Skanska turns to 'best-cost countries'

28 September 2008
More news

29 September 2008

Swedish construction firm Skanska aims to purchase $250 million (£136.8 million) worth of goods and services from "best-cost countries" by 2010.

The figure represents 10 per cent of the company's annual spend and forms part of its wider aim to reduce costs without compromising quality.

Speaking at the low-cost country sourcing conference in Prague, Robert Smrcka, international purchasing director at the firm, said it wants to increase spending through its China and Eastern European sourcing offices by $100 million (£54.7 million) over the next two years.

He described the targets as "quite aggressive" and added: "In construction we can only talk about cost avoidance, not savings. The price of commodities such as cement is only going upwards."

A report published by PricewaterhouseCoopers earlier this year revealed construction firms could save up to 30 per cent on what they pay for materials if they buy from low-cost country sources (Web news, 22 February)

SMsep2008

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