March, 3. 2006
IKEA announced termination of St. Petersburg shopping centre contract
IKEA has announced the termination of its contract with Lemminkäinens subsidiary Lemcon Ltd concerning the construction of the MEGA shopping centre in St. Petersburg. The value of the contract was EUR 92 million. The project had reached about the half-way point and was scheduled for completion by the end of the year.
In Lemcons view there are no legal grounds for the contract termination, and it is likely that the matter will proceed to the court of arbitration.
Termination of the contract is not expected to have any essential bearing on Lemminkäinen´s result. The companys order book is good and there is reason to expect net sales growth and an improved result this year.
For further information:
Helsinki Exchanges, key media
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