Helsinki, Finland, 2015-06-22 14:00 CEST (GLOBE NEWSWIRE) -- YIT CORPORATION STOCK EXCHANGE RELEASE JUNE 22, 2015 AT 3:00 P.M.
Consortium between YIT, VR Track and Pöyry selected to implement the light rail project in Tampere, Finland
The City of Tampere has selected Tralli, a consortium comprising of YIT, VR Track and Pöyry, to carry out the light rail project in Tampere, Finland. The project is to be carried out employing the alliance model, whereby the client, engineers and contractors work jointly in the execution. The cost estimate for the project is approximately EUR 250 million.
The development phase of the project will begin in July 2015. During the development phase, the plans for the project will be developed and the target cost level established. After the development phase, separate decisions will be made on the start of the implementation phase during which YIT and VR Track will be in charge of the construction. If the implementation phase is started, the light rail system is to be completed in two parts, in 2019 and 2023. For YIT, most of the revenue recognition will take place during the implementation phase in line with the progress in construction. The value of the implementation phase for YIT would be approximately EUR 100 million, and it would be recognised in YIT’s order backlog at the beginning of the implementation phase, likely in autumn 2016.
The light rail system will be constructed in the busiest part of the Tampere public transport system, from the city centre to Sampola. In Sampola, the line forks in two, with one line leading to the University of Tampere and the other to the Hervanta area. The 23.5-kilometre line covered by the project will contain 23 to 25 stops.
The combined strength of YIT, VR Track and Pöyry is their extensive experience in various challenging transportation projects. In the project, the core of the approach consists of infrastructure modelling in which all of the companies have solid experience.
“The light rail system is one of the most significant infrastructure projects in Finland, providing a great opportunity for the entire consortium. All parties involved have prior experience in working with the alliance model, so we have good conditions for building a successful project,” states Harri Lukkarinen , Vice President of Construction at VR Track Oy.
“The expertise areas of the parties in the alliance support each other, which creates an excellent framework for implementing the project successfully and in tight co-operation with stakeholder groups. The light rail project is exciting and very significant for YIT, and it supports our objective of participating intensely in the development of new operating models for the field of infrastructure, while also allowing us to play a part in developing and building the Tampere region,” says Jarkko Salmenoja , Vice President at YIT.
“In an alliance project, all parties have a vested interest in ensuring the success of the project. Pöyry is fully committed to providing the project with its best infrastructure engineering expertise,” states Mikko Inkala , President of Pöyry’s Infrastructure Business Unit.
The purchase decision issued by the City of Tampere on June 22 will enter into force three weeks after the date of the decision, after which the contract for the development phase may be signed.
For further information, please contact:
Sanna Kaje , Vice President, Investor Relations, YIT Corporation, tel. +358 50 390 6750, sanna.kaje@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
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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 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 taking care of our customers, partners and personnel. We have nearly 6,000 employees in seven countries. In 2014, our revenue amounted to around EUR 1.8 billion. Our share is listed on NASDAQ OMX Helsinki. www.yitgroup.com
