Skanska

Skanska AB
Publicly traded Aktiebolag
Traded as Nasdaq Stockholm: SKA B
Industry Construction
Founded 1887 (1887)
Headquarters Stockholm, Sweden
Key people
 Johan Karlström (President and CEO)[1]
Hans Biörck (Chairman)[2]
Products Residential development, commercial property development and infrastructure development
Revenue SEK 153.049 billion (2015)[3]
SEK 6.290 billion (2015)[3]
Profit SEK 4.791 billion (2015)[3]
Total assets SEK 97.667 billion (end 2015)[3]
Total equity SEK 24.206 billion (end 2015)[3]
Number of employees
 48,470 (average, 2015)[3]
Website www.skanska.com
Footnotes / references
Financial data according to IFRS

Skanska AB (Swedish pronunciation: [ˈskanːˈska]) is a multinational construction and development company based in Sweden. Skanska is the 5th largest construction company in the world according to the Construction Global magazine.[4] Notable Skanska projects include the World Trade Center Transportation Hub project, 30 St Mary Axe, MetLife Stadium, Mater Dei Hospital, among others.

History

Aktiebolaget Skånska Cementgjuteriet (Scanian Cement Casting Ltd) was established in Malmö, Sweden, in 1887 by Rudolf Fredrik Berg and started by manufacturing concrete products.[5] It quickly diversified into a construction company and within 10 years the company received its first international order.[5] The company played an important role in building Sweden’s infrastructure including its roads, power plants, offices and housing.[5]

Growth in Sweden was followed by international expansion. In the mid-1950s Skånska Cementgjuteriet made a major move into international markets. During the next decades it entered South America, Africa and Asia, and in 1971 the United States market, where it today ranks among the largest in its sector.[5] The company was listed on the Stockholm Stock Exchange A-list in 1965. In 1984 the name “Skanska,” already in general use internationally, became the Group’s official name.[5]

During the latter part of the 1990s, Skanska expanded substantially both organically and by acquisition.[5] In August 2000 it bought the construction division of Kvaerner.[6]

In mid-2004, Skanska decided to divest its Asian investments and sold its Indian subsidiary to the Thailand based construction firm Italian Thai Development Company.[7]

In 2005, Skanska was awarded a gas pipeline contract in Argentina. Later, suspicions were raised that government corruption had been involved. Skanska performed its own investigation, dismissed seven managers, and worked closely with the authorities concerning the inquiry.[8][9][10][11]

In 2011, Skanska acquired Industrial Contractors, Inc of Evansville, Indiana, United States.[12]

In December 2013 the Supreme Court of the Slovak Republic confirmed that Skanska DS a.s. participated in a bid rigging cartel of construction companies (together with companies of Strabag group and Mota-Engil group) in 2004. Illegal conduct was associated with the tender for the execution of works for the construction of the D1 highway from Mengusovce to Jánovce in Eastern Slovakia.[13]

Operations

Skanska divides its operations into four business streams:

Business stream Yearly revenue, 5-year average (2010 to 2014)[14]
Construction SEK 116,152 million
Residential development SEK 8,721 million
Commercial property development SEK 6,691 million
Infrastructure development SEK 219 million

Construction is the largest business stream by revenue and number of employees. The operations of the other business streams involve investments in projects that are developed and later divested. With regard to infrastructure development, this often involves public–private partnerships (PPP). Geographically, the group operates based on local business units.[15]

Environment

Skanska was the No. 1 “Green Builder” in the United States in 2007[16] and was ranked No. 3 "Green Contractor" in the United States 2008.[17] In 2011, Skanska was ranked the greenest company in the United Kingdom, despite belonging to an industry with a generally high environmental impact. In 2014, Skanska won the Financial Times and ArcelorMittal “Boldness in Business Award” in the category “corporate responsibility/environment.”[18][19][20][21]

The Financial Times described Skanska in 2014 as aiming to be the “greenest contractor in the world,” while having 57,000 employees, 100,000 suppliers and 250,000 subcontractors, who deliver more than 10,000 projects annually. An official vision stated by Skanska is “the five zeros”: zero loss-making projects, work site accidents, environmental incidents, ethical breaches and defects.[15][21][22]

In the United Kingdom, Skanska has founded the “Supply Chain Sustainability School,” an e-learning initiative, in order to educate construction suppliers on sustainability. As suppliers are frequently shared between construction companies, the school is managed in partnership with several competitors.[21][23][24] In July 2013, Skanska withdrew from the United States Chamber of Commerce, in protest of the chamber’s opposition to reformed LEED standards for sustainable buildings.[21]

Skanska was the first company in the industry to implement the ISO 14000 standards globally, with all its business units having been certified according to ISO 14001 since 2000, and it was the first Scandinavian company to have an independent global whistleblowing hotline.[21][25]

Market

As of March 2015, Skanska was focused on the following selected markets:[14][26]

Skanska is in the process of exiting its operations in Argentina, Brazil, Peru, Chile, Colombia, and Venezuela.[14][22] Skanska will cease to accept new projects in the Latin American market and will divest its operation and maintenance units there.[14]

Region Number of employees Revenue (2014)[14]
The Nordic countries 17,000 SEK 64.0 billion
The rest of Europe 17,000 SEK 35.0 billion
North America 10,000 SEK 49.9 billion
Latin America (being closed down) 14,000 No data available

Skanska is active in construction, commercial property development (office buildings, shopping centers and logistics properties) and infrastructure development (roads, hospitals and schools) in all of its three market regions. The company plans, develops and builds homes in the Nordic region and in the rest of Europe.[22]

In 2013, Skanska was ranked the 9th largest contractor in the world,[27] and in 2014, the 7th largest contractor in the United States.[28]

During the rolling 12-month-period ending in September 2014, Skanska was the largest construction company by total revenue in the Nordic countries.[14] The six largest ones were:

Company Country 12-month revenue[14]
Skanska Sweden SEK 145.0 billion
NCC Sweden SEK 59.2 billion
Peab Sweden SEK 44.2 billion
Veidekke Norway SEK 25.4 billion
Lemminkäinen Finland SEK 18.7 billion
YIT Finland SEK 16.7 billion

Competitors

According to Skanska, the main competitors by market for the three predominant business streams were, as of March 2015, the following.[14][26]

Construction

The Nordic countries
NCC, Peab, YIT, Veidekke, Lemminkäinen, AF Gruppen
The rest of Europe
Budimex, Hochtief, Strabag, Metrostav, Balfour Beatty, Carillion
The Americas
Turner, Fluor Corporation, Kiewit, Granite, Flatiron, Tutor Perini, ACS/Dragados

Residential development

The Nordic countries
JM, NCC, Peab, YIT
The rest of Europe
Central Group, Finep, DOM Development, JW Construction

Commercial property development

The Nordic countries
NCC, Vasakronan, Diligentia, KLP Eiendom, YIT, Lemminkäinen
The rest of Europe
Ghelamco, Echo Investment, GTC
The Americas
Hines, Trammell Crow, Boston Properties

Major projects

Work in progress on 30 St Mary Axe, one of Skanska's most high-profile contracts. Built between 2001 and 2004, the tower was a major addition to London's skyline.

Europe

Major projects in the United Kingdom have included 30 St Mary Axe in London, completed in 2004.[29][30] In Malta, Skanska built the Mater Dei Hospital, which opened in 2007.[31] Skanska finished constructing the 230m Heron Tower, upon completion the tallest building in the City of London, in 2010.[32] Skanska built the Øresund Bridge that opened in 2000 and forms part of the road and railway connection between Sweden and Denmark.[33][34]

United States

Major projects in the United States include the MetLife Stadium (home to the Giants and the Jets NFL franchises), completed in 2010.[35] Skanska has also won the Alaskan Way Viaduct project in Washington: the project worth SEK840 million ($115 million) involves the construction of a new 4,300-foot (1,300 m) viaduct on the southern section of the Alaskan Way on the State Route 99 bypass in downtown Seattle, to be completed in 2013.[36]

Another continuing major project is the renovation of, and addition to, the headquarters of the United Nations, due to be completed in 2014.[37]

Other continuing major projects include the restoration of the World Trade Center site including the removal of debris, the reconstruction of the Port Authority Trans-Hudson and New York City Subway tunnels, and the creation of a World Trade Center Transportation Hub, due to be completed on December 17, 2015.[38][39][40][41] including the "Oculus" station entrance designed by Santiago Calatrava.[42][43] Skanska is also a member of consortium responsible for the Second Avenue Subway tunneling project,[44] due to be completed on December 30, 2016.[45]

Controversies

Mater Dei Hospital

Skanska was entrusted with the building of a new general hospital in Malta, and the "state-of-the-art" Mater Dei Hospital costing over €700,000,000. Later, however, it was discovered that Skanska had used lower-quality cement of the kind that is generally used to build pavements. As a result, the hospital could not develop further floors or build a helipad on the roof. The company made sure to be waived off for the responsibility of any evident cheap work and damage once the project was finalised.[46]

See also

References

  1. ↑ "Management, Senior Executive Team (SET)". Skanska. 15 April 2016. Retrieved 10 July 2016.
  2. ↑ "Board". Skanska. 15 April 2016. Retrieved 10 July 2016.
  3. 1 2 3 4 5 6 "Annual Report 2015" (PDF). Skanska. 2016. Retrieved 10 July 2016.
  4. ↑ "Top 10 Construction Companies in the World". Construction Global. Retrieved 16 June 2015.
  5. 1 2 3 4 5 6 Skanska: History
  6. ↑ Skanska buys Kvaerner arm for £180m The Telegraph, 30 August 2000
  7. ↑ ITD Cementation India
  8. ↑ "Sweden's squeaky-clean image sullied by scandals". The New York Times. May 11, 2007. Retrieved Jan 15, 2013.
  9. ↑ "Skanska likely to be involved in a corruption scandal in Argentina". Pravda. Mar 20, 2007. Retrieved Jan 15, 2013.
  10. ↑ "Gas and graft". The Economist. May 10, 2007. Retrieved Dec 21, 2012.
  11. ↑ "Argentine Corruption: Skanska's Version". Latin Business Chronicle. Jul 30, 2007. Retrieved Dec 21, 2012.
  12. ↑ "Skanska USA buys Industrial Contractors, Inc.". Evansville Courier & Press. Dec 29, 2011. Retrieved Jan 15, 2013.
  13. ↑ The Supreme Court upheld the decisions of the Antimonopoly Office of the Slovak Republic in the matter of a cartel of six construction companies
  14. 1 2 3 4 5 6 7 8 "Annual Report 2014" (PDF). Skanska. 2015. Retrieved 2 July 2015.
  15. 1 2 "Annual Report 2011" (PDF). Skanska. Retrieved 20 September 2012.
  16. ↑ Skanska: Green Builder
  17. ↑ Top Green Contractors ENR
  18. ↑ "Revealed: the greenest companies". The Sunday Times. Jun 12, 2011. Retrieved Dec 21, 2012.
  19. ↑ John Authers (Mar 23, 2014). "Thorny issues". The Financial Times. Retrieved Aug 26, 2014.
  20. ↑ "Financial Times and ArcelorMittal Award Boldest Business Leaders in 2014". The Financial Times. Mar 21, 2014. Retrieved Aug 26, 2014.
  21. 1 2 3 4 5 Andy Sharman (Mar 23, 2014). "How Skanska aims to become the world's greenest construction company". The Financial Times. Retrieved Aug 20, 2014.
  22. 1 2 3 "Annual Report 2013" (PDF). Skanska. 2014. Retrieved 10 June 2014.
  23. ↑ Katharine Earley (May 16, 2013). "Skanska: working with rivals for the greater good". The Guardian. Retrieved Aug 20, 2014.
  24. ↑ "Overall Winner & Best Contribution to Corporate Responsibility: Skanska UK (on behalf of the Supply Chain Sustainability School)". Chartered Institute of Purchasing & Supply. Oct 8, 2013. Retrieved Aug 20, 2014.
  25. ↑ "Local impacts". Skanska 2014.
  26. 1 2 "Publishing of Annual Report 2014 on this website". Skanska AB. February 18, 2015. Retrieved June 2, 2015.
  27. ↑ "The Top 250 International Contractors 2013" (PDF). Engineering News-Record. 2013. Retrieved Aug 20, 2014.
  28. ↑ "The Top 400 Contractors 2014" (PDF). Engineering News-Record. 2014. Retrieved Aug 20, 2014.
  29. ↑ The erotic gherkin is in a pickle The Telegraph, 23 November 2002
  30. ↑ Charles Ajunwa (Nov 18, 2012). "London: The Amazing Attractions". This Day. Retrieved Jan 15, 2013.
  31. ↑ Times of Malta 30th July 2009
  32. ↑ Skanska win Heron Tower contract Skyscrapernews, 31 October 2007
  33. ↑ Almar Latour (Mar 19, 1999). "Skanska Builds on Global Strategy; CEO's Expansion Drive Fuels Growth". The Wall Street Journal. Retrieved Jan 15, 2013.
  34. ↑ Linda Nohrstedt (Mar 25, 2009). "Vi hade en otroligt bra kund" (in Swedish). Byggvärlden. Retrieved Jan 15, 2013.
  35. ↑ Meadowlands Stadium
  36. ↑ "Skanska wins Alaskan Way Viaduct project in Washington".
  37. ↑ UN signs contract with Skanska Reuters, 27 July 2007
  38. ↑ "Project Updates: World Trade Center Transportation Hub". Lower Manhattan Construction Command Center. Archived from the original on September 28, 2010. Retrieved September 2, 2010.
  39. ↑ Grynbaum, Michael M. (February 24, 2011). "Trade Center Transit Hub's Cost Now Over $3.4 Billion". The New York Times. Retrieved February 25, 2011.
  40. ↑ Calatrava's WTC Transportation Hub Soars – lowermanhattan.info
  41. ↑ Gralla, Joan (October 2, 2008). "NYC World Trade Center site faces fresh delays". Yahoo! News. Retrieved October 3, 2008.
  42. ↑ Phoenix Constructors
  43. ↑ "Skanska To Fabricate Oculus Building At Ground Zero Transit Hub". ENR New York. May 9, 2011. Retrieved Jan 15, 2013.
  44. ↑ New York Construction: Top Projects
  45. ↑ MTA.info—Second Avenue Subway Quarterly Report Q4 2013
  46. ↑ [47][48][49][50][51][52]
  47. ↑ Balzan, Saviour (21 September 2015). Skanska snubs government over hospital damage claims. Malta Today. Retrieved 1 July 2016.
  48. ↑ Waiver exonerated Skanska and Maltese partners on Mater Dei.
  49. ↑ PM orders investigation into Mater Dei concrete.
  50. ↑ Read: Hospital inquiry report, Arup report on Emergency Department.
  51. ↑ ARUP report. Volume 2.
  52. ↑ Inquiry report.
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