EXECUTIVE INSIGHT LEADING THE PROFESSIONAL CHARGE
FALL 2023
ISSUE 53
First Choice
Iceland
in
HD HAS BECOME A MAJOR PROVIDER OF A COMPREHENSIVE RANGE OF ENGINEERING SERVICES TO INDUSTRIAL AND MARITIME COMPANIES IN ICELAND.
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First Choice in
Iceland After the merger of several companies, HD has become a major provider of a comprehensive range of engineering services to industrial and maritime companies in Iceland, providing its customers with peace of mind in terms of securing a smooth and reliable operation.
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ounded in 1998 as Hamar, the company’s initial focus was to provide general maintenance services for companies in the heavy and maritime industries. Five years ago, SÍA III, a fund operated by independent financial group Stefnir, joined the company as a new ballast investor, marking an important milestone in the business’s development.
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Íslensk verkmiðlun For the past 10 years, Íslensk verkmiðlun ehf. has been the one-stop shop for all the recruitment needs of contractors doing business in Iceland. The Iceland-based company has offices in Norway, Poland, Lithuania, and Latvia, which allows it to tap into a huge pool of qualified skilled and unskilled laborers that are willing to travel for assignments all over Europe. During its time of operation, Íslensk verkmiðlun has been involved with numerous undertakings in Iceland – ranging from the construction of a hydro/geothermal power plant in Þeistareikir, to turbine related projects for HD. The foundations of Íslensk verkmiðlun were constructed during a time of extreme economic hard-
ship in Iceland. In 2008, when the subprime mortgage crisis rocked the financial world. But every cloud has a silver lining. The devaluation of the Icelandic krona led to a dramatic increase in tourism in Iceland, that in return strengthened the economy and the construction business went into overdrive. Consequently, construction and production companies found it hard or impossible to hire local talent. It was at this point that Íslensk verkmiðlun was founded, drawing upon years of experience from its owners in the construction market, a strong international network of professionals, and a desire to always do better and go the extra mile for its clients.
The new shareholder’s vision was to acquire more companies to be consolidated under a single hat, which would permit a raising of technical standards – as a result, a strong business emerged that started to operate under the name of HD. HD today offers a wide range of products and services including technical condition analysis of machines and continuous monitoring of hardware, design, production and service of pump and piping systems, maintenance of natural steam turbines and generators of power plants, as well as importing mechanical
PROVIDING RECRUITMENT SERVICES THROUGHOUT EUROPE Offices in Iceland - Norway - Poland - Latvia - Lithuania
ISVERK.IS
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Since 2017, we have bought four companies with the idea that a combined capability would provide services to all of Iceland’s basic industries
and technical equipment, installations and the procurement of spare parts. “Since 2017, we have bought four companies with the idea that a combined capability would provide services to all of Iceland’s basic industries,” says HD CEO Árni Rafn Gíslason, explaining that now the company has five facilities across the country with number six under construction, ready to start operations in the autumn. Each facility has a particular specialisation within the service offering. The com-
pany strives to apply the latest technology available, such as 3D scanning for condition analysis and redesigning machinery, specialised software for processing and storing data, high-tech equipment for crack inspection and vibration recording for equipment in operation. It also has a special metal scanner used for chemical analysis and to help to choose the right materials and welding processes. In addition, the company has CNC design and production equipment for cutting, metal turn5
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HD Technical Services, Your Industrial Maintenance Partner HD is one of the leading industrial and technical services providers in Iceland with over 230 employees and our mission is to provide our customers with quality personalized services and reliable solutions. Our core values are safety, honesty, superior customer service attitude and professionalism promoted through a culture of continuous improvement. HD’s services comprise of technical design and consultation, fabrication, instalment as well as preventive maintenance by condition- and continues monitoring of mechanical equipment. Our condition monitoring department makes every effort to insure a smooth and effortless production. HD has fabricated and installed a one-of-a-kind steam separator for HS Orka’s geothermal power plant, Reykjanesvirkjun, supporting HS Orka’s sustainable energy production in the highly challeng-
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ing environment of the Reykjanes peninsula. HD offers customizable services for setup, operations, and maintenance for various factories in environmental industries. With years of experience, innovative technologies and state of the art solutions, our goal is preventing all unnecessary production stops. HD offers repairs and maintenance services for geothermal steam turbine rotors and diaphragms. We also provide an overhaul of geothermal electrical generators. In our workshop we have set up an innovative overhaul shop with capabilities ranging from minor repairs and rotor balancing to complex repairs and full overhauls. The rotor overhauls are performed with automatic welding and machining, along with post weld heat treatments and re-blading of the rotors, returning the equipment to a likenew condition, prolonging service life whilst maintaining high quality and standards.
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ing and milling materials, which delivers maximum accuracy in the repairs and production of machine parts. Sought-after workplace “The aim of the latest development was to create a company providing a comprehensive service to the metals industry - the wide range of offering is our differentiator. Today, HD serves all sectors of the economy: fishing, fish processing, aquaculture, heavy industry, green energy production and carbon capture and disposal. Good service is a hallmark of HD,” says Árni. “We want to give customers peace of mind. It doesn’t matter how big the project is. Customers should be able to come to us and the answer should always be ‘We will resolve the issue, you don’t need to worry any further’.” He points out that such a broad scope ensures an even revenue stream with diminished risks – a downturn in one sector is balanced by an upturn in others. “By diversifying the capability, we have managed to maintain an even cash flow, meaning that today HD is financially strong and stable, with a forecasted turnover of € 41 million for 2023. This stability is a solid 7
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I need to motivate my team members to do great work foundation for further growth.” HD is not only a leading industrial service company in Iceland that has established a strong position within all of the nation’s basic industries; it is also a sought-after workplace for well-educated experts and craftsmen. “Today we have well over 200 employees and the most important part of my role as a CEO is that of a motivator, communicator, and uniter,” reflects Árni. “I need to motivate my team members to do great work; clearly and consistently communicate expectations and the organisation’s cultural norms to them; and unite them with a shared sense of purpose to achieve the vision that has been laid out to all employees. We have a very flat structure in HD and all communication channels are very short. I have a lot of contact with most of the employees and they have good access to me.” Trust and honesty The company is set to further reinforce 8
its position in Iceland. Last year HD started with the innovation of one of its facilities serving the green energy and environmental industries, with a focus on rebuilding steam turbine rotors. “This was a considerable investment that has been extremely successful, and the service is now fully booked until 2025,” says Árni. “As I mentioned before, we are also building a sixth establishment in the vicinity of one of the Rio Tinto aluminium smelters in Iceland, where we have high hopes of being able to further improve our service to that particular customer.” He affirms that HD is working towards sustainability and monitors consumption of water, oil and electricity as well as staff travel, and aims to decrease the CO2 emissions from its operations. “Project management takes sustainability into account in all decision-making regarding the selection of sub-contractors,
materials and equipment. We have a code of conduct in place for all subcontractors, reflecting the UN Global Compact principles.” Speaking about business relationships, he points out that almost all of HD’s operations are based on longterm partnerships with customers and suppliers. “In these relationships, we don’t think about quick profits, but about building a relationship based on trust and honesty. We define ourselves as a service company and put a lot of effort into working according to our values ‘Safety – Honesty – Service and Professionalism’. As such, our client base includes most of the major players in Icelandic industry.” Focus on internal growth Following the consolidation of the business over the last two years, HD’s focus today is on internal growth and further service improvement, in line with both customers’ and employees’ interests and expectations. “We have started to imple-
ment a CRM system, and are set to analyse the level of our customers’ satisfaction. We also have regular job satisfaction surveys among employees to find out where we can further improve internally. Last year, we experienced strong internal growth that now continues – this year to-date HD has grown internally by 20%.” Although HD is the largest service company in Iceland in the metal and machine industry with a substantial market share, it has not been spared the challenge of labour shortages. “Iceland has a very tight labour market with a lot of competition for human resources, so ensuring a good working environment has been one of our priorities.” An enjoyable workplace and interesting projects will surely be a sound basis for ensuring sufficient human capacity to proceed towards HD’s goal – to be the first choice of customers as a nationwide service provider in hardware, technical services and steel fabrication.
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EXECUTIVE INSIGHT LEADING THE PROFESSIONAL CHARGE
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