Andrade Gutierrez

Andrade Gutierrez is a Brazilian private multinational conglomerate headquartered in Belo Horizonte, Minas Gerais. Founded on September 2, 1948, by engineers Gabriel Andrade, Roberto Andrade and Flávio Gutierrez, it began as a small construction company and developed into one of Brazil’s major engineering and infrastructure groups. Its work has included highways, railways, airports, ports, urban transport systems, hydroelectric and thermoelectric plants, refineries, mining facilities, steel projects, sanitation systems and other large industrial or public works. The company’s early growth was tied to Brazil’s postwar modernization and infrastructure programs. During the 1950s it completed major highway work, including the Rio de Janeiro–Belo Horizonte highway and the Castelo Branco highway in São Paulo. In the 1960s it expanded across Brazil and built the approximately 850-kilometre Manaus–Porto Velho road. During the 1970s it participated in the construction of the Itaipu hydroelectric project, one of the world’s largest hydroelectric facilities. Andrade Gutierrez expanded internationally during the 1980s, initially concentrating on Latin America, Africa and Europe. Its international work included roads in Bolivia and the Republic of the Congo, airport construction in the Bahamas, and projects delivered through its Portuguese subsidiary Zagope. Zagope became an important platform for work in Portugal and, later, for operations in Europe, Africa and Asia. The group subsequently participated in projects in countries including Angola, Algeria, Mozambique, Nigeria, Ghana, Equatorial Guinea, Colombia, Peru, Venezuela, Ecuador, Mexico, Spain and Portugal. The group diversified beyond traditional contracting during the 1990s. It entered public-service concessions through what became AG Concessões, developed interests in transport, utilities, energy, sanitation, health and sports facilities, and entered telecommunications through AG Telecom in 1993. Through the Telemar consortium, it participated in the 1998 privatization of Telebrás and became associated with the telecommunications operator later known as Oi. It also helped establish Contax, a major Brazilian contact-center company. Its reported structure has included separate businesses for engineering and construction, concessions and utilities, telecommunications, private-sector engineering and energy generation. AG Concessões was created in 1999 after the group’s experience with public concessions. In 2012, an internal restructuring created AG Private E&C to focus on service contracts for private-sector clients, particularly in mining, ports, logistics, roads, industrial facilities and high-technology infrastructure. The group’s project portfolio has included the Carajás railroad, the North–South Railroad, Brazilian highways, the Santo Antônio hydroelectric plant, refineries, subway systems, stadium renovations, the Rio de Janeiro Olympic Park, the Belo Monte hydroelectric project, the Angra III nuclear project, the S11D mining complex for Vale, and infrastructure in Venezuela, Peru, Ecuador, Algeria, Angola and other markets. Public descriptions of its current divisions, ownership arrangements, employee totals and financial performance vary by period and source. Andrade Gutierrez is therefore best understood as a private, project-based engineering and infrastructure group rather than a consumer-facing product brand.

Andrade Gutierrez was founded in Belo Horizonte on September 2, 1948, by the engineers Gabriel Andrade, Roberto Andrade and Flávio Gutierrez. It initially operated as a small Brazilian construction company. Its early development coincided with national modernization programs that increased demand for roads, transport links and public infrastructure. In the 1950s, the company completed its first major interstate engineering work on the Rio de Janeiro–Belo Horizonte highway and later participated in the construction of São Paulo’s Castelo Branco highway, a project that became associated with advanced highway engineering in Brazil. During the 1960s, Andrade Gutierrez expanded its operations into additional Brazilian states. One of its notable projects from that period was the Manaus–Porto Velho road, which extended for roughly 850 kilometres. In the following decade, the company participated in the construction of the Itaipu hydroelectric power plant on the Paraná River. Itaipu became one of the largest hydroelectric facilities in the world and helped establish the group’s credentials in complex energy and civil-engineering projects. The 1980s brought both domestic consolidation and international expansion. While Brazil experienced the economic difficulties commonly associated with the period’s “lost decade,” Andrade Gutierrez broadened its activities across Latin America, Africa and Europe. It built its first international road in 1987 in the Republic of the Congo and had earlier undertaken road construction in Bolivia, including a stretch of the Chimoré–Yapacani route. Other international work included the Nassau International Airport in the Bahamas. In 1987, the group acquired the Portuguese company Zagope, which subsequently became a vehicle for road, bridge, viaduct, tunnel and metro projects in Portugal, Mauritania and other markets. Zagope was involved in the expansion of the Lisbon Metro beginning in 1992. The group also expanded its Brazilian portfolio during the 1980s. Its projects included Confins International Airport, the Lagoinha Tunnel in Belo Horizonte, the canalization of the Ribeirão Arrudas, and the Carajás Railroad linking mining areas in Pará with the wider logistics network. These activities reinforced a business model based on large, technically demanding projects rather than standardized products. In the 1990s, Andrade Gutierrez diversified into industrial engineering, public concessions and telecommunications. It undertook engineering work at the Duque de Caxias Refinery and began a partnership with Petrobras. It also entered highway concessions through the CCR structure, which later became one of Latin America’s largest highway-concession platforms. AG Telecom was created in 1993. In 1996, the group relocated part of its international infrastructure activity to Argentina. In 1998, through the Telemar consortium, it participated in the privatization of Telebrás. The telecommunications business later operated under the Oi name, and the group also founded or participated in Contax, a major contact-center company. AG Concessões was created in 1999 as a sub-holding for concessions and infrastructure-related operating interests. Its reported activities covered transport and logistics, energy, sanitation, telecommunications, health facilities and sports arenas. The group later became involved in energy generation through the Santo Antônio Energia consortium, responsible for the construction and operation of the Santo Antônio hydroelectric plant in Rondônia. It also acquired a substantial voting interest in CEMIG in 2010 through AGC Energy, although the precise ownership structure changed over time. A 2012 internal restructuring created AG Private E&C to focus on service contracts for private-sector clients. Its areas of interest included mining, ports, logistics terminals, roads, industrial plants, food and beverage facilities and high-technology infrastructure. In 2013, the division began major work associated with Vale’s S11D mine in Carajás, including railway branches and a mineral-processing facility. The group also continued international work through its European, African and Asian operations, including infrastructure projects in Algeria, Angola, Equatorial Guinea, Portugal, Spain, Peru, Ecuador and Venezuela. Andrade Gutierrez has historically been controlled through arrangements involving the Andrade and Gutierrez families, with governance described as including a shareholders’ council, a board of directors and market committees. Public sources differ regarding later business divisions, ownership interests, employee figures and current operations. The company’s established identity remains that of a privately held Brazilian engineering, construction and infrastructure group with a history of diversification into concessions, utilities, telecommunications and energy.

1. 2014International construction platform rebranded

   The international construction operation formerly associated with Zagope was described as Andrade Gutierrez Europe, Africa, Asia.

   Source
2. 2013S11D mining project contracts

   Andrade Gutierrez began construction work for Vale’s S11D project in the Carajás region of Pará.

   Source
3. 2012AG Private E&C created

   The group reorganized its private-sector engineering and construction activities into AG Private E&C.

   Source
4. 2010Acquisition of a significant CEMIG voting interest

   AGC Energy became owner of 33 percent of the voting capital of the Brazilian energy company CEMIG, according to the cited reference.

   Source
5. 1999AG Concessões established

   A dedicated sub-holding was created to manage concessions and infrastructure-related operating interests.

   Source
6. 1998Participation in Telebrás privatization

   Through the Telemar consortium, the group entered the privatized Brazilian telecommunications market.

   Source
7. 1993Entry into telecommunications

   The group created AG Telecom.

   Source
8. 1987Zagope acquired

   Andrade Gutierrez acquired Portuguese construction company Zagope, strengthening its European and international platform.

   Source
9. 1970Participation in the Itaipu hydroelectric project

   The company participated in construction of the Itaipu hydroelectric power plant.

   Source
10. 1960Manaus–Porto Velho road constructed

    Andrade Gutierrez built the approximately 850-kilometre Manaus–Porto Velho road as part of its expansion across Brazil.

    Source
11. 1950First major interstate highway work

    The company undertook engineering work on the Rio de Janeiro–Belo Horizonte highway during the 1950s.

    Source
12. 1948Andrade Gutierrez founded in Belo Horizonte

    Gabriel Andrade, Roberto Andrade and Flávio Gutierrez established the company as a Brazilian construction business.

    Source

A Brazilian private engineering and infrastructure group positioned around the delivery, development and operation of large public, industrial and concession-based projects.

• Engineering and constructionEngineering and construction services

  The group’s principal business has been the design, construction and execution of large capital projects. Its work has covered highways, railways, airports, ports, subways, sanitation systems, urbanization, hydroelectric and thermoelectric plants, nuclear facilities, refineries, petrochemical plants, mining installations, steelworks and other civil-engineering projects. These offerings are delivered through project contracts, consortia, subsidiaries and joint ventures rather than as standardized consumer products.

• Transportation infrastructureInfrastructure construction

  Transportation work has included highways, railways, metro systems, airports, ports, bridges, tunnels and logistics facilities. Notable projects referenced in public material include the Rio de Janeiro–Belo Horizonte highway, Castelo Branco highway, Carajás Railroad, North–South Railroad, Lisbon Metro expansion, airport work in Brazil and the Bahamas, and transport projects in Algeria, Peru, Portugal and other countries.

• Energy and industrial projectsEnergy and industrial infrastructure

  Andrade Gutierrez has applied its engineering capabilities to hydroelectric, thermoelectric and nuclear power projects, transmission systems, refineries, petrochemical plants, steelworks and mining facilities. Projects associated with the group include Itaipu, Santo Antônio, Belo Monte, Angra III, refinery units and industrial facilities in Brazil and abroad.

• Infrastructure concessionsPublic-service concessions1999

  Through AG Concessões and related interests, the group has participated in the development or operation of concession businesses in transport, logistics, energy, sanitation, telecommunications, health and sports facilities. The concession model extends beyond construction into long-term operation, investment and management of public or regulated infrastructure.

• Telecommunications investmentsTelecommunications1993

  AG Telecom represented the group’s telecommunications activities. Through the Telemar consortium, Andrade Gutierrez participated in the 1998 Telebrás privatization and became associated with the operator later known as Oi. Related portfolio interests also included Oi Internet, Way Brasil and Contax, although the composition of the portfolio changed over time.

• Santo Antônio hydroelectric projectHydroelectric generation

  Andrade Gutierrez participated in the Santo Antônio Energia consortium, associated with construction, operation and energy commercialization for the Santo Antônio hydroelectric plant on the Madeira River in Rondônia. The project was described as having 50 turbine generators and total planned generation capacity of 3,568 megawatts.

• S11D mining infrastructureMining infrastructure2013

  The group’s AG Private E&C operation worked on Vale’s S11D project in Carajás, Pará. The referenced contracts covered two railway branches totaling about 50 kilometres and a mineral-processing facility designed for a stated capacity of 90 million tonnes of steel-bearing material per year.

• 2014Termination of the Water Port contractOther

  AG Concessões had participated in sanitation-related operations through Water Port.

  What changed. Andrade Gutierrez terminated the Water Port contract with the São Paulo state port authority.

  Aftermath. The termination ended the group’s participation in that specific water and sewage arrangement.

  Source
• 2012Creation of AG Private E&CStrategy

  The group wanted a distinct structure for service contracts serving private-sector customers.

  What changed. Andrade Gutierrez created AG Private E&C during an internal restructuring.

  Aftermath. The division pursued contracts in mining, ports, logistics, roads, industrial plants, food and beverage facilities and high-technology infrastructure.

  Source
• 1999Creation of AG ConcessõesStrategy

  Experience with public-service concessions during the 1990s created a rationale for a dedicated concessions platform.

  What changed. The group established AG Concessões as a sub-holding for infrastructure concessions and related operating businesses.

  Aftermath. The division was associated with transport, logistics, energy, sanitation, telecommunications, health and sports-facility activities.

  Source
• 1998Participation in the Telebrás privatizationM&A

  Brazil’s telecommunications sector was being reorganized through privatization.

  What changed. Andrade Gutierrez participated in the Telemar consortium’s acquisition of a privatized telecommunications operation.

  Aftermath. The operation was later renamed Oi, becoming a major telecommunications interest associated with the group.

  Source
• 1993Entry into telecommunications through AG TelecomStrategy

  The group was diversifying beyond construction and infrastructure contracting.

  What changed. Andrade Gutierrez created AG Telecom.

  Aftermath. The telecommunications portfolio later included participation in Oi-related operations and Contax.

  Source
• 1987Acquisition of ZagopeM&A

  Andrade Gutierrez sought to build an international construction platform during a period of expansion into Europe, Africa and Latin America.

  What changed. The group acquired the Portuguese construction company Zagope.

  Aftermath. Zagope became an important base for projects in Portugal and other international markets, including roads, bridges, viaducts and metro infrastructure.

  Source

• 2014Cemig increased its interest in Santo Antônio Energia

  Cemig GT increased its participation in Santo Antônio Energia through a transaction involving an investment structure managed by Andrade Gutierrez interests.

  M&A
  Source
• 2014Andrade Gutierrez terminated the Water Port contract

  AG ended its Water Port contract with the São Paulo state port authority, concluding its participation in that sanitation-related concession arrangement.

  Other
  Source
• 2013Andrade Gutierrez began work on Vale’s S11D mining complex

  The group began construction work connected with Vale’s S11D project in Pará, including railway branches and a processing facility in the Carajás region.

  Product launchOther
  Source
• 2012AG Private E&C was created

  An internal restructuring established AG Private E&C to manage service contracts for private-sector clients and pursue projects in mining, logistics, ports, industrial facilities and related infrastructure.

  Leadership change
  Source
• 1999AG Concessões was established

  The group created AG Concessões as a sub-holding focused on infrastructure concessions and public-service operations.

  Other
  Source
• 1998Andrade Gutierrez participated in the Telebrás privatization

  Through the Telemar consortium, Andrade Gutierrez participated in the privatization of Telebrás and became associated with the telecommunications operation later renamed Oi.

  M&A
  Source
• 1993Andrade Gutierrez created AG Telecom

  The group entered telecommunications by creating AG Telecom, broadening its activities beyond engineering and construction.

  Other
  Source

1. Andrade Gutierrez