The firm will construct a new carbon dioxide neutral factory along with an accompanying office building to manufacture the next generation of forestry machines.
Komatsu Forest expects to bring its manufacturing and development expertise in the new facility.
The new factory, which concentrates on sustainability and the Internet of Things, is claimed to be one of the largest investments in industrial Sweden.
Located at Klockarbäcken in Umeå, the new facility will be carbon dioxide neutral, by supplying power using solar panels and geo-energy using modern construction technology.
Last year, some of the preparatory work on the new facility was initiated and is scheduled to open next year.
With about 40,000m² production space, the new factory will be accompanied by six-storey office buildings.
Peab production manager Lennart Lundgren said: “We are proud to have been entrusted with building an industrial facility for the future for Komatsu.
The Swedish firm also received a SEK175m ($17.4m) contract from Eskilstuna Municipality to build a senior living centre.
The firm will construct more than 9,000m² senior living with 88 apartments in city district Skiftinge in Eskilstuna.
The facility will be a single building with three wings and a connecting section in the middle. It will comprise 88 apartments, administration and staff space along with public and communal areas.
