Ensto today

Ensto customer magazine

Jan Vapaavuori for a Greener Finland

Smart Grid Savvy EVs and Ensto LEDs’ Bright Future Renewable Energy’s Astounding Growth

2011

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Jan Vapaavuori: Finland’s Energy-Efficient Future

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Street Furniture: How Progress Makes Pretty

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Matti Rae: Leading the Revolution

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Exceeding All Expectations: 2010 Finance

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The Smart Grid: No longer SciFi

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Enervent’s All-climate Success

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A Paroc Passive House Tour

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The Bright Future of LEDs

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Renewable Resources: Wind, Solar, Water

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Novexia: The Man Behind the Curtain

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Land of Opportunity: Ensto in Russia

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Power Electronics (and a Fisherman’s Cottage)

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Cleantech Finland: An International Springboard

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Friending Ensto: Social Media and the Corporate World

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Estonia’s Japanese-Finnish Alliance

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Ensio Miettinen: A life of trust capital

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Ensto’s Next Generation

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Cubo X: Extreme Safety for Extreme Conditions

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Oxsilan: A Simple but Serious Solution

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Ensto Today customer magazine is the voice of Ensto Group.

Managing Editor Marika Salomaa Art direction and production Capitol Consulting Contributing Editor Scott Diel Feature photography Kaupo Kikas Printed by Hämeen Kirjapaino Oy Ensto Today is published by Ensto Group.

All rights reserved. Reproduction in part or in whole by permission only.

Editor-in-Chief Pia Hänninen

Contact Information Ensto Group Ensio Miettisen katu 2, PO Box 77, 06101 Porvoo, Finland Tel. +358 204 7621 www.ensto.com

From the CEO

Saving your Energy (And Why Not the World?)

“Don’t say ‘green’ then,” I responded recently to a journalist who suggested the word is overused and has lost meaning.

Say instead, I suggested, that a 200-square-meter home in Finland can be heated for 20 only euros per month.

Or, if you have an electrical car, you pay only two euros per 100 kilometers of driving.

And this very winter in Southern Italy, we are expecting parity in photovoltaic fuel costs compared to what a customer will pay his power company for electricity.

These things are not “green.” These are economic facts.

In Germany, one will find thousands of passive houses. In Finland, there are 300,000 people with very efficient energy recovery systems—a small fraction of total structures, but a huge percentage of new construction.

Ensto’s role in this has been carefully charted. We are dedicated to enhancing the pace of change in the development of sustainable technology. We are committed to finding new applications and new technologies which are not merely a linear extension of our history.

Although today one will find that many more government subsidies go to fossil fuels than to renewable resources, this is short-term thinking.

We may call it “green” or “sustainable” or “eco,” or any of a dozen other terms. The fact is that the world is moving in a sustainable direction, and Ensto is one of the leaders in the movement.

Cleantech businesses have a growth rate far surpassing businesses in general. This means bigger business opportunities for our customers who are exploiting that potential in the cleantech sector.

Two California professors recently published a paper which concluded that the world could be powered by clean energy within 20 to 40 years. This is not a pipedream; it is indeed theoretically possible.

In the pages of this magazine you will read stories of our commitment to a future with reliable, renewable energy systems, a future where we are able to maintain our current standard of living thanks to renewable resources and technologies. I know this is the future of Ensto. And I believe it is the future of us all.

The need for change may be seen in the price of home heating oil. In 1966, its price was one euro-cent per liter.

Now, in 2011, it sells for one euro per liter. It’s one hundred times more expensive than it was 45 years ago. Even adjusted for inflation it’s 11 times more expensive. Looking at crude oil, it has tripled in price between 2009 and 2011.

It is clear that we cannot build our future on cheap fossil fuel energy. The world will need to create new solutions of generating electricity, as well focus on increased energy efficiency.

Timo Luukkainen CEO and President Ensto Group

ensto today / ensto customer magazine 2011

“All the world’s EVs will need

some place to charge, and Ensto technology will be there to help.

Jukka Karhu Manager, Panel Boards

POTENTIAL IN THE HUNDREDS OF THOUSANDS Since the product’s launch at the end of 2009, over 1,000 charging poles have been sold, which Karhu characterizes as “a high number.” Potential for the product, however, is in the hundreds of thousands.

“There are two types of thinking about EV [electric vehicle] charging poles ,” says Karhu. “An example of the first is Portugal where the government says it will build the charging infrastructure first. This group believes that EVs will not come before an infrastructure is in place. Those who think otherwise say, ‘There are no EVs so we don’t need charging posts.’” Karhu smiles, because either way of thinking eventually arrives at the same undeniable result: EVs are on the way.

Street Furniture How Progress Makes Pretty

“Street furniture” is how Jukka Karhu refers Ensto’s electric vehicle charging poles. And while the phrase “form follows function” may often be applied to engineering, in this case Ensto’s charging poles were clearly approached with design as a major priority.

“These poles are made to be installed in historic city environments as well as in modern business districts,” says

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Karhu. “When we talk to city fathers, we often hear that existing electric street pillars are ugly. So we made ours nice, beautiful items. Design was an absolute must.”

Karhu is careful to point out that design goes well beyond simple appearances. “The materials involved are key. They are easy to clean in a corrosive urban environment where vandals are sometimes present.”

The posts are also designed to be easy to install. Since part of a sidewalk or street must generally be temporarily taken up to install a charging pole, speed of installation is a critical factor.

“You can’t disturb traffic and pedestrians for too long,” says Karhu. “So good design also means minimum disruption of daily routine in a city.”

There are numerous reasons EVs will be a force in our near-term future. They emit two-thirds fewer greenhouse gases than gasoline-powered automobiles. And they’re cheaper to drive, too. In the United States, they may be driven at a cost of approximately 70-US-cents per gallon. In Finland, the cost of driving is two euros per 100 kilometers. Some cities have already seen the future. Oslo, Norway, for example, offers 150 charging points throughout the city (Oslo chose Ensto technology over eight competitors).

Karhu says that in the 2011-2012 period, all major car manufacturers will introduce electric models. Even the United States — a country where 325 billion dollars is spent annually on gasoline — American consumers will be greeted by the Nissan Leaf and the Chevy Volt, among others.

The ChargePoint America program is

funding 4,600 EV charging stations in nine metropolitan areas. Predicted sales for the US are 30,000 electric vehicles per year.

All the world’s EVs will need some place to charge, and Ensto technology will be there to help.

A POLE FOR EVERY NEED Ensto’s core charging post is the EVT, the “T” being “tolppa,” meaning post in the Finnish language. The EVT is built for and used in cities like Oslo, Norway, where electricity is given away (in Oslo, one may charge an EV free of charge).

The EVT is considered “slow charging,” and a full charge takes approximately eight hours.

For cities and situations where electricity is not free, Ensto has developed the EVC (the “C” is for “charging”). The EVC is a “semi-fast” or “fast” technology which can charge a vehicle in 1.5 to three hours. The EVC pole possesses additional technology which enables the purchaser’s identity to be verified and facilitates electronic payment for the charge. The EVC product was first tested in the Czech Republic in February 2011 and will be available in volume by April.

There is a third technology, termed “rapid,” where an EV can be charged in 15 to 30 minutes, but this technology is not yet available. Karhu says the problem is that existing power networks are not often capable of handling a rapid charge, though power grids have no problem handling semifast.

EVs have significant ranges (100-150 kilometers per charge) and drivers usually don’t cover great distances (people average 50 kilometers per day), public charging points are intended to provide only a supplementary charge when needed. “Your car stands unused on average for 23 hours per day,” says Karhu. “People do their main charging at home or work.”

And therein lies the advantage. The real beauty of Ensto EV charging poles is not only found in the sleek design.

“The beauty is,” says Karhu, “that you never have to visit a petrol station.”

However, speed of charge is not yet a critical factor in the marketplace. Since

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ensto today / ensto customer magazine 2011

“ So far, Enervent is the only

FROM 40 BELOW

Finnish company to have received the highest EU energy-efficiency classification.

TO 40 ABOVE Enervent’s All-climate Success “The owners sold a ventilation company, but what Ensto bought was an ener-gy recovery company,” CEO Timo Luukkainen has said of Ensto’s 2009 acquisition of Enervent.

Enervent Managing Director Jari Mikkonen agrees that it’s all in how one sees it. “Traditionally, it was a ventilation company. Looking at it through green eyes it’s an energy recovery company.

It’s a new way to see ventilation.”

KEY TO THE PROPOSITION Enervent is a key part of Ensto’s proposition that a 190-square meter home in Finland may be heated for under 20 euros per month.

Mikkonen. “Most houses built in Finland in the 1980s do not have ventilation systems and they do not breathe. They’re like bottles.”

So far, Enervent is the only Finnish company to have received the highest EU energy-efficiency classification, the A-certificate in Finland, for its heat recovery systems. “The Technical Research Center of Finland (VTT) has made these calculations,” says Mikkonen. “These are not our own. We have the only product which can perform so well in the Finnish climate. It works in Lapland where it’s minus 35 degrees Celsius.”

TOUGH CLIMATES (AND TOUGH MARKETS, TOO)

Enervent’s products help to accomplish that, says Mikkonen, “You use an integrated air-to-air heat pump inside the unit. There’s a rotating wheel inside the unit which is the result of more than 20 years of development.”

Enervent technology has proven itself not only in cold climates, but also in market conditions which could easily be described as cold.

The Enervent unit recovers heat which is lost through exhaust. “To ensure good air quality in your home, you have to bring fresh air in, which is cold air. You lose energy. The exhaust air is hot, and we recover 75-80 percent of the energy from that exhaust.”

Overall, the ventilation business in Finland has declined due to the recession, but Enervent has increased its market share during this period. The company is number one in Finland in new single family houses with a market share of roughly 30 percent.

Mikkonen says the technology makes it very easy for a homeowner to calculate payback time. “The payback period of course depends on where you build, but if you build a new apartment — new buildings in Finland are required to have ventilation systems — then it’s two or three years payback with our unit.”

“Of course it’s a historical moment for us to be number one in Finland,” says Mikkonen. “It’s the first time for us to have that position in Enervent’s 25-year history.”

For those remodeling old houses, payback time is longer, but payback is only one factor. “Equally as important is indoor air quality: fresh air, steady pressure conditions, and no moisture,” says

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Jari Mikkonen Enervent Managing Director

Mikkonen says the success is a result of long-term work with energy efficiency, but also points out that joining forces with Ensto helped significantly. “What Ensto brought us was both a larger scale and better relationships in the sales channels, where wholesalers are critical.”

NEW MARKETS, NEW POTENTIAL Enervent export sales are currently at 45 percent of production. “Forty-five percent sounds huge, but it doesn’t yet make us top three in those markets,” says Mikkonen.

In major foreign markets, Enervent’s market share is minimal. One factor which hinders growth is climate. But even though most markets do not have the tough climatic conditions of Finland, Mikkonen sees opportunity there. “It’s freezing in Europe, anyway. Maybe not minus 30 but it’s minus something!”

There is potential, too, as the concept of a hybrid house gains popularity outside Finland. “Enervent is the core of the hybrid house offer,” says Mikkonen.

“Together with Ensto’s sales force and our hybrid house concept, I’m 100-perecent sure that we’ll gain sales in export markets where Ensto is located.”

Mikkonen says additional potential lies in hotter southern European climates.

“Where it’s plus-40 outside you have to cool the supply air. The heat exchange works the very same way.”

Wherever homes require heated or cooled, Enervent will eventually be there.

Its technology, the result of 25 years of research in Finland, will eventually be present all over the European Union.

“The EU is talking about Near Zero EnergyHomes for 2020,” says Mikkonen with a grin. “You need to insulate those houses. And when you insulate, you have to ventilate.”

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ensto today / ensto customer magazine 2011

Finland’s ENERGYEFFICIENT FUTURE Ensto Today asked Jan Vapaavuori, Finland’s Minister of Housing, for his thoughts on Finland’s path to a greener, renewable future.

say that in terms of renewable energy 1 Skeptics Finland is lagging behind. Is that a fair statement?

Well, it’s true we haven’t adopted measures which are high-profile or especially well-suited for stories in the media — like Norway which has very visibly embraced electric vehicles and successfully promoted their efforts. Our approach may not at first glance appear to be as sexy as Norway’s, but Finland is committed to Near Zero Energy building standards starting from 2020 at latest, and for public construction starting from 2018 at latest.

What we are interested in as a country and society is the final outcome, not always how things appear in the middle of the process. By moving to total energy analysis our aim is to make sure that as standards are raised that the desired result will materialize as cost effectively as possible.

2 Is Finland’s solution then the smart grid?

That is one important part of our solution, yes.

What the smart grid will do is put the customer in the focus.

The smart grid is a combination of information and the electrical network where consumption is balanced with production capacity. That will work practically in instances when there is a shortage of electricity then a sharp price increase will cause a reduction in consumption.

When supply is at a surplus then low rates will encourage consumption during off-peak hours.

This is especially important in Finland where we don’t yet have self-sufficiency in electrical production and where our grid needs improved reliability.

Finland has not chosen to legislate its way into 3 But the smart grid?

We don’t yet have obligatory legislation concerning smart grids. Under Finland’s conditions it has to be taken into account that the load on the electric grid is at times very heavy. For this reason the increase of “smartness” demands a well-thought-out timetable and investment.

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Although legislation is not in place, the smart grid is still a vital program for Finland. We want to make use of energy-efficient living and enhance sustainable development through the elimination of excess peak capacity. The smart grid will allow for the customer to save money.

Saving money is the ultimate incentive you don’t have to pass a law to get people to do that.

4 Speaking of electric cars, what are the plans

for them in Finland? Are there plans for the development of an infrastructure similar to what Oslo is doing?

We are in favor of electric vehicles in the sense that low emissions are encouraged in Finland’s energy policy. Fuel taxation strongly emphasizes taxing the use of fossil fuels. So while we have not made a big issue of electric vehicles in particular they are on the same level as other low-emission transportation. Our approach has been more across the board.

Finland has a clear desire to be near the top when it comes to the development of sustainable technologies. Cleantech projects are supported and there has been investment into their development, in the strategic center for know-how Cleen Ltd., to give you an example.

forestry industry is without a doubt 5 Finland’s important, but in your opinion is burning wood as a source of heat held in too high esteem in government? In other words, are we moving fast enough to reduce the CO2 footprint?

In terms of renewable energies, wood and fuels refined from it definitely have a role in Finnish energy production, but I don’t see the future of Finnish forests as only a raw material for energy production.

We must aim to raise the level of refinement of Finnish wood products and build our success on the basis of know-how in relation to wood.

In this respect, Finnish planning and design will play key roles.

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ensto today / ensto customer magazine 2011

Renewable Ensto “Who would have thought two years ago that one of the biggest business segments would be photovoltaic?” asks Tomi Gardemeister, President of Ensto Industrial Solutions, astounded by the growth his business unit has experienced in renewable energy.

Gardemeister says Ensto’s Industrial Solutions unit grew more than 30 percent last year, and the wind and solar energy sectors by more than 50 percent. “There are even some product areas – in renewable sector such as inverters and combiner box systems – which are growing as much as 150 percent.”

The growth is thanks to what Gardemeister refers to as “the megatrend of sustainable development” which is fueled by big European countries’ subsidies to move their energy consumption away from fossil fuels.

But Gardemeister sees potential beyond Europe, as well. “China and India are focusing on sustainable energy. In a couple of years these will be the biggest renewable markets. And the American market is an opportunity, too.”

To be a European player is only positive, says

Gardemeister, since Europeans have a reputation for know-how, having been working in the industry from the very beginning. “We’re really the pioneers in photovoltaic,” he says. “We’ve been focusing on it since the 1970s.”

Ensto’s role in the photovoltaic segment includes products such thermoplastic customized and pre-assembled combiner boxes for solar plants, a variety of enclosing systems such as for powerand string control purposes, as well as generator junction boxes.

In wind, Ensto is involved both in metal and thermoplastic enclosure solutions, including applications such as control boxes, node boxes, and de-icing systems for hard winter conditions to name a few.

Ensto customers who are a part of this growth in sustainable energy are those who manufacture wind gear, turbines, as well as project partners for wind power plant providers and large system integrators. Gardemeister names Enwi Etec and Ferraz Shawmut as some of Ensto’s key customers and major players in the renewable field.

“One of the reasons why we’ve decided to focus on this segment,” says Gardemeister, “is that Ensto already has the materials and technologies which make us very competitive in this business.

Our offering is good already, and we don’t have to heavily invest or learn totally new things. Also, our new ATEX product launch will enlarge our offering to these segments in the coming years.”

Despite the fact that the sustainable business is currently dependent on subsidies, Gardemeister is still optimistic. “We believe there will be a little uncertainty,” he says, “as it’s still a business highly dependent on subsidies, and those will someday end. But there is no question that longterm this is a significant opportunity.”

“And,” adds Gardemeister, “it is fully consistent with Ensto’s vision. We are on the front line of producing clean, recyclable, innovative, and sustainable products.

“ Who would have thought two years ago that one of

the biggest business segments would be photovoltaic?

Tomi Gardemeister President of Ensto Industrial Solutions

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ensto today / ensto customer magazine 2011

The Smart Grid:

No longer SciFi five to ten years “ Init will be a different world. ” Markku Wederhorn Ensto Utility Networks’ President

Although you can find a formal definition anywhere – “A smart grid delivers electricity from suppliers to consumers using two-way digital communication to control appliances at consumer’s homes” (Wikipedia) – these definitions hardly tell the whole story.

What the definitions often obscure is just how cool [modern] the whole thing is. Because “the need for the smart grid,” says Ensto Utility Networks’ president Markku Wederhorn, “arises from distributed generation.”

What this means is that the old model of a power plant at one end and a consumer at the other will soon be dead.

Because, depending on your electrical needs at the moment, consumers will constitute “micro power plants,” and will at times shift into the role of power suppliers.

“With the old model,” says Wederhorn, “supply had to always equal consumption, or there would be a blackout. The power plant regulated everything.”

Distributed generation, says Wederhorn, will be uneven, geographically dispersed, and vary rapidly. “You’ll need constant adjustment to balance the grid.” The smart grid will read those power needs and provide forced control of consumption through the price of power, which could change as frequently as on an hourly basis. “So the ‘smart grid,’” says Wederhorn, “is just your basic distribution grid with an ICT platform, a brain, which controls consumption and storage.”

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ENTER ENSTO In order to ensure power quality throughout the smart grid, Wederhorn says Ensto’s booster products and DC link will be key players. “They provide a more effective way to distribute power, boosting the power of a low voltage network by a factor of six.”

And Novexia products will play a key role, as well. Ensto acquired the French company Novexia in October of 2010, and was at the time characterized by Ensto Group CEO Timo Luukkainen as “a perfect match with Ensto Utility Networks solutions.” Luukkainen said the complementary purchase would intensify Novexia’s products for Ensto markets and boost sales of Ensto’s underground products in Novexia markets.

Novexia produces medium-voltage equipment such as overhead switches and disconnectors, low-voltage equipment like circuit breakers and distribution panels for underground networks, as well as remote control units and fault detectors.

“There are stringent EU requirements about reliability, performance, and how a grid recovers from faults,” says Wederhorn. “Novexia products are building blocks to ensure fast recovery of faults and faster reconfiguration of the grid than ever before.”

A DIFFERENT WORLD So how long until we’ll all be plugging in and dialing charges for our electric cars? How long until we’ll have solar cells on our windows and roofs and be selling power back to the utility company?

The first to come will be the smart charging of cars. “With cars,” says Mika Luukkanen, Ensto product development manager for ENsto Utility Networks, “everybody drives to work and then plugs in his car at nine a.m. at the office.” Since the power grid can’t handle everyone’s car being charged at nine a.m.—a VW bus, for example, requires 0.22 KwH/kilometer, “rather much,” according to Luukkanen – and drivers will tell the smartgrid when they need their cars again (e.g. perhaps dialing in 1700 hours), and the smart grid will charge the cars in the order most advantageous for the community as a whole.

Another example will be consumers taking advantage of night tariffs on electricity. “You may heat your hot water at night, or at another time when someone’s offering a cheaper tariff,” says Wederhorn. “Or in the summertime, you may choose not to cool certain rooms at certain times.”

“But in five to ten years,” says Wederhorn, “it will be a different world.”

Ensto’s role , on the whole, is to provide products which enable the reliability of the grid.

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“The term ‘smart grid’ remains very vague,” says NOVEXIA managing director Yves Tadec, “and Novexia intends to give it a real, practical meaning.”

NOVEXIA:

Behind the Smart Grid’s Curtain

“Our products

and solutions match generation to demand in real time.

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Yves Tadec NOVEXIA Managing Director

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Practical meaning might include a seamless “fueling” experience for the driver of an electric vehicle – the EV is charged and ready when needed – or power available when the consumer needs it at a price he considers reasonable. “NOVEXIA products and solutions match generation to demand in real time,” says Tadec.

In other words, NOVEXIA’s role is to guarantee the stability of the grid: to be Oz, the one behind the curtain who ensures energy supplied is always equal to the energy demanded.

A SMART PRODUCT PORTFOLIO Novexia’s practical solutions begin with switches for medium voltage overhead lines. The switches provide the fastest optimum energy switching to points of consumption and minimize impact of any defective sections. And as is consistent with all Ensto products: they perform in extreme environments. NOVEXIA switches remain operational in worst-case weather scenarios.

For low-voltage overhead and underground lines, Novexia builds circuit breakers and fuse systems.

Control systems with communicating fault detectors provide precise real time information for network operators, enabling them to quickly and remotely correct the effects of any fault.

It is this combination of product offer-

ings which put NOVEXIA in the position to rule the smart grid. “We have a very comprehensive range of products that detect and localize faults that may occur on an electricity distribution network,” says Tadec. “Our products allow a network to be very quickly reconfigured, either by resupplying sections with transient faults, or by isolating the defective sections and redirecting the power.”

NOVEXIA systems are extremely sensitive and able to detect the most obscure faults with products designed to detect faults which cause overcurrents, and a product which identifies the direction of the fault, reducing repair time for operators in control centers.

ALREADY A RECOGNIZED LEADER With two plants in France, one in Villefranche-sur-Saône, close to Lyon, and another in Bagnères-de-Bigorre in the southwest, NOVEXIA has long been established and acknowledged leader in electricity network switching system markets.

Its 150 employees helped the company generate 30 million euros in turnover in 2010, which came from both France, as well as export markets around the globe.

What attracted Ensto to NOVEXIA, however, was not only a history of stable revenues and quality product portfolio. The two companies were a perfect match.

medium and low voltage networks,” says Tadec, “and the rest of the Ensto Utility Networks business unit is in installation and connection hardware for medium and low voltage overhead lines and underground cables. There is no product line duplication between NOVEXIA products and those marketed by Ensto.”

However, the offers of both companies are in the medium and low voltage electricity network field, and in that of overhead networks and underground networks.

“This gives the Ensto Group a definite advantage,” says Tadec. “It gives them a more comprehensive offer that meets customer requirements more completely.” In other words, Novexia will develop its sales through Ensto’s powerful sales network, and Ensto has found a channel to expand the sales of its other products in markets where NOVEXIA is well established.

AND THEY’RE BOTH GREEN, TOO The two companies, now one company, also share a vision concerning a world of renewable energy.

In the smart grid scenario, when the consumer is satisfied and the network secure, energy is saved, operating costs are reduced, and, “in this way,” says Tadec, “we are contributing to the protection of the environment.”

WHEN FRANCE MEETS FINLAND “NOVEXIA is active in electrical systems for overhead and underground

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ensto today / ensto customer magazine 2011

Contractor Auvo Karhu and Hannu Keinanen, President of Ensto Building Technology

The Bright Future of

LEDs

Auvo Karhu, managing director of the contracting company Suomen Sähköhuolto Oy, explains that he contacted Ensto when energy efficient lighting fixture was needed for a particular site. “With no suitable products available, Ensto picked up the baton to create one.”

LED lighting makes perfect sense in a block of flats. It removes the need to change light bulbs, lasts many times longer and provides ten times the energy efficiency. Lighting quality has improved as well as energy efficiency and there is no delay between tripping the switch and the lights coming on.

This improves both safety and comfort, says Keinänen.

It’s minus 20 degrees Celsius on a February morning in Finland, and Ensto is throwing a party. And the party is in an apartment staircase.

Ensto has invited contractors, housing owners, municipal officials, and building superintendents to see what a difference LED lighting makes at a block of flats in Kaarina in western Finland.

The tour begins in an un-remodeled stairwell. Even with morning light reflecting off snow, the stairwell isn’t adequately lit by the 55-watt incandescent lamp luminaires. “With traditional lighting you get 1,000 hours per luminaire,” says Hannu Keinänen,

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president of the Ensto Building Technology business unit. Keinänen gestures to a flickering lamp: “And there’s always one that’s out of order.

It will cost close to 20 euros to bring a man out to change that lamp.”

We move to a re-modeled stairwell where nine LED luminaires glow brightly, each lit by 168 LED tips behind a diffuser. “The life of one of these luminaires is a guaranteed 30,000 hours,” explains Keinänen. “It operates

at 35 percent of the cost of a traditional lamp, and it has 350 percent more power. It is maintenance free, and the investment will pay for itself in two to three years.”

The planning of Ensto’s AVR320 LED, which is used in the Kaarina stairwell, started one year ago to serve the needs that contractors had when renovating old housing complexes.

“People just don’t know about them yet,” says Keinänen. “We’re working to get the word out.” Which is why he invited potential customers for coffee and pastries in a brightly lit stairwell on a February morning.

“I believe in LED systems. All the statistics are true,” says a potential customer who is at the event to investigate Ensto LEDs for five, ninestory blockhouses he is remodeling. “But the best way to convince yourself is to read a newspaper underneath it. Or ask the postman he hates dark stairwells!”

Keinänen stresses that while LEDs are indeed cheaper to operate, the best argument for them maybe isn’t the cost.

“The population in Finland is aging, and a 60-year-old person needs twelve times more light than a 20-year-old.”

For anyone who has stumbled around in a dark stairwell or basement storage area using light from a mobile phone to find his way, the fact that LEDs are the most cost-effective method to meet IEC regulations for common spaces may not be the first thing which comes to mind.

We’ll more remember the fact that LEDs offer five times the luminosity of traditional bulbs. And it’s comforting to know that in buildings lit with LEDs, we may all now leave our mobile phones in our pockets.

Stairwell lighting / Apartment house Orakas, Kaarina, Finland

Before

After

Lighting

9 pieces normal bulb lights a 55W ´

9 pieces Ensto´s 320 LED a 19 ´ W

Stairwell lighting power normally ref: starting point

100 %

350 %

Stairwell lighting maximum electric power

495 W

171 W

Stairwell lighting expected annual consumption

990 kWh

342 kWh

!

Annual electric consumption 35 % and lighting power 350 % from starting point Total energy efficiency in stairwell lighting 10 times more using Ensto LEDs

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ensto today / ensto customer magazine 2011

LEADING

THE REVOLUTION

Twenty-seven years ago the prettiest girl in Matti Rae’s grade school read a story she’d written to the class: She would marry Rae and the two would arrive for a gala evening in an electric car. Rae didn’t marry the girl, but he did get the car.

And that was only the beginning.

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“Her story was an interesting prediction,” says Rae, “I didn’t know at the time I’d become an engineer, but I was always dismantling old radios and putting them back together. I did all kinds of experiments with electrical components. Sometimes the room was full of fumes from intensive soldering or when the test circuits failed due to overload.”

It is of course possible that a child who fills rooms with fumes will either become an engineer or an arsonist, and the world and Ensto are no doubt both fortunate that Rae chose the former occupation.

THE CARRIER OF FIRE Rae’s role within Ensto, formerly titled Director of New Technologies, makes him sort of a chief optimist and evangelist for new ideas.

He got his start with Ensto in 1995, working as a product development manager for electrical heating products. “At that time,” says Rae, “I did not realize that Ensio Miettinen was that interested in product development, but I soon realized that when I was invited to discuss or receive his ideas and philosophy almost regularly.”

“Gradually I gained his confidence and trust. He asked questions about me and my family. He wanted to know what kind of human being I was.”

Miettinen also wanted a true picture of what was happening in his companies, and he got that through talking to people, including Rae. “I think he wanted to know what the really was the spirit inside the company and individuals, the underlying truth.”

And Rae learned, too. He learned that he shared Miettinen’s pas-

sion for new ideas, as well as for learning what goes on inside an individual, “his fears, expectations, likes and dislikes. After all,” says Rae, “everything boils down to human relations.”

MAKING TECHNOLOGY COME TRUE Rae’s challenge within Ensto is to make sure that technology is used to serve an extant need, avoiding technology for the sake of technology.

To this end, Rae often looks at the business through a modified Boston Consulting Group matrix, with the bottom-right quadrant (question marks) as the realm of the mad scientist, a playground for new technology which may or may not provide future success.

“This is a box,” says Rae, “that it’s productive to be lost in. Otherwise you’re just obeying some code of conduct, and this is not a military organization.”

From the mad-scientist’s box a few ideas will be selected to move to the upper right quadrant, which Rae deems strategically important technologies and worthy of ongoing research.

In turn, some of those will be selected for a move to the upper left quadrant, representing critical in-house technologies and growth areas.

And technologies which truly find a large market will move to the lower right quadrant and become fixtures of Ensto’s product portfolio which produce the revenues needed to fuel the overall process of discovery.

“My job is to make sure we have highly-skilled individuals with the right technological outlook,” says Rae. “I don’t have to be the most clever guy – I’m a catalyst. I make

sure everything is allocated where there’s a resource with a human behind it, with people rewarded for achieving the goals, and the business centered around them.”

Rae’s role also might be seen as the one who must always have perspective and keep others moving along the right paths.

“This world is full of all kinds of B.S. which prevents you from seeing what is relevant,” he says.

“If you don’t do this clarification job people will get lost. I look forward. That’s what I do.”

TECHNOLOGICAL MIRACLES: NO SUCH THING Rae cautions against seeing new product launches in any field as amazing discoveries which happened quickly. “Miracles you see on the market did not happen overnight,” he says. “There is a lot of basic engineering work behind them. This process is essential.”

“Technology is a tool,” says Rae. “People are the most important thing. “The customer first is what I promote, giving practical value to people in their lives. Never tech for the sake of tech.”

To illustrate, Rae produces his mobile telephone from his back pocket. It’s an early model Nokia Communicator, heavy as a boat anchor, and the screen is shattered. But it still works.

“This phone is just a tool,” he says.

“It fulfills all the tasks I need. An iPad might look nice, but…”

Rae’s phone perhaps could serve as a symbol to all of those he works with. “Think about what you buy. What practical value will it bring?”

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Revolutionaries Rae believes that his work is to carry forward the energy revolution, and he names three contributors to that cause.

The Nearly Zero Energy House and all its attendant technologies. (“A huge opportunity to learn more and access new markets.”)

Electric vehicles. (“I started it with Ensio and we now have six people. I want to see that infant grow into a big business.”)

Smart grids. (“Which will really put the consumer in charge.”)

As a child, Rae was always fond of discoverers. He most admired Captain James Cook. “He sailed in a clumsy but practical coal cargo ship and tested the most advanced navigation methods of the time; he persistently spent his time on a clearly defined mission; he discovered things and accurately documented it so his work could be repeated, and he pushed the crew members to the extreme.”

Rae recognizes that Cook was killed by the natives in Hawaii – local tradition says the captain died at the hands of chief Kalanimanokahoowaha (oddly similar to Finnish in its length and sound).

“But if we forget those things,” says Rae, “Cook shed light on potential, he dug up things and showed the way for others to follow”, It’s true,” says Rae, turning his broken mobile phone in his hand. “I have a dream job.”

Technology’s Doorstep “If being on the very cutting edge is important to you,” says Ensto’s Mikael Nordman, “then it’s wise to place yourself right next to a world-class university.”

Which is one reason Ensto put its new R&D office in Otaniemi, Finland, right next to Aalto University’s School of Science and Technology, one of the northern Europe’s leaders in the research of renewable energy.

Ensto’s R&D facility, opened in November 2010, gives the company access to an international research community actively involved in energy efficiency, sustainability, and smart grid technology.

In January 2011, Ensto Utility Network business unit’s Power Electronics team moved into the new offices. The Overhead Line and Underground Cable development teams will remain in Porvoo, where they have a modern lab and prototyping facilities.

“In Finland, the name ‘Otaniemi’ has long served as a synonym for the international technology campus,” says Nordman, “and so it only seems natural for Ensto’s R&D facilities to be located there.”

Honors for Ensto Elektroskandia, one of Scandinavia’s leading electrical wholesalers, named Ensto its Supplier of the Year for 2010.

The award is given annually to the Elektroskandia partner who exhibits an outstanding level of cooperation and delivers a wide selection of superior products which contributes to the profitability of both companies. Also important is the marketing assistance and technical support which the supplier company renders.

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POWER ELECTRONICS (and a Fisherman’s Cottage)

If water on your stove comes to a boil too slowly, if your lights suddenly dim, or if your sauna heats too slowly, you’ve likely shrugged it off and gone on about your day. But all are signs of poor power quality which can reduce the lifespan of your electrical appliances. Even an incandescent bulb’s life is shortened by half when voltage is poorly regulated.

which reduces it to 230-volt supply and sends it down a line to your cottage. But if you happen to be at the far end of the line, then it’s highly likely you won’t be enjoying the benefit of a full 230 volts.

Mika Luukkanen’s power electronics team at Ensto is committed to products which ensure power quality at a reasonable cost level. And as technology affects changes in the way we live, his team is pioneering products to enable the more efficient distribution of power.

“If you see how we live today, we are very dependent on electricity,” says Luukkanen. “Fifty years ago maybe you’d need to power a lamp. But today, not only do we use far more electronics, but we use them almost everywhere. You take your laptop on vacation, so even a fisherman’s cottage in Italy can have modern electrical needs.”

To bring power to the quaint little cottage where you’ll take your holiday, utility networks depend on 20 kilovolt lines to carry current to a transformer

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While this electrical supply may have satisfied the Italian fisherman – one lamp was enough to mend his nets by – the modern vacationer now renting his cottage may have a problem: the dishwasher, the water pump for the Jacuzzi, and the home theatre system all require quality power.

Ensto originally made its name through connectors and cable joints which serve the traditional electro-mechanical needs of the utility network market. But as our lifestyles have dictated new needs, Ensto has taken a prominent place in the development of newer, “intelligent” products.

Ensto’s booster product family is one example. A booster measures voltage input in the line and boosts when necessary, ensuring proper power quality for the vacationing Finn. Ensto’s boosters are finding markets at home in Finland, as well as in the Czech Republic and, of course, Italy.

But the voltage booster (or “VB” as it’s known in the business) is not a solution

in itself for utility networks. “The booster buys time for utility companies while they plan new investment to extend the 20-kilovolt line,” says Luukkanen.

To solve that problem, Ensto has developed an entirely new product family, the DC link, which through the use of a rectifier, converts the AC current to a 1.5-kilovolt DC current which can be safely, and more cheaply run underground. “It’s totally new,” says Luukkanen. “It doesn’t exist on the market at the moment.”

The genius behind the DC link is that it adds one more voltage level between the middle voltage (20-kilovolt) lines and the end-user’s 230-volt line, allowing the utility network to serve houses at the end of the line without the costly undertaking of extending the 20-kilovolt line. It also removes the needs for long series of boosters and overhead 230-volt line.

“When a tree falls on the line running to a rural home,” says Luukkanen, “the power company’s cost to fix that line means the loss of revenue from that customer for a period of ten years!”

The DC Link, though not yet available on the market, has undergone a pilot installation in Porvoo, and the second-generation prototype is being prepared for five long-term field test installations.

In addition to offering six times the power capacity (or six times the distance when carrying power) in rural applications, the DC link also has industrial appli-

cations. “You can put it inside a factory to increase capacity of existing cable,” says Luukkanen. “Or you can use it when lighting highways – from the current six transformers you can leave out five.”

There are also applications for hospitals and mobile phone power stations, since a DC link isolates interference sources, and the locally regenerated network is ideal for hospitals or mobile phone power stations.

In the longer-term picture, though, the DC link is interesting because it enables the creation of an electrical grid island.

The DC link can be connected to solar cells, for example, and obviate the need for a national grid. “It’d be great for developing nations,” says Luukkanen. “Use the DC link as a local distribution network and then connect to the grid later once it’s built.”

Actually, once the solar cells are added, the DC link becomes a critical component in the smart grid, which allows flexibility in how and to what power source a consumer connects.

How soon until the smart grid is our present reality? Luukkanen says it’s really impossible to know. “IBM once said that 60 to 100 of their computers provided enough calculation capacity for the whole world. Now your handheld calculator has more capacity than those original 100 computers. Things change faster than you can predict.”

But regardless of what change occurs, Ensto’s advantage, says Luukkanen, “is that we’re small and flexible, which means we can come to the market faster than our competitors.”

“When a tree falls on the line running to a rural home,” says Luukkanen, “the power company’s cost to fix that line means the loss of revenue from that customer for a period of ten years!

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Friending Ensto How Social Media is Changing the Corporate World Whether companies should take part in social media is no longer a valid question. “We have a presence in social media and people talk about us whether we want it or not,” explains Hani Olsson, Ensto’s eCommunications Manager and one of the people behind the company’s presence in social media.

And Ensto customers aren’t shy about talking, either. According to Olsson, fan pages exist which were not created by the company, and these pages include comments on Ensto’s products. “We cannot control what is being said about us, though that really isn’t the point,” she says. “But what we want to do is to take active part in the conversation.”

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When Timo tweets CEO Timo Luukkainen takes active part. He regularly blogs and his posts are known for his somewhat dry sense of humor (“Finland cannot build its success on its central location, widely spoken language, favorable climate…”).

Other employees also blog regularly but mostly for personal purposes.

“As they more become comfortable blogging personally or internally, and as they gain practice, more turn to professional and external platforms,” says Olsson. “Also Ensto’s Intranet is being developed this year with an emphasis on social media. We already have published a tool we call our internal Facebook, and more is on the way.”

Ensto’s presence in social media goes beyond sharing thoughts and information. Social media also provides another outlet for press releases, training videos, as well as an opportunity for learning about how the outside world perceives the company and issues important to it. It also improves the company’s “findability” on search engines.

New ways of listening Concerning search engines, Olsson calls Twitter a “powerful search engine for rising trends and honest opinions,” and she particularly values it since it cannot be manipulated by external factors as engines such as Google may be. “This makes it very interesting for professional use.”

“ Social media gives

us a new opportunity to listen.

”

Hani Olsson Ensto’s eCommunications Manager

Olsson values the fact that social media is measurable but thinks the value is ultimately not in numbers. “Social media gives us a new opportunity to listen.”

Most of Ensto’s social media experiences have been positive, but the company is not afraid to face differing opinions. “We comment on the subject and correct possible inaccuracies. But if you remove negative feedback it only makes the situation worse,” Olsson says, and cautions never to underestimate the power of an individual in social media. “They often are enthusiasts and opinion leaders in their field.”

Olsson says social media enables the company to react to issues in real time and to reach its critical audiences even faster. “It’s a transparent, two-way discussion, which is ideal for Ensto, since we are known for being open and honest, anyway.”

Where (potential) employees meet Ensto has started to use Facebook and LinkedIn for purposes of recruitment.

“It’s far more effective than running a newspaper ad, and in some cases we can reach potential employees who couldn’t be found by traditional methods,” says Olsson.

vehicle charging forums and in other professional discussions. Olsson counts professional forums as one of Ensto’s greatest social media assets. “The engineers meet existing and potential clients in the forums, and when trust is built then problems get solved and the media disappears. Then it’s just engineers working together.”

Social media does not dominate Ensto’s communications program, though it will surely continue to take on importance. The irony of Ensto employees engaged in social media is not lost on Olsson. “Before, if you had your Facebook page open at work you tried to hide it. But now it may be a part of your professional life.”

Ensto engineers are some of the company’s most active social media users. They can be found on electric

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Cleantech Finland:

ENSTO’S SPRINGBOARD FOR INTERNATIONAL GROWTH

Small is beautiful, but medium is even better “Finnish companies the size of Ensto have the greatest potential to become big players on a global scale,” says Cleantech Finland’s director Santtu Hulkkonen. “Finland lacks companies like Ensto. It’s a great example of a clean-

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tech company with good management and a portfolio of solutions with high demand on a global scale.”

“Cleantech,” in this context, means all products, services, processes and technologies which prevent or reduce the impact on the environment. But since in a free market environment profit cannot be ignored, the definition stresses that cleantech companies deliver quality and efficiency which enhance profitability.

While there are over 2,000 cleantech companies in Finland, Cleantech Finland is a brand used only by the top 80 under the umbrella of the Finland Trade Center, whose 60 offices and 350 employees around the world are dedicated to assisting Finnish companies succeed in the international marketplace.

According to Hulkkonen, there are 10 to 20 big cleantech Finnish companies listed

on stock exchanges which account for 90 percent of a rough total of 17 billion euros in turnover. Hulkkonen also says there are many small enterprises and startups forming all the time, but it is the mid-sized companies in Finland where tremendous potential lies.

“Middle-sized companies, those with between 100 and 500 million euros in annual turnover, need extensive resources to build up the company,” says Hulkkonen. “You need a good financing base to grow the companies at that level. In Finland companies are often sold before they grow to that size.”

Hulkkonen says it’s crucial for Finland to have more mid-sized companies.

“We are most likely not getting a new Nokia from the cleantech space,” he says, “but I think there’s the potential for quite a few of these middle-sized companies – 10 to 20 new companies the size of Ensto – which could grow tenfold from where they are now.”

After the knowhow Hulkkonen says Finland is one of the leading countries in the fields of energy efficiency, clean industrial processes and renewable energy.

Smart and efficient energy, building and transporation systems are necessities for the future. He believes Ensto’s product and service portfolio is well trimmed for meeting the challenges of sustainable urban living.

But knowhow alone isn’t enough to break into foreign markets. “Ensto is active in about 20 markets,” says Hulkkonen. “And there are another 10 to 20 markets which are also good markets for them.”

That’s where Cleantech Finland comes in. Cleantech Finland has assisted Ensto in creating awareness in India, which with the addition of Russia and China, are Cleantech’s current markets of key focus.

“We are Ensto’s partner when they want get known in a new market or strengthen a market position in existing market,” says Hulkkonen.

When an introduction to key decision makers in foreign markets is needed, Cleantech Finland is also there. And, when it comes to keeping Ensto’s name in the newspapers in key foreign markets, Cleantech’s people help that happen, too.

In taking technologies like the smart grid, renewable energy, clean processes, and energy efficiency abroad, Cleantech Finland is committed to helping Ensto leverage its knowhow in foreign markets. And the partnership has borne fruit: awareness of Ensto’s cleantech solutions is constantly growing in foreign markets.

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A Paroc Passive House Tour How Ensto Hybrid House solutions enable a passive house under arctic conditions.

With its southernmost point at a latitude of 60° North, Finns like to joke they enjoy two seasons a year: winter and bad skiing weather.

In 2010, with winter temperatures routinely dropping below minus 20 degrees Celsius and bad skiing weather reaching 30 degrees on the plus side, Jorma Vuoritsalo’s passive house stood the test in both seasons.

In fact, the total annual energy cost for his 187-square-meter hybrid house was under 1,200 euros.

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Not a shoebox Mr. Vuoritsalo’s home looks no different than a traditional home both inside and out.

“We didn’t want a shoebox,” says Vuoritsalo, characterizing the popular conception of the style of energy efficient construction. “We wanted a high ceiling and large windows. We didn’t want to make compromises.”

By “we,” Vuoritsalo refers to him and his wife. But Vuoritsalo’s home is also a

duplex, which he built working together with a childhood friend who occupies the other unit.

To avoid the shoebox look windows were critical, and they became a point of debate. VTT, the Technical Research Centre of Finland, who consulted on the house construction, had a theory that windows over 150 centimeters in height would generate cold airflow.

But Vuoritsalo used triple-paned, 230centimeter windows with a U-value of 0.86, and he suffered no cold airflow whatsoever.

After viewing the original design, VTT’s engineers recommended to Vuoritsalo and his friend that they move the carports to the ends of the house to save 10 running meters of the outer wall in the building envelope. The two adopted the suggestion.

A technical tour Key in Vuoritsalo’s house are his walls, which consist of 150-millimeter thick concrete plus 450 millimeters of PAROC® stone wool insulation. For roof insulation, he also used PAROC® stonewool, a 100millimeter slab and a 600-millimeter layer of PAROC® blowing wool. Key to construction was actually gluing the vapor barrier in the ceiling to the wall itself in order to eliminate the possibility of leakage. Even socket wiring was placed inside insulation.

Critical to the home’s passivity is its virtual airtightness – the air leakage rate measured a stunningly small 0.3, a figure detailing volume lost per hour with 50 Pascals of pressure outside. Passive house regulations call for a minimum of 0.6, and Vuoritsalo was pleased to beat the norm by a factor of two.

“Even when it was minus 25 outside,” says Vuoritsalo, “it never felt cold inside.”

Vuoritsalo’s walls were measured at a U-value of 0.09, the roof at 0.07, and the floor at 0.10. The doors, 10 centimeters thick, have a U-value of 0.5.

On the passive house scorecard, this house will set new standards. Building codes will most likely be tightened in 2012 when they are revisited for update.

Vuoritsalo’s pioneering house proves that it will be possible to build houses according to new standards.

Savings at all levels While it’s true that passive houses require more insulation than traditional ones, that does not necessarily make them more expensive. The total construction costs of the Vuoritsalo home, carefully logged and monitored, were only threeto five percent more than a traditional home.

This is largely due to the absence of an expensive heating system. Not installing a ground heat pump delivered immediate savings of 20,000 euros.

While the home has no traditional heating system, it does have Ensto’s Enervent Greenair HP ventilation system with a heat pump which recovers more than 90 percent of heat leaving the house (it also recovers cool air in the summer). For comfort and to prevent moisture damage, there is floor heating in the entryway and bathrooms. Seven incoming airflow ducts equipped with electrical resistance heaters are to ensure warmth, should temperatures drop to real extremes (well below minus 30, for example).

There is also a massive fireplace to enable the slow and even distribution of heat and eliminate the danger of overheating the house. “And human beings also give off energy,” mentions Vuoritsalo. True, a healthy human adult generates around 100 watts of energy,

but when that human cooks a meal, there is even more heat produced, which takes on significant meaning in a passive house.

Energy usage This passive house’s total energy consumption is 12,000 kWh per year – including heat, domestic hot water, and domestic appliances. Vuoritsalo only buys electricity, which at 0.10 euro per kWh means an annual power bill of 1,200 euros – 100 euros per month, on average, to fully power an 187-squaremeter home. And this includes one room of the house being regularly heated to a temperature of 100 degrees Celsius – the sauna. Mr. Vuoritsalo is, after all, a Finn.

Motivation There’s an old saying about how experience matters in construction: You build your first house for your enemy, the second for a friend, and the third one for yourself. Jorma Vuoritsalo has built three houses so far, and he says they’re all very good.

But he will admit that his passive house in Vantaa is the only one he’s built which doesn’t need an expensive heating system under arctic conditions or a separate air conditioner when the temperature turns tropical.

And because he’s not a man to make compromises, he’s proven a passive house can be built at roughly the same price as a conventional home – a home, that is, which doesn’t at all resemble a shoebox.

Ensto à la carte: a Hybrid House Menu • • • • • •

Ensto eGuard – for real time energy consumption monitoring ECO601 controller – known as the “invisible janitor,” the ECO601 lets you rule and regulate.

Ensto distribution boards – where it all comes together.

Enervent ventilation systems – more than 90% recovery of heat!

Practical lighting with motion detectors and energy efficient LED light sources – savings up to 60%.

Ensto eWoodMat and ThinMat underfloor heating mats and TASSU underfloor heating cables –

economic, convenient, and long-lasting.

• Ensto Green Park electric vehicle charging – continue the savings when you leave the house.

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A Simple but Serious Solution What do you do with 20 tons of zinc silt you don’t need? You can’t flush it into the sewer, so you put it in barrels, stack them in the yard, and pay a hazardous waste disposal company to carry it away every week.

Or you can invest 30,000 euros, get rid of the zinc entirely, and save 20,000 euros per year in the process. Which is exactly what Ensto’s Mikkeli plant did.

Metal Enclosure Capital Since 1974, the Mikkeli plant has produced the metal enclosures which Ensto markets all over the world. Currently, there are 140 employees who cut, form, weld, clean, paint, and assemble enclosures for clients like ABB, Metso, and Kone. Sheet metal arrives at Mikkeli in 3 x 1.5 meter sheets and it leaves as one of the plant’s 100,000 enclosures produced each year.

But when it comes to painting enclosures which will withstand extreme environmental conditions, it isn’t as simple as spraying on paint. The presence of any grease or dirt leaves an enclosure subject to corrosion.

And until six months ago, zinc

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phosphates were used to make sure the paint stuck and lasted.

The Trouble With Zinc For Petri Sorjonen, Director of Ensto’s Mikkeli plant, and Timo Partti, Production Supervisor, the presence of zinc phosphates created a host of headaches.

For starters it was bad for the environment and costly to dispose of. And the plant consumed lots of electricity to heat the tank which had to be kept at 45 degrees Celsius.

The pipes through which the zinc ran also required costly maintenance. “We had to change them once a month,” says Sorjonen. “We have 20 sets of spraying pipes each about two meters long.”

“And we saved a significant amount of water,” adds Partti, rounding out the list of good arguments for ridding the plant of zinc.

So although zinc was used in only one part of a sevenstep process, it contributed significantly to the cost or production.

Enter Oxsilan Oxsilan, according to the Swedish company Chemetall who manufactures it, is “based on functionalized organio-silane polymers which react at room temperature with hydroxides present in the metal oxide layer of cleaned metal substrates to form strong covalent bonds.” For the layman, however, it means paint will stick and eliminates risk of corrosion.

In summer 2011, Ensto made the switchover to Oxsilan in its Mikkeli plant. “We’ve only been running it six months, so it’s really too early to definitively calculate the savings,” says Partti. “But our expectations are a savings of 20,000 euros per year.”

Sorjonen and Partti say that although it’s a simple step, not many Finnish companies who have a paint line have adopted it. They estimate only ten companies out of hundreds have adopted it.

“It’s consistent with the Ensto strategy,” says Sorjonen. “It is sustainable. It saves the environment. And it clearly saves your energy, too.”

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CUBO X:

Extreme Safety for Extreme Condition “We bravely stick our fingers in the mud,” reads an Ensto internal presentation about Cubo X. While this sentiment might sound more sophisticated in Latin, it is a very accurate summation of the effort and innovation behind the product Cubo X. “We went all over the world to test this product,” says Kimmo Meriluoto, Director of Product Development for Ensto Industrial Solutions. “We let customers tell us their needs, and this product answers those.”

Cubo X is a tailored enclosure system for electrical components in potentially dangerous environments, which specifically addresses the customer’s need for flexibility.

While Ensto has always been a leader in the production of tailored enclosures, it wasn’t until three years ago it began producing enclosures suitable for ATEX environments. ATEX gets its name from the French directive title, Appareils

destinés à être utilisés en ATmosphères EXplosibles. According to Tuomas Mäkelä, Business Analyst with Ensto Industrial Solutions, it’s not hard to make a box, but it is exceedingly difficult to manufacture one which can get ATEX approval and still be a tailored solution.

ATEX markets include industries where there is risk of electrical components igniting an explosion. Sawmill, biochemical plants and even bakeries all produce highly flammable dust, but the oil and gas industry is the bigger market since every flammable liquid gives off a vapor.

Ensto’s Cubo X (the “X” stands for “explosive” or “extreme”) is designed for just such markets. But what is innovative about Cubo X is its “free dimensioning” and sizing options platform which enables the need-based customization for consumers.

“The market,” says Mäkelä, “is dominated by small- and large manufacturers who have been milking clients for a long time with their standard boxes. Many only offer one product, and everyone is used to buying it.” It’s an understatement to say that Cubo X has remedied the market

let customers tell us “ We their needs, and this products answers those. ” 23

Kimmo Meriluoto, Director of Product Development for Ensto Industrial Solutions

situation: its 48 platforms offer 12,000 different possibilities for clients.

Cubo X not only offers customization in terms of dimensions and structure: boxes may also be ordered with a coatedpaint option and in polished or rough form. The choice may not sound like a big deal, but it significant for clients who had become used to accepting whatever the box-makers gave them.

“Ensto’s advantage is that we’re not small, but we’re not a huge company, either,” says Meriluoto. “Being mid-sized makes us far more flexible than the big multinationals.” Ensto is confident Cubo X, when it comes to market in summer 2011, will have appeal internationally, including clients in the US, Norway, Russia, and the UK. And this flexibility plays well into Ensto’s long-term vision for energy and the way we live. “Sure, we hope to sell to the oil and gas industry,” says Mäkelä.

“But oil and gas can only last so long.”

The future is in renewable energy and, smiles Mäkelä, “anywhere they’re making energy from waste material there is a lot of gas generated which means a lot of need for Cubo X.”

THE

FAST THE

EASY THE

STRONG

The fast, the easy, the strong. There’s little coincidence Ensto’s new promotional video for the SLIW 50 connector bears something in common with Sergio Leone’s 1966 western, “The Good, the Bad, and the Ugly.” Like the Clint Eastwood character (the Good), Ensto’s lineman is present – backed by Morricone-style music and the sound of a bullwhip – to steal the show and make off with the gold.

the SLIW family name, SLIW 50 products bring new simplicity, robustness and ease of installation to the field of connectors.

Although Ensto has manufactured overhead line connectors for years under

SLIW 50 innovations include blue-toblack connection for dim light conditions,

“Connectors are a small part – three to four percent – of the total investment in a line,” says Markku Wederhorn, President of Ensto Utility Networks, “but they’re of crucial importance to the reliability of the line and thus to the distribution of electricity.”

very few parts ensuring robustness and consistent performance from connector to connector, and dry teeth which use no grease. Grease makes installation quite messy, and it may also later degrade, causing line performance to suffer.

SLIW 50 connectors not only surpass the most stringent European requirements, but their performance matches the lifetime of the aerial bundled cable.

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Estonia’s Japanese-Finnish Alliance 26

S

eiri, Seiton, Seiso, Seiketsu, Shitsuke. Memorize these five Japanese words to astound your friends at cocktail parties. Of course, if your friends don’t work in manufacturing, they may think you’ve lost your mind.

Transliterated into English, these Japanese terms mean Sort, Straighten, Shine, Standardize, and Sustain, and they are the basic principles of the 5S systematic method for organizing workplaces. Why is this important to Ensto? Because whether in Japanese or English, the end result means efficiency, improved productivity, and an amazing result of cutting a customer’s lead-time by half.

It Begins with the Boss First, you start with the boss’ desk.

Peeter Mõrd, the director of Ensto’s Tallinn injection moulding plant, points to a photograph on his wall.

It’s a picture of a desk – his desk – and how it should look to meet the fourth S, Standardize. The photo permits him a computer screen, keyboard, wireless mouse, mobile phone, and four stacked plastic trays for papers. The desk’s black top is so polished that when Mõrd stands behind it you can see his reflection. If there were a water supply, he could use the desk as a shaving mirror.

“This is how I finish my day,” says Mõrd, gesturing to his desk in perfect order.

“When we started the 5S process, I was the first to take part. I then brought in guys from the factory floor and showed them the photograph and my desk. It wouldn’t have worked if I’d just gone to the factory floor and presented them a photograph and told them ‘Organize your workstation like this.’”

When Mõrd did present his workers with photos and diagrams of how every single item should be organized across the entire factory floor, he told them they would be audited. But the audits would be cross audits: line workers would come to his office and audit his workstation, as well.

In addition to getting workers to take ownership of the production process, the 5S process is the first step in a series of efforts to cutting the factory’s lead times in half. Yes, in half. And across all Ensto factories.

Case in Point On the factory floor, Mõrd picks up the injection-moulded box which will house an inverter control unit for a client in the solar industry in Italy. “This is the most complicated product we make,” he

says. For that reason, this is one of the products whose process his team has paid special attention to in an effort to cut its lead-time to half.

“Now, when a customer places a standard order we can supply it in five days. We’re going to reduce that to twoand-a-half days,” says Mõrd. A custom order, like the one in his hand, generally has a lead time of three to four weeks.

“We’re going to halve that, too.” And this dramatic reduction comes with an additional catch: the plant’s delivery performance for the 2,600 different products it manufactures must remain at 98 percent.

Lean and Mean But 5S is only the first step. Ensto’s Operational Excellence program also calls for Lean manufacturing, a practice which emphasizes the creation of value, considering the expenditure of resources toward any other means to be wasteful. Under the Lean practice, “value” means anything a customer would be willing to pay for.

Lean, also a philosophy derived from Japan’s Toyota Production System, is the second in a series of measures which will cut lead-times. Also in this line up are value-stream mapping, SMED (Single Minute Exchange of Die), and a lot of hard work from every single one of Ensto’s team of 130 in the Lasnamäe plant.

Ensto’s Victory Alliance Put all these processes together and it can seem as if Japan has allied with Finland on Estonian soil for a manufacturing victory over China.

Mõrd says China’s cheap labor is a competitive advantage, but their sixweek delivery time to Europe works against them. “Currently,”” he says, we

offer the product in four weeks, but in the future we’ll offer it in two. China can’t compete with us. This gives us a huge advantage over competitors, especially when running low volumes for custom orders.”

Ultimately, programs like these will allow Ensto to free up cash by cutting stocks in half, free up space on the factory floor, clients will get their products faster, and everyone will live happily ever after.

The “happily ever after” part is still a goal, however, as Mõrd says there is room for improvement. Ensto’s team in Lasnamäe has occupied this factory for only eight months, starting from scratch with new people and new machinery. “In the beginning,” says Mõrd, “our delivery performance ran at 74 percent. This March we are running at 99 percent.”

Surgically Clean?

What a visitor to the factory is struck by, even though Mõrd still finds many things out of place, is the order in the factory. Every screwdriver and wrench is in its proper position in its proper drawer. Even the machine shop appears clean enough one might use the room to perform surgery — there is no grease even on the white wheels of the moveable carts.

So much order and potential efficiency makes one wonder if personal lives could be organized along the principles of this Ensto factory. What might be the benefits? A visiting journalists asks Peeter Mõrd if he has tried to apply the 5S principles at home.

Mõrd smiles when he admits that he has indeed raised the subject of 5S with his wife. “She told me to first get my garage in order, and then we’d talk about the rest of the house.”

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Exceeding All Expectations 2010 Finance

Turnover and Operating Profit 2008–2010, M€

Turnover

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12 months NOVEXIA included = 240 M€

Operating Profit

“ Despite modest forecasts for 2010, the year proved to offer pleasant surprises on many fronts.

”

Chief Financial Officer Marjut Haverinen

Turnover by Market Area Totally 240 M€

Finland, 26 % Other Nordic Countries, 21 % Other EU Countries, 37 % Russia and CIS, 12 % Others, 5 %

Turnover by SBU Totally 240 M€

Both turnover and operating profit were better than expected. Taking into account the acquisition of Novexia in the fourth quarter of 2010, Ensto Group delivered 215 million euros in turnover, of which Novexia’s turnover was 7.9 million. Turnover grew 18 percent when adjusted for comparable figures. Operating profit was 13.8 million euros compared to the previous year’s 4.7 million.

We did what we had to do in 2009,” says Ensto Group Chief Financial Officer Marjut Haverinen, and 2010 was a time for tough decisions made earlier to begin to pay off.

In May 2010, the production of plastic enclosures was moved from Finland to Estonia with the belief that a period of low demand would ease the transfer process.

“But demand was higher than expected already in the beginning of 2010,” says Haverinen.

In Russia, turnover exceeded the previous year’s outcome by 50 percent.

Ensto Industrial Solutions, 14 % Ensto Building Technology, 38 % Ensto Utility Network, 48 %

Ensto Utility Networks’ 2009 investment in India in assembly, warehouse, and product development also came on line as a full-scope operation in 2010, and investments continue in people and processes in that market. The outlook for Ensto is bright as India continues to develop its infrastructure.

The Novexia acquisition in France was completed in 2010, and integration into Ensto is currently underway in 2011.

Personnel in 20 Countries

Despite international focus, attention was still paid at home in Finland with a heat shrink investment exceeding two million euros in the Porvoo plant.

Totally 1600

Finland, 37 %

Russia, 5 %

On a company-wide basis, investment exceeded depreciation in both 2010 and 2009, confirmation that “Saves Your Energy” is not an idle promise, but a company-wide commitment backed by actions.

Spain, 3 %

Estonia, 30 % France, 14 %

Others, 11 %

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“In the 1990s, in the middle of the Russian winter, green grass would grow above the entire length of a heating pipeline with all other ground covered in deep white snow,” says Erkki Anttila, director of Ensto Russia, about colorful contradictions in the country he’s called home for 22 years.

“But of course Russians are no fools, and there was a historical reason for that grass,” he says. “The Soviet Union was one big manufacturing plant designed to prepare for the great war that never came. The cost of energy was not important, and heat was simply a byproduct of electricity production needed to power factories.”

Green grass in winter, though it no longer exists in most parts of Russia, still epitomizes the reason why Russia’s energy intensity — units of energy per unit of GDP — far exceeds the west.

According to EBRD data, Russia uses more than seven times as much energy per unit of GDP than the Western European average. “For decades, Russia has spent so much energy without having any notion of it,” says Anttila.

Russia’s climactic conditions offer a partial explanation for the high figures, and Russia also has a large share of energy intensive industries. But Russia also has a large share of outdated energy technology, and wastage in public sector buildings and in housing is significant.

Land of Opportunity Russia’s staggering potential for Ensto

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And an even more ominous statistic: A United Nations report has warned that Russia will exhaust its oil reserves in under 22 years.

A wake-up call Russia’s leadership is fully aware that waste cannot continue indefinitely. In November 2009, Federal Law Number 261-FZ was enacted with the goal of enhancing the state’s ability to support and regulate energy efficiency. The law calls for savings through shifting to modern technologies and requiring consumers to pay for the energy they use.

Russia Honors Ensto Despite Russian consumers’ lack of knowledge about high-tech solutions, the Russians state is fully aware. In 2010, Ensto received the Save Energy award, Russia’s national award for the most notable achievements in the field of energy efficiency. Ensto won first prize for building electrification in the category of Energyefficient City.

In October 2010, Russia’s government approved an Energy Efficiency Program lasting through 2020 with the allocation of 9.5 trillion rubles (240 billion euros) for energy saving programs.

According to Anttila, the law and its enforcement are taken seriously in Russia. “The leadership has taken action, but it’s up to the municipalities to see it through.” Anttila says municipal structures are held accountable on a quarterly basis, which is causing real change. “The law is working,” he says. “And so is the follow-up by the authorities. We have to believe it will bring us good business opportunities.”

Enter Ensto Wherever there is great waste there is also great potential for savings.

“As early as 2006 we understood locally that our building heating technology products’ competitiveness was excellent,” says Anttila. “But there simply weren’t enough convector heaters to enter the right sales channels.”

Ensto’s market share tells the story best: In 2007, its share in convection was four percent; it is currently between 16 and 20 percent. And in terms of market growth, Ensto’s Building Technology business unit’s growth was 40 percent between 2009 and 2010.

Ensto Utility Networks business unit’s success story has been different. “The

demand for new technical solutions started forming around 2002,” says Anttila. “Ensto’s reputation in that business segment and with the distributor networks is that of a leading company. Since the beginning, we’ve been positioned in the under-30kV distribution networks, and we’ve been one of the market leaders all the time.”

Ensto Utility Network’s 2010 growth was 60 percent over 2009.

As for the effect Russia’s new law will have on Ensto’s business, Anttila says Russian consumers are first adopting primitive fixes such as new windows and lighting systems. “But the further you go,” he says, “the more you get into high-tech solutions.”

Russia’s male life expectancy at birth is 60 years of age (it’s 73 for females) according to the CIA Factbook. Lung cancer, a leading cause of which is radon gas, is highly prevalent in Russia.

“Just the filtering of air,” says Anttila, “will have a huge impact on Russian health.”

As information and affordable solutions become more available in Russia, there is no doubt Russian consumers will take advantage. “It hasn’t yet been studied how fast we could implement our technology of renovation in Russia,” says Anttila, “but I have huge hopes for that.”

And there is even more potential in new construction. “Changes are simpler to implement in new construction,”

says Anttila. “The knowledge of these high-tech solutions of heat recovery and our hybrid house concept are really interesting because it truly means a better quality of life.”

Capitalizing on growth The Russian way of thinking, says Anttila, calls for a different approach to business than what is generally found in northern Europe. “The market situation here is totally different from Scandinavia. Russians have no respect for the status quo.”

Anttila sees Russia as the land of opportunity and is enthusiastic about Ensto capitalizing on current conditions. “Ensto’s ‘Saves Your Energy’ strategy was right to the point, a ray of light, even brilliant. This is very interesting for Russia and their need is enormous.”

Due to the 2008 crisis, land prices in Russia are now extremely low, ideal for greenfield investment. “Growth expectations for infrastructure investments are huge here,” he says, “and there’s good potential for profit.”

Anttila’s envisions a plot with infrastructure to set up base production. “Produce metal components using local steel and aluminum alloys to get a financial advantage. Then we can say really, truly ‘Made in Russia.’”

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Ensio Miettinen A Life of Trust Capital

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“Open a hotdog stand if you have to, but don’t work for someone else,” Ensio Miettinen liked to recall these words of his entrepreneur father. He took that advice and worked briefly for his father before striking out on his own.

In 1958, he formed Insinööritoimisto Ensio Miettinen which lathed small metal parts. In the 1970s, he expanded the firm’s product portfolio, and in the 1980s he went international. This year, the firm he created employs sixteenhundred people in twenty different countries.

The Next Generation

Ensio knew tough times as well as success. In 1938, at the age of nine, he was evacuated from Vyborg when the war broke out. In 1975, he carried Ensto through its most severe recession crisis noting, “I stopped being an engineer and focused on the electronics of souls.” He said he was only half kidding.

Ensio Miettinen’s grandchildren are united by more than blood: at an early age, they have all held jobs at Ensto.

“When I was 15, I assembled boxes,” says Samu Raitavuo, now 22 and studying marketing at university. “For two summers I drove a forklift in a factory, and my last job was a fourmonth work placement at Ensto’s Stockholm office.”

He published Muutostekijä (The Change Factor) with philosopher Esa Saarinen, a work which emphasized the human being in working life. He would publish two more books, full of candid observations which would significantly impact Finnish corporate culture.

Samu’s brother, Lari, now 17, packaged Beta convector heaters on an assembly line before a summer in the marketing department. Their cousin Anna Miettinen, 29, first worked in quality control, examining thousands of pressed plastic pieces to ensure each was complete.

Anna, educated as an engineer and currently working in HR, is the only grandchild who is currently a full-time Ensto employee. But they all agree their Ensto jobs as teenagers offered the only way to truly understand the Ensto culture and way of doing things.

Until the end of his life he spoke of “trust capital,” noting his belief that people cannot be changed. “You can only till the soil,” he wrote, “and trust will either flourish or wither.”

At Ensio’s funeral, Esa Saarinen spoke of his friend’s uncompromising nature, his crusade against artificiality and pitiless attack on hypocrisy. He spoke of the wide swath cut by Ensio’s mind and the tip of his spear which straightened serpentine roads.

These may not be words one often hears when describing an electrical engineer. But of course Ensio Miettinen was so much more.

photo oskar lindell

Ensio Miettinen 1929–2010

“In the 1970s, in other factories there were typically two different dining halls, one for employees and one for management,” says Anna. “But from the very beginning my grandfather had one dining hall at the Porvoo factory where everyone ate. I think this really epitomizes the Ensto spirit: it shows we don’t value one job over another.”

And as testament to the significance of the dining hall in Ensto’s culture, Anna

points out that her grandfather’s funeral reception was held there. “It was a place that was special to him.”

Another part of the Ensto culture ingrained in the grandchildren is what Ensio Miettinen liked to call “trust capital,” which for the grandchildren meant that there would be no free rides. If they wanted a career at Ensto, they would have to start at the bottom. “Trust is capital that you can’t buy,” says Anna. “It must be earned, and it comes over time.”

“You need to be humble before people who’ve been here 20 years,” adds Samu.

“You have to listen. Only then do you have a chance of earning trust.”

Not every grandchild will make a career at Ensto, of course. Many will go their own way. Lari is preparing for a stint in the Finnish military, but after that wants to emulate his grandfather’s success. “My dream is to be an entrepreneur. I want to achieve similar goals and be just as innovative.”

Wherever they work or go, “the cousins,” as they refer to themselves, understand the responsibility and challenges of trying to reach a consensus.

“We are nine,” says Anna, “and we are all different people. We can disagree, but in the end we all come together.”

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