A logger’s best friend Ponsse

A LOGGER’S BEST FRIEND

Ponsse Oyj, based in Vieremä in Finland, is the parent company of the Ponsse Group, a global specialist in cut-to-length (CTL) forestry machinery, mainly harvesters, used for cutting wood in forests, and forwarders – means of taking the wood to the roads. Other products include cranes and loaders and a range of auxiliary solutions used in the forestry industry, among them harvester heads. Piotr Sadowski reports.

Ponsse’s main market is Scandinavia (with Sweden being the world’s largest CTL market), which generates around 50 per cent of the annual turnover. “Here we focus on primary sales of machinery, as well as second-hand sales, in addition to offering a full range of post-sales services,” explains Juho Nummela, CEO of Ponsse Oyj. “The rest of the turnover is divided equally across our other markets, the rest of Europe, Russia and South and North America. We are also looking at expanding into other geographical areas, certainly China which has vast eucalyptus plantations and where eight of our machines are already operating. China also uses a lot of wood pulp so the opportunities for growth there are certainly strong, as they are for further expansion in South America and Russia.” Strong group activities

The parent entity in Vieremä was established in 1970 by forest machinery entrepreneur Einari Vidgrén and since then the company has been a pioneer in delivering CTL timber harvesting solutions. Ponsse Oyj (shares quoted on the NASDAQ OMX Nordic List) specialises in all areas of production, assembly, welding and maintenance of CTL machinery, as well as sales of the solutions. The operations of the mother unit are further strengthened by the other companies in the Group: Ponsse AB in Sweden; Ponsse AS in Norway; Ponssé SAS in France; Ponsse UK Ltd in Great Britain; Ponsse North America, Inc. in the USA; Ponsse Latin America Ltda in Brazil; OOO Ponsse in Russia; Ponsse Asia Pacific Ltd, Hong Kong; Ponsse China Ltd in China; Ponsse Uruguay SA, Uruguay; and Epec Oy in Sejnäjoki in Finland.

Ponsse is investing heavily in production and has managed to cope well with the global economic downturn precisely thanks to delivering unique solutions in CTL forestry technology. “We have really been focusing on delivering tailor-made solutions depending on the market served,” says Mr Nummela. “For example, since 2005 we have been producing specific machinery for South America, including harvester heads for eucalyptus trees for Brazil and Uruguay, but also for China. We also specialise in delivering bioenergy products for the Northern hemisphere which make the harvesting of small pieces of wood flexible and efficient. As such, wood for energy can be harvested simultaneously with indus-

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trial wood, cut separately, or the harvesting equipment can be harnessed solely for the harvesting of industrial wood.”

New solutions

Around 2008 the company witnessed a peak in manufacturing, delivering around 1000 machines per year and hiring a lot of new people which today means that Ponsse has significant space for more production. “In 2009 we were faced with the economic crisis, but we decided to turn it into an opportunity by taking eight-wheel CTL solutions to the market,” says Ponsse’s CEO. “In fact they proved to be some of the bestselling machines in the market. Nowadays we are also focusing a lot on quality issues’ and our overriding strategy is to ensure that we are capable of delivering quick, but high quality, systematic ways for developing new products, tailored to customers’ needs. Thanks to this approach Ponsse enjoys a reputation of being a business fully able to rapidly bring new products to the market.”

A very good example of ensuring the clients get the best solutions possible are Ponsse’s information systems – optimum software solutions for the entire wood procurement chain.

Ponsse designs and manufactures all of the control and measuring systems needed for the wood procurement chain, from stump to plant. OPTI information system products cover wood procurement management systems, forest machinery information systems and transport equipment systems.

In order to promote productive wood harvesting, Ponsse is also investing in the development of effective training technology. “In addition to delivering robust information systems we also focus on constantly strengthening the provision of service and spare parts,” adds Mr Nummela. “We provide services to customers through our subsidiary companies or, wherever necessary, through appointed local providers and dealers. Thanks to providing complete chain solutions we today enjoy a client base which ranges from medium-sized companies, entities established in the forestry industry, to very big companies, for example in South America or Russia.”

Further growth

The development of new solutions tailored to the needs of particular forestry markets is part of Ponsse’s expansion strategy, which focuses on organic growth. It is investing in increasing its production capacity, strengthening all areas of operations, including investment in its service side. “We will continue to ‘stick to our guns’, that is to provide the best solutions to customers,” concludes Mr Nummela. “Ponsse will grow steadily. We will be looking at our profitability and cash flow, which all have to be managed carefully. The key is not to overdo it, but to retain the complete harmony of our business.” n