Global valve specialists Vexve

GLOBAL VALVE SPECIALISTS

Vexve Oy is one of the world’s leading suppliers of high quality ball and butterfly valves specifically developed for the most demanding district heating and cooling applications. Last year the company was acquired by DevCo Partners. Romana Moares spoke to Mr Otto Kukkonen, the company’s CEO and founding partner in DevCo, about the plans to accelerate Vexve’s growth and expand to new sectors.

Based in Sastamala, Finland, Vexve is one of the world’s leading manufacturers of high quality valves specifically developed for district heating and cooling applications. The company’s products help secure heating and comfort for hundreds of millions of homes worldwide. The company was founded in 1960 and its products, manufactured in its two operational facilities in Sastamala and Laitila, are exported annually to over 30 countries. Vexve is known for high-quality products, rapid delivery and superior customer service as well as its expertise in energy and environment.

In the last few years the company experienced significant changes. In 2014, Vexve acquired Naval Oy from the American group Flowserve. The merger of these two successful valve suppliers created a leader in the market place and strengthened position worldwide. In June last year (2016) the company was acquired by DevCo Partners, a Finnish investment company supporting medium-sized Nordic businesses with considerable growth potential.

“The aim is to grow and become a significantly larger player, not only in the district energy sector, but also potentially other segments too. To support this development, we are ready to invest substantial amount of capital both organically and inorganically,” says Otto Kukkonen, adding that the company will draw on its network of industry experts to achieve this expansion.

Vexve, employing about 160 people, currently runs three plants in Finland as well as two service centres in St. Petersburg and Beijing. “We are just opening a new facility in Beijing which is significantly larger. In the future, some manufacturing may also take place in Russia and China, but the bulk will remain in Finland, where we have highly automated operations – the only way to ensure the highest possible quality in large volumes. And quality has been one of the keys to Vexve’s global success,” says Mr Kukkonen.

Comprehensive offering

Vexve’s products are sold under three brands – Vexve, Naval and Hydrox – which together create an unparalleled comprehensive offering. The company is a leading manufacturer of valves for district heating applications, designed to deliver the highest possible energy effi-

ciency and cost-effectiveness throughout the entire heating network. The complete product range covers everything from ball and butterfly valves to manual gears as well as electric and hydraulic actuators, plus customised special solutions such as stem extensions.

“While in the past the company acquired its reputation with its highly efficient valves, in the future we want to develop our name as a complete solution provider,” says Mr Kukkonen. “Solutions of the highest quality that are maintenance free, for more demanding and more sophisticated applications.”

This path has been supported by the launch of HydroX™, hydraulic control solutions that operate safely and reliably in the most demanding conditions. The Hydrox actuator can be controlled remotely and currently represents one of the most advanced products in its category in the market. “Hydrox has been a great success and the demand is increasing all over the world, as it helps clients run their network more efficiently in a safe way in the most demanding environments,” Otto Kukkonen remarks.

Focus on innovation

Vexve is determined to stay ahead in terms of technology advancement – product development is usually a joint effort together with major customers in Europe as well as further afield. Mr Kukkonen explains that Vexve agreed a number of technology partnerships with major end customers, in order for the products to precisely match the needs of customers and enable Vexve to develop the most competitive offering in the market. The company also collaborates closely with local universities. “Each year we have around 50 students to do internships with us, to get experience and to introduce them to the technical work environment. We have invested significantly in machines installed at universities so that students can obtain a direct technical training in their own facilities. We believe this investment is beneficial for both the community and for our company,” say the CEO.

Product development will remain at the forefront in the years to come, with focus on more intelligent solutions. “The energy infrastructure sector is changing very rapidly. Energy companies need to be competitive, they need to make their networks more efficient, to be able to measure what is happening in the pipes, in the flow and make the system more dynamic,” Mr Kukkonen points out.

The most recent product that Vexve added to its innovative portfolio is a plastic, sturdy, weather-proof man chamber, enabling quick and safe access to the valve and actuator located underground. “This solution is transformational, truly ground-breaking in our industry – normally, the chambers are made of concrete, which is expensive, heavy, and takes a long time to build. In collaboration with our end customer we have come up with a plastic chamber solution enabling easy and safe access to the valve with hydraulic actuator, which may be controlled via a mobile phone. The whole installation takes just a couple of hours and is extremely cost-efficient and maintenance free. The product has just been launched and I am looking forward to a number of installations taking place already this year,” says the CEO.

Transformational future

Vexve’s key markets are Europe, Russia and China, with Middle East developing fast. The management plans to invest significantly in its offices in St Petersburg and Beijing to provide an even better service to customers and tailor the product offering to match their needs, with a view to expand in those markets. “We have the resources to invest heavily in the company’s long-term growth and we are going to do

it,” confirms Mr Kukkonen, stressing that Vexve will strive to utilise the opportunity to become an undisputed champion in its sector. This is to be achieved by focusing on smarter products, developed in partnerships with customers.

“I want to present this as a challenge, as an open invitation to our partners around the world – we really are ready to invest in product development together with our end customers to come up with pioneering solutions. Our comprehensive offering consisting of the valve, actuator and plastic chamber – totally safe and maintenance-free – is a good example of what is achievable,” he says. “The future of district energy will be very different from today. We operate in a transforming sector and I would like to invite energy companies to participate with us in this exciting development.”

Mr Kukkonen admits that although he has been involved in Vexve for just a year, the progress has been remarkable. “It has been fascinating to see how a company like Vexve is gaining importance and attention from the traditional energy giants. Our end customers are willing to listen to us, because they know we can develop products that will make a significant difference to them going forward,” he concludes. n