11 April 2008
NCC has announced plans to close its NCC Komplett (NCC Complete) business. The division was established in 2002 to build apartment blocks using manufacturing processes. However, the company says it has not been able to achieve the anticipated cost reductions.
NCC chief executive Olle Ehrlen said, “NCC's initiative, based on industrialised residential construction in a factory, was important to NCC and to the entire construction industry. The aim of NCC Complete was to radically reduce construction costs for apartment blocks. This is currently not adjudged possible since it is more difficult, takes longer and costs more than initially expected.”
NCC has started negotiations with trade unions regarding the wind-down of the business. It will incur costs of about SEK 300 million (€ 32 million) in closing the division, which will be charged against its fourth-quarter earnings.