is time to address other concerns. For the rest, the hour is not upon him yet. It requires preparation.

110 This book was printed in November 2015 by XXX for the publisher Actes Sud, Le Méjan, Place Nina-Berberova, 13200 Arles. Legal deposit 1st edition: December 2015