Biltema’s planned Åland store will cost more than comparable projects in Sweden and mainland Finland, partly because steel and concrete components must be sourced elsewhere.
Biltema’s planned new store in Åland will be significantly more expensive to build than comparable outlets in Sweden and mainland Finland. One of the main reasons is that important steel and concrete components cannot be manufactured locally.
According to Ålands Radio, Biltema’s property company has had to adapt the project to the limitations of the local construction market. CEO Martin Norrman says there is insufficient local capacity for several parts of the project.
This includes the production of steel and concrete components, which must instead be manufactured elsewhere and transported to Åland. The result is longer supply chains, higher transport costs and more complicated construction logistics.
Steel components must be shipped to Åland
Large retail buildings typically rely heavily on structural steel for load-bearing frames, roof structures and other systems designed to create wide, unobstructed floor areas.
In Biltema’s Åland project, the lack of local steel fabrication means these components must be sourced from outside the islands. Together with similar limitations for prefabricated concrete elements, this is contributing to higher construction costs than at comparable Biltema sites.
The project has also been affected by limited local competition. Biltema had hoped to use local contractors, but only a small number of Åland-based companies participated in the tender process, and just one remained in the final negotiations.
The contract was ultimately awarded to Swedish construction company Caragana Bygg, which has already built several Biltema stores. According to Norrman, the price difference was considerable, while the Swedish company also had greater experience of integrated design-and-build projects.
Part of Biltema’s Finnish expansion
The Åland store forms part of Biltema’s continued expansion in Finland. The Swedish retail chain announced earlier in autumn 2026 that it plans to open ten additional stores in the country.
Biltema currently operates 24 stores in Finland and around 170 across the Nordic region.
The new Åland store is scheduled to open in summer 2027. Despite the higher construction cost, the project is continuing as part of the company’s expansion programme.
Source: Ålands Radio and Ilta-Sanomat.
