Helsinki, Finland, 2014-09-30 10:00 CEST (GLOBE NEWSWIRE) -- YIT CORPORATION INVESTOR NEWS SEPTEMBER 30, 2014 AT 11:00 A.M.
YIT to build a CHP power plant for Turun Seudun Energiantuotanto with the alliance model
Turun Seudun Energiantuotanto Oy (TSE), A-Insinöörit, AX-LVI Consulting Ltd and YIT have signed a contract on the construction of a new CHP power plant for TSE with the alliance model. The value of YIT’s part of the project is over EUR 40 million. The total investment cost of the project is approximately EUR 260 million. The power plant is located in Naantali. Signing of the contract will start the development phase of the project, followed by the implementation phase in spring 2015. The power plant will be completed in 2017. Most of the revenue recognition will take place during the implementation phase in line with the progress in construction.
In the alliance, the contracting parties form a common organisation that strives for the agreed cost level and targets, with the objective of doing what is “best for the project”. The transparency of the operations – the so-called open book principle – is an integral part of the alliance model. Mutual trust and profound teamwork between the parties are the guiding principles of the model.
“We decided to implement the project with the alliance model because of its emphasis on the co-operation between the parties. Similar projects that are implemented in more traditional ways are prone to schedule and cost challenges. In the alliance model, the communication between the parties is open and the costs and schedules are transparent and available for all, consistent with the open book principle. Adhering to the principle will allow us to complete the project in a more cost-efficient way. I value the expertise the members of the alliance have, both in engineering and construction. I believe that this alliance grouping will be able to create innovative solutions during the development and implementation phases and achieve the best result after the completion of the project,” says Tapani Bastman , CEO of Turun Seudun Energiantuotanto Oy.
“We are excited to be involved in the development and construction of the first industrial project implemented with the alliance model in Finland. The alliance model is warmly welcome to the construction industry and in line with YIT’s strategic target to increase the share of co-operation projects. The shared objectives of the alliance members are a good prerequisite for co-operation and safe, high-quality, cost-efficient implementation,” says Anne Piiparinen , Head of Unit at YIT.
For further information, please contact:
Sanna Kaje, Vice President, Investor Relations, YIT Corporation, +358 50 390 6750 sanna.kaje@yit.fi
Anne Piiparinen , Head of Unit, YIT Construction Ltd, tel +358 40 823 2808, anne.piiparinen@yit.fi
Jarkko Salmenoja, Head of Unit, YIT Construction Ltd, tel. +358 40 356 7057, jarkko.salmenoja@yit.fi
YIT CORPORATION
Sanna Kaje
Vice President, Investor Relations
Distribution: NASDAQ OMX, principal media, www.yitgroup.com
YIT is a construction industry leader. We create better living environments in Finland, Russia, the Baltic countries, the Czech Republic and Slovakia. Over 100 years of experience have secured for us a strong market position: We are the largest housing developer and one of the largest business premises and infrastructure developers in Finland, and the most significant foreign housing and area developer in Russia. Our vision is to stay one step ahead – while caring for our customers, partners and personnel. We have more than 6,000 employees in seven countries. In 2013, our revenue amounted to nearly EUR 1.9 billion. Our share is listed on Nasdaq OMX Helsinki. www.yitgroup.com
