News

25. May 2016

Nordecon's renewed strategy foresees powerful growth in Nordic Countries

In the next 5 years, Nordecon is planning to increase revenue proportion of the foreign markets to 25%. Growth in total revenue is anticipated to be at least 10% per annum. Company's renewed strategy until 2020 first of all foresees increase in foreign markets – mainly in Finland and Sweden, but also in Ukraine.

“It feels as if Estonian construction market had a glass ceiling – suitable objects for bigger players are rather limited and come up irregularly, competition is very strong and it is clear that, keeping in mind the population, the business growth will be limited,” Jaano Vink, Chairman of the Board of Directors of Nordecon AS said. “That is why we first and foremost see and seek bigger prospects for growth on foreign markets where we have already operated and know what to expect. By 2020 we want to increase our foreign markets revenue portfolio proportion to one forth, it is certainly a serious, but achievable challenge. Nordecon's focus is shifting from Baltic States to Nordic Countries.”

“Over the coming years we are focusing on acquiring general contracting agreements in the building segment in capitals of Sweden and Finland and surrounding areas. In Finland, we have carried out concrete works for a couple of years and we are planning to further develop that segment,“ Jaano Vink stated. „Work in Sweden that began last year has been positive and conditions for growth are favourable. There is clearly a demand – we ourselves must be active and find the best opportunities.”

“Much talked about and feared Ukrainian market is also showing signs of recovery, though there is little reason for too much optimism at the moment – yet we have managed to adapt to difficult situations and the potential there is massive: the huge market is quite empty of high quality constructors,” Jaano Vink noted. “In Estonia we will continue with relatively calm, organic growth – the aim is to be among market leaders of all the of most important building and construction segments. The percentage of our own developments in the portfolio should also be increased significantly over the next few years, although above all we will continue to offer quality construction services to wise consumers.”