Scandinavian strength Veidekke

SCANDINAVIAN STRENGTH

Scandinavian construction company Veidekke brings its high-quality projects and unique company culture to clients across the region. Emma-Jane Batey spoke to the communications manager, Helge Dieset, to find out how this is being achieved.

Founded in Oslo in 1936, Scandinavian construction company and property developer Veidekke has continuously utilised its professionalism, honesty and enthusiasm to generate what it calls valuecreating partnerships.

A proudly entrepreneurial company, Veidekke is active throughout Scandinavia. Holding the number one position in construction and property development in Norway, this represents its core market, where it provides road building and maintenance as well as property development and construction. In Sweden, Veidekke holds the number four position for these sectors, and in Denmark, where it is number five in the market, it solely focuses on construction projects.

Communications manager Helge Dieset told Industry Europe how the company’s geographical presence has enabled it to maintain impressive financial results. He said, “We work well in this region; it suits us and our business. While we are keen to grow within our current markets by continuing to deliver on high-quality building, construction and road projects, we do not aim to move into new geographical markets. Not only does the shared Scandinavian language enable clear communication between us and our clients, but the culture, political conditions and short delivery distances all add up to promote our stable, long-term business plans.”

Understanding the region

Mr Dieset also pointed out that the similar geology of the region means that Veidekke’s extensive experience in large-scale construction projects allows for faster, more effective execution. He added, “When it comes to projects such as tunnel building, we have many of the same rocks across Scandinavia. We know these rocks so well! We work with

TESS

TESS was established in 1968 and is Norway´s leading supplier of hoses, fittings, MRO and related services. The company coordinates more than 100 service outlets. In addition, around 50 fully equipped TESS Mobilservice vehicles play a central role in the service portfolio. These mobile workshops and their trained technical personnel support customers all around Norway. The MRO activities include welding equipment, cleaning machinery, hand tools, transmissions, protective clothes and much more. TESS also delivers containers with a tailor-made solution (so-called ConTESS) for the customer. Throughout the years TESS has formed joint ventures with several major industrial clients to establish integrated supply services on long term. The services are supplied through integrated shops, with a TESS-developed concept, offering locally adapted ranges of goods. TESS is recognized as a reliable supplier of high quality products and services for more than 40 years.

the geology and don’t waste any time in the preparation stage. Some competitors from overseas can find this stage difficult, particularly in winter when the rocks and surfaces behave in specific ways, whereas we know exactly how to get the best out of them. We work well staying in Scandinavia, especially as there are so many opportunities for growth within the region.”

As a company with a strong financial position, Veidekke’s entrepreneurial approach is also extended to its fully committed workforce. With the company having celebrated its 75th anniversary in 2011, it has only had three CEOs in its history and its staff has an average service of 20 years. Mr Dieset believes this is largely thanks to the fact that this stable company promotes its unique active stock programme, with more than half of its 6100 employees, of which more than 4500 are located in Norway, holding shares in the company.

He explained, “Many of us essentially ‘own’ the company. Veidekke has been listed on the Oslo Stock Exchange since 1986 and we have substantial ownership of the company by our employees. The company has always enjoyed good returns as we have always operated in profit – no red numbers. We have a policy that at least 50 per cent of the profits should be given back to the owners and, as that is us, we are all motivated to ensure that Veidekke is the best it can be.”

Building and growing

With more than 80 per cent of Veidekke’s business coming from repeat customers, it is clear that its Scandinavian strategy is working well. Active across the whole of Norway and Denmark, its Swedish activi-

ties are primarily focused on Stockholm and other major southern cities.

Veidekke carries out around 60 per cent of its work with private customers, with projects including new-build shopping centres, homes and offices. The company’s own offices are certainly illustrative of its impressive capabilities. Its 40 per cent public work includes road maintenance and asphalt laying, and building municipal buildings, schools and hospitals.

As Veidekke looks forward to its next chapter, the desire to continue to grow within Scandinavia is set to be enhanced by its aim to acquire complementary partners as well as enjoying organic growth. The company expects its short- and medium-term future to be successful in its present locations and is aiming to enhance this further by adding further skills and manpower through acquiring carefully selected companies.

Mr Dieset concluded, “Our target is to be much bigger by the end of 2015. As the market is very good here, having largely avoided much of the economic recession that has affected the rest of Europe, we expect to acquire a couple of Scandinavian companies that will continue to allow us to add value to our private and public customers. We also intend to employ some highly skilled professionals in specific fields in our organisation. We certainly feel that there is a possibility in the future for growth across Europe, but for now we will keep focused on our region and our present markets as we know them so well and are proud to deliver excellent projects and services to our local customers.” n