SSM to focus on core business – intends to divest contracting operations and enter into a strategic partnership with Mecon
SSM Holding AB (publ), Sweden’s leading developer of smart, affordable homes, intends to carry out strategic measures to strengthen the company’s long-term competitiveness and profitability. The company intends to focus its core operations on business and project development, sales and aftermarket and at the same time initiate a strategic partnership with Mecon Bygg AB, a contracting company specialized in cost-efficient design-build contracts for multi-dwelling housing. As a result, SSM and Mecon are discussing transferring SSM's construction operations to Mecon. SSM will now start negotiations pursuant to the Employment (Co-Determination in the Workplace) Act to manage the planned changes.
To strengthen the company’s competitiveness and profitability, SSM intends to streamline its core business to focus on business and project development, sales and aftermarket and at the same time enter into a strategic partnership with Mecon Bygg AB, a contracting company that specializes in cost-efficient design-build contracts for apartment buildings (meconbygg.se).
As a result, SSM and Mecon are discussing transferring SSM’s current contracting operations, which include 20 employees, to Mecon. Mecon’s expertise within larger contracts is expected to have a positive impact on SSM’s project margins going forward, however the partnership will have only a marginal effect on the company’s results in 2019.
- Establishing a strategic partnership with Mecon, one of the most proficient construction companies in the industry, will help boost SSM’s competitiveness in developing new homes from great ideas to handing over the keys. We’re also have comfort that our colleagues will have the chance to work with a company characterized by high quality and that shares the same culture and values as SSM, says Mattias Roos, President & CEO of SSM.
- Mecon will contribute many years’ experience in the building industry as well as expertise early in the construction process to produce cost-efficient housing. We’re also happy to have the possibility to welcome new employees to our company, says Mikael Bölander, President & CEO of Mecon Bygg.
SSM will now start negotiations pursuant to the Employment (Co-Determination in the Workplace) Act to manage the planned changes.
The information in this press release is such, which SSM Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 18:00 CET on May 15, 2019.
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About SSM Holding AB (publ)
SSM produces functionally smart and affordable homes with attractive common areas, close to public transport and the city center for the company’s target group – the urbanites of tomorrow. The company envisions a housing market that is accessible to as many people as possible and aspires to produce 50 percent cooperative apartments and 50 percent rental units. SSM is the leading property developer in its niche within the Greater Stockholm area and at end of March 2019, the company has approximately 6,200 building permits in its portfolio. SSM has been listed on Nasdaq Stockholm (Small-Cap) since April 6, 2017. www.ssmlivinggroup.com