Operating environment

Market Overview

Market Dynamics

Delete operates in the Nordic environmental services market with a focus on industrial cleaning, demolition services (including special demolition and heavy demolition) and recycling services. The Group’s core geographic markets are Finland and Sweden, and the Group has a well-established presence in industrial cleaning and demolition services both in Finland and in Sweden, and in recycling services in Finland. The market characteristics are similar in Finland and Sweden, which offers an opportunity to operate across borders, although the underlying service markets are distinct. Both markets provide opportunities to differentiate through critical mass, project management capabilities and references among others. Furthermore, both markets are protected by increasing barriers to entry due to e.g. need for special skills and equipment, investment needs, CSR capabilities, existing relationships and brand, the need for references as well as regulations.

Growth Drivers

  • Aging infrastructure supports a positive operating environment both in the Finnish and Swedish markets.
  • Urbanisation drives the demand for renovation services, renovation and replacement construction and the demolition of old buildings
  • An increased focus on environment and the tightening regulation increases the demand for specialised services and recycling
  • Economic growth supports overall demand in environmental services
  • Digitalisation and technology will create opportunities for innovative players in the market

Competitive Landscape

The environmental services markets are fragmented both in Finland and Sweden.

Industrial cleaning

The core demand for industrial cleaning services remains stable and the industrial customers’ demand is expected to remain on a good level. The market continues, to an even greater extent, to demand that suppliers are able to handle increasingly complex projects with high-quality environmental, health and safety standards favouring large professional players.

Demolition services

The ageing building stock in both countries increases the demand for renovation demolition services, with buildings from the 1960s and early 1970s being renovated. In the public sector, especially municipality-owned real estate such as hospitals and schools require renovation. In addition, urbanisation drives demand for renovation, replacement and demolition of old buildings.

Recycling services

Growth in recycling services is driven particularly by the growth in renovation construction. Increased environmental awareness also continues to drive improvements and new regulations in the recycling segment. Examples of this are e.g. the EU’s 70% recycling target by 2020 and landfill ban on C&D waste. Regulatory development in both the EU Circular Economy Action plan and national legislation, such as the updated Finnish Waste Act, as well as generally increasing sustainability awareness continue to keep the demand for recycling services on a high level.