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MERKO’s turnover in Lithuania from general construction contracts in 2023 amounted to 98 million euros

Last year, UAB Merko Statyba signed general construction contracts totalling a record 290 million euro. The turnover from general construction contracts reached 97.8 million euro, which is 39% higher than in 2022 (70.4 million euro).

“Some of the general construction contracts signed in 2023 originated from previous years. Due to the significant uncertainty caused by the war in Ukraine when Russia started the conflict in 2022, most investors and clients postponed planned construction orders. These contracts were deferred to 2023, resulting in an extraordinary leap instead of consistent traditional growth last year”. Commenting on these figures, Saulius Putrimas, MERKO’s leader in Lithuania, mentioned that this achievement is attributed to the strong MERKO team, making sound decisions during challenging and turbulent year. These results not only allow to anticipate turnover growth in the coming years but also provide opportunities for UAB Merko Statyba to enhance operational efficiency and leverage economies of scale by ordering materials and planning work effectively.

Significant expansion in wind farm construction projects

One of the key areas of activity for MERKO in Lithuania is wind power projects. The scope of these projects has undergone significant changes in recent years. Initially, clients entrusted only the foundation work, but now, recognising the experience and professionalism of the MERKO team, they commission full-scale construction (Balance of Plant – BoP) of wind farm projects. This includes not only the foundations but also the entire necessary infrastructure for installing wind turbines – drainage, roads, electrical networks, substations, and the preparation of required documentation.

“We laid the first foundations for wind turbines back in 2015 when discussions about the sustainability and shortage of electricity were mostly theoretical. Having implemented contracts signed in 2023, we will have installed foundations for nearly 200 wind turbines and developed all the necessary infrastructure. This demonstrates that MERKO is one of the construction leaders in the renewable energy sector, directly contributing to the development of a green, sustainable future and national energy security,” stated the leader of MERKO in Lithuania.

35% increase in apartment sales

In 2023, MERKO’s revenue from housing sales in Lithuania amounted to 38 million euro, a figure similar to that of 2022 (36 million euro). Clients have shown active interest in MERKO residential projects. In 2023, 148 preliminary agreements for apartment purchase and sale were signed, marking a 35% increase compared to 2022 when 110 such contracts were concluded.

All sold apartments are part of the residential quarter Vilnelės skverai, where the two-phase buildings have been completed, and almost all 450 apartments in them have been sold. Currently, another phase, Kaukysa, is under construction. The Vilnelės skverai project will include over 1000 apartments in four phases.

“We aim to offer the market apartments of various sizes and levels of furnishing – both built and furnished, where you can visit and buy, and then immediately move in, and those that are still under construction, i.e. we adapt to the needs of each client,” explained S. Putrimas.

According to him, when planning and constructing residential buildings, consideration is given not only to the layout, quality, and surroundings but also to ensuring the convenience of residents in their new homes. It is important that residents have access to necessary goods and services nearby. Therefore, various businesses, cafes, and shops are already establishing themselves on the ground floors of the buildings, and all tenants are carefully selected.

Moreover, the Vilnelės skverai project has been recognised as the best in the residential category by the Lithuanian Real Estate Development Association (LNTPA) and the Sustainable Development Academy in the annual “For Sustainable Development” competition.

However, the MERKO Lithuania leader points out that apartment sales figures in these and coming years may be more contained. The reason behind this is the delay in commencing new residential projects.

“For now, we are not yet able offer high-quality, energy-efficient housing in other parts of Vilnius, although we have acquired plots and are developing several new projects. The reason is the prolonged process of coordinating projects and obtaining construction permits,” commented S. Putrimas on the situation.

AS Merko Ehitus ( group companies develop real estate and construct buildings and infrastructure. We create a better living environment and build the future. We operate in Estonia, Latvia, Lithuania and Norway. As at the end of 2023, the group employed 638 people, and the group’s revenue for 2023 was EUR 466 million.