KG Constructions portfolio contains only large-scale projects

2018.02.20

This year, KG Constructions, one of the largest manufacturer of aluminium and glass structure is in the country, is celebrating its twelfth year of operation and is moving towards a new stage of development that has changed its approach to corporate governance and ongoing projects.

Lower number of projects – higher efficiency

In the middle of 2017, the company launched internal transformation, which required great team’s contribution, partner understanding and essential solutions. “We started this year not only after gaining even more experience, but also managing to maintain the name of one of the most advanced facade structure design and manufacturing companies in Scandinavia and the Baltic States. During the decade in business we have grown enormously, our revenue has been doubling almost every year, the number of staff and projects has been rising dramatically, but this has not always yielded positive results”, said Linas Karzinauskas, Director General of KG Constructions.

This year the company’s portfolio of projects has already been completed and we are planning that our sales volumes should reach 38-39 million euro in 2018. “In 2018 we do not plan for significant growth in order to focus more on efficiency and profitability. We have seen very clearly what the strategy and the future plans of a modern enterprise should be. Therefore, this year, our main goal is to maintain similar sales volumes, but to increase profitability by two, and maybe even three times”, said L. Karžinauskas.

A coherent reorganization of the company has made it possible to optimize the number of employees. At present, the company employs 396 high-level professionals. In addition, the number of projects was significantly reduced from 22 (in 2017) to 11 (in 2018) by focusing on large projects. “Practice has shown that becoming a serious player in Northern Europe, we are able to assume complex and large-scale projects, therefore, the key indicator was the size and distinctness of projects, rather than their quantity”, said L. Karžinauskas.

Exceptional projects underway

In 2018 KG Constructions will implement exceptional architectural projects such as Redin Majakka, Tower 2 (Helsinki), Hilton’s administrative building (Vilnius), The Point (Malmö), Studenhuset, Campus Valla (Linzhioping), Nytt Rådhus i Sandnes (Sanes), Stockholmsledet 11 (Lund), Linnéuniversitetet (Kalmar), and will also continue the #Tower apartment and office building, stage 2 at Saltoniškių g. 7 and Park Town East Hill Business centres in Vilnius. The facade production of the latter projects has already begun.

“In the eastern part of Helsinki, the facades of the finest Finnish residential building, Redin Majakka, Tower 2, are currently under construction. In terms of value and size, the REDI complex, which will consist of eight towers in total, will be one of the largest construction projects in Finland”, comments L. Karžinauskas about the newly implemented project. “Redin Majakka’s second tower, the facade of which will be designed and installed by the Lithuanian company, will architecturally stand out by its shape and its external appearance. “This residential tower will reach 134 meters high and will have a total of 1,450 coloured and technologically different aluminium-glass elements. They will occupy 12,000 square meters. meters of exterior facades and will continue up to 36 floors”, says the project manager Linas Babrauskas.

The installation of roofing facade elements for the first time in the company’s practice is carried out with the help of Monorail technology and without the use of any cranes on the construction site: “Containers with elements are placed on special platforms, located on each floor of the building. The elements are mounted from the platforms with the help of a special rail equipped around the entire building”, said the project manager. For this project, custom-made glazing with anti-condensation, solar control and selective coatings are used, and glass insulating units with exclusive drawings are used in blind façade areas. According to L. Babrauskas, the fact that the Lithuanians were entrusted with the implementation of the highest skyscraper in Finland is a great recognition of not only the company but also the entire country’s construction industry.

Highest concentration in the Scandinavian region

KG Constructions, strategically aiming to strengthen its position in the Scandinavian countries, meets the year 2018 with completion of the projects in Belarus and Latvia. This year, as many as 72% of all ongoing projects are carried out in the Scandinavian region: Sweden (37%), Finland (22%), Norway (10%) and Denmark (3%). The remaining projects will be implemented in Lithuania.

“Scandinavia is an extremely modern and innovative region in the construction sector, thus working here and implementing technologically sophisticated projects is highly favourable for us. It provides an invaluable experience to our specialists and allows us to implement advanced ideas and unconventional solutions”, says L. Karžinauskas, General Director of the company.

Innovations and new products

According to the company’s General Director, today all production processes in the company are managed only through the ERP: purchases, storage, production and loading, logistics. “The introduction of a business management system is just the first step in making business processes more efficient. The next step is to introduce the Lean’s system methodological framework. We hope that by gradually integrating best practices in world-class production methods, we will avoid unnecessary losses and optimize the management of all resources”.

UAB KG Constructions belongs to UAB KG Constructions Group, which also controls KG Service UAB, KG Transportas UAB, KG Energija UAB, UAB Lignas and part of UAB Staticus shares. In 2017 the group of companies has enjoyed the consolidated turnover of 36 million euro. It is 4.8 million euro more than in 2016. In 2017 the group’s preliminary unaudited EBITDA amounted to 1.6 million euro.