Swedish contractor NCC is to split its building department in two, with one half concentrating on the domestic market and the other targeting the wider region.
The purpose is to give each "better conditions to achieve profitable growth", it announced today (12 September).
The change, which will come into effect on 1 October, will divide the company’s largest unit into "Building Sweden", led by Henrik Landelius, and "Building Nordics", led by Klaus Kaae. Landelius is the current head of NCC Building Sweden and Kaae is the business area manager.
Tomas Carlsson, the chief executive of NCC, commented: "With two separate business areas we get more energy to drive the change needed to improve profitability and achieve profitable growth.
"The challenges we need to address differ between the markets and our focus should be on different issues. In Sweden, we must strengthen profitability and ensure continued growth while in the rest of the Nordic region the focus is on continuing the work that is already under way to improve profitability, particularly in Norway."
Operations in Sweden accounted for $1.5bn, or almost 60%, of NCC’s sales in 2017, and employed about 3,800 staff. Operations in Denmark, Finland, Norway and accounted for $1.2bn and employed 2,350 workers.Â
"We have already come a long way toward reversing the trend in Norway and Finland. In Denmark, we have a number of interesting housing and office projects with enormous potential in the future," said Klaus Kaae, newly appointed business area manager of NCC Building Nordics.
Image: NCC Building’s headquarters in Solna, northern Stockholm (NCC)