Hard work, humility and consistency

A leader in the construction industry and other sectors, the Iacovou Group of companies was established more than 65 years ago by Yiorgos Iacovou in Larnaca in 1953. 68 years later it has evolved into an innovative multi-faceted Group.

The Group is involved in the following range of activities:

-Construction
– Quarrying and Mining
– Concrete and Asphalt Production and Supply
– Importing and supply of heavy machinery and spare parts
– Land development
– Investments-Concessions

Founder Yiorgos Iacovou

Iacovou Group goes back to the 1950s and pioneer Yiorgos Iacovou, a passionate man from Larnaca, who was working hard to progress in life, whilstas well as providinge the best he could for his family.
He married Despina Iacovou from Deftera and had three children; Eftihios, Iacovos and Costakis. Despina came from the Hadjieftihiou family and her father was an innovative, progressive landowner and Deftera community leader. He had also served as a member of the legislative body during British colonial rule.

Yiorgos Iacovou started out as a small scale contractor, dealing in gravel, earth works and building cement blocks. In 1953, the establishment of his business coincides with a period of rapid economic development.

The Group’s foundations

In 1975 Yiorgos and his three children set the foundations of the Group, establishing the Iacovou partnership, quickly rising up the market and consolidating a leading position. As the father retires in the years to come, Eftihios, Iacovos and Costakis take over the business completely.

The early decades

As the country begun recovering following the Turkish invasion, the largest share in the kickstart of the economy was taken over by the construction industry, with the Iacovou Group establishing a number of new independent subsidiaries which continue to remain to date an active part of the business, specialising in different aspects of the industry.

In 1976, Iacovou Brothers (Overseas) Ltd is founded in order to take over the Group’s activities abroad.

1978 sees the establishment of Iacovou Brothers (Constructions) Ltd, dealing with the Group’s construction activities in Cyprus. This particular company remains on the frontline of implementing major infrastructure work, contributing to the development of Cyprus, such as highways, dams and other such large scale projects.

Following the Turkish invasion, Iacovou Brothers (Constructions) Ltd, becomes actively involved in building housing units for refugees and construction work for the then newly under construction Larnaca Airport.

 

In the early 1980s, rising demand for ready-mix concrete, led to the establishment of Iacovou Brothers (Concrete) Ltd, producing and providing ready mix concrete both for the Group’s needs and the local market.

The Group expands even further in 1984, with Unitrak Machinery Ltd dealing with the import of heavy machinery and spare parts, supplying both the Group and the local market. It has become the exclusive representative in Cyprus of international heavy machinery companies, such as Hitachi Construction Machinery (HCM), Atlas Copco,  Dynapac and others.

Quarries

From the outset, Iacovou Brothers (Constructions), has been mining for construction materials needed for projects, but in 1998 a separate subsidiary was established for this purpose.

Iacovou Brothers Quarries Ltd took over the quarrying activities in the Ksylofagou area.

With rising demand, the Group decides to further expand in the quarries sector and in 2004 moves to acquire the Skyra Lima Ltd quarry in the Pyrga area, one of the oldest and largest in the quarrying sector in Cyprus, operating since 1960, with large scale production and major sales.

At a later stage The Group also invested in quarrying activities at the Parekklisia and Sia areas.

 

Expanding to Greece

The Group takes a major investment step in 1998, expanding its operation to Greece with the establishment of Iacovou Hellas, which secures large scale projects as part of a consortium, including works at the Eleftherios Venizelos International Airport in Spata and earth moving projects funded by the Greek State Electricity Company.

Yet further openings

In 2003, the company goes into land development, with the establishment of Iacovou Brothers (Development) Ltd.

Four years later it invests in Hellenic Copper Mines Ltd and in 2010 it acquires the company’s majority stock package. It operates in the mining and production of gold, copper and other metals.

Investments

Iacovou Brothers always had ambitious plans. The managements’ vision to expand its activities through BOT (Build-Operate-Transfer), PFI (Private Finance Initiative) and PPP (Public Private Partnerships), becomes reality in 2006, with the Group’s participation in Hermes Airports Ltd, taking over the first and biggest BOT of the Larnaca and Paphos airports for a period of 25 years, with absolute success. Iacovou Brothers (Constructions) Ltd, has carried out major works at the new airports, quite favourably compared with airports in major European countries.

Today’s outlook

Steamrolling into the 21^st century, the Iacovou Group continues to expand in all sectors of its activities, with the 3^rd generation having successfully taken over the business; namely the sons of Iacovos Iacovou, Yiorgos and Christos and the sons of Costakis, Yiorgos and Alkis.

The Group is made up 22 active or operational companies, covering a major sector of the construction industry and beyond and being supply independent through their own chain.

Furthermore, it has expanded to European countries and the Middle East.

Iacovou Brothers has made its mark in a series of major infrastructure works such as airports, highways, bridges, dams, ports, sewerage, desalination systems, waste processing systems, electricity producing plants, cement and wheat silos, oil and natural gas works, public buildings and private business and residential buildings, hotels and high rise buildings.

Ιt keeps investing in technology and innovation, leading the way in construction materials recycling, always in accordance  of EU standards. In addition, it boasts one of the biggest fleets of cutting edge technology in heavy machinery, constantly being renewed in line with international developments.

Having successfully coordinated all  activities of subsidiary and affiliated companies dealing with the production and distribution of construction and other relevant materials, it has acquired and maintained a competitive advantage, in providing higher quality at a lower cost in all production stages.

Sensitive and responsible

Sensitive to the environment and with a high sense of responsibility on health and safety, the Group strictly adheres to the relevant standards and quality control legislation following the appropriate practices in a safe working environment.

As the Group indicates,

“The long standing commitment of its employees are an integral, valuable part of its assets and vital in achieving its goals and common vision.”

Both the size of the business as well as its community centered character, distinguish the Group as one of the most important and largest employers in the construction sector.

And they send out the message that the ‘Iacovou Groups aims to maximize client satisfaction in a responsible manner and through its long standing experience, provide advice for optimal practices and techniques, with cost effective solutions in construction works, without compromising on quality. We have earned market trust and the image of a serious, consistent, reliable and trustworthy associate’.

Just construction, a conscious choice

The Iacovou Group goes back to 1953 and pioneer Yiorgos Iacovou, who started out as a small scale contractor in Larnaca. The high flying growth came about when his three children took over at the helm; Eftihios, Iacovos and Costakis were the founders of the Iacovou Group. Today, the 3^rd generation is making its own mark. Iacovos Iacovou, one of the founders delved into history, today’s realities and future prospects.

How does the Iacovou Group begin?

My father, Yiorgos Iacovou. He was a small scale contractor, mainly operating in the production of aggregates, such as gravel, making cement blocks by hand and material distribution. It was really just a small business made up of just one person. Then the 2^nd generation came in, first my brother Eftihios, then myself and finally, Costakis joined.

When we went into the kind of production and works our father was involved in, the whole thing was initially a partnership. Iacovou Brothers happened along the way. The foundation was laid by our father, who started out with two excavators and four trucks.

Τhe three brothers

Did you start together?

Νot really. First my brother Eftihios, the oldest, joined the company, I followed and Costakis, the youngest, then came along. The substance of it all is that with sheer hard work and consistency, we developed our father’s small enterprise into a major business, as it expanded into the multi-faceted Group of 22 companies we know today.

Fatherly advice

One piece of advice from your father that is cast in stone for you.

That we need to be flexible. ‘A bending tree cannot be cut’, he used to say, meaning that we should not take an absolute stance in our choices and accept other opinions, beyond our own truth and approach. In life you need to be open to ideas, actually listen to others, adapt and be flexible. That also holds true in professional life too.

What does the history bring to the fore, as present and future?

It’s that weight of responsibility you carry, the need to respect your history and maintain that high level, build and expand the Group on the principles that it was founded.

Pure construction

Quite a number of construction groups have gone into land development. Not you.

It was a conscious choice to essentially remain in construction and we’ve been doing that ever since the Group’s establishment. This is our DNA so to speak. We don’t find it ethically acceptable to actually compete with land developers, which are essentially our associates. It’s simply not right to carry out construction work for land development companies, building residences for example and be developers who sell real estate at the same time. So we keep to the construction side of things.

What was the Group’s biggest moment?

Well, to me it was the old Larnaca Airport works, as well as our first project post 1974 invasion, building residences and apartments for teachers in Kuwait. But really the great impetus came from building the old Larnaca airport and the Paphos airport.

Was it a partnership or a company before 1974?

It was simply my father, along with us, taking over small scale construction work, mainly government contracts, mostly earth moving.

How did 1974 affect you?

We operated in Larnaca, so no property was lost. But we were inevitably affected by such a crisis along with the rest of society and as part of the economy.

The three brothers at the wheel

When did you take over completely?

That would be 1976. Following the war, we were involved in building refugee settlements on the outskirts of Larnaca, such as Tsiakillero and Kokkines. But our main project at the time was building the old Larnaca Airport. We were involved there through various small contract work. When it became evident that the Nicosia Airport would not be reopening, the government decided to build a new airport. There was a small abandoned airstrip where the airport stands now, that was used by British military planes. So we began constructing the runway there, with the initial goal of operating a temporary airport, as it was believed that Nicosia would open again. But as the saying goes, there is nothing more permanent than the temporary. Larnaca airport became the country’s main hub.

You seem to have developed a know-how for airports.

We’ve been working constantly at Larnaca airports from 1975 to this day, both the old and the new. We are members of Hermes Airports Ltd, managing the airports. But we’ve been involved ever since the first stone was laid at the old Larnaca airport and we expect this to continue in the future. Our running contracts will take us to 2031. At the present time we are carrying out maintenance works at both the Larnaca and Paphos airports.

Major works

Other major works?

A landmark project was the construction in 1979-80 of the Palm Beach hotel in Larnaca, as well as the Louis Group Saint Elias tourist village in Protaras and ‘The Vrysi’ hotel.

We have also carried out construction work at the Dhekelia power plant, as well as the Vasilikos power plant, as part of a consortium. I could also mention the Achna dam and the Larnaca sewerage system, which involved laying pipelines that run at a length of 150 kilometers under the city.

Another significant aspect of our work is road construction, with numerous projects over the years.  And if I may add, a landmark of the Group’s road construction activity was the first phase of the highway to the free Famagusta area, as well as the six lanes of the Nicosia-Limassol highway, right up to Alambra, carried out as part of a consortium.

Yet another quality project is the Mesa Yeitonia roundabout in Limassol.

How about works abroad?

We are currently involved in projects across Bahrain, Oman and most recently Abu Dhabi. We have also worked in Greece for 15 years.

Investments with a forward vision

Which companies stand out from the ones you have acquired, absorbed or invested in?

I think that the SKYRA LIMA investment was the most significant of all, as it took place with a forward planning of 50 years. We invested in order to buy out the company and put in major development funds.

Our quarrying sector investments are also important, as we expanded our activities to the Parekklisia and Sia quarries. By acquiring four quarries we have essentially achieved a vertical chain. More simply put, I use the rock to make concrete, I use the rock to make asphalt.

And a vertical independent chain is quite of significance in our sector as it provides the opportunity to determine your own quality and work programme. You’ve got your own material and don’t have to depend on the market.

We have also developed an innovative method of removing asphalt from the street and recycling the materials. We were the first to introduce this particular method to Cyprus, as well as the first to implement ground support during the new Larnaca Airport construction 16 years ago. It involved 600 thousand square meters.

Your sector is constantly evolving. Do you follow them?

Technological developments in our sector are almost daily and you need to keep track. If you don’t really follow the changes, you’ll find yourself lagging behind in effectiveness and efficiency. So it’s imperative for the success of your company. This is what we’re trying to do.

Skouriotissa

How’s the Skouriotissa project going?

We’re getting ready to open  a licensed deposit in Apliki, which holds copper deposits to last the next 12 years. We’re also expecting a number of gold licenses to go through. We have all the planning in place and are just waiting for the go ahead, soon I hope.

The area has been mined numerous times in the past, perhaps over 100, and they are causing environmental pollution, as older methods have been used. We have requested a license to process them again in order to stop the pollution as well as restore the landscape.

Being treated fairly

Many employees have worked for decades in the group, right up to their retirement. Why is that?

We are always fair with the people we work with, primarily our personnel, our staff, they are without doubt, our greatest asset. We have people who worked for the group for over 40 years. Well it has to mean something when some of the staff return even after retirement.

The Group has an award system in place to honour long standing service.

As employers, we strive for an equal opportunities approach, so our system does not treat anyone unfairly.  But we’re always humble about it.

Help but not publicize

What about corporate social responsibility?

We help as much as we can, but are not loud about it. We are a low key organisation, particularly when it comes to social contribution. Humility, that’s our motto and culture. Integrity, humility and feet firmly on the ground.

The Group’s values and principles

Absolutely no argument here; from the outset, the Iacovou Group set in stone and dedicated itself to a number of values and principles, handed down the generations without fail.

The three Iacovou brothers, founders of the business, made clear that the business would be forged on the basis of devotion, honesty, integrity and effectiveness.

That has been the cornerstone of the Group’s path down the sixty five decades of its life, becoming the key to its on-going, long-standing success.

As the company notes, ‘the key to our success are timeless values and principles such as conscientiousness, honesty, integrity, humbleness, consistency and manners’.

This is also the basis on which the Group presents itself socially, consistently following a community centered corporate policy through support for charity organisations and social contribution groups in education, culture and sport.

According to the Group’s beliefs, this kind of support is never loud and widely publicised, but goes ahead as discreetly as possible, a feature of corporate social responsibility over time.

Looking to the future supported by the present and respecting the past.

The Group always strives towards a future perspective with a confident outlook, but never arrogance, maintaining a low key, yet dynamic presence.

As they point out, ‘working in a reality of on-going challenges and changes, our fundamental, steadfast goal is for every aspect of our activity to reflect our values.

Never complacent, we are always evolving and building on our credibility and integrity, winning over the appreciation of our associates and our personnel’s commitment’.

 

We make it a purpose of responding to challenges and being proud at every moment, both on the results of our work as well as the way in which we set and achieve targets, day by day, year by year’.

They further note that ‘always respecting our history, we maintain a successful present and confidently promise a dynamic future in humility. We are respectful and guided by our decade’s long history on which the Group’s successful course was forged.

Vasilikos Power Station Phase A, Larnaca. We never relinquish the principles on which our rise was based, to the benefit of not just the Group, but also our personnel and the country as a whole. We promise never to remain passive onlookers of our successful past, but continue with determination and faith, onwards and forwards with yet more success in sight’.

Self-reliant and independent

What does the future hold in store? We spoke about all the prospects with Mr. Iacovou.

And how about the future?

Investments are on-going in various sectors and our goal is to remain competitive, mostly in construction. Currently we’re working towards building our own terminal to import asphalt. We have also invested heavily in renewing our vehicle fleet, because as I have said before, we want to keep control of things and not rely on others.

We are working on a vertical strategy, aimed at self-reliance and independence as a means of controlling quality and determining scheduling based on our own needs. So I would say that equipment investment never ceases.

When you’re working in the construction sector, daily upgrades are needed; there is simply no end to this process. Projects become even more complicated and demanding. You cannot turn back the clock.

And why not subcontracting?

Our corporate philosophy as a construction group is the need for independence. In fact, there are two cultures on the matter. The first is to just remain on the coordination side, managing a contract and depending on subcontracting for almost all aspects of a project. The second one is to have direct control over materials, efficiency and quality, by using our own means. This is the approach and culture we faithfully follow and I truly believe it does pay off.