BISA Advice on the sale of 70% of shares to Cobra
Date: February 2022 / Source: projects.gbreports.com
Interview with Federico Schwalb, General Manager
The entry of a new partner in BISA is very important news. Spain’s Cobra Group became the majority shareholder at the end of February 2022, and currently holds a 70% stake. Although the shareholding has changed, the organization has not changed. It will only do so as long as it makes business sense to do so, for example, if opportunities arise to enter new markets or new sectors. We believe that the new partner, which is much larger than BISA was, will open up these types of opportunities for us, especially in Latin America, where it has a large presence.
How have you been diversifying your client portfolio and your service offering?
We no longer have exclusive dependence on Buenaventura like five years ago, when the company constituted more than 50% of our portfolio. Currently, Buenaventura is an important client along with Antamina, Nexa, Minsur, Chinalco, Southern Peaks Mining, Glencore, Volcan, Vale, Las Bambas, and this year Pan American Silver has joined. That is to say, today we have a diversified portfolio where no client reaches 15%.
In addition, we have introduced new services. At Antamina and Buenaventura, in addition to providing our traditional services, we have two small PMOs (Project Management Office) for a portfolio of projects, and we are evaluating expanding these services to other clients. We are also starting to offer new accompanying services to local contractors; That is, we help improve the management and quality, safety, environmental and human resources standards of local companies with which our clients work. In addition, we continue with typical engineering services in all its disciplines.
How has the pandemic changed the way BISA works?
A couple of years ago we were forced to work remotely due to the pandemic. However, before July 2020 we decided that, regardless of the evolution of covid-19 and quarantines, we were not going to return to the previous format. Therefore, we left the office we had, which could hold around 300 people, and instead rented a smaller co-working office that we used as a link and which can hold around 25 people. Currently, the majority of our staff work from home or at our clients’ premises when required. This model is working very well for both workers and the company, and we have seen improved productivity almost from the beginning.
What are the main challenges and opportunities for engineering companies in Peru?
We view with concern the political and social situation in the country, as well as the fact that new mining projects are not going ahead. The growth of Peru is closely linked to mining production, and, although we should not depend so much on a single sector, the truth is that today the revenue from mining is very significant, which could be used to promote the development of other activities, thus reducing dependence on mining production, and further diversifying the country’s income in the future.
At BISA our main focus is not large new projects, but rather projects to sustain, optimize and modify existing operations. Therefore, in the short term we do not foresee a significant impact, since we will continue with a robust portfolio of sustainability projects. However, in the long term we are concerned about the lack of new investments.
What priorities does the company have in the coming years?
In recent years we have been strengthening our presence in the mining sector, although we also provide services to other sectors such as infrastructure or ports. However, often these jobs in ports or on roads are also related to mining projects. Therefore, we are a mining supplier and will probably remain so in the future. With the incorporation of Grupo Cobra, we are presented with opportunities to venture into other sectors, such as hydrocarbons, energy or water. We will continue to provide quality service, always putting our customers’ needs first and adding value.