Skanska has entered into an agreement with the Västra Götaland region to undertake significant renovations and expansion of the Eastern Hospital in Gothenburg, Sweden.

The contract, valued at approximately Skr550m ($50.4m), will be recorded in the company's order bookings for Sweden in the first quarter of 2025.

The project encompasses remodelling on two levels within the existing central clinic and the construction of a new five-floor building adjacent to it.

The expansion will cover a gross area of around 16,000m².

The development is a crucial part of the efforts to expand and modernise the Eastern Hospital, enhancing its capacity for intensive care and pressure chamber treatment nationwide and fostering opportunities for advanced research.

Construction is set to commence next month, with the anticipated completion in April 2028.

Skanska, with its headquarters in Sweden, operates in select markets in the Nordics, Europe, and the US. The company employs roughly 27,000 individuals.

Last month, Skanska signed an agreement with the municipal company Kreativa Hus Skövde to construct an office building with an adjacent parking garage in central Skövde, Sweden.

The office building will be seven storeys high with a gross area of 11,100m². The parking garage will be four storeys high with a gross area of 4,500m².

Skanska said a climate-reduced concrete frame will be used during construction and there will be a limited use of steel in the construction. The project is expected to be completed in the first half of 2027.