Excessive levels of ammonia observed in YIT residental units in St. Petersburg
Excessive levels of ammonia have been found in the indoor air of residential units built by YIT in St. Petersburg, hindering the appropriate use of the residential units. So far, YIT has received 40 complaints from its customers concerning the quality of indoor air in the residential units. YIT will continue the investigation in cooperation with the customers.
The reason for the above-normal ammonia level is probably the composition of concrete used in the construction of building framework in the wintertime. The company will continue its investigations to ascertain the source of the ammonia with the help of local and Finnish experts. The companies that have supplied concrete to YIT are commonly used by St. Petersburg construction companies, and the materials and substances used in the production of concrete are certified in Russia.
YIT has informed its customers and will agree on required measures responsibly with its customers in accordance with the sales contracts for the residential units and Russian legislation. The company is looking into different alternatives to eliminate the ammonia problem and is negotiating on possible compensation with its concrete suppliers.
The assessment of financial impacts is still underway, and the costs depend primarily on how the problem is resolved and liabilities are allocated. It is probable that correcting the problem will have a negative financial impact on YIT Corporation.CapMan is one of the leading private equity firms in the Nordic countries and Russia, with assets under management of €3.4 billion. CapMan has four key investment partnerships - CapMan Buyout, CapMan Russia, CapMan Public Market, and CapMan Real Estate - each of which has its own dedicated investment team and funds. Altogether, CapMan employs approx. 120 people in Helsinki, Stockholm, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.
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