NCC organizing for increased specialization in NCC Construction Sweden

Regulatory News:

NCC (STO:NCCA) (STO:NCCB):

More distinct specialization combined with a strong local presence will enhance the efficiency of the NCC Construction Sweden business area in specific market segments.

The NCC Construction Sweden business area, which has 7,500 employees and sales of SEK 25 billion, is implementing an organizational change to enhance the efficiency of its market and production-development activities. Under the new organization, the geographic regions will be replaced by the Buildings, Housing, Civil Engineering, General Construction and Land and Industrial Construction segments.

"We have established a distinct strategy for profitable growth and the new organization will allow us to better utilize our strategic initiatives in, for example, purchasing and logistics, virtual construction and platforms. By linking market and production development even closer to the segments, we will be able to offer customers cutting-edge solutions in each area,” says Business Area Manager, Svante Hagman.

The business area has already implemented the first phase of its organizational adaptation by reorganizing the company’s 17 departments to create a stronger local presence. The departments will now report to the various segments instead of to the current geographic regions.

"The control of each sub-business that the segments comprise will become clearer. To add more strength to the development work and to achieve economies of scale and cost advantages, the support functions will be gathered in centralized business area staff units,” says Svante Hagman.

The segments will face different challenges and opportunities. In Housing, for example, the aim will be to increase the level of standardization through the use of platforms and construction systems. For all segments, the reorganization will involve developing more efficient production methods and solutions.

Since the business area has already reduced its workforce earlier this year, the reorganization is expected to result in only limited surplus capacity. Trade union negotiations concerning the overall organization have been completed.

The new organization will come into effect on January 1, 2014.

This is the type of information that NCC could be obligated to disclose pursuant to the Securities Market Act. The information was issued for publication on October 23, 2013, at 9:00 a.m. CET.

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