Finnish construction company YIT has decided to close down its Swedish infrastructure business following the completion of a strategic review. 

The company announced the review on 20 June 2023.  

This move is part of YIT's broader transformation programme, which was unveiled in February last year and aims to enhance capital efficiency across the business. 

The decision will lead to a negative booking of €16m ($17.51m) in the company's fourth-quarter (Q4) profit for financial year 2023 (FY23).  

The closure will be reflected in earnings before interest and taxes adjusting items from the beginning of Q4 FY23.  

YIT is set to begin change negotiations related to the business' shutdown, which will impact approximately 125 employees. 

Projects currently underway in the segment are expected to be completed by 2027, marking the end of YIT's operations in Sweden. 

The company is continuing its strategic review concerning certain assets, operations, and selected investments, including its ownership stake in Tripla Mall. 

YIT Infrastructure segment EVP Aleksi Laine said: “We have evaluated several options to improve the profitability of our infrastructure business in Sweden. Our team has done a very good job in challenging circumstances and worked hard to turn the business around, and the decision to close down the local business was not easy.  

“The closing down will allow us to focus our operations and release capital for businesses that support our strategy. We are committed to completing the last few individual ongoing projects in cooperation with our customers.” 

In November last year, YIT received two projects from two different clients to develop housing units in Finland.