Skanska to enter residential sector in UK and Poland

Skanska is targeting the residential construction market in its new 2015 business plan and aims to grow organically in the sector with the launch of new businesses in the UK and Poland.

Skanska described residential construction as one of the markets with the "best growth potential" and said it will invest the most in this sector under its new business plan.

"The next phase is investment in profitable growth... with continued strong focus on profitability and capital efficiency, but also on expanding construction operations and significantly increasing investments in project development," Skanska said.

As well as founding new operations in the UK and Poland, Skanska also expects to deepen its footprint in residential development in the Nordic region and strengthen its business in the Czech Republic and Slovakia.

"The goal is to sharply increase the number of residential development projects in Skanska's existing markets and to assume the position as the leading residential developer in the Nordic region," Skanska said in a statement.

The new business plan for 2011-2015 marks a fresh phase in Skanska's expansion model, which has seen the company grow through acquisitions for the last decade.

Skanska said it would strengthen financial synergies within its operations and increase its cash flow reinvestment rate to fuel expansion in all areas of project development.