Operating environment

Lemminkäinen's main market area include Finland, Scandinavia, the Baltic countries and Russia.

Share of net sales in 2016 presented in parentheses.

Paving (46%)

CustomersMarket areaCompetitive fieldTrends and drivers
  • Public sector (government and municipalities)
  • Construction companies
  • Industry
  • Property owners
  • Finland
  • Sweden
  • Norway
  • Denmark
  • Estonia
  • Latvia
  • Lithuania
  • European Russia
  • Lemminkäinen holds a strong position in the Nordic and Baltic countries; it is one of the largest paving companies in its market
  • The most significant competitors: NCC, Skanska, Veidekke, Peab, Colas
  • In Russia, Lemminkäinen operates mainly as a subcontractor and specialised work contractor. Competitors include regional players, such as ABZ
  • The public sector's investments in road structural maintenance
  • Oil price
  • Urban growth centre development
  • Weak road infrastructure in the Baltic countries
  • Major road projects in Russia

Infra projects (19%)

CustomersMarket areaCompetitive fieldTrends and drivers
  • Public sector (government and municipalities)
  • Construction companies
  • Private companies
  • Finland
  • Sweden
  • Norway
  • Estonia
  • Latvia
  • Lithuania
  • Price competition further intensified
  • The most significant competitors: NCC, Skanska, Veidekke, Peab, YIT, SRV and Destia. In the Baltic countries smaller local competitors
  • Urbanisation
  • Climate change
  • Industry investments
  • Weak infrastructure in the Baltic countries

Building construction (35%)

CustomersMarket areaCompetitive fieldTrends and drivers
  • Private consumers
  • Residential and other property investors
  • Developers
  • Leaseholders and owner-occupiers
  • Finland
  • Russia
  • In Finland, Lemminkäinen is among the five largest builders in terms of net sales.
  • In small and medium-sized contracts many minor competitors (industry entry threshold is low)
  • The most significant competitors: YIT, SRV, NCC, Bonava, Skanska
  • In Russia, many local and smaller foreign competitors in contracting
  • Urbanisation
  • Demographic changes
  • Apartments as a part of investment assets
  • Building stock's need for renovation
  • In Russia, urbanisation in St Petersburg and Moscow regions

 

 

Updated 23 February 2017