vol. 2 - Joensuun Tiedepuisto

vo
companies, experts and pioneers from a forest province
l. 2
2
Editorial
Pilot area practices what it preaches
L
ocated on the eastern border of the EU, North Karelia made a far-reaching
choice in 2011. The region decided to bring its energy consumption down
and increase the share of renewable energy sources from less than two-thirds
to over 80% by the year 2020. The goal is to completely eliminate the use of
fossil fuels in heating. In just under ten years, the aim is to produce a surplus
of electricity — renewably.
Support and a broader perspective for making such decisions came from
the Koli Forum, which was held in September 2011. Koli theses state that
the bioeconomy is a key instrument in assuming responsibility for meeting
international climate goals. In addition, forests, other renewable natural
resources and the bioeconomy will become a key economic driver and provide
a competitive edge for Europe in the decades to
come.
on the raw material properties of wood. In Joensuu, over 500 bioeconomy
experts at various research institutes—the latest addition being the Energy and
Resources Institute (TERI), which is headquartered in India—are building joint
research entities. All this means that companies are not alone in their efforts
to solve problems encountered in developing new products and processes,
as Joensuu’s unique, multidisciplinary Centre of Forest Bioeconomy is ready
to tackle development challenges with them. An extensive international
partner network also provides a development resource that very few operating
environments are able to offer.
The greatest expectations for pyrolysis oil are for its use as a raw material for the
chemical industry. Bio-oil can be refined into such products as diesel fuel for
cars. Imagine what kind of chemical compounds
produced during tree growth and the pyrolysis
process all those wood scientists might actually
The region’s strategic decision to commit to Joensuu is fast becoming one of find in this tar-like liquid. The University of
bioeconomic goals has triggered a positive
Eastern Finland (UEF), which is launching an
the hottest centres of
chain reaction. The world’s first commercialinternational multidisciplinary Wood Material
scale pyrolysis oil production plant is being built
Science degree programme, will shed light on
adjacent to the Fortum Corporation’s Joensuu bio- bioeconomy research in Europe this. The university’s ambitious goal is to ‘learn
power plant. In the pyrolysis process, wood biomass
everything about wood’.
is converted into a liquid, thus forming a fuel for energy applications and heavyduty motors. The raw material is collected from the region’s forests and refined
Wood is also of interest to players not traditionally associated with the forest
into a bio-oil, as a by-product of district heating and electricity fed into the
industry. Ample forest reserves and the assured availability of raw materials
national power grid. The facility and its fuel management will create dozens
make North Karelia an ideal development environment for new processes and
of new jobs, primarily in rural areas. What could possibly be more appropriate
for ramping up production to full scale. Logistics work smoothly, the necessary
for the forest capital of Europe, where, in addition to research and education, a
infrastructure is in place, co-operation between industry players is exceptionally
large part of Europe’s production of forestry machines is concentrated?
seamless and the region is close to the gateway to the Russian market. We are
proud of the fact that regional players are, also through their own choices,
Energy is but one part of the bioeconomy, where regional researchers and
committed to staying at the forefront of the bioeconomy. North Karelia is a
businesses are eagerly searching for new solutions. In Uimaharju, the Enocell
region that practices what it preaches, offering a natural operating environment
pulp mill is finalizing the modification of one of its production lines. The
for companies committed to the bioeconomy.
modified line will produce dissolvent pulp – a sustainable fibre which will not
be used for making paper but as a substitute for cotton in the textile industry.
Joensuu is fast becoming one of the hottest centres of bioeconomy research
in Europe – an international network hub that knows how to measure forest
reserves, masters biomass production, harvesting and logistics and is an expert
Joensuu, 4 February 2013
Timo Tahvanainen, Joensuu Science Park Ltd.
In this issue
04
a Brand name product
in five years
06
Time for a new approach
to demolition
08
Fortum bio-oil refinery
turns the world’s attention
to Joensuu
11
Source of pride
14
Kareline® composites –
environmentally-friendly
and recyclable
16
Iivari Mononen - putting
service in pole position
18
Riikonen built a service
entity from a network
20
Putting it all together
like tongue and groove
22
A toast to success
straight from nature
24
KME Oy provides
warmth and employment
26
Lots of room for
innovation talk
3
4
a brand name product
in five years
Aatelitalo Oy
ounded in 2007
F
In-house employees: 25
Turnover: EUR 4 million (2011)
Production facilities in Lehmo, sales office in Vantaa
North Karelian subcontractors are used to provide, for
example, furnishings, windows, roofing, roof trusses
www.aatelitalo.fi
Photos: Fabrik and Aatelitalo
“It was a real kick start,” explains Managing Director Ville Kokkonen of Aatelitalo Oy, describing the company
launch. Aatelitalo, which began its operations five years ago, has made prefabricated wood houses into an
industrial end product. The demand for prefab houses is growing steadily, which is also Aatelitalo’s aim.
V
ille, Kalle and Antti Kokkonen are determined brothers.
They stopped working on construction projects in Southern
Finland because contracting work just did not seem like a good fit
for family life. Ville Kokkonen explains that, on several occasions, he
considered whether it would be possible to actually build houses from
the ground up inside a nice and dry indoor facility. His love for his
home region, North Karelia, also weighed heavily in his thought process.
Moving to Southern Finland for work was not a very appealing prospect.
The threesome came up with an inspired solution. Home would stay
in North Karelia and the houses would be completely prefabricated at
the plant in Kontiolahti and shipped down to the high-growth centres
of the Helsinki Metropolitan area.
Building a home made easy
Above all, people want building their own home to be an easy process.
According to Kokkonen, few people in the Helsinki Metropolitan area
build their own homes. The prefabricated house trend came to Finland
from Sweden, where prefabricated houses accounted for over 50% of
the entire single-family home market by the mid-2000s.
“When we started up in 2007, prefabricated houses accounted for
just over 10% of the homes built. Now, we’re seeing around a 35%
market share, with steady growth.”
Aatelitalo was founded on the threshold of a declining market. In
retrospect, Kokkonen believes that his company managed to escape the
effects of the 2008 financial crisis - its order backlog for prefabricated
houses quickly reached ten months, after getting off to a flying start.
The big backlog helped the company sail through the worst of the crisis.
“By the end of 2008, nothing was happening on the sales front, but
right from the beginning of 2009, the market took off.”
Two by two
Aatelitalo Oy has
manufactured wood
prefabricated houses since 2007.
Since that time, the share of
the prefabricated house market
has steadily risen. Managing
Director Ville Kokkonen (left)
and production manager Kalle
Kokkonen believe that this
steady growth will continue.
Aatelitalo has an approximately 2,200 m2 production facility in Lehmo,
Kontiolahti. The latest 1,000 m2 expansion was completed in 2011. The
facility currently produces some 30 prefab houses a year. There are 11
different models, ranging from 80 m2 to 200 m2 in size.
All house models have a standard width of nine metres. The interiors
of the wood houses are fully completed at Lehmo: all wallpaper, tiles,
appliances, furnishings and sauna fittings are already in place.
The houses are then transported to their respective sites in two
4.5-metre sections. The foundation and roof structures are completed
before the house arrives by special transport. Foundations are made
on a pre-compacted gravel pad. The roof and gables are built on the
foundation, where they sit until the house is delivered. The roof also
serves as a protective cover for the foundation.
The entire house is erected in approximately
four hours. Except for the fireplace and a few
finishing touches, the house is ready to occupy.
Hot water radiant floor heating allows for a
wide range of heating solutions. According to
Kokkonen, some type of air source heat pump
is installed in almost every house.
Personalisation and power
The company’s goal is to maintain controlled
growth. Ville Kokkonen anticipates that
the plant will build as many as 38 Aatelitalo
houses next year. In a couple years, there are
plans to increase the production volume to
50 houses.
“A lot depends on market growth. As a
small operator, we cannot afford to be hitting
our heads against a brick wall – we have to
earn a profit very quickly.”
An increase in production requires new
subcontractors as well as hiring new in-house
staff. Getting up to speed within the delivery
chain and learning how the company works,
however, take time, and Kokkonen does not want to rush things.
“It’s expensive to fix the work we’ve already done - this just gobbles
up our profit margin. And we have to invest in the quality of our entire
delivery chain.”
Aatelitalo’s industrial production phases are highly standardised.
However, it is still possible to make numerous changes to meet the
customer’s individual needs.
“Our ability to customise our product is a clear competitive
advantage.”
5
6
Time for a
new approach
to demolition
Demolition is traditionally seen as simple work education and references are not generally asked for.
Long crippled by shady business practices, the industry has
remained unappreciated, with the biggest loser being the
environment. Deal In Oy Managing Director Petri Hynninen,
who has worked in the business for over ten years, has
grown tired of the lack of discipline. He wants to roll up
his sleeves and become an industry reformer.
T
Deal In Oy
ompany specialising in the
C
environmental management of
the demolition and renovation
industry
Founded in 2008
Headquarters: Joensuu
In-house employees: 5
The MC1 mass calculation
program assists in observance
of the Waste Act, Waste Tax Act,
Land Use and Building Act and
Environmental Protection Act
and decrees.
Was granted Young Innovative
Company status by Tekes in 2012
www.dealin.fi
he result of a EUR 500,000
investment and two years of
development, the MC1 mass calculation
program was launched in 2012. The mass
calculation program is used to calculate
and mass electronic drawing files.
The digital program makes it possible
to effectively monitor demolition
and construction waste and other
materials. Both costs and environmental
considerations are made transparent. The
program provides a bill of quantity as well
as precise information on the volume of
waste coming from a given site, sorted into
various waste types. In the planning phase,
the property owner receives precise data
on the materials found at the demolition
or renovation site. This data can be
effectively utilised in estimating waste
and renovation costs.
“We can plan and provide guidelines
on the reuse of materials right up front.
This provides us with advance information
on what shipping arrangements to make
and the load quantities we’re working
with. If we need an environmental permit
for demolition, we set aside enough time
to get one. Thanks to the calculation and
automatic comparison of waste quantities
handled, we can monitor almost all
demolition sites, without needing
additional resources,” explains Deal In Oy
Managing Director Petri Hynninen.
Entering the
international stage
Hynninen’s innovation has been well
received on the market, with an export
product in the works. In the beginning of
2012, the MC1 mass calculation program
received the European Business Award
for the Environment at the national
level. Hynninen joined the Minister of
Economic Affairs’ delegation to Canada.
Photos: Fabrik and Deal In
The aim of Finland’s new Waste Act is to
significantly enhance waste recycling by
the year 2016. Deal In Oy and Managing
Director Petri Hynninen accepted the
challenge by developing the new MC1
mass calculation program.
“There are only winners in this process!”
Petri Hynninen is an entrepreneur. He is also a
father of six who puts the environment first and
foremost. The lack of care taken at the expense
of the environment horrifies Hynninen.
Fortunately, legislators have finally woken
up – the aim of Finland’s new Waste Act is to
significantly enhance waste recycling by the year
2016. According to an EU directive, by the year
2020 70% of all demolition and construction
waste must be reusable or recovered. This is a
challenging, but attainable goal.
”We have a solution that makes it possible to
meet the requirements of the new Waste Act.
The accuracy of mass calculation meets the
targets set in the EU directive. Success requires
further research in material recoverability and
eliminating legal hurdles.”
Hynninen feels that Finland is on the right
track to preventing illegal activity in
the construction sector.
Loopholes must be closed in the fight to
preserve the environment and prevent abuses.
As things stand now, any party ordering
demolition work to be done can get out of
honouring their environmental responsibility
by hiding behind the legal clauses of a contract.
Hynninen wants this party to be held liable.
”When someone awards a bid for demolition
work to Company X, whose bid was considerably
lower than any of the others, warning bells
should be going off. Not only the demolition
company, but also the party commissioning
the work should be held accountable for any
violations committed,” states Hynninen.
”There are only winners in this process. The
effective recycling of materials and taking care
of the environment are ultimately in everyone’s
best interests.”
The mass calculation program takes worksites from the age of paper drawings to the digital
world. The monitoring of demolition and construction waste as well as various materials is
enhanced, while costs and environmental considerations are made transparent.
The establishment of export channels
continued in Singapore, where Deal In
employed a local representative. In Finland,
the piloting of the mass calculation program
was launched together with, among others,
Senate Properties and Finnish Indoor Air
Centre Ltd. Municipal building oversight
is also interested in the new tool.
The management of material flows during
the demolition phase is just one application
of the mass calculation program, which
offers many more uses. Hynninen shares his
vision:
“The mass calculation program can be
made into application for, just to name one
example, a Windows environment. A private
person can create and maintain construction
and remodelling data on their own house
electronically and in real time. When a need
to verify something comes up later—perhaps
when selling the house—the required data is
just the push of a button away.”
The demolition industry in Finland
The demolition industry in Finland is fragmented. Some of the
approximately 70 companies in the industry operate nationally, while others
are locally-based, one-person enterprises. This is a major business – the size
of Finland’s demolition and renovation market is rising into the hundreds of
millions of euros.
Petri Hynninen served as the prime architect, when the Finnish Demolition
Association (FDA) was founded in the autumn of 2012. The FDA conducts
industry research and works to standardise contract and operating
principles. FDA’s mandate also includes acting as a lobby for the demolition
industry and monitoring industry trends. In addition to improving the
image and educational requirements of the industry, Hynninen feels that
organising it as a whole is a necessity and an effective way to prevent illegal
activity.
”We have to improve the reputation, profile and educational requirements
of the demolition industry. Our industry demands specialised expertise,
which highly professional companies want to further develop.”
7
8
Fortum bio-oil
refinery turns
the world’s attention
to Joensuu
F
“This is a win for
Finland and Joensuu,”
exclaims Fortum
Regional Director Timo
Partanen.
Construction of the bio-oil refinery, which is
integrated with Fortum’s Joensuu power plant, is
proceeding according to plan: slated for completion
at the end of 2013, the refinery will produce a maximum
of 50,000 tonnes of bio-oil a year. Forest chips and
other wood biomass are used as the raw materials.
Joensuu won this highly desired investment – the area
offers top expertise in bioenergy and strong support
throughout the entire region.
ortum’s Regional Director Timo Partanen is Employment and the Economy granted an EUR 8.1
not only busy, but also a proud and happy North million subsidy to the investment.
Karelian. At the beginning of the year, his employer of
many years—Fortum—made a truly unusual decision, Fluidised bed technology
even by global standards: Finland and Joensuu beat Partanen explains the phases prior to construction
out Sweden in an investment competition. Fortum of the bio-oil refinery, dating back to the end of the
is investing approximately EUR 30 million in the 2000s, when the Joensuu power plant switched to
world’s first biofuel plant to
fluidised bed combustion. In
practice, this change meant
be integrated with a combined
heat and power (CHP) plant.
increasingly transitioning from
“I’m proud to be part of
peat combustion to the use of
a project, whose goal is a
fuels. Forest-based
Forest-based fuels forest-based
sustainable future and carbon
fuels account for approximately
dioxide-free energy production.
60% of the raw materials used,
account for
I’m happy to be working for
peat 40%. In a medium-sized
a company—a pioneer in approximately 60% combined heat and power
(CHP) plant, oil is now only
bioenergy—that brings jobs and
investment to North Karelia.”
marginally used in production.
Metso, UPM and VTT Technical Research Centre
“Since that change, customers of Joensuu’s district
of Finland worked in co-operation with Fortum to heat network have had it good: the tax on fossil fuels
develop and conceptualise the new technology. The and emission rights pricing haven’t put as much of a
research was part of the Tekes (Finnish Funding strain on bills as, for example, in the major coastal cities.”
Agency for Technology and Innovation) Biorefine
Fortum procures its wood fuel within an
programme. In addition to this, the Ministry of approximately 100 kilometre radius around Joensuu.
Photos: Johanna Kokkola
Fortum is building the world’s
first bio-oil production plant to
be integrated with a CHP power
plant at its Joensuu facility.
Slated for completion at the end
of 2013, the plant will produce a
maximum of 50,000 tonnes of biooil, which the company wants
to sell to new customers. In the
pyrolysis process, wood biomass
is converted into liquid form,
which is used as fuel for energy
and heavy-duty motors.
9
10
Photo: Fabrik
Victory for the region
More wood, more work
Fortum’s investments are focused on the utilisation of
renewable energy. In Joensuu, Fortum is looking even
further into the future with construction of its biooil refinery – the company wants to be profiled as an
operator that is prepared to move in new directions in
a big way. In Joensuu, all contributing factors favour
investment.
“We had an existing power plant, which was a good
fit for the new technology. Another favourable factor is
the excellent availability of raw materials. The Joensuu
region boasts top expertise in bioenergy – Science Park,
University of Eastern Finland, Finnish Forest Research
Institute (Metla), North Karelia University of Applied
Sciences. With the support of the Regional Council,
JOSEK, the City of Joensuu and the entire region, the
atmosphere in Joensuu couldn’t be better.”
Fortum currently uses approximately 300,000 solid
cubic metres of energy wood at its Joensuu power
plant each year. The production of bio-oil is expected
to nearly double the amount of raw materials
needed. According to Partanen’s calculations, some
70-80 new jobs would be created in raw material
procurement. At present, Fortum’s employment
effect on the forestry sector—including harvesting
and transport—is well over 100. The bio-oil plant
will also provide dozens of direct jobs in, for example,
maintenance and service. There are approximately 70
existing Fortum employees working in Joensuu.
The new bio-oil plant has attracted a great
deal of national and international attention.
Joensuu has now established itself as an attractive
investment location.
The pyrolysis oil production line is being built in the existing back yard
of the power plant. It will have a specially designated raw materials
receiving building, from which wood will be taken to the dryer and
then to the actual pyrolyser flanking the boiler.
Fortum Oyj
Bio-oil beats the black gold of oil sheiks
The bio-oil plant will turn forest chips
and wood biomass into oil using a
technique called fast pyrolysis. Fast
pyrolysis involves an extremely rapid
heating of biomass to approximately
400-600°. Organic substances
contained in the biomass are released
in the extreme heat to form gases. After
a rapid cooling, the pyrolytic gases are
condensed into a fluid, i.e. bio-oil.
Bio-oil can be produced using just
about any type of biomass. In Joensuu,
Fortum uses primarily domestic
wood-based raw materials, such as
forest residue chips. Fortum Regional
Director Timo Partanen explains
that the procurement chain is currently
being restructured to comply with
the Renewable Energy Sources (RES)
directive. National legislation related to
the directive is currently being drafted
in the Finnish Parliament.
“In short, this is a question of keeping
the origin of wood fully verifiable. The
requirement ensuring that the form of
land use never changes is also related
to verification. Forests must always be
used as forests. “
The oil produced by the bio-oil plant
replaces conventional heavy fuel
400–600°C
oil. The price of bio-oil is also very
competitive with oil imported from the
Middle East.
“The purchase price of bio-oil can
be higher than heavy fuel oil. But,
because you don’t have to pay any
fossil fuel taxes or emission rights fees
for heating, the overall cost is more
economical.”
The bio-oil produced can be used
by Fortum itself or sold to other
customers interested in using biooil. Bio-oil is a raw material that, in
the future, will be refined into such
products as low-sulphur marine gas oil.
innish energy company focusing its
F
operations on the Nordic countries,
Russia, Poland and the Baltic countries
Company operations include
electricity and heat production, sales
and distribution
Fortum’s Joensuu power plant is a
medium-sized CHP plant, with a fuel
power of approximately 200 MW
In North Karelia, Fortum also
manages the Uimaharju Enocell bark
boiler and turbine, whose steam is
sold to Enocell and the electricity it
produces to the national power grid
Fortum also remotely monitors the
UPM Joensuu Plywood Mill power
plant
Fortum directly employs
approximately 70 people in Joensuu
There are approximately 11,000
employees in the entire corporation
Fortum’s turnover for 2011 totalled
EUR 6.2 billion
www.fortum.com
Source of
pride
Photo: Fabrik
“We’ve done the right things and done them right,” says John Deere
Forestry Oy factory manager, Janne Haapasalo. Deere & Company has
invested tens of millions of euros in Joensuu since the beginning of the
2000s. The reason is clear: the location, expertise and attitude in Joensuu
are all just right. >>>
John Deere Forestry Oy Factory Manager Janne
Haapasalo (top) and director Jussi Malmi.
11
12
John Deere Forestry Oy
orld’s leading manufacturer of CTL
W
(cut-to-length) forestry machines
Employees: approx. 700
Plant in Joensuu, product development
in Tampere
Production capacity: 10 forestry machines a day
Export share: approx. 90% of total production
Key export regions: Nordic countries, Central
Europe and Russia
Supplier network with approx. 100 companies,
with around ten in North Karelia
www.johndeere.com
John Deere’s Joensuu plant is capable of producing
10 forestry machines a day. Exports account for
approximately 90% of the company turnover. The
Nordic countries, Central Europe and Russia are
key export areas. The company has invested heavily
in Joensuu throughout the 2000s.
Photos: John Deere and Fabrik
I
n 2003, the city of Joensuu anxiously awaited to see staff. Through a strong supplier network of around one
whether Deere would base its forestry machine production hundred vendors, the manufacture of Deere forestry machines
in Filipstad, Sweden or right there at home. Joensuu emerged offers employment to numerous smaller companies.
victorious – thanks to its attitude. Finns are good listeners.
“It’s been easy to make changes happen at the Joensuu
The plant employees showed that they were ready to adopt plant – our people there are extremely committed,” says
the right kind of approach to efficiency and work.
factory manager Janne Haapasalo.
Since then, it has been attitude that carried the company
through all the economic ups and downs. In
the summer of 2012, Joensuu received another
long-awaited tooling facility. The approximately
EUR 8 million investment also covered welding
Joensuu emerged victorious
robots and changes to the production layout.
Movers and shakers
Each year, some 3,000 cut-to-length type
forestry machines are sold throughout the world. John Deere’s
share of that pot is approximately 40%. Deere’s Joensuu plant
is capable of producing ten forestry machines a day.
The company’s own core processes are robot welding,
machining, painting, assembly and testing. Expertise is gained
through product development and marketing.
Deere directly employs a staff of approximately 700 in
Finland. Of these employees, 250 work in Tampere, which is
the location of the company’s R&D, among other functions.
Approximately 400 employees work at the Joensuu plant.
Retail dealerships located throughout Finland also employ
– thanks to its attitude
When Haapasalo talks about expertise and commitment,
he’s not just paying lip service.
“Finnish expertise is based on a solid basic education,
whether we’re talking about fitters or welders. Out in the
world, this is not at all a given. Here, we get so many good
ideas for developing our operations from our own employees.
The motivation to move in a new direction is very real.”
Haapasalo refers to, for example, the company’s
investments in robot welding. Welding is an outstanding
example of a work phase that many workshops outsource to
countries with lower costs. Deere does the exact opposite.
“We have been able to develop robot welding and, in turn,
keep production in Finland while remaining competitive.
This is possible when the whole team is all pulling together.”
Functional relationships
Deere’s factory manager values seamless co-operation with
educational institutions in the region – the North
Karelia College, Adult Education Centre and
University of Applied Sciences. Co-operation is
realised in, for example, custom-tailored courses
and specialist vocational qualifications. The
company also invests in in-house training.
Thanks and a tip of the hat also go to other
operators and stakeholders in the region.
“The City, Regional Council, regional business and
enterprise developers - this region is exceptionally conducive
to enterprise. We and regional businesses belonging to our
supplier network are really heard and helped. It is this attitude
in the Joensuu region that even gets company staff in Tampere
a bit envious!”
Deere & Company is a global corporation, with a total of
approximately 60,000 employees in 40 countries.
“Of course, it’s great that production for a global
corporation like this is here in North Karelia. In fact, it’s a
major source of pride for the whole city.”
Right in the middle of the market
Deere’s forestry machine production
in Joensuu is ideally placed when it
comes to the market. The exportdriven company’s main market areas
are the Nordic countries, Central
Europe and Russia.
“Russia has growth potential –
just in terms of transport costs, our
location is excellent,” says Haapasalo.
Deere also keeps a close eye on
market trends in South America
and China. For example, although
China has vast expanses of forest
plantations, its harvesting technology
is still in its infancy.
Haapasalo reminds that the
transport of a half-million euro forestry
machine, even to a distant market, is
not a major cost consideration. It’s
the size of the market that matters –
building new plants is only worthwhile
if demand grows from the hundreds
to the thousands. Deere forestry
machines are currently exported from
Joensuu to, among others, Australia
and New Zealand.
Future development needs include
tightening emissions restrictions on
forestry machines. When continuous
development is the order of the day,
the biggest challenge is improving
productivity.
13
14
Kareline® composites
– environmentallyfriendly and recyclable
properties of natural fibres and plastics.
be reprocessed in production or used to produce energy by burning.
Kareline composites leave only a small carbon footprint.”
Kareline® materials are thermoplastic
Biodegradable or “biodegradable”?
The composite material combines the best
composites. The fibre contained in
environmentally-friendly softwood pulp
is used to provide strength and pure, select
thermoplastics are used as a matrix plastic.
K
areline’s properties make it well-suited for use in injectionmoulded products, with an extensive range of applications.
Because there is no shrinkage of the composite during the injection
moulding process, the material can also be used to make extremely
thick-walled products.
Products made using Kareline natural fibre composites have an
appearance and surface like natural materials. Particularly in consumer
products, look and feel mean a lot.
“The Kareline materials are often mistakenly confused with
WPCs (Wood Plastic Composites). WPCs are primarily used as
a substitute for standard impregnated wood. Wood powder or
sawdust is used as the filler to keep costs low. But this also makes the
product’s mechanical and durability properties weaker than when
using cellulose fibre,” explains Plasthill Ltd managing director Esa
Kaasinen.
Kaasinen also stresses that the fibre used in Kareline materials
actually serves to strengthen the raw material.
“In that sense, Kareline could be compared to fibreglass-filled
materials. They’re strong, but they also avoid the disposal problems
of fibreglass-reinforced materials – Kareline composites are
environmentally-friendly and recyclable; they don’t contain any
environmentally hazardous substances. Natural fibre products can
Consumers demand the use of environmentally sustainable materials.
In Kareline materials, some of the fossil raw materials are replaced
with natural fibre from the forest. The ethical significance is
emphasised: natural fibre composites do not take arable land from
food production. On the
contrary, sugar cane or
corn are used in bioplastics
without qualm.
“When I think back
the fibre used in Kareline
10-15 years ago, I never
would’ve believed that materials serves to strengthen
value-based matters would
the raw material
sometimes weig h so
heavily,” Kaasinen admits.
Companies have listened to the consumers’ voices and
environmental consideration have found their way into marketing
communications. Unfortunately, in the excitement of things the truth
can be blurred sometimes, with concepts getting confused. Based on
the marketing message being conveyed, a consumer buying a bioplastic
product thinks they are being environmentally conscious. But not
all bioplastic products can be composted, because they behave like
standard plastics.
“There are several grades of Kareline natural fibre composites.
W also manufacture a fully-compostable Kareline PLMS material,”
says Kaasinen.
Plasthill has long taken environmental matters into consideration.
The company was the first Finnish company to use “green electricity”
in its production.
Photos: Plasthill
The Kareline composite material is
well suited to injection moulded
products, with a wide range of
raw material applications. In
material development, Finns
easily keep up with the
rest of the world.
Plasthill Ltd
amily-owned company founded in 1996
F
Specialises in injection moulding and
natural fibre composites
Turnover: approx. EUR 1 million
Employees: 7-9
Development of natural fibre composites
began in North Karelia at the beginning of
the 2000s
Kareline Ltd started the first commercial
operations
In 2011, Plasthill Ltd acquired the
production line and trademarks for
Kareline Ltd natural fibre composites
www.plasthill.fi
“The best parts of
the story are yet to come”
Plasthill Ltd surprises the visitor. The
production facility is most definitely
not located in anything resembling an
industrial area – it is instead nestled quite
nicely in the rolling landscape of North
Karelia. Company founders Arja and Esa
Kaasinen moved from Southern Finland to
Pyytivaara, Kontiolahti in the mid-1990s.
“We began looking into starting a
business, investigating whether there
were any possibilities for contract
manufacturing. We soon found
ourselves in a position where our
former employer outsourced injection
moulding production to us. That served
as the foundation on which we later
built everything else here,” explains
head of finance and administration, Arja
Kaasinen.
When Kareline merged with Plasthill in
early 2011, the production facilities were
restructured. Kareline was already an
internationally renowned name, as the
company had marketed its product well.
Now, it was Plasthill’s turn to add value
to the whole.
“Kareline had previously been nothing
but a manufacturer and seller of the
material. Plasthill can offer the customer
the full package: we can be involved
in mould design, mould procurement
and making test runs. We can tailor the
material to precisely meet the customer’s
needs. And if the customer doesn’t have
its own manufacturing capacity, we can
even take care of the manufacturing,”
says Kaasinen.
Esa Kaasinen knows from experience
that bringing new innovations to market
is a challenge, because the threshold for
the customer adoption must be kept as
low as possible.
“The plastics industry follows a pretty
conventional approach – no one really
wants to talk about experimentation. As
the next generation is taking over, the
situation seems to be changing,” he says
with a smile.
And there’s a good reason for that
smile – the company has managed to
establish promising contacts in Finland
and abroad. Recently, the Kaasinens sat
down with some technical personnel
and product designers from a large
corporation. At the same time, a Japanese
knife manufacturer would like to use
North Karelian natural fibre composite in
the handles of its top-of-the-line knives.
Plasthill has marketed its products at,
for example, international trade fairs. In
January it makes its way to Moscow and
on to Dusseldorf in October.
When it comes to materials
development, Finns easily keep up
with the rest of the world. The new
raw material has enormous potential.
According to the entrepreneur couple,
working in co-operation, the natural
fibre composite could make a real
international breakthrough.
“The Kareline material is good, but
we’re still very small as a sole supplier.
If there’s an interested party out there-someone bigger, stable and wanting to
grow—we’ll gladly meet you with open
arms! The best parts of this story are yet
to be told,” says Arja Kaasinen, throwing
down the gauntlet.
15
16
Iivari Mononen - putting
service in pole position
The pine pole is an engineered product that can last as long as 60 years.
Europe’s largest pole producer, Iivari Mononen Oy, gets the raw material—
stout Finnish pine—for its poles from the forests of North Karelia, Kainuu,
North Savo and Central Finland. The 60-year-old company is now building a
service business around its pole production.
Photos: Iivari Mononen
I
ivari Mononen Managing Director Ari Mononen has
had a challenging year. The company’s 60th anniversary
celebrations brought with them a great deal of extra work.
The last thing the company needed was the upheaval caused
by last year’s Arab Spring, but North Karelia hardly pulls the
strings in world politics.
“Due to the uprisings and restlessness in the Arab world,
we lost some 15 million euros from our budgeted turnover
last year. This year, we’re back on track for growth. However,
we still needed to make some adjustments last year,” says
Mononen. The key Syrian market dried up, but Libya is now
in a much better position.
These trials really put the business to the test. Mononen
steered the company through the challenges, counting on
the strength of his family business.
“A family-owned company has such great value. We can
forget about bureaucracy and do things out of passion! This
positive drive influences each and every employee.”
straight. Mononen
adding:
“When it comes to competition, Mononen,
estimates that a
”In the Nordic
single procurement
countries, the Baltic
the one who can offer
supervisor marks
countries and Great
approximately
Britain, we deliver
customised service wins.”
25,000 poles each
poles directly to
year. Trees are
the worksite, placed
individually selected—cherry picked, as only the best every 50 metres. All that’s needed is a machine to drive
will do—primarily from privately owned stands and, for them in. This is a major departure from the past, when the
example, those owned by Metsähallitus. The pine trees are poles were delivered to a central depot, where the customer
70-100 years of age. There are plenty of trees available in the picked them up with their own vehicle.”
company’s procurement area.
The recycling of poles is already part of the company’s
In production, the trees are debarked, dried and service concept. According to Mononen, a warranty period,
processed, perforated, notched, marked and treated for rot inspections and maintenance might also be included in
protection or impregnated, all according to the customer’s the service package. Power line planning, which would
specifications. The company’s primary customer segment is require the company to also possess expertise in electrical
power companies. Key customer countries include Great engineering, would be a natural fit for this service package.
Britain, Norway, Sweden, Finland, Libya and Oman.
Cherry picking
Becoming a service organisation
The overwhelmingly largest business area at Iivari Mononen
is pole production. Pole production accounts for as much
as EUR 30 million of the company’s approximately EUR
35 million turnover. The company offers 350 different pole
products, with pole lengths ranging from 7 to 24 metres.
The range of base and top diameters is wide. Raw materials
are supplied by the company’s own wood procurement
organisation. The quality requirements for pine are high: the
trees must be slow-growth, dense, strong, sound-knotted and
The European market forms the core of the pole production
business. The Middle East and Africa are a welcome addition
– the cherry on top of the cake, as Mononen says. In the
future, the company will invest heavily in developing a service
business. The production and sales oriented company is well
on its way to becoming a service organisation.
“When it comes to competition, the one who can offer
customised service wins. Service involves everything that
can be done during the service life of a pole,” sums up
<<< From left: Donald Clark, Raimo
Laatikainen, Iivari Mononen, Raili
Mononen and standing in back Asko
Laatikainen in 1954.
>>> The company is moving aggressively
toward becoming a service business.
In the future, the service package may
include a warranty period, inspections
and maintenance as well as line planning
and expertise in electrical engineering,
on the whole.
Iivari Mononen Ltd
ounded in 1952
F
Third-generation family ownership
Turnover approximately EUR 35 million
Employees: 69
Wood pole production plants in Höljäkkä
(Finland) and Ilseng (Norway)
Pole sales company in Great Britain
Sales offices in Gothenburg and Munich
Impregnated wood business handled by
subsidiary Prima Timber Oy;
primary market area - Finland
www.iivarimononen.fi
17
18
Timber transport equipment is
manufactured and sold under
Konekorjaamo Riikonen’s
proprietary RIIKO brand. The
company is eyeing the Russian
market for its RIIKO product line.
Riikonen built a service
entity from a network
“The most important parts of the
service are well in hand,” states
Konekorjaamo Riikonen managing
director, Juha Riikonen. He is
referring to the ambitiously built
co-operative network. In creating
the concept, the model landed
Riikonen a long-term client John Deere Forestry Oy.
E
conomic trends at the close of 2012 are shaking up
Europe. As usual, the forestry sector is the first to
suffer the consequences. Konekorjaamo Riikonen managing
director Juha Riikonen is calmly observing the big
picture. Over the decades, the family-owned company has
demonstrated its flexibility - having operated in close contact
with its clientele for 30 years, the company has learned how
to respond to changes quickly.
“The forestry sector has been our daily bread. Indeed,
the industry has become more hectic, with greater emphasis
placed on logistics, quality and cost efficiency.”
Konekorjaamo Riikonen’s partnership with John
Deere really began in 1999, when both companies saw the
opportunities that co-operation would provide.
“Deere has served as a positive driving force, also helping
us a great deal in our own development work. It was through
them that we adopted our own philosophy of efficiency and
quality.”
Internal network
One of the operating approaches adopted by Riikonen is
to establish a network-like co-operation. Juha Riikonen is
Photos: Fabrik and Konekorjaamo Riikonen
Konekorjaamo
Riikonen Oy
ounded in 1981
F
Core business: machine repair
shop and engineering workshop
Owned by brothers Juha, Jari, Timo
and Keijo Riikonen
P
roduction facilities:
approximately 6,000 m2 at Helatie,
Joensuu and approximately
3,000 m2 at Sirkkala
Employees: 65
Turnover for 2011 approximately
EUR 13.5 million
www.konekorjaamoriikonen.fi
Konekorjaamo Riikonen
has worked in close cooperation with John Deere
Forestry Oy since 1999.
Quality, efficiency and
operational development
are crucial factors in a
fiercely competitive market.
talking about his company’s internal network. The operational
cornerstones are Konekorjaamo Riikonen’s machine repair shop
and the actual workshop itself. The machine repair shop is one of
the largest private heavy-duty equipment repair shops in Finland.
The repair shop concept is based on project deliveries geared
toward the customer. Riikonen supplies, among others, frame
manufacturing parts intended primarily for forestry machines.
Other customers include companies and private persons
operating in the forestry and excavation sectors.
Riikonen’s ser vice offering is supplemented by
Teräspalvelukeskus (Steel Service Centre) in the Sirkkala district
of Joensuu, welding specialist NC-Welding Ltd, and Joensuun
CNC-Machining Ltd, which specialises in the precision
manufacture of various machine and hydraulic parts. NCWelding is owned by Riikonen, while the majority shareholder
of CNC-Machining is Petri Holopainen, who founded the
company in 2007.
“A physically close and network-like operating approach
was considered a key competitive factor. Our customers’ orderdelivery times are so tight that there’s no way we could possibly
ship parts in different work phases – even within our own
region,” explains Riikonen.
Quality and assured delivery
Years of experience
has been refined
into timber
goods equipment
“Quality and efficiency must be kept foremost in mind
the whole time. The company is trending upward - we’ve
been constantly moving up in small steps,” explains
Riikonen. “We have to stay on this course, because
competition is fierce,” he adds “We’ve got competition
from, for example, Poland, Slovakia and the Czech
Republic – the cost level in these countries is currently
far below that of Finland.”
”We can’t do a thing about the price levels in Finland,
but we can develop our own production to save on costs.”
Russia – land of opportunity
Konekorjaamo Riikonen also offers its own RIIKO
brand line of products. Years of experience in machine
repair operations has been refined into timber goods
equipment. According to Riikonen, the market
prospects for RIIKO products in Russia are a clear
opportunity for the company.
“The Russian economy is doing quite well, they have
plenty of forests – why wouldn’t there be some space on
the market for us?”
19
20
Putting it all together
like tongue and groove
Liperin Höyläämö managed to build a successful brand name product of interior
and exterior panels. This is quite an achievement, considering that there is surplus
production of milled lumber in Finland. According to Tomi Pulkkinen of Liperin
Höyläämö, their success is due to quality, agility and, finally, sales skills.
Photos: Liperin Höyläämö
T
here is still room to grow on the family-owned
company’s grounds at Liperi, even though new
production facilities were gradually added on several
occasions after the family gave up farming. And room they
will need, as there are once again plans to expand.
“The new production hall and its equipment are planned
for completion by 2016. We’re talking about a 2.5 million
euro investment,” says head of sales and marketing Tomi
Pulkkinen.
At present, 90% of the company’s output is sold
domestically. The rest is exported, primarily to Denmark.
The turnover for 2012 is approximately EUR 3 million,
which represents an approximate increase of 20% over the
previous year. The goal for the coming fiscal period is to
reach the EUR 4 million mark.
“We started trying to sell our white-waxed panels,
which had sold quite well in Denmark, here in Finland.
We quickly realised that we wouldn’t conquer the Finnish
market with that product alone.”
like balls being juggled in the air: a fluctuating economy and
its impact on construction, a wet harvest season, the quality
of raw materials and, finally, the opinions and requirements
of end customers. There is an approximately three-week
order backlog cycle. Pulkkinen, however, is looking for the
Stress on service
silver lining.
The mill expanded its product range to include exterior
“Experience with risk and uncertainty is an advantage. A
panels and other wood products. A great deal of progress positive attitude will take you far. We have an outstanding
has been made in the development of key interior panel location – we’re right in the middle of the best forest area,
products. In March this year, the company will introduce with a couple large pine sawmills within a 200 kilometre
a new pearlescent product for saunas.
radius. And where our Russian import timber is concerned,
Liperin Höyläämö sells
that connection is close, too.
its products through Finnish
Even if new construction
hardware and lumber stores.
were to slow down, the repair
The Liperi brand can be
need for existing building
found at such retailers as
stock is enormous,” sums up
There are
Lessons from the recession
Starkki, Rautia, K-rauta and
Pulkkinen.
Liperin Höyläämö was founded 30 years ago. Strong Puukeskus. The company
A p ositive attitude
once again
traditions predate the founding of the company: family strategy has been further
also finds opportunities in
plans to expand
patriarch Erkki Pulkkinen was well-known for his defined, with a greater
consumer preferences.
circular saw. His son, Asko Pulkkinen, built upon this emphasis on product quality
“ Wood has so many
when he added a planing machine. Sawing operations were and customer-oriented
excellent properties that
phased out at the beginning of the 1990s.
service.
consumers appreciate: a natural feel, breathability, a small
“We get our raw materials mainly from domestic
“Our big competitors look to make their margins with carbon footprint. Treated interior panels add Scandinavian
sawmills. In addition to panels, we also produce building large lots and logistics. In addition to logistics, we decided style and elegance. These values will be further emphasised
frame materials, whose strength-graded wood is imported to stress a more customised service. We divide outgoing in the future.”
from Russia.”
shipments into smaller lots – the customer shouldn’t have
Through diligent sales and
to order the same product all
marketing efforts, a market
at once by the truckload. We
was found in Denmark. At its
would rather ship the products,
height, as much as 98% of the
colours and quantities ordered
mill’s turnover came from the
by different customers together
Wood has so many
Danish peninsula of Jutland.
in a single load.”
Liperin Höyläämö Ky
excellent properties
But then the financial crisis
This flexible concept has
Family-owned company founded in 1982
hit and overheated markets
been very well received on the
that consumers
Specialises in interior and exterior panels
began to evaporate.
market.
and building frame materials
“ The entire countr y
appreciate
Raw materials: pine and spruce
Rapid
response
went down – Denmark was
Employees: 9
suddenly stuck with 50,000
The rainy summer of 2012
unsold houses.”
increased the mill’s workload. Extreme care must be taken
Turnover: EUR 3 million
This meant layoffs for the family company – for a time, when it comes to the quality of raw materials. At the same
Investment plan slated for
completion by 2016
the mill was run solely by the family members. Turnover time, a poor harvest season reduced the availability of
dropped below EUR 500,000.
timber. In a highly sensitive business, uncertainty factors are
www.liperin.fi
21
A toast to success
straight from nature
22
“We never lost faith,” exclaims Nordic Koivu Ltd
Executive Vice President Susanna Maaranen,
while preparing for a sales trip to the Far East.
Maaranen is off to market the North Karelian
birch sap with a greater sense of confidence.
Birch sap collection has achieved a volume
level, and the production facility, which was
completed in 2010, has plenty of capacity.
S
usanna Maaranen pops open a bottle of birch sap and
offers her guest a taste. The fresh, mild beverage is enjoyed as
it is. The birch sap contains, among others, fructose, glucose, fruit
acids, amino acids, vitamin C, potassium, calcium, phosphorous,
magnesium, manganese, zinc, sodium and iron. Birch sap is a
genuine natural product, whose potential applications on the
global market are limitless.
“Arthritis treatment, problems in the urinary tract and
kidneys, flushing out the body, helping with weight control,
treating birch allergies – birch sap has been used for a variety
of purposes throughout history. History books even tell of a
French physician in the 1700s prescribing birch sap to get rid
of cellulite.”
A genuine innovation
Nordic Koivu Ltd owners Susanna and Arto Maaranen
stumbled into the birch sap business quite by accident. Looking
for a change, these city folks packed their bags and moved out
into the country. The yard at their new home in Tohmajärvi had
a magnificent stand of birch.
“Birch sap was known to be a healthy natural product, and
no one here had made a business out of it yet. While looking
out over the birches, we started thinking that there has to be
some way to develop it.”
The enterprising couple laid their hands on everything they
could find about birch sap, with research data and information
on traditions dating back even centuries. At the same time, they
talked to various equipment manufacturers all over the world.
A major challenge was that they could not find one person
Photos: Nordic Koivu
anywhere to advise them on the best approach
to producing birch sap. The Maaranens
installed their first version of an automatic
collection system and bottling line in 1999.
“We continued developing the process and
suffered several setbacks, but we never stopped
believing that we would succeed. I guess it was
just our natural stubbornness,” recalls Susanna
Maaranen.
Award-winning and
sought-after
The Maaranens brought their first birch
sap products to market in 2000. In 2002,
they won the national Innosuomi award for
innovation. Demand on the export market
grew. Consumers wanted to purchase the birch
sap both bottled and as a raw material in, for
example, cosmetics and foods.
“We were in Japan at the beginning of
the 2000s. A local brewery was extremely
interested in using birch sap as a raw ingredient
for beer. We really wanted to sell them our
product, but when we discussed quantity, the
client said we would only be a drop in their
amber sea.”
The same situation happened again with a
global soft drink producer. It became necessary
to roll up the sleeves and increase the volume
of collection and production.
New birch stands
Nordic Koivu developed a proprietary
and unique—even by international
standards—birch sap collection and
production method. Through a regional
project, work was begun three years ago
genuine natural product, whose potential
applications on the global market are limitless
Birch sap
to increase the collection network and birch
stand area. Birch sap collection is now handled
by subcontractors, which have a season
averaging three weeks in the early spring.
“We managed to get some crucial things in
order: birch sap quality, an efficient collection
process and quantities sufficient enough for
major industries. We’ve become a credible
business that can deal with major players,”
she says.
Strong growth
The cosmetics industry in France, Switzerland,
Japan and Korea already use North Karelian
birch sap as an ingredient in their products.
Consumers all over the world are ready to
invest in their health and well-being.
“We are looking to expand on the
industrial end of things. By no more than five
years from now, Nordic Koivu will have grown
well beyond its current size. New business
opportunities are presenting themselves all
the time. Major companies from Asia have
contacted us, requesting offers on complete
equipment deliveries. Exporting technology is
another area of business, altogether, but who
knows what the future will bring.”
s
etic
cosm rvi
l
a
ion
ajä
rnat s Tohm cts."
inte
se
du
" The ustry u its pro
ind
p in
h sa
birc
In the spring thaw, the birch wakes from its winter slumber
and begins drawing water from the earth. Minerals as well
as fructose and glucose, which the birch stored during the
previous autumn, are absorbed along with the water.
The thicker the birch stand, the bigger the harvest. It has
been found that birch sap is more flavourful in drier growing
areas.
The birch sap collection season is very short. Susanna
Maaranen recalls that the shortest collection season was 14
days and the longest 28 days. Every spring is different.
Birch sap is highly perishable. A very high level of expertise is
required in the processing, storage and refining of birch sap.
Using Nordic Koivu’s proprietary collection and production
method, birch sap can be kept for two and a half years in an
unopened bottle. Once the bottle has been opened, the birch
sap will keep for 3-4 days. Indeed, its unparalleled product
makes Nordic Koivu the world’s leading producer of birch sap.
Collecting birch sap does not kill the tree – birch sap can
actually be collected from the same tree for even tens of years.
Nordic Koivu Ltd
tarted operations under the name “Aurinkolehto” in 1996.
S
Producer, researcher and developer of birch sap
Turnover: just under EUR 1 million
97% of production goes to export; Primary market area: Central Europe
Developed a birch sap collection and production system
unlike any other in the world
New production facilities at Tohmajärvi in North Karelia
completed in 2010
www.nordickoivu.com
23
24
In a game of inches, quality counts
KME Oy provides warmth and employment
“Make the management of
a young forest profitable.
Do your first thinning just
a little bit earlier, gather
more timber and clear less
brush,” sums up Managing
Director Timo Kanniainen
from Karjalan Metsä ja
Energia KME Oy, addressing
forest owners.
T
imo Kanniainen has talked countless times to forest
owners about how there is no sense in putting off a
late first thinning and only waiting to cash in on pulpwood.
There are ways of increasing your timber sale revenues even
earlier. Energy wood is a new type of timber collected by
KME from all harvest areas. Kanniainen is talking about more
economical forest management alternatives.
“By contracting out for pre-clearing and selling only
commercial timber, the forest owner’s profit may be close
to zero. In the KME concept, pre-clearing is more streamlined
and economical. On the other hand, the harvesting yields
per hectare are higher when collecting both energy wood
and commercial timber. As a result, the yields for the first
commercial thinning might be considerably higher. A
managed forest and savings on forest management costs
will keep increasing the profits throughout the entire forest
rotation period.”
The message from this local energy provider has slowly
got through to regional forest owners. Although the buyer
still needs to be active, forest owners also offer tracts suitable
for energy wood harvesting for sale. A majority of the wood
comes from private forest owners. Deals are also made with
such forest owners as Metsähallitus and Tornator Oy.
types of energy wood and timber: full trees, stems, logging
residues and commercial timber.
In addition to major district heating plants and municipal
clients, the company also supplies fuel to numerous smaller
customers, such as farms and greenhouses. The company’s
products include wood chips, pellets, split firewood and
delimbed stems for energy use.
Plentiful forest resources
“There was a clear need for a local energy provider. The forest
also already provides many here with work and remains a
significant source of income. Forest owners, forestry machine
contractors, transport and chipping firms all benefit.”
Kanniainen reckons that the benefits to the local economy
more or less equal KME’s turnover, or EUR 2 million.
KME operates in the Savo, Pielinen Karelia and Kainuu
regions, surrounded by a wealth of forest reserves. The size
of forest holdings in the region averages 50 hectares, whereas
the average size of forest holdings elsewhere in Finland is in
the 30 hectare range. The company purchases several different
Revenue for the region
Photos: KME
Karjalan metsä ja energia KME Oy
ounded in 2007
F
Founded and owned by logging enterprises Motoajo Oy and
Koneurakointi S. Kuittinen Oy
Business idea: to control the entire energy wood supply chain,
from forest to point of use at heating and power plants
Supplies approximately 50,000 m3 of energy wood and
commercial timber from Savo and Pielinen Karelia
Annual amount of energy delivered: approximately 80,000 MWh
Key customers: Municipalities of Valtimo and Juuka, Nurmeksen
Lämpö Oy and Rautavaaran lämpöosuuskunta
Turnover: approximately EUR 2 million
Direct employees: 2
Provides work to machine, chipping and transport subcontractors
Four machine chains work in the winter, two in the summer
www.kmeoy.fi
Energy wood
is a new type of
timber collected by
KME from all
harvest areas
“A driver hauling a heating oil tanker leaves only a euro or
two for a cup of coffee when passing through. With our concept,
millions stay here to benefit our own economy.”
KME does not have its own heating plant – yet. According to
Kanniainen, the conditions for building a heating plant are right
- the strategy for the future in that regard is well thought out.
Kanniainen also sees other directions for growth in the future.
“Wood chips might be a more widely used raw material in
the future. Wood chips could just as well be refined into oil and
burned to generate electricity.”
Relying on quality
Each year, KME chips standing deadwood trees imported
from Russia for priming moist wood chip parcels. According
to Kanniainen, litter is needed particularly when the summer is
rainy, in order to ensure an adequate level of wood chip quality
for the customer. Quality is a real competitive edge for the
company.
“A bidding competition is often a game of inches. Quality
and good references mean a great deal to us. A heating plant
has to work flawlessly, no matter how cold it gets. If you have
to power down a heating plant and switch over to oil, the desire
to buy suddenly dries up.”
The entire production chain is needed to produce quality.
“We do things in the forest better,” states Kanniainen bluntly.
According to him, all actors in the supply chain understand the
importance of quality. If one of them lets quality slip, it will
affect the income of everyone in the chain.
”We deliver a consistent, pure and drier product. When it
comes to bidding, we beat our competition on quality points.”
25
26
Lots of room for
innovation talk
“Mantsinen’s success has been based on innovation for its entire history, and the
innovative force of the brothers is still very much present and accounted for,”
says Mantsinen Group Managing Director Martti Toivanen. “The success story of
this logistics and material handling company has been going on for nearly
50 years, with a constant supply of new ideas for profitable growth.”
W
hen Managing Director Martti
Toivanen mentions the ‘brothers’,
he is referring to Veli and Juhani
Mantsinen. The company founders
currently influence decisions through their
involvement on the Board of Directors.
Toivanen has manned the helm of the
company for just over two years.
“The can-do attitude here is just
amazing. We have no shortage of labour,
with such a large pool of skills and expertise
all around us. A clear advantage for us is
the high level of machine building expertise
we have here. That’s why the development
of our supplier network has gone so well,”
says Toivanen.
that the competition for customers was won
with a smart concept, not a standard price
showdown.
“Previously, wood lot operations at the
pulp mill were handled using log stackers.
We offered a product with a new concept.
The product is based on the idea that raw
materials are now fed using an electricallydriven material handling machine. The
power needed for the machine comes from
the pulp mill – working together with the
customer, we were able to come up with an
energy-efficient solution. “
Toivanen calls the product offering a
‘one-touch tactic’, which can be used to
improve and enhance the operating process.
A new concept for Rauma
Work for professionals
2012 has given the company several reasons
to celebrate. First and foremost, Toivanen
mentions the co-operative agreement with
Metsä Fibre Oy. The company’s Rauma mill
is now a Mantsinen client. The Rauma pulp
mill produces 630,000 tonnes of bleached
pulp a year. Running at full capacity, the
mill uses 3.3 million solid cubic metres of
wood a year. Toivanen is especially pleased
With the signing of the Rauma agreement,
Mantsinen hired over twenty new
employees. There are now nearly 500
employees working for the company. Over
100 of the employees work at the Ylämylly
plant and another 100 in logistics services.
There are over 20 employees in the Baltic
countries and 250 in Russia.
“We’ve organised our operations in
Russia so that they’re more efficient and
more profitable. Svetogorsk, Sheksna
pulp mill, Svir Timber sawmill wood lot
operations, several wood terminals and
harbours. Our situation in Russia is now
very good. In terms of domestic logistics
clientele, Rauma was an excellent addition
to Stora Enso’s Uimaharju and Kaukopää
facilities.”
Development of consulting
The demand for Mantsinen consulting
services is on the rise. Toivanen uses the
Syktyvkar mill of multinational paper and
packaging giant, Mondi as one of the most
recent examples. The need for consulting
usually stems from, for example, production
shutdowns caused by material handling, low
inventories and material flow bottlenecks.
Production plant investments often require
a restructuring of material handling
operations.
”We have much to offer from the
experience we’ve gained through the years.
We are ambitiously creating a consulting
service product. The highest demand for
this has been in Russia.”
Photos: Mantsinen
Expanding range
There are now nearly
500 employees working
for the company
The first half of 2012 was outstanding for
machine manufacture. However, as the
economic situation tightens, the company
should brace itself for a decline in the number
of orders received.
“Indeed, customers will still need
machines. But, understandably, investments
must be made more carefully, and more time
must be given to making decisions,” urges a
realistic Toivanen.
Mantsinen began a comprehensive
overhaul of its product range some three
years ago. In 2012, the company launched
the Mantsinen 70, a ‘little giant’ of material
handling machines. By the end of the year, the
company had also added the Mantsinen 90 to
the product line-up.
The company closely follows customer
preferences and, for example, changes in
port operating practices. Electric motors have
been added to material handling machines
along with diesel engines. Wheel-mounted
machines joined the ranks of track and railmounted models.
“Working approaches being used in
ports had changed, where the machines
were moving even long distances around
the port area. A track-mounted machine is,
in that sense, not the most nimble solution.
Mantsinen might be the only manufacturer
offering a wheel-mounted machine in the 120
ton class.”
Profitable growth
Innovation is a trademark of Mantsinen. The
company introduces innovations carefully and
profitably.
“Productisation—the combining of an
innovation and commercial solution—is
always a challenge. Sometimes implementing
a solution can be too costly at a given time.
Customers must be ready to pay for solutions
in order to make a business out of them.”
According to Toivanen, growth is not
a given that must be blindly sought by the
company. He would rather talk about good
sense and profitable growth.
“We have more potential than we know
what to do with, but cost-efficiency must be
kept foremost in mind. We’ve definitely found
our own market segment. Our flexibility is
one of our strengths. We can respond to
customer needs and customised solutions
relatively quickly, unlike mass producers.
Mantsinen Group
<<< Mantsinen is
known throughout
the world for its
innovation and
rock-solid machines.
Product development
is continuous,
clientele is won
with attitude and
technical leadership.
ioneer in wood terminals, industrial and port logistics and
P
material handling
Company roots date back to the mid-1960s
Business areas: logistics services, material handling machine
manufacturing and consulting
Group headquarters and production: Ylämylly, Liperi
In addition to the parent company, Mantsinen Group Ltd Oy,
the group also consists of OOO Mantsinen in Russia, AS
Mantsinen in Estonia and SIA Mantsinen in
Employees: approximately 500
Turnover for 2011 approximately EUR 53 million
www.mantsinen.com
27
vo
l. 2
Finland
North Karelia
Russia
publisher: Joensuu Science Park Ltd
texts: Viestintä Ässä Oy, Sirkka-Liisa Salmela
photos: Photograph archives of enterprises and Mainostoimisto Fabrik Oy
design: Mainostoimisto Fabrik Oy
printed by: PunaMusta Oy
This publication was produced by
the North Karelia Centre of Expertise and RoK-FOR-project.
Joensuu Science Park Ltd
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