13.10.2025 14:00:35 EEST | GRK Infra Oyj | Investor News
Change negotiations concerning GRK Finland Oy's rail construction business have been completed. On 3 September 2025, GRK announced that it will commence an efficiency improvement programme in rail construction in Finland to ensure profitable growth and future competitiveness.
GRK Infra Plc Investor News 13 October 2025 at 2:00 p.m.
As part of the efficiency improvement programme, on 12 September 2025, GRK Suomi Oy initiated change negotiations due to financial and production-related reasons as well as the restructuring of operations. The negotiations covered the entire personnel of the rail construction business in Finland.
At the beginning of the negotiations, it was estimated that the measures could lead to temporary lay-offs of the personnel and the termination of employment relationships of approximately 20-40 persons. It was also reported that the plan may also lead to organisational changes, as well as changes in duties and their location.
The change negotiations were completed on 30 September 2025. As a result, the employment relationships of 32 persons will be terminated and the essential terms of employment will change for four persons. No lay-offs will be made as a result of the change negotiations, but they can be implemented in the future due to the seasonality of work typical of the infrastructure sector. GRK has approximately 1,200 employees.
The estimated annual impact of change arrangements and other cost-saving measures on the company's costs is approximately EUR 3 million. The cost savings are expected to be realised in stages, starting from the fourth quarter of 2025.
GRK has been growing profitably in recent years and the demand in the infrastructure market has been stable. There are opportunities for growth in the infrastructure market, but the market and competitive situation varies significantly between operating countries and different businesses. For example, competition has intensified in the railway market in Finland.
"GRK has significant contracts in various railway projects. In addition, we have several alliance contract development phases in progress. It should be noted that although many projects are classified as railway contracts, they employ more civil engineering and road construction professionals at GRK than railway experts. For example, large rail and tramway projects include much more than work requiring specific railway construction expertise," says Mikko Nyhä, Business Director, Rail Business.
"I regret that we are forced to reduce staff. This is a difficult situation, but I believe that these changes will ensure the future competitiveness of the rail construction business. During the negotiations, several cost-saving measures were identified together with representatives of the personnel, which will also improve the efficiency of operations and reduce costs once implemented."
Contacts
- Markku Puolanne, CFO, GRK Infra Oyj, +358 40 069 4114, markku.puolanne@grk.fi
- Mikko Nyhä, Business Director, Rail Business, GRK Suomi Oy, +358 40 863 0450, mikko.nyha@grk.fi
About GRK Infra Oyj
GRK designs, repairs and builds roads, highways, tracks and bridges in order to make everyday life run smoothly, promote people meeting each other and to create a more sustainable future. GRK's expertise also includes environmental technology. We operate in Finland, Sweden and Estonia with approximately 1,200 professionals. GRK's core competencies include the execution of versatile infrastructure construction projects, project management of both small and large projects as well as extensive rail expertise. GRK provides services from design to construction and maintenance.
Our customers include the state administration, municipalities and cities, as well as the private sector. GRK works on several projects in alliance with other companies of the infrastructure construction sector. In addition to the parent company of the group, GRK Infra Plc, the group consists of subsidiaries in each operating country: GRK Finland Ltd in Finland, GRK Eesti AS in Estonia and GRK Sverige AB in Sweden. The parent company of the group, GRK Infra Plc, is responsible for the administration and financing of the group. The subsidiaries GRK Finland Ltd, GRK Eesti AS and GRK Sverige AB carry out the operational activities of the group.
