Translation: Original published in Finnish on 10/25/2024 at 9:19 am EEST.

The expansion, which is still in the planning stage, will begin with the establishment of a subsidiary in the country, while potential acquisition targets in the region are also explored. We see this move as a logical next step in geographical expansion and it opens up new opportunities for capital allocation and thus more efficient use of capital.

Next step in geographical expansion

Solwers announced this morning that its board has decided to establish a subsidiary in Poland and the company is currently exploring potential acquisition targets in the region. According to the company, significant investments are planned in Poland for infrastructure construction and the renewal of the energy industry. Expansion into Poland is also justified by the country's emergence as a logistics hub for Central Europe and the fact that a substantial portion of the planning for the reconstruction of Ukraine is likely to take place in Poland.

We see the expansion into Poland as a very logical step from the perspective of business decentralization. In addition, expansion into the Central European market will broaden the company's potential acquisition field and thus create conditions for a more efficient allocation of capital. We estimate that Solwers' growth in Poland will be mainly through acquisitions, so the implementation of the expansion plan outlined here should be assessed through them. In this way, a more accurate assessment of the steps towards expansion can be made when the very likely acquisitions in Poland are announced.