Lemminkäinen and YIT will complete the merger
- Stock Exchange Releases
- 12/12/2007
LEMMINKÄINEN'S NEW STRUCTURE EFFECTIVE 1.1.2008
Stock Exchange Bulletin, 12.12.2007, 14.45 Lemminkäinen Group will be reorganised into four business sectors with effect from 1 January 2008. The business sectors are building construction, infrastructure construction, technical building services, and building products. Building construction and infrastructure construction will be the responsibility of two new companies: Lemminkäinen Talo Oy and Lemminkäinen Infra Oy. Le
Stock Exchange Bulletin, 12.12.2007, 14.45
Lemminkäinen Group will be reorganised into four business sectors with effect
from 1 January 2008. The business sectors are building construction,
infrastructure construction, technical building services, and building products.
Building construction and infrastructure construction will be the responsibility
of two new companies: Lemminkäinen Talo Oy and Lemminkäinen Infra Oy.
Lemminkäinen Talo Oy will consist of the Palmberg Group and all the operations
of Lemcon Ltd except for its infra business (Lemcon Infra). Lemminkäinen Talo Oy
will have building construction and real estate development businesses through
11 local subsidiaries in Finland, Russia, Estonia and Sweden. It will also serve
customers globally as a specialist project contractor. Combining the expertise
of Lemcon and Palmberg will strengthen Lemminkäinen's opportunities for growth
especially on the Russian housing construction and commercial construction
markets. Building construction accounted for 46.7 % of Lemminkäinen Group's net
sales in 2006.
The following persons have been appointed to serve as members of Lemminkäinen
Talo Oy's Board of Directors: Juhani Sormaala, Risto Bono, Antero Huhta, Jukka
Ovaska, Anna Pentti, and Aarne Pentti. The company's managing director will be
Juha Nurmi.
Lemminkäinen Infra Oy will comprise Lemminkäinen Corporation's Paving and
Mineral Aggregates Division and Lemcon Ltd's infra business (Lemcon Infra). In
addition to asphalt, mineral aggregate and concrete production, the company will
engage in the construction and maintenance of road, street and rail networks as
well as rock and foundation engineering. Lemminkäinen Infra Oy will be Finland's
biggest infrastructure contractor and will operate throughout the Baltic Rim
region. Infrastructure construction accounted for 39% of Lemminkäinen Group's
net sales in 2006.
The following persons have been appointed to serve as members of Lemminkäinen
Infra Oy's Board of Directors: Juhani Sormaala, Matti A. Mantere, Tiina
Mikander, Jukka Ovaska, Anna Pentti, and Aarne Pentti. The company's managing
director will be Timo Kohtamäki.
Tekmanni Oy is a supplier of technical building and facility services and
industrial services. The company's managing director is Antero Huhta.
Lemminkäinen's Building Products business sector comprises Lemminkäinen Katto
Oy, Lemminkäinen Betonituote Oy and the sports building contractor Omni-Sica Oy.
The director of the Building Products business sector is Erkki Lönnrot.
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| Business | Net | Share | Interna | Internatio | Person | Personne |
| sector | sales, | of | tional | nal | nel | l as % |
| | EUR | Group | operati | operations | 2006 | of Group |
| | million | net | ons, | as % of | | total |
| | 2006 | sales, | EUR | Group net | | |
| | | % | million | sales | | |
--------------------------------------------------------------------------------
| Infrastructure | 701.2 | 39.0 | 310.3 | 44.2 | 3,171 | 37.7 |
| construction | | | | | | |
--------------------------------------------------------------------------------
| Building | 839.3 | 46.7 | 203.3 | 24.2 | 2,826 | 33.6 |
| construction | | | | | | |
--------------------------------------------------------------------------------
| Technical | 191.7 | 10.6 | 9.6 | 5.0 | 1,812 | 21.5 |
| building | | | | | | |
| services | | | | | | |
--------------------------------------------------------------------------------
| Building | 104.4 | 5.8 | 7.7 | 7.3 | 609 | 7.2 |
| products | | | | | | |
--------------------------------------------------------------------------------
| Internal net | -40.7 | | -0.5 | | | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Total | 1,795.9 | 100 | 530.3 | 29.5 | 8,418 | 100 |
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Table: Business breakdown in Lemminkäinen Group on the basis of the 2006
year-end financial statements.
The reporting format of the 2008 Q1 interim financial review will conform to the
new business structure.
LEMMINKÄINEN CORPORATION
Corporate Communications
Additional information:
Juhani Sormaala, Managing Director, tel. +358 2071 53302
DISTRIBUTION:
Helsinki Stock Exchange
Key media
Lemminkäinen Group operates in all areas of the construction sector. Its main
business areas are building construction, infrastructure construction, technical
building services and building products. Net sales in 2006 were EUR 1,795.9
million, of which international operations accounted for about a third. The
Group employs some 9,000 people. Lemminkäinen's main market area is the Baltic
rim region, where the Group has established a presence by setting up local
subsidiaries, but it also serves customers all over the world in specialised
areas of construction. Lemminkäinen´s share is listed on Helsinki Stock
Exchange.