SRV GROUP PLC STOCK EXCHANGE RELEASE 3 JANUARY 2024 09.00 EET
SRV starts change negotiations
SRV starts change negotiations, the goal of which is to adjust the company’s costs to meet the challenging ongoing market situation. With the help of negotiations, the company aims for cost savings of around 4 million euros for 2024.
”The volume of housing construction has shrunk to a record low, as both consumer and investor demand have decreased sharply especially with the rise in interest rates. Investor demand is also weak in the business construction, where, however, the volume of public construction has remained relatively strong. In our view, the market situation will continue to be difficult for at least the first half of the year. We estimate that the recovery will take place gradually when it begins, for example, the stock of unsold apartments will be unloaded before the start of new projects, and investors and banks are cautious in investments and their financing,” says Saku Sipola, President and CEO of SRV.
”We have a strong order backlog in the cooperative project management contracting in the business premises construction, and this will carry us through the difficult year. At the same time, however, it is necessary for us to adapt our cost structure to meet the challenges in the market situation.”
The negotiations concern approximately 305 people. SRV currently employs a total of 770 people. The estimated need for permanent personnel reductions is 35 person-years at most. In the negotiations, also layoffs, among other things, are evaluated as means of adaptation.
For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi
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SRV in brief
SRV is a Finnish developer and innovator in the construction industry. We are building a more sustainable and responsible urban environment that fosters economic value and takes the wellbeing of both the environment and people into consideration. We call this approach lifecycle wisdom. Our genuine engagement and enthusiasm for our work comes across in every encounter – and listening is one of our most important ways of working. We believe that the only way to change the world is through discussion.
Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland. In 2022, our revenue totalled EUR 770.1 million. In addition to approximately 1,000 in-house staff, we have a network of around 3,600 partners.
SRV – Building for life