Peab’s four collaborating business areas
Peab’s business model consists of four collaborating and specialized business areas structured on the conditions in each of their markets, allocated geographically and by product segment. For developments and results in 2020 please see the Board of Directors’ Report, click here.
Business area Civil Engineering
Ties people and communities together
Business area Civil Engineering builds and maintains infrastructure such as roads, railroads and bridges. Focused on the local market, operations do landscaping and pipelining, foundation work and diverse construction. The business area also operates and maintains national and municipal highways and street networks as well as tends parks and outdoor property. It is organized in geographic regions and specialized product areas.
Trends and driving forces
- The Nordic civil engineering market is characterized by public investments in infrastructure projects and a growing number of large, complex projects, but also by smaller, local civil engineering projects.
- There are variations in local conditions regarding volumes and product areas as well as the level of competition.
- Common for all the markets is the increasingly tough competition in some segments.
Peab’s position
Leading civil engineering actor in Sweden with operations in Norway.
Net sales
SEK 13 billion
Employees
3,523
Business area Construction
Sustainable construction close to customers
With local roots close to customers business area Construction does contract work for both external and internal customers. Construction projects include everything from new production of housing, public and commercial premises to renovations, extensions and rebuilding as well as construction maintenance. The business area’s operations are run through some 150 local offices all over the Nordic region, organized in thirteen regions in Sweden, three in Norway and two in Finland. There are specialized entities in housing production in Stockholm, Gothenburg and the Öresund region.
Trends and driving forces
- Continued decline in residential construction in the Nordic region is counterbalanced by an increase in other building construction.
- Over time population growth and an aging population are factors that support the demand for construction.
- Strong development toward digitalized operations permeates the process from the drawing board through production.
- More and more customers request environmentally and climate certified buildings.
Peab’s position
One of the largest actors in construction in Sweden in terms of net sales and number of employees. Peab has considerable operations in Norway and Finland.
Net sales
SEK 27 billion
Employees
5,878
Business area Industry
Complete supplier for construction and civil engineering
Business area Industry delivers products and services needed for construction and civil engineering projects. Its offer includes industrial construction, strategically placed quarries, asphalt and concrete, recycling of production waste as well as rental of construction equipment and cranes. Industry is organized in six product segments complemented by a number of strong, local brands such as Swerock, Peab Asfalt, Lambertsson and Byggelement.
Trends and driving forces
- Market development usually follows developments in the economy.
- High activity in the construction and civil engineering market generates a big demand for concrete, paving, mineral aggregates and rentals.
- Growing focus on sustainable and climate smart products and services with a greater input of recycled material.
Peab’s position
One of the leading actors in all segments in Sweden. Stronger position in Norway and Finland, and establishment in Denmark, after the acquisition of YIT’s Nordic paving and mineral aggregates operations.
Net sales
SEK 19 billion
Employees
4,967
Business area Project Development
Develops sustainable urban environments, residential and commercial properties
Business area Project Development is responsible for the acquisition, development, management and divestment of housing, commercial property, public property and entire city boroughs. Project development takes place in wholly owned projects or in joint ventures with other partners. Housing Development develops homes for private customers. Property Development acquires, develops, manages and divests commercial properties.
Trends and driving forces
- With a continued significant underlying need for housing, market conditions are considered good in the long run in the Nordic region.
- We see a growing demand for community buildings.
- Good demand going forward for modern, flexible and environmentally friendly office space in the right location even if the market is currently cautious.
Peab’s position
One of the largest housing developers in Sweden with significant operations in both Norway and Finland. Peab is a growing actor in commercial property development in Sweden, Norway and Finland.