Harju Elekter acquired a real estate company and is reorganising production in Sweden

On 5 October 2021, AS Harju Elekter published a stock exchange release in which it announced that Harju Elekter AB, a subsidiary of AS Harju Elekter, concluded an agreement with LC Development Fastigheter 101 AB, a subsidiary of Wästbygg Gruppen AB, in order to acquire 100% of the shares of LC Development Fastigheter 17 AB. Harju Elekter decided to acquire the real estate company under Harju Elekter Services AB instead of Harju Elekter AB, and on December 15, 2022, Harju Elekter Services AB completed the transaction to acquire 100% of the shares of LC Development Fastigheter 17 AB.

The purchased real estate company LC Development Fastigheter 17 AB was created specifically for the construction of the Västerås factory, where the production needs of Harju Elekter were taken into account in the construction process. In the future, it is planned to merge the purchased company with Harju Elekter Services AB, which results from the Group’s principle of keeping production activities and real estate management in separate companies. Aron Kuhi-Thalfeldt (chairman), Tiit Atso, Priit Treial, Tiit Luman and Erko Lepa were appointed to the purchased company’s Board and Mikael Schwartz Jonsson (Managing Director of Harju Elekter AB) was appointed as Managing Director. The price of the transaction was 10.5 million euros (SEK 115 million).

The stock exchange release of AS Harju Elekter, published on 13 September 2021, announced that for leasing the building in Malmö, which will be completed by the end of 2022, a lease agreement was entered into with Nyfosa AB. As Nyfosa AB was unable to obtain a building permit for the construction of the building and no suitable rental premises could be found in Malmö, AS Harju Elekter decided to move production from Malmö to the Group’s newly built factory in Västerås and to the existing production unit in Keila in the first half of 2023 for the purpose of cost efficiency.

Harju Elekter is an international industrial group with extensive experience in providing future proof solutions for electrical power distribution. We engineer, manufacture, and install electrification solutions for utilities, industries, infrastructure, public and commercial buildings. The entities of Harju Elekter Group in Estonia, Finland, Sweden, and Lithuania employ around 900 people, and the Group’s nine-month revenue in 2022 was 125.3 million euros.

Tiit Atso
Chairman of the Management Board
+372 674 7400