Stantec to acquire ZETCON Engineering with strong platform focused on infra
Stantec has signed an agreement to acquire ZETCON Engineering, a 645-person engineering firm headquartered in Bochum, Germany. The acquisition is expected to close in January 2024. The terms of the transaction are not disclosed.
Founded in 1973, ZETCON has built a reputation as an industry leader in infrastructure planning, inspection, project management, and construction management.
The acquisition of ZETCON gives Stantec a strong platform focused on infrastructure. ZETCON has a total of 13 offices covering all major German metropolitan areas. The firm has extensive industry expertise in bridge certification and assessment, project and construction management of tunnels, roads, and rail infrastructure, as well as building condition assessments, improvements, and certifications.
ZETCON’s national presence and expertise in the German market, combined with Stantec's global knowledge and capabilities, will provide the opportunity to further diversify the business and grow in other sectors over time. Stantec’s global expertise in water and power engineering, buildings, advanced manufacturing, and environmental services offer potential for growth in the German market.
The German construction market is the largest in Europe at EUR427 billion (CAD$629.9 billion) in 2022. There is ongoing high demand for the renovation of German infrastructure–especially bridges, tunnels, railway construction, and power grids, all focus areas of ZETCON. Germany is planning significant upgrades to aging infrastructure while advancing its transition to sustainable energy sources.
Projects in ZETCON’s portfolio include:
- Construction supervision for the EUR750 million (CAD$1.1 billion) light rail tunnel expansion in the city of Karlsruhe. ZETCON is overseeing structural engineering work as well as the installation of building and railway operations technology through the inner-city tunnel and seven underground stations.
- Construction supervision for the EUR700 million (CAD$1 billion) Wehrhahn Line, a new double track light rail tunnel through the heart of Düsseldorf. The 3.4-kilometre line includes six underground and two aboveground stations and required a high degree of coordination within the city’s dense downtown commercial district.
- Project management for the EUR700 million (CAD$1 billion) Südlink project, a 700-kilometre underground transmission line that will enable the German energy transition, connecting North Sea wind power to the south of Germany. ZETCON oversaw the work of five specialized companies mapping the 1,000-metre-wide corridor, while managing scheduling and cost control, risk management, and contract management.
- Independent engineer for the EUR600 million (CAD$885 million) expansion of Highway A6. Delivered under a public-private partnership model, the project includes expanding the number of lanes from four to six, new construction of a 1,300-metre bridge, replacement of 36 bridges, and upgrades to eight bridges.