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Daily Newsletter

29 September 2023

Daily Newsletter

29 September 2023

Peab wins two construction contracts in Sweden

Both contracts will be included in Peab's order book for the second quarter of this year.

Sophia Devi June 06 2023

Nordic community builder Peab has received two contracts in Sweden.

One contract involves the construction of a new swimming pool and sports hall in Haparanda, and the other is to build a new test track for autonomous and electric vehicles (EV) in Södertälje.

The new swimming pool and sports hall project is valued at Skr209m ($19.3m) and will be delivered in collaboration with the Haparanda municipality.

It involves the expansion of the existing school grounds and athletics hall named Aspen.

The development will include the addition of a swimming pool facility, a sports hall, and areas smaller sports areas.

Peab region manager Susanne Hallberg said: “We’re both pleased and proud to be part of the development of the city of Haparanda and to have been chosen as the contractor in this partnering project, which is focused on long-term sustainable solutions.”

The company will include the contract in its bookings for the second quarter of 2023.

Construction on the new facility has commenced and is expected to be completed by December 2025, spanning a total construction duration of two years.

The contract was signed after Haparanda's city council decided in favour of a new bathhouse last month.

The Haparanda bathhouse has been damaged due to moisture and mould and was closed in January 2020.

Since then, local school students have been taking their swimming lessons in Tornio, Finland.

Regarding its other contract, Peab will build a new test track for autonomous EVs in Södertälje under an Skr730m deal awarded by Scania Industrial Maintenance.

This project involves the construction of roads and surfaces on an 85-acre site.

It includes a 3km circular track with banked curves and a flat frame bridge at the entrance.

Peab will also construct approximately 10km of test tracks, including a large braking and manoeuvre track.

This project will be carried out as a turnkey contract, with construction scheduled to begin later this year and with completion expected in 2026.

As with its previous contract, Peab will register this in the second quarter of this year.

South-East Asia Construction Market Dynamics

Per GlobalData analysis, the South-East Asia construction industry in 2023 is dominated by Indonesia, though the country will see a slowdown compared to 2022 due to elevated building material prices, weak commercial property demand, high interest rates and a softening of external demand. The construction industry in the Philippines is estimated to register a AAGR of 7.2% between 2024 and 2027, supported by the government’s focus on the development of the country’s rail and road transport and energy infrastructure.

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