Swedish contractor Peab has been selected to carry out the infrastructure and pipeline work for Åkersberga's new city district, Hagby äng och kulle.

The project is commissioned by Österåker Municipality, with the contract valued at Skr220m ($23m).

This new development, situated 2.5km west of Åkersberga's city centre, aims to merge urban living with green spaces and recreational areas.

Hagby äng och kulle is envisioned as a small-town-like district that will offer a mix of housing, public services, and city centre activities within a unified layout of streets, parkways, and gathering spaces.

The planning of this area has been intricately linked with the site's cultural history and natural landscape, stated the construction company.

Peab region manager Carl Johan Söderberg said: "We’re proud to be part of the development of Hagby äng och kulle. Our work will contribute to creating a sustainable and vibrant city district that will benefit both current and future generations.”

The project will commence this month and is set for completion in 2027, with the order set to be registered in the second quarter of 2025.

Recently, Peab also secured an $87.5m contract with Hitachi Energy for the construction of a new plant in Ludvika, Sweden.

This new facility, spanning 20,400m², will house a factory, offices, and locker rooms, and is designed to foster sustainable manufacturing processes.

In addition, Peab made headlines this April for its contract to build a housing development with 100 units in Lindvallen, Sweden.