STFA Group

STFA Group is a Turkish engineering, construction, infrastructure, and industrial-services conglomerate established in 1938 by civil engineers Sezai Türkeş and Feyzi Akkaya. Its name derives from the founders’ initials. The company emerged before the Second World War as one of the first major Turkish contractors able to compete successfully with foreign firms for substantial heavy-construction work in Turkey. Its early assignments included bridge construction and foundation piling in Malatya. During the postwar period, STFA expanded across major forms of civil infrastructure. Its work in Turkey included bridges, ports, dams, tunnels, railway bridges, high-voltage transmission lines, and hydroelectric facilities. Projects associated with the group include the Sivas–Erzurum railway bridges, the ports of Kuşadası, Bartın, and Karadeniz Ereğli, and the Kadıncık Hydroelectric Power Plant. In the 1980s and 1990s, the group also participated in prominent Turkish infrastructure projects such as the Second Bosphorus Bridge, Istanbul ring roads, the Orhaneli Thermal Power Plant, the Golden Horn tunnels, and the Galata Bridge. STFA became an international contractor during a period of economic difficulty in Turkey. Rather than release personnel and leave construction machinery unused, it pursued overseas work, beginning with a successful tender for the port of Tripoli in Libya in 1972 and a contract signed in early 1973. The group subsequently undertook work in Saudi Arabia, Egypt, Iran, Tunisia, Pakistan, Oman, and Qatar, among other markets. Across its history, it has been employed on contracts in 24 countries, with an aggregate stated value of approximately US$25 billion. By the 1990s, STFA had developed into a diversified conglomerate whose businesses were largely underperforming. Following the retirement of its founders, control passed to the next generation, which sold assets in an attempt to reduce bank debt but did not restore the group’s financial health. In 2001, professional managers were appointed and the group began restructuring approximately US$500 million of debt. The restructuring involved the disposal of shipyards, land, a ski resort, and other assets, as well as the closure of businesses that could not be sold profitably. The group ultimately concentrated on construction contracting, construction-equipment distribution, and energy utilities. Debt resolution was completed by 2007, and STFA sold a minority interest to Hong Kong-based fund manager ADM Capital as part of the restructuring. STFA’s construction activities cover marine works, ports and terminals, bridges, roads, tunnels, railways, dams, deep foundations, power plants, transmission lines, water and wastewater infrastructure, buildings, and engineering or construction-management services. Its equipment business is represented by SİF Construction Equipment Marketing, described in the reference material as Turkey’s largest construction-equipment dealer and the exclusive Turkish JCB dealer since 1974. In energy, STFA has held an interest in Enerya Gas, Electricity and Water Distribution Company, which develops and operates city gas-distribution concessions in Turkey. The group therefore combines project-based engineering and contracting with equipment distribution and regulated utility infrastructure.

STFA was founded in 1938 by Sezai Türkeş and Feyzi Akkaya, who met while studying civil engineering at Istanbul Technical University. They created STFA İnşaat Müteahhitliği, using the initials of their surnames. At a time when large heavy-construction contracts in Turkey were commonly awarded to foreign companies, the founders established STFA as an important local competitor. Its first known work included bridge construction and foundation piling in Malatya. In the postwar decades, STFA became involved in a broad range of Turkish infrastructure projects. Its activities included bridges, ports, dams, tunnels, railway structures, high-voltage lines, and hydroelectric facilities. The group is associated with the Sivas–Erzurum railway bridges, the ports of Kuşadası, Bartın, and Karadeniz Ereğli, and the Kadıncık Hydroelectric Power Plant. During the 1980s and 1990s, it participated in several of Turkey’s major civil-engineering projects, including the Second Bosphorus Bridge, Istanbul ring roads, the Orhaneli Thermal Power Plant, the Golden Horn tunnels, and the Galata Bridge. STFA moved into international contracting in response to the economic recession affecting Turkey in the 1970s. Overseas work allowed it to retain personnel and keep its construction machinery productive. The group tendered for Tripoli port in Libya in 1972 and signed the resulting international contract at the beginning of 1973. It later expanded its contracting operations into Saudi Arabia in 1978, Egypt in 1981, Iran in 1983, Tunisia in 1984, Pakistan in 1992, and Oman and Qatar in 2000. Its international portfolio developed around marine works, ports, terminals, roads, bridges, tunnels, power and transmission facilities, water infrastructure, buildings, foundations, and engineering services. The group’s diversification became a serious problem by the 1990s. After the founders retired, their grandchildren assumed control, but the enlarged conglomerate contained many loss-making businesses. Initial efforts focused on selling assets to reduce borrowing. In 2001, professional management was brought in and STFA was required to restructure debt reported at approximately US$500 million. Shipyards, land, and a ski resort were among the assets sold, while businesses that could not be sold and continued to lose money were closed. The restructuring narrowed STFA’s focus to construction contracting, construction-equipment distribution, and energy utilities. The group resolved its debts by 2007 and sold a minority interest to ADM Capital, a Hong Kong-based fund manager. In its subsequent operating configuration, STFA’s construction businesses continued to serve Turkey and markets across the Middle East and North Africa. The group also maintained equipment-distribution activities through SİF JCB İş Makinaları and participated in Turkish natural-gas distribution through Enerya. Its continuing identity is therefore that of an infrastructure-oriented Turkish group rather than the broadly diversified conglomerate it had become before the restructuring.

• 2007

  Debt resolution is completed

  [1]STFA Groupen.wikipedia.org

  STFA completes its debt-resolution process and sells a minority interest to ADM Capital.

• 2001

  Debt restructuring begins

  [1]STFA Groupen.wikipedia.org

  Professional executives are appointed as STFA restructures approximately US$500 million of debt and reduces its diversified asset base.

• 1974

  SİF becomes JCB’s Turkish dealer

  [1]STFA Groupen.wikipedia.org

  STFA’s construction-equipment subsidiary SİF begins its role as JCB’s sole dealer in Turkey.

• 1973

  First international contract

  [1]STFA Groupen.wikipedia.org

  STFA signs its first overseas contract, for work connected with Tripoli port in Libya.

• 1972

  STFA tenders for Tripoli port

  [1]STFA Groupen.wikipedia.org

  The company tenders for the construction of Tripoli port in Libya, initiating its move toward international contracting.

• 1938

  STFA is founded in Turkey

  [1]STFA Groupen.wikipedia.org

  Sezai Türkeş and Feyzi Akkaya establish STFA İnşaat Müteahhitliği, creating the business that develops into STFA Group.

A Turkish-origin infrastructure and industrial-services group positioned around large-scale civil engineering, international construction contracting, construction-equipment distribution, and utility-network development.

• Construction contracting

  STFA Construction Group

  The construction group undertakes large civil-engineering and infrastructure contracts in Turkey, the Middle East, North Africa, and other international markets. Its capabilities include marine structures, container and commercial ports, naval harbours, LNG terminals, water intakes and outfalls, highways, bridges, tunnels, dams, railways, power plants, transmission lines, deep foundations, buildings, water and wastewater systems, and engineering or construction-management services.

• Construction-equipment distribution · 1974

  SİF JCB İş Makinaları

  SİF is STFA’s construction-equipment distribution business in Turkey. It sells and services JCB equipment through offices and service locations in major Turkish cities and has served as JCB’s sole Turkish dealer since 1974, according to the reference material.

• Energy and utility distribution

  Enerya Gas, Electricity and Water Distribution

  Enerya is the group’s utility-distribution activity. It operates gas-distribution concessions intended to develop, operate, and transfer citywide natural-gas networks. The reference material describes eleven concessions covering twelve Turkish cities, each structured as a greenfield concession with a 30-year term.

• Marine infrastructure

  STFA Marine Construction

  STFA’s marine-construction capabilities cover port development, container terminals, commercial and naval harbours, LNG-terminal works, and water-intake or outfall structures. These activities form a major part of the group’s international infrastructure portfolio.

• Geotechnical engineering

  STFA Foundation and Drilling Services

  The group’s foundation, piling, investigation, and drilling companies provide deep-foundation and related geotechnical services for major infrastructure and building projects.

• 2001

  Consolidation around core infrastructure businessesStrategy

  Background

  By the 1990s, STFA had become a diversified conglomerate containing numerous loss-making businesses. Following the founders’ retirement, the group faced substantial bank debt and management difficulties.

  Action taken

  Professional executives were appointed, debt restructuring was initiated, and the group began selling non-core assets, closing unsustainable operations, and concentrating on construction contracting, equipment distribution, and energy utilities.

  Aftermath

  The restructuring continued for several years, with asset disposals including shipyards, land, and a ski resort. STFA resolved its debts by 2007 and subsequently sold a minority interest to ADM Capital.

  Debt under restructuring. Approximately US$500 million (2001 restructuring; debt resolution reported by 2007)

  Source

• 1973

  Expansion into international contractingStrategy

  Background

  A recession in Turkey threatened employment and risked leaving STFA’s construction machinery idle.

  Action taken

  STFA pursued work outside Turkey, beginning with its first international contract connected with Tripoli port in Libya.

  Aftermath

  The company developed a wider overseas contracting presence, later working in Saudi Arabia, Egypt, Iran, Tunisia, Pakistan, Oman, Qatar, and other countries.

  Source

1. 1STFA Groupen.wikipedia.org