- Rönesans expects to end 2023 with a revenue of €3.3billion, representing a 10% increase on 2022.
- Rönesans ceased its operations in Russia and is now focusing on an ambitious growth strategy worldwide. The company aims to invest into new markets and sectors and capitalise on its extensive experience in healthcare, the energy transition, and commercial buildings.
- In anticipation of a strong year in 2024, Rönesans Holding remains dedicated to upholding responsible growth and contributing to the impact economy, prioritising innovation, technical expertise, international experience, sustainability, and the implementation of robust health, safety, and environmental procedures.
- Working with its global partners and a variety of international financial institutions; Rönesans has expanded its operations globally with a focus on contributing to local economies through its construction projects.
The group’s dedication to innovation, environmental responsibility, sustainable energy transition, and strategic investments enabled it to expand its footprint in important economic sectors in 2023, including energy transition, sustainable living, renewable energy, healthcare, and transportation infrastructure.
2023 Review
Despite global and local challenges, Rönesans concluded the year with financial and social achievements, demonstrating strong and sustainable business growth and solidifying its position as one of Europe’s top ten international construction companies.Expecting to end 2023 with a revenue of €3.3billion, representing a 10% increase on 2022, Rönesans ensured a strong performance despite significant financial headwinds experienced throughout the year.
In 2023, Rönesans deepened its relationships with international partners and embarked on several new collaborations and investments, showcasing its successful implementation of the EPC-F (Engineering, Procurement, Construction, and Financing) model. These include the financing agreement with the UK government's export credit agency (UKEF) on behalf of the Turkish Ministry of Transport, which has underwritten €781m of funding (equivalent to £680m) of the €923 million total project financing for the complete construction of a high-speed electrified railway connecting Turkiye’s
second-largest container port in Mersin with the inland cities of Adana, Osmaniye and Gaziantep. It promises faster, more efficient transit over a distance greater than Paris to Brussels, boosting regional infrastructure and growth.
Furthermore, Rönesans also announced its agreement with TotalEnergies, in which TotalEnergies acquired a 50% stake in Rönesans Enerji and committed to jointly produce 2 GW of renewable energy capacity by 2028, worth US$2billion. The agreement is one of the latest in Rönesans Holding’s long history of successful strategic partnerships from all around the world. The company has collaborated with various partners and shareholders, including Government of Singapore Investment Corporation (GIC), Meridiam, a Paris-based infrastructure fund, Japanese trading house Sojitz Corporation, and International Finance Corporation (IFC), of the World Bank Group which is a shareholder in Rönesans, and Samsung C&T, among others.
Likewise, Rönesans has made significant progress with approximately €2.5billion financing of its pipeline projects, including the Ceyhan Polypropylene Production Plant, the Nakkaş-Başakşehir Highway Project, and the RERA-Wind projects.
On the international front, Rönesans is approaching the completion of the project development phase for its inaugural hospital in Kazakhstan. This hospital will be the first healthcare facility in Kazakhstan to be developed under the Public-Private Partnership (PPP) model. This project marks a crucial step towards realising transformative healthcare initiatives on an international stage.
As a company with a global footprint, Rönesans is generating more than 30% of its revenues from Europe via Ballast Nedam, Rönesans’ longstanding Dutch arm, which is not only active in the Dutch market but also has projects from Caribbean to Sri Lanka.
Bridges, tunnels, utility buildings, ports, houses and highways
Every day, Ballast Nedam builds and develops sustainable and often iconic landmarks that positively contribute to society. One such project is the A24 Blankenburgverbinding. Rijkswaterstaat commissioned Ballast Nedam and consortium partners DEME and Macquarie to build the 4 kilometer-long new highway and surrounding infrastructure. The contract includes the design, construction, 20 years of maintenance, and approximately €1 billion in financing. With two junctions, a land tunnel and a tunnel beneath the river Scheur, Ballast Nedam will play a key role in improving the accessibility of the Rotterdam region and contribute to the growth of the economy.
Ballast Nedam reached a crucial milestone with the successful immersion of the tunnel sections of the Maasdeltatunnel. This marks a historic occasion, as tunnel sections of this size have not been built and immersed before in the Netherlands. An immersed tunnel is an underwater passage constructed from tunnel elements that were fabricated elsewhere. These elements are then floated and towed to the tunnel alignment, where they are submerged and interconnected. Successfully immersing the tunnel sections of the Maasdeltatunnel was a precise, controlled and challenging operation that required technical expertise and innovative thinking, requiring the temporary closure of one of the world's busiest waterways.
Over the course of 2024, Ballast Nedam, will continue to grow by focusing on energy transformation, sustainable living, and the renewal of European infrastructure projects. Sustainable construction and development are one of the biggest focuses for Ballast Nedam. Besides working towards 100% CO2-neutral construction sites by 2030, their ambition for 2040 is to transition to energy-neutral construction.
Local impact
In February 2023, the company responded promptly to provide humanitarian support in the aftermath of the devastating earthquakes in Gaziantep-Kahramanmaraş. Notably, UNICEF and Rönesans Group joined forces to establish Child, Adolescent, and Family Support Hubs within temporary living spaces built and designed for more than 10,000 people by Rönesans Holding in Malatya, Turkey. These hubs aim to provide essential services and support to those affected by the disaster, offering psychosocial well-being, education, and overall development. The Rönesans team constructed container cities in the region to accommodate tens of thousands of earthquake victims one month after the devastating earthquakes in the region.With Rönesans’ intentions to support earthquake stricken areas a key part of its 2023 agenda, the completion of the Gaziantep Hospital project, taken over by Rönesans and Meridiam in September 2022, stands out as another remarkable achievement. Finalised in 11 months ahead of schedule by Rönesans Construction in 2023 the project was implemented in collaboration with Rönesans Healthcare Investment, Samsung C&T, Meridiam, and İstanbul Asset Management. An international collaborative success, this marks the sixth city hospital completed under the PPP scheme by Rönesans Holding, representing approximately 35% of the market. With a total capacity of 1,875 beds, Gaziantep City Hospital is designed to provide world-class healthcare services across Southern Turkey and the wider region.
2024 Outlook
İpek Ilıcak Kayaalp, Chair of the Board of Directors of Rönesans, commented, "In 2024, Rönesans Holding will continue to focus its investments and attention on innovation, global growth, sustainable living and the energy transition, as well as maintaining operational excellence. With our strategic pivot, we are confident that we’ll make good progress with our expansion plans in 2024, setting ourselves up for long-term growth."Looking ahead to 2024, the company will continue to deliver on its commitment to responsible growth and the impact economy, prioritising innovation, technical and international experience and health, safety and environment procedures.
Ceasing operations in Russia, Rönesans is planning to expand into new markets, growing its global presence and leveraging its expertise in healthcare, energy and commercial construction. Recognising the challenges in the contractor landscape, Rönesans is also proactively addressing financial pressures, focusing on cost optimisation for customers without compromising on quality, ensuring sustainability and profitability.
The group has set a target turnover of €4.5 billion for 2024, expecting strong growth from construction revenues stemming from international and local investments projects spanning hospitals and windfarms.
2024 will also be the year Rönesans takes its first step towards opening to the public, announcing the IPO process of Rönesans Real Estate Investment. This IPO will be the first of potentially many others, as momentum grows for Rönesans Group.
With strong business growth in its sights for 2024, Rönesans will still continue to support earthquake relief efforts and humanitarian projects, responding to the needs of vulnerable members of society.