Nordic construction company Peab has secured a Skr280m ($27.6m) contract to build new test facilities and offices for BAE Systems Hägglunds in Örnsköldsvik, Sweden.
This construction contract highlights the ongoing expansion of BAE Systems Hägglunds, a defence industry company with a 100-year connection in the municipality.
The contract includes additional options for call-offs amounting to Skr330m.
The partnership between Peab and BAE Systems Hägglunds commenced with a first-phase agreement, focusing on project optimisation, quality assurance, and risk management.
The second phase is now underway, with a contract being finalised for construction. The project will be a turnkey contract in partnership form.
Project completion is expected by late 2026.
The project will be formally order-registered in the first quarter of 2025.
Peab Industribyggnad i norr AB CEO Anders Gard said: “It feels really good that we have been entrusted with building the new premises needed to meet the higher demand that BAE Systems Hägglunds is experiencing. We have solid expertise in industrial construction and security-classified construction projects.”
Earlier this month, Peab secured another Swedish turnkey contract from Region Skåne, valued at Skr339m, to construct a bus depot in Lockarp, Malmö. This project is set to start in April 2025 and conclude in February 2027.
Additionally, Peab’s expertise was selected by Stockholm Vatten och Avfall last month for the upgrade of the Henriksdal wastewater treatment plant in Stockholm, Sweden. This Skr368m contract forms part of the city’s broader initiative to modernise its wastewater treatment capabilities.
“Peab secures $27.6m BAE Systems construction contract in Sweden” was originally created and published by World Construction Network, a GlobalData owned brand.
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