The engine for growth and profitability is urban development involving partners. The company wants to differentiate itself by caring for customers, visionary urban development, passionate execution and inspiring leadership.
The strategy of the combined company has been described in the Merger Prospectus, that was published in Autumn 2017 as a part of the merger process of YIT and Lemminkäinen.
The combined company's goal is to become one of the leading players in the urban development market in Northern Europe. The combined company strives to improve its quality and customer experience further and to continuosly provide its customers with new innovative services and solutions. The combined company's more balanced product and service offering and wider geographical presence are expected to improve the combined company's tolerance for cyclicality and risks. An improved tolerance for cyclicality supports cash flow generation and helps achieve growth targets. The combined company's success will be based, first and foremost, on a professionally skilled personnel and the continuous development of competence.
The combined company's business will be divided in the following four business areas, which will enable development and connecting of cities more broadly than before:
Housing: Construction and development of apartments and entire residential areas.
Business premises: Construction and development of offices, business, production and logistics premises and public buildings, solutions for the health care sector, and property development services. Renovation is also part of the service portfolio.
Infrastructure: Transport infrastructure construction, including bridges, underground construction, earthworks and foundation, building of energy, water supply and industrial plants, paving, as well as maintenance.
Partnership properties: The business area will focus on financing the development of significant projects as well owning ant timely divestment of developed properties. According to its strategy, YIT targets to make the majority of big and long-term investments with partners. The object of the new business area is to improve the group's growth capability, to improve completion and visibility on the reporting of partnership projects and to enable the creation of a project portfolio of stable cash flows.
Visionary urban development is the flue that holds all the business areas together. A significant competitive edge is created by combining the different business areas' technical and project development expertise for creating new large projects. The combined company's investment capacity will grow significantly with the help of the new Partnership properties business area.
The combined company's strategy is to further develop YIT's and Lemminkäinen's strategies, which are described in further detail under in the merger prospectus.The management of the combined company will continue to examine and develop the strategy, which the Board of the combined company will approve at a later date.
Urban development boosts the growth of balanced business portfolio