Skanska Group internal mergers competed

The restructuring process of the Skanska Group, which was launched at the end of 2001, has almost been completed. Skanska has merged with its 11 subsidiaries. The companies which have so far operated as independent entities have become Skanska's regional branches. The concern's representatives claim that the creation of these branches is a milestone in the entire restructuring of the group. "The branches will focus on our basic activity which is realization of construction contracts. The merger process means we can considerably cut our costs," said industrial and general construction director Roman Wieczorek. According to a Beskidzki DM brokerage house analyst, Bartosz Ostafiński, this move was crucial, as the construction sector has a low profit margin and finds it difficult to cover fixed costs. Earlier, a similar decision had been taken by another construction company Budimex, and Mostostal Export is likely to follow suit as well as reduce employment. (Puls Biznesu, p. 9) A.Z.