Peab and Saab have received a contract to move and broaden the existing runway at Saab Airport in Linköping, Sweden.
The value of the contract is Skr190m ($19.86m).
Once the runway is moved, it is expected to decrease the noise level in the city and offer the city room for growth.
The work will include moving the existing runway at Saab Airport 600m east from the city.
In addition, it will be adjusted to comply with regulations regarding take-off and landings of larger aircraft.
Peab production manager Lars Lind said: “We are proud to be part of the development of the airport together with Saab.
We are a local community builder and one of the reasons we won the contract is that we have the requisite resources for the project within Peab. This is what we call locally produced community building.”
Saab group property manager Torbjörn Nibelius added: “We look forward to working together with Peab as a partner. Peab has previously done a major job on the runway and it turned out well.
“Working on the project while Saab’s flight testing operations are in full swing requires taking special consideration.”
Construction work commenced last month and is expected to be finished by late 2022.
Last year, Air Traffic Control the Netherlands (LVNL) selected Saab Digital Air Traffic Solutions (SDATS) to supply remote tower systems.