Nordecon combines road maintenance companies under one subsidiary
A subsidiary of listed Estonian construction group Nordecon AS to go by the name of Tariston AS will enter into business on Jan. 1, 2017, combbining subsidiaries Järva Teed AS, Hiiu Teed AS and the road maintenance and technology division of Nordecon, the group announced on Wednesday.
The merger will produce an infrastructure company of very remarkable size by Estonian standards, Nordecon AS CEO Jaano Vink said in a press release.
"Nordecon has been building roads, streets, parking lots, town squares, airfields and so on since 1990," Vink said. "At the same time, subsidiaries of Nordecon, originally county road maintenance companies Järva Teed and Hiiu Teed, have significantly expanded their scope of activity ovver the years, and considering them as having to do with one county alone has been misleading for many years already."
The merged company will continue business in all previous fields of activity and all existing rights, obligations and cooperation agreements will remain in force, Kaspar Kaldjärv, CEO of the new Tariston AS, said.
Tariston has set its sights on increasing market share in the coming few years, which is one of the primary reasons for the establishment of the joint company, Kaldjärv added.
Nordecon group has more than 10 subsidiaries in total. Consolidated sales of the group totaled 145.5 million euros in 2015.