Veidekke and Hæhre in tie up
15 December 2010
Norwegian-based Veidekke Entreprenør has purchased 51% of the shares in the Albert Kr Hæhre group's contracting operations - a move that comes after many years of co-operation and one it is said will strengthen both companies' competitive ability.
Veidekke said the market outlook for large construction projects was good, particularly in the road and railway sectors. It claimed the size and complexity of contracts were escalating, and this had resulted in an increased struggle for expertise and capacity.
Dag Andresen, managing director of Veidekke Entreprenør, said, "If we are to maintain a leading position in this market, we have to be the best. It is therefore a pleasure to announce our new future together with Albert Kr Hæhre and his associates. Our co-operation on the E18 Sky to Langangen project has proved that together we are capable of taking on large and complex operations, and that the two companies' corporate cultures have a lot in common."
The Norwegian E18 Sky to Langangen project comprised an 11 km four-lane highway, with four tunnels, two safety tunnels and eight bridges.
The companies said the combination of Veidekke's leading position in the area of large and complex concrete and tunnel work, and Hæhre's leading position in the field of earthworks, would help create a comprehensive contractor for major construction projects.
Hæhre was founded by Albert Kr Hæhre 35 years ago, and currently has 400 employees.
Veidekke is one of Scandinavia's largest contractors with 6000 employees and a turnover of NOK 16 billion (€ 2 billion). Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates, road maintenance and recycling. Over half its employees are co-owners, holding 20% of Veidekke's shares between them.
The new company will be made up of Hæhre Entreprenør AS, Hæhre Maskinutleie AS and Hæhre Mek Verksted AS, while the remaining companies in the Hæhre group will remain under the current ownership.