Nordic construction and civil engineering company Peab has been awarded a contract by Regionsfastigheter in Jönköping County to restore and expand Värnamo Hospital in Sweden.

This traditional contract carries a value of Skr214m.

The scope of the project includes the development of Building 21 at Värnamo Hospital.

Building 21 will house the mental health clinic’s facilities, which will comprise a ward with 24-hour care, an on-call and addiction clinic, administrative offices, and staff rooms.

It will be attached to the current Building 09 via a new tunnel, which will require reconstruction of key portions in Building 09.

Peab region manager Anders Bergeling said: “We’re very happy and proud to once more be part of developing Värnamo Hospital.

“We’ve previously built new surgical rooms, a sterile centre and intensive care unit at the hospital and now we look forward to further building to meet future healthcare needs and demands.”

The SundaHus Material Data system will be used in the project to ensure non-toxic and sustainable material choices.

Regionsfastigheter project manager Thomas Svärd said: “Regionsfastigheter looks forward to continuing to work with the organisation we’re well acquainted with from previous projects. It’s an assurance that we’ll work well together and achieve a good outcome.”

Construction work is set to commence next month and is expected to be completed in February 2026.

Peab will enter this project into its order bookings for the fourth quarter of this year.