Business Finland 2/2009 by Perhemediat Oy

2/2009 2/2009

Friitala On Course Towards New Horizons

Knowledge the primary raw material of technology sector companies ramirent – the european rental company providing unique solutions for unmet clinical needs – vivoxid ltd Valmet automotive – the exclusive car manufacturer

high mobility catering systems from teuvan defence

T R O P E R L A I C E P S Y G O L O N H C E DEFENCE T BFKANSI_2009_2.indd 1

23.9.2009 16:59:00

2 / 2009

Editor-in-Chief Jorma Leppäniemi Editorial coordinator Olga Leppäniemi

Editors Inderjit Kaur Khalsa Katja Kangasniemi Sini Pennanen Tage Erikson Language editor Andrew Draper, Nordic International Ltd Design and layout Aivo Blum Saara Kuoppala Sanna Lousaari Marketing Jorma Leppäniemi Tel. +358 9 42821012 Publisher Kustannusosakeyhtiö Perhemediat Oy Purpuripolku 6, 00420 Helsinki Tel. +358 9 42821000 Fax. +358 9 42821030 Printed in Finland by Art-Print Oy, Helsinki

EDITORIAL Knowledge – The Key To Finnish Competitiveness

elcome to the “Defence Technology Special Report 2009” theme issue, published for the second time as a result of positive feedback. It will be handed out at the following trade fairs, for example: * Indesec Expo 2009 in New Delhi on 26-29 October, 2009 Indesec Expo 2009 is India’s only integrated homeland security and defence systems event. It provides an opportunity for Indian and international companies to promote their solutions to both Indian and foreign audiences. Now in its second edition, Indesec is focused on providing solutions to three key areas of defence including homeland and border security, network-centric operations and maritime security. * Defence & Security in Bangkok on 4-7 November, 2009 Defence & Security 2009 is an exhibition offering defence contractors an opportunity to display their latest technology to people who matter. The 2007 issue turned out to be a major world-class event with top International companies taking part. Exhibitors numbered jumped by 25 percent compared to the 2005 show. Over 100 delegations led by the Minister of Defence or their representatives were in attendance. Defence & Security 2009 will be another big leap forward. In addition to reviewing Finnish know-how in the defence Jorma Leppäniemi sector other Finnish success stories, such as Tieto and Editor-in-Chief Ramirent, are featured. There seems to be one word on everybody’s lips: knowledge. Knowledge is key to Finnish competitiveness. We look at a traditional Finnish company, Friitala. It has taken a new course with a new investor on board. We also take a peek at a rather curious Finnish furniture store, Boknäs. We will then get a sneak preview of PulPaper 2010, the most significant international event of the forest industry anywhere in 2010, and Finland’s presence at the Shanghai EXPO 2010. In the next issue we will celebrate the magazine’s 20th anniversary, and share among others the results of a CFO of the Year Competition – read more on the collaboration with Gutta on page 56.

Finland Shares Inspiration At The Shanghai World Expo 2010

Compiled by: Katja Kangasniemi Photos: Finland at the World Expo 2010 in Shanghai, China

Finland will have its own pavilion at the Shanghai World Expo 2010, a fair themed “Better City, Better Life”. Finland’s motto is “sharing inspiration” that stems from different aspects of a better life – well-being, knowledge and environment. We talked to Mikko Puustinen, Deputy Commissioner General and Communications Director of Finland at the Expo.

ccording to its best tradition, Finland plans to build its own EXPO 2010 pavilion, which will accommodate an exhibition, a small restaurant and a shop as well as conference and VIP facilities. Finnish participation will enhance the “Finland Brand”, using the exhibition and different cultural and other events as its tools. A design competition for the pavilion was announced in May 2008. The winning proposal called Kirnu (“Giant’s Kettle”) designed by architect’s office JKMM was published in October 2008. The groundbreaking ceremony was held in April 2009 and the construction will be finished in December 2009. According to its makers the Giant’s Kettle reflects both the latest Finnish cutting-edge technology and the ability for new innovations of the most traditional Finnish industry that is forest industry. One of the elements of the Finnish pavilion is the typical, but unique, Finnish sauna.

The Inspirational Finnish Exhibition and Programme

A group of young entrepreneurs from Helsinki, capital of Finland, and Kuopio, a major city in the eastern part of the country, has been chosen to create the Finnish exhibition design concept. The concepts by Muotohiomo (Helsinki), Fantasiarakenne and Partanen & Lamusuo Partnership (Kuopio) rose to the top at a design competition held recently in Finland. According to the organizers the Finnish exhibition at Expo 2010 aims to share Finnish viewpoints and solutions for a better life – by experiment. It is a strategic choice for Finland to build its society through education, research, innovation and creativity. This in practice is translated into plentiful public and private sector backing of all four elements – education, research, innovation and creativity – and in turn makes it possible to found a society based on knowledge. This is

considered crucial for the survival of this small nation. Prior to EXPO 2010 an extensive Finnish communications programme and a rich cultural programme supported by versatile events will be conducted in China and neighbouring regions. In addition, one whole day will be dedicated to Finland as a part of the colourful expo programme. According to Mikko Puustinen, there is a lot of experience of China and expos in the Finnish team. They also have experience of relevant sectors such as building, exhibition planning, marketing, communications and

cultural production. The team does not operate in a vacuum but rather engages in an active conversation with the owners of the venture, that is the state of Finland and Ministry on Employment and the Economy, that finance three quarters of the exhibition, and partners – the most important of which are Greater Helsinki Promotion, Kone and Nokia, together with various interest groups.

Importance To Finland

“The importance of the expo is especially clear when one thinks of how important a partner China is to Fin-

land. It is not only Finland’s greatest commercial partner in Asia but also the target of over EUR 7 billion worth of investments and the business of over 270 Finnish companies. All in all, China is all the more significant to the world economy and China has also emerged as one of the first or rare bright spots in the midst of the financial crisis the world is tackling. Having said that, China has also been affected by the crisis. Apart from the importance of China it is good to note that this expo will be the biggest ever, in terms of the number of visitors, participating countries

and international organisations. This means that the Shanghai expo will attract a lot of attention in the east-Asia zone, Japan and South Korea,” Mikko Puustinen concludes. www.finlandatexpo2010.fi

“Our ability to compete is directly linked to knowledge: we are export oriented, and if we are not able to develop world-class products at a competitive price, there will be no deals. Thus we constantly need world-class knowledge,” says Dr Martti Mäenpää.

Dr Martti Mäenpää, Head of the Federation of Finnish Technology Industries.

Knowledge The Primary Raw Material of Technology Sector Companies Text: Katja Kangasniemi Photos: Sini Pennanen, iStockphoto, StockExchnge

“O

bserving the global economy, it is evident there has been a cutback in investment. Since we are producers and sellers of investment-intensive products, it all boils down to the demand for our products being low. And it is plausible that this investment slump will continue for a long time, which signifies that demand will remain low. We have to prepare ourselves for the fact that there will be no quick return to the situation of September 2008, when the number of new orders stood at an all-time high. The situation is difficult,” says Dr Mäenpää, giving his analysis of the rather grim state of affairs.

The Grim Truth

According to Dr Mäenpää, during the last quarter of 2008, new orders were down 40 percent compared to the previous year. The first quarter of 2009 was worse still, with a 50 percent fall in orders compared to the same period a year earlier. “The new results published in late June 2009 were pretty much along the same line, with the number of orders being down 40 percent com-

Business Finland met Martti Mäenpää, head of the Federation of Finnish Technology Industries, in 2006. He expressed a need for a Finnish innovation university, to “make the grade in the global competition”. At the time, the economy was blooming; now we have the Aalto University, but the economy is at a standstill – luckily in this order.

pared to the same period last year,” he confirms. Dr Mäenpää continues by indicating that the declining number of orders has led to a three percent reduction in personnel, which equates to around 10,000 job losses in Finland. This is, however, not the whole picture, as 55,000 people of the 266,000 employed by the Finnish technology industries are affected by lay-offs. All this signifies that the turnover at the end of this year will be significantly

less, which will in time be reflected in more redundancies and lay-offs during the last quarter of the year. Although some see signs of the economy picking up, it is not yet visible in the Finnish technology industries. Of course there are companies in Finland that are doing well, and the IT sector has not yet been significantly affected, possibly due to its service nature: it serves local markets, mainly on longterm maintenance deals, and exports are small. 7

What’s New?

Looking back, after the Second World War and the economic slump of the 90s Finland has always regained its economic stability rather quickly. “There were always ways to work things out. Now it is more difficult to forecast the situation, mainly for two reasons. On the one hand, the slump is global, whereas the 90s slump was more to do with domestic issues – we simply needed to start doing things better. Today, if Germany, Finland’s number one trade partner, does not invest, they will not be demanding products, even if we bend over backwards for them,” says Dr Mäenpää. “The other factor is that since we belong to the euro, we cannot devalue our currency. Furthermore, with the euro being strong at the moment, it weakens our possibilities towards Sweden, for example,” he points out. “In my opinion, the economy will not pick up before 2011–2012. If demand should suddenly pick up, it will take time before the production facilities can be brought back up from reduced to full capacity. Only then will new investment begin,” predicts Dr Mäenpää.

Dr Martti Mäenpää

Making Waves with Aalto University

During the past few years the Federation of Finnish Technology Industries has invested EUR 160 million in Finnish knowledge – not in sector companies, but rather in schools, polytechnics, universities and research institutions. “Our ability to compete is directly linked to knowledge: we are export oriented, and if we are not able to develop world-class products and services at a competitive price, there will be no deals. Thus we constantly need world-class knowledge. The other thing is the patriotic side. Of course, the bigger companies could at any time buy knowledge from anywhere in the world, but here at the federation we have a patriotic spirit.

We want to do everything in our power to ensure that Finland remains competitive,” stresses Dr Mäenpää. As well as planning the brand new Aalto University together with the Ministry of Education and the universities concerned, The Federation of Finnish Technology Industries has also invested EUR 80 million in the Aalto University fund and EUR 28 million in the Tampere University of Technology fund. “We are very content with the way the Aalto University has started out. It has a lot of potential in terms of gen-

The Federation of Finnish Technology Industries represents the most important industrial sector in Finland, accounting for: • 60 percent of total Finnish exports • 75 percent of total Finnish R&D investments The technology industries directly employ 266,000 people in Finland and about 700,000 people indirectly, i.e. a quarter of the total Finnish workforce. The federation is divided into four separate branches: • Mechanical engineering • Metals industry • Electronics & Electrotechnical industry • Information technology The federation comprises 1,500 member organisations, of which Nokia is the biggest. Member companies include large Finnish mechanical engineering companies such as Metso, Wärtsilä and Konecranes, metal industry companies such as Outokumpu, Rautaruukki and Boliden, and world-renowned IT companies such as Tieto and F-Secure. Member companies have expanded abroad in particular, more specifically in rapidly growing economies such as China, Asia in general, Eastern Europe and South America. Today they employ nearly 300,000 people in other countries, which is significantly more than in Finland.

Dr Martti Mäenpää

erating the knowledge that will be required by businesses and the Finnish economy in general in the future. The choices of both dean and university board have been a success, and, despite initial doubts, there is now an almost tangible enthusiasm.” Apart from the changes concerning the funded universities, the Finnish Parliament has ratified a new university decree that will dictate the standing of all universities beginning 1 January 2010. The decree will give Finnish universities the possibility to independently carry out strategic planning and develop their operations.

“Back in 2006, I had already expressed a concern that our universities, that is a number of small universities, were experiencing a certain amount of disintegration. Now the development towards larger and more competitive units and research groups has started, not only at the Aalto University but also at the University of Turku and the University of Eastern Finland. Today the possibilities for the universities to reach their future goals are significantly better than before. There is an opportunity to rise to world-class level within the sectors that are important in Finland. This also signifies that we will be better capa-

ble of entering into strategic cooperation with other world-class universities, which is good. The results are not immediate, of course, but had we waited until now, it would have been rather difficult to launch the new Aalto University,” Dr Mäenpää states. The head of the Federation of Finnish Technology Industries concludes by saying that among the many variables, such as energy prices and logistics, the primary raw material of the technology industries is knowledge, and if, through research and education, good care is taken of this knowledge, future success is possible. www.teknologiateollisuus.fi

Aalto University is a newly created innovation university resulting from the merger of three Finnish universities: the Helsinki School of Economics, the University of Art and Design and the Helsinki University of Technology – all leading and renowned institutions in their respective fields and in their own right. Aalto University will begin operating in January 2010. It will open up a new world of possibilities for multidisciplinary education and research.

Vesa Marttinen, General Manager of Lifecycle Services at STX Finland Cruise Ltd

The Leading Builder and Service Provider For Cruise, Ferry and Ice-Going Fleets

STX Europe, Finland Text: Inderjit Kaur Khalsa Photos: Sini Pennanen, STX

STX

Europe is an international shipbuilding company that aims to be the world’s leading builder of cruise and offshore vessels. The company, owned by the South Korean industrial conglomerate STX Group, has operations in six countries – at 15 shipyards in Finland, France, Norway, Romania, Brazil and Vietnam – and employs approximately 16,000 people. Formerly known as Aker Yards, the company name was changed to STX Europe in November 2008. STX Europe’s main field of busi-

ness in Finland is cruise ship building. In 2006 Royal Caribbean Cruise Line (RCCL) ordered two cruise ships from STX Europe – Oasis of the Seas and Allure of the Seas – which will be the largest cruise ships ever built, at 225,000 GT each. A single ship can accommodate as many as 6,000 guests, has 24 restaurants, 37 bars and a parklike promenade. While sailing in the Caribbean, 2,160 crew members serve the guests. “Oasis of the Seas is in the final stages of preparation at a Turku shipyard, and it will start cruising from Florida in December 2009,” says Vesa Marttinen, General Manager of

Lifecycle Services at STX Finland Cruise Ltd. Marttinen has been in his present role for five years, and has 15 years’ experience in the shipping and shipbuilding field. He has worked as a consultant for shipping companies in Fort Lauderdale, Florida as well as for a shipowner with experience from Europe, the Caribbean and the Far East. STX Europe’s cruise ships and ferries are mainly built in Finland and France, whereas offshore and special vessels are built in Norway and Romania. Offshore vessels operate as supply ships for oilfields.

STX Europe In Finland

Finland is a supplier and builder for the company’s Cruise and Ferry division. “We have 3,800 people working in Turku, Helsinki and Rauma. We handle the whole process of a newbuild, from the initial design through to the finished ship, as well as the further development of existing ships to improve their revenue potential and decrease ship operating costs,” Marttinen says. STX Europe’s lifecycle services specialise in supporting shipowners and ship operators, i.e. businesses that operate ships, but do not necessarily own them. The company is known for its innovative concepts. These lifecycle services are provided in terms of ship operations in order to maximise the client’s commercial business activities. There are several ongoing lifecycle service projects, such as increasing the capacity of a passenger ferry for a Danish operator, an oil spill response vessel for the Finnish Environmental Administration and retrofits for cruise ships in the Caribbean. In Finland, STX Europe also cooperates on technology transfer with Intermarine Shipyard in Italy, where the Finnish Navy’s has ordered three MCMV 2010 vessels. These vessels are intended for mine-prevention operations. “The yard in Italy has extensive know-how in minehunter vessel technology, and we are committed to implementing NATO’s AQAP standards in our own operations,” Marttinen points out. In Finland, STX Europe has a long history of delivering, maintaining and modernising ships for the Finnish Navy.

Present Economic Trends

In five years STX Europe Lifecycle Services has established itself in the Baltic Sea, the Mediterranean and the Caribbean. As well as services seeing a downturn, the impact has been even stronger in the global newbuild market. “The current situation is interesting because never before have there been this many ships under construction at the same time as there being the 14

Oasis of the Seas and Allure of the Seas will be the largest cruise ships ever built, at 225,000 GT each. A single ship can accommodate as many as 6,000 guests, and has 24 restaurants, 37 bars and a park-like promenade.

lowest number of new requests,” says Marttinen. “A year ago we predicted that there would be 10 shipyard facilities in Europe that would end up closing or restructuring their businesses, and that has happened,” he continues. The economic downturn of the last year has had an impact on the shipbuilding business just as it has on other markets in the maritime sector. The cruise industry experienced the same kind of downturn in the autumn of 2001 after American consumer behaviour changed dramatically. “Last time it took a year and a half for the modernisation market to start its recovery and three years for the newbuild market to pick up. It seems that to meet the growing demand for ship maintenance and modernisation, there will need to be 20 additional ship repair facilities by 2012, mainly former newbuild facilities.”

Ecorizon Project

The environmental impact of the marine industry has become a major challenge for shipowners and shipbuilders in recent years. STX Europe is aiming to be the leading company in all areas of shipbuilding, with the environment being one of the top priorities. “We stand out as the leading company in green ship technology,” Marttinen emphasises. The company’s Ecorizon project plays a key role in its environmental strategy. Ecorizon is a strategic environmental plan, based on STX Europe’s latest innovations and continuous research and development. Ecorizon aims to protect water and its ecosystems, preserve the Earth’s natural resources, limit the impact of human activity and puts a strong emphasis on looking to the future. The soon-to-be-ready Oasis of the Seas could be called a prototype luxury cruiser in terms of environmental thinking. STX Europe has taken a comprehensive focus on environmental impact, energy efficiency and reducing the ship’s carbon footprint using the latest commercially available equipment. The ship is equipped with the common rail diesel technology for 16

Ecorizon aims to protect water and its ecosystems, preserve the Earthâ&#x20AC;&#x2122;s natural resources, limit the impact of human activity and puts a strong emphasis on looking to the future.

emission control, and as well as being equipped to use alternative fuels, it is also fitted with integrated waste-handling systems for all waste streams. “The cruise ship is a large enough unit to deal with and reduce CO2 as well as make use of alternative power generation methods such as solar panels and wind power. We are researching and developing these aspects at the moment. Ferries and other local vessels need solutions for sulfate, nitrogen and waste water treatment where we have already developed solutions for the market,” Marttinen says. STX Europe already has four vessels that run on LNG power. These car and passenger ferries are environmentally friendly, with a focus on low emissions.

Long History In Shipbuilding

It is no coincidence that the largest ships in the world are built in Finland. The building, maintaining and modernising of ships has been the country’s international business for over 400 years. Geographically, Finland can be considered an island, and from early on in its history the country had to be ready to travel long distances by ship to import goods. The earlier passenger vessels formed the basis of cruise ship technology know-how. The building and modernisation of modern cruise ships started 40 years ago in Finland, and it has been an important part of Finnish crafting and design ever since. www.stxeurope.com

With Oasis of the Seas, STX Europe has a comprehensive focus on environmental impact, energy efficiency and on reducing the shipâ&#x20AC;&#x2122;s carbon footprint.

Valmet Automotive The Exclusive Car Manufacturer Finland enjoys an excellent reputation for producing some of the fastest men in the world – Kimi Räikkönen, Mika Häkkinen, Markus Grönholm and a number of other world champions in both rally and Formula One racing. What is less well known is that Finland is also home to a car factory that has produced more than one million cars under such quality brands as Saab Convertible, Porsche Boxster/Cayman and Opel Calibra. Today Valmet Automotive is looking to the future with electric cars – a fascinating niche. In this interview President Ilpo Korhonen reveals his vision for Finnish car manufacturing.

Text: Tage Erikson Photos: Sini Pennanen, Valmet

Ilpo Korhonen, President of Valmet Automotive

Valmet Automotive has been able to adapt to changes and challenges in the automotive sector. The company started as a producer of Saab cars for the Finnish domestic market and then added new brands, such as the Talbot 1510 and Horizon, Opel Calibra, Lada EuroSamara and the backbone of the last 10 years, the Porsche Boxster and Cayman, and recently it has been involved in the production of Fisker electric sports cars. What is the present situation â&#x20AC;&#x201C; the manufacturing programme and the schedule for the Fisker range?

The Garia Golf Car has always been designed to meet classic, Scandinavian design standards: Minimalistic. Simple. Unique. Beautiful.

almet Automotive was established in 1968 as a joint venture between Valmet, the Finnish state-owned engineering industry conglomerate, and the well-known Swedish automotive and aircraft manufacturer Saab Scania. Ownership has changed over the years, but in 1992 Valmet acquired all shares. Valmet merged with the privately owned Rauma Oy in 1999, Valmet Automotive is owned by Metso, a Finnish engineering group globally famous for its forest industry, mining and energy industry equipment. The Valmet Automotive plant is located in Uusikaupunki on the west coast of Finland. The reason for establishing a car factory from scratch was to create a new field of business in Finland. The skills of Finnish metal workers and suppliers made the venture a realistic one. In todayâ&#x20AC;&#x2122;s world, every automotive plant has to develop a competitive edge in order to survive. Ilpo Korhonen, President of Valmet Automotive, explains how the Finnish manufacturer is in the process of establishing a new niche in the market. 22

Right now we are working on three very interesting projects: the pre-series production of the Garia golf cars has started. We are making preparations for the Fisker Karma production lines, and we plan to deliver the first cars to Fisker Automotive at the end of this year. And the newest project, the transfer of Norwegian Think production to Valmet Automotive, has just started. The first Think City cars will be manufactured in the fourth quarter of 2009. According to the current agreement with Porsche AG, the production of the Porsche Boxster and Cayman series will continue until 2012.

Valmet Automotive is known in the business as a very flexible and technically progressive manufacturer. What are your (public) â&#x20AC;&#x153;secretsâ&#x20AC;??

Ilpo Korhonen, CEO of Valmet Automotive

Our greatest asset is our experienced and multi-skilled staff. Our people are committed to developing their work and to continuously improving quality and work processes. The experience driven by different customers and different vehicles provides a solid background for new projects. We are looking forward to new challenges and we always aim to achieve the highest degree of customer satisfaction. Garia Golf car

Your co-operation agreement with the Finnish energy giant Fortum to develop better electrically powered driving technology was a hot topic this summer. What are your intentions – to be an independent service provider and consultant, selling know-how to major automotive manufacturers, or do you actually intend to build complete vehicles in Uusikaupunki?

Our target is to create technical solutions that can be included both in the Valmet Automotive’s service offering and that of our partners involved in the project. The door is also open for tasks starting from creation of concept through to manufacturing, but so far no plans or decisions have been made.

Engineering services form a small but obviously important part of your business. How can Valmet Automotive offer such specialised know-how in Finland?

The engineering services are based on our experience of dozens of products and process engineering projects in co-operation with our customers. For example, we have extensive experience in developing convertibles, their roof and body structures and putting new products into production. We have also strengthened our know-how by recruiting experts in electrical vehicles, for example. Networking and our long tradition of co-operation with technical schools are also important.

World’s First Luxury Plug-in Hybrid Electric Vehicle Fisker Karma

THE KARMA TECHNICAL SPECIFICATIONS • Plug-in hybrid technology Q DRIVE • 0-60 in less than 6 seconds (0-100 km/h 6 seconds) • Top speed 125 mph (200 km/h) • Two Driving Modes: The driver will be able to select between two modes of driving. The first mode is Stealth Drive, which is the quiet economy mode for optimal relaxed and efficient driving. By flipping the second paddle behind the steering wheel, the car will switch to Sport Drive, which will access the full power of the vehicle. • Regenerative brakes featured to recapture braking energy • Low center of gravity provides optimal sport vehicle driving dynamics

Think City electric car

With regard to the crisis in the Swedish automotive business, are there any alliances or technical co-operation structures in the sector where Valmet Automotive could be a natural partner? Koenigsegg, for example, has some interesting features in the pipeline.

Valmet Automotive has been networking with many players in the automotive industry, including engineering companies in certain projects, but I am unable to divulge any details. Gluing a Porsche side in the welding workshop.

Fitting a Porsche Cayman roof.

Paint robots

Valmet Automotive is a part of the Metso engineering group. Are there any specific synergy advantages of being part of this group or in terms of your companyâ&#x20AC;&#x2122;s role within Metso?

Metso does not regard automotive as its core business, but the recent agreements and the growing business of electric and green-technology cars fit well with Metsoâ&#x20AC;&#x2122;s ideas of sustainable development. As a global corporation, Metso offers Valmet Automotive a solid background for expanding internationally as well as for new projects.

Porsche Boxter and Porsche Cayman assembly lines.

Factsheet: Valmet Automotive, Uusikaupunki, Finland, www.valmet-automotive.com Owner: Metso Group, www.metso.com Established: 1968, has produced more than 1,000,000 cars Workforce: 783 (31 December 2008) Turnover: EUR 65 million (2008) Production range: Porsche Boxster and Boxster S, Cayman and Cayman S. Future range will include Fisker Karma electric sports cars, Garia golf cars and Think electric cars.

Magnus RosĂŠn, President and CEO of Ramirent

Ramirent, The European Rental Company Text: Katja Kangasniemi Photos: Sini Pennanen, Ramirent

Magnus Rosén, President and CEO of Ramirent Group shares the forwardlooking appetite of his predecessors for developing the European rental business which has turned Ramirent into the second largest equipment rental company in Europe. After a very strong growth period from 2005 to 2008, Ramirent is now readjusting itself to the downturn experienced in the construction sector.

“T

he construction sector is fairly cyclical. Being a rental company, that to some extent cuts the peaks for construction companies’ own need to invest in equipment, we are affected by this cyclicality to a great degree. It is thus important for us to hedge against the cyclical nature of this customer sector. In this sense, it also helps to be present in different markets, for instance it has helped that we are established in central Europe, where the construction activity has not slowed down as dramatically as in the Baltics, and eastern Europe in general,” says Magnus Rosén. So far, Finland and Sweden have been less affected. “In Finland, we have a lot of customers, also outside the construction sector. Shipbuilding, for instance, is a big customer and there are also other manufacturing industries that likewise rent to meet their equipment needs. The Swedish construction industry has so far been less struck by the recent economic developments.” “In the meantime we are readjusting our operations, but the long-term profitable growth strategy remains in place. First of all, we have to stabilise the Baltics by restructuring to reduce our cost base and achieve synergies. We need to come out strong in order to continue our profitable growth strategy. The long-term growth drivers in this industry are still in place. Ramirent will remain an international company in the future and we may well venture onto new markets,” Magnus Rosén continues.

Efficient And Ecological To Use Rentals

The rental business itself is constantly growing, and the construction companies, other industries and municipalities alike are finding that it is more efficient to rent equipment than to buy it. During the recession it is especially evident that companies will want to outsource businesses that are not core. “They are willing to slim their balance sheet and concentrate on what they are best at, not owning and servicing equipment. That is our business,” Magnus Rosé says. Today Ramirent offers the full product range in all countries in which it operates, with the exception of tower cranes that are offered only in Finland and Sweden. Ramirent has eight different product categories mainly oriented towards the building and construction sector, although generators and compressors are also used in other businesses. Similarly, scaffolding is used not only in construction but also at shipyards. “In addition we offer a wide range of access equipment such as scissor lifts and boom lifts, heavy machinery, e.g. smaller excavators and loaders, formworks, and portable spatial units and containers. The local customer centres carry a wide selection of smaller tools.” There are altogether 350 customer centres in countries of operation. There is also an environmental viewpoint that backs up using rentals instead of buying. “We are able to utilize our machines and equipment more efficiently than single users would,” Magnus Rosén points out.

There is also an environmental consideration that supports renting instead of buying. We are able to utilise our machines and equipment more efficiently than single users would.”

Ramirent in a nutshell: •

Founded in 1955, initially as a steel nail shop

•

Listed on the Finnish stock exchange (NASDAQ OMX Helsinki) in 1998

•

Internationalisation first took place in Russia around 20 years ago. At the end of the 1990s the company ventured into the Baltic states, and in 2002 Ramirent bought the machinery business of Veidekke in Norway, followed by the purchase of the machinery activities of the Swedish company NCC in 2003

•

Sales (2008) EUR 703 million, of which a quarter are derived from Finland; the Nordic countries together account for roughly 80 percent.

•

Today present in 13 countries (Finland, Sweden, Norway, Denmark, Russia, Ukraine, Estonia, Latvia, Lithuania, Poland, Czech Republic, Slovakia and Hungary) with 351 rental outlets

•

Employees: 3,300

Number Two On A Fragmented European Market

Ramirent has its foundation in Finland but is today a thoroughly international company with 75 percent of sales being generated outside Finland. Magnus Rosén, himself a Swede, says that the Finnish mentality suits him well. In his words it is quite direct and open-minded – an easy culture for him. The construction business in Finland and Sweden is fairly similar – unlike Denmark, where the market is more fragmented due to differences in the construction process decisionmaking. “Europe is our market. The European rental market is very fragmented, with over 14,000 companies acting throughout the continent. We are present in 13 countries and clearly have the largest cross-border presence in Europe. There is no other European rental company working in so many countries. In terms of revenue, Ramirent is the second largest after Loxam, a French company and the third largest company in this business, Cramo, also comes from Finland,” he says. All three companies meet only in one market – Denmark. Loxam operates mainly in France but also in the neighbouring countries, while Cramo is present in almost the same markets as Ramirent. Ramirent is not present on the French or Spanish markets. As many areas have been hit by the recession, many are showing an interest in entering Poland, which still shows fairly stable construction activity. Ramirent’s business in Poland has been built up in the last 5–6 years and it now has the largest equipment rental network in the country. Today Ramirent is the eighth biggest rental company globally. And when asked about the reason behind the success, Magnus Rosén concludes: “Good business sense, I guess. The management team has been able to grow the company in a successful way. A good, forward-looking appetite for doing business in different markets, and also a strategic view on how the general economy will develop.” 32

Ramirent – The Finnish “Handyman” Gone International According to Magnus Rosén the Ramirent concept is fairly easy to export. The name Ramirent is used everywhere apart from a couple of group companies that are not yet called Ramirent, such as Bautas in Norway. “The name has its origins in the Finnish word for ‘builder’ Rakennusmies, which was abandoned for the shorter version Rami – which also happens to be a common name in Finland. The handyman image nevertheless lives on and has been touched up a couple of times. We still use him since he is rather recognisable,” says Magnus Rosén. www.ramirent.fi

Europe is our market. We are present in 13 countries. There is no other European rental company acting in so many countries.â&#x20AC;?

Hannu Syrj채l채, President and CEO of Tiedo

Text: Katja Kangasniemi Photos: Sini Pennanen, Tieto in India

Tieto

Global Knowledge With Nordic Roots Hannu Syrjälä, President and CEO of Tieto, is enthusiastic about the role of IT in society. It is a pleasure to hear him talk about the change Tieto has helped bring about in its client companies. Within its company responsibility framework, Tieto also actively seeks a change that stems from the revamped company values.

ccording to Hannu Syrjälä, a global IT service transformation is taking place, enabling better quality and efficiency (as much as 80 percent better) being achieved at lower costs. “A good example of how IT can be used to facilitate a profound change is the 90s banking crisis in Finland, when the banks reduced their personnel from 50,000–60,000 to below 30,000 and cut the number of branches by 50 percent. At the same time, transaction volumes rose and customers were offered new services through the introduction of internet banking. IT made this huge change in the service offerings possible. Today, Nordea netbank is the most used in the world.” Among other future IT services, Syrjälä mentions the posting of one’s

medical history through an interactive portal in order to facilitate a visit to the local health centre. Other examples could be offering meaningful IT services to the inhabitants of rural municipalities in order to guarantee that they can remain in the countryside and still get the same services as people in the cities. Such services could include videoconferencing through a PC to cut business travel and the resulting carbon dioxide emissions, or interactive channels to facilitate communication with the municipal authorities.

Globalisation Of Service Production

As a part of the IT service transformation, the service production processes are globalised. “Services are consumed here and now but the production and

back office have to an ever greater extent been moved to countries with more resources and more favourable cost structures, offering us a competitive advantage,” Syrjälä points out. “For example, in India we have established knowledge centres. A lot of work is carried out there to back up the operations in Finland and Sweden, to name a few, as part of the general globalisation of services. Product development is also carried out at these centres. The defining, coding and testing of some software products may be carried out partly here, partly there. All this has been made possible by technological advances,” he continues. But what does offering 24/7 services or directing calls outside office hours abroad call for? Apart from language capabilities, it also requires the 35

In India we are present in two locations, Pune and Hyderabad, where we have established very modern IT service centres carrying out IT tasks from coding and project management as well as mastering the target market business,” Syrjälä describes.

careful planning of the service chain and process. “If the planning has not been carried out carefully, it inevitably leads to problems. Earlier in my career I remember dealing with a call centre where the American buyers found it extremely frustrating to repeat again and again to the foreign operator that Los Angeles is in California, not New York. We need to avoid such situations. Even though you get the ser-

vices at a lower price, cost is not the only criteria: the clients also have to be satisfied, especially with the customer service. Services function well if they are planned well,” emphasizes Syrjälä. “Lets say we agree on a project here in Finland. We agree on the service levels and manage the local aspects of the project here in Finland, but part of the other tasks can be carried out in India – or in China.”

India – An IT Hub – And China

Countries such as India – a true IT hub – and China offer Tieto expertise and economies of scale. In India, which boasts one billion inhabitants, Tieto currently employs around 1,000 people. “We are present in two locations, Pune and Hyderabad, where we have established very modern IT service centres carrying out IT tasks from coding to project management as well as mastering the target market business,” Syrjälä describes. In India there is an abundance of capable personnel: in excess of two million people graduate from the Indian technology universities and polytechnics every year – a huge amount compared to Finland, where a total of 30,000 graduate every year. “So, if we need to assign 500 capable people to

a certain project, we don’t find them in Finland, we find them in India,” Syrjälä points out. Tieto is also expanding its operations in China. “Today we have some 500 employees in the country. In particular, our telecom clients – representing 1/3 of Tieto’s revenues – have established themselves in India as well as China, as the majority of their business takes place in the region. Tieto has followed them to these markets. For example, China has 1.3 billion inhabitants and half a billion mobile customers, which means five million new customers a month. The Chinese also constantly expect new colours and features on their mobile devices, or else they will abandon the brand. As a consequence, both the infrastructure providers and operators have located a lot of their R&D in the region.”

cy for more environmentally friendly technologies and services; this applies to servers and devices as well as office paper consumption. • To favour virtual technology and services. • To dispose of equipment in an environmentally friendly manner. The company recycles “scrap” from the data centres. • To promote the possibility for distance working by adding video and other audio-visual devices and means of cooperation that reduce the need for personnel to travel. 2) Corporate Responsibility Framework – Giving street children the possibility to go to school

change@tieto.com The 40-year-old Tieto is a veteran of the IT industry. The company that was initially spun out of the former SYP Group IT centre, and which has grown organically as well as through acquisitions, has now become global. In 1999–2000 a big merger took place when Tieto joined with the Swedish company Enator to form TietoEnator. Now the company is once again called Tieto (‘knowledge’ in Finnish). The name is the most visible change, but not the only one – it is just the tip of the iceberg: the company is also undergoing other significant changes. There has been a transformation in both the business focus and the company culture, and the company values have been revamped as a result of a process in which one third of the personnel participated. The new company values and vision are well reflected by the following two types of change they are helping to make happen. 1) Green IT – Reducing energy consumption Especially in Sweden, Tieto is known as a green IT company. In Sweden being “green” actually represents a criteria for choosing an IT service provid-

er. The Tieto Älvsjö (Sweden) premises are almost entirely (80 percent) heated using the energy produced by the company infrastructure rooms. This amount of energy could heat 200 detached houses 365 days a year. Tieto has adopted a Green IT Plan with the following objectives for the next five years: • To present an environmentally friendly Green IT policy, and audit and certify the biggest Tieto data centres. • To present means for measuring the data centres’ energy consumption and to reduce the consumption by one third in the next five years. • To present a new procurement poli-

In Pune, India Tieto was one of the founding members of “Mobility centres”, which help street children by providing them education. As there are no other places to study, a total of three buses stop at different places at different times to teach the children to read and write. “Time and again the buses fill up with kids – 20,000 altogether! We hope that this will help make a difference one day. This gives our company and employees a real possibility to help and have a positive impact on the local community,” Hannu Syrjälä says. In China, Tieto was one of the first companies to help the victims of the 2008 Sichuan earthquake roughly a year ago. In Poland Tieto participates in children’s SOS villages, and in Ghana it promotes women’s health.

Tieto

– The largest IT services provider in the Nordic countries Key figures in 2008: Net sales: EUR 1,865.7 million Operating profit (EBIT): EUR 111.6 million Operating margin: 6.0 percent Number of employees (31 Dec): 16,618 30 countries of operation: • Strong in Finland, Sweden and in Norway • Expanding in Russia • Germany, the Baltic countries, Poland Tieto is a global company, and of the total personnel of 16,500, only 5,800 are employed in Finland; however, the majority of the revenues are still derived from Northern Europe. Finland represents half of the revenues and Sweden around one quarter, with the remaining quarter being generated outside these areas. Tieto’s global customer segments are telecom, energy, forestry and to a smaller extent, banking. Of the world’s 20 largest forestry companies, Tieto has delivered systems to 17. Equally, in the oil industry it has serviced five of the top six companies, including Exxon, Shell and Statoil. www.tieto.fi

Tieto offices at Pune, India.

Boknäs

Text: Katja Kangasniemi Photos: Sini Pennanen

– Lessons On Meaningful Furniture Boknäs is a beautiful furniture shop with a curious story. Business Finland met the managing director, Jokko Salmevaara, at the Boknäs Vantaa outlet.

The massive bookshelves with upward opening glass doors are what we are best at.” 40

n this shop, selling bookshelves that was opened in the premises of a former book distributor – just one curiosity in the colourful history of the company – you first enter a sort of a market place. From this objectfilled hall you go on to the worlds of Flamant furniture – hidden behind the red walls of an old wooden summerhouse, of Boknäs furniture and of Chinese treasures. “Apart from ideas we want to stimulate the visitor’s sensations,” says Jokko Salmevaara. To give you an example, we just launched our new islander/ archipelago-style Villinki furniture series at the Finnish Habitare furniture fair. For the occasion we built a six-metre lighthouse in the exhibition hall – to show the way, to cast light. We try to look for meaning,” Jokko Salmevaara continues.

Chapter I: Once Upon A Time… “My father, Seppo Salmevaara, has always built his own bookshelves. Maybe the first ones were wooden ALKO liquor boxes. He was a bibliophile and had been touring second-hand bookstores for years. In 1982, together with his brother he founded the antiquarian bookstore called Helsingin antikvariaatti.” Jokko Salmevaara tells us that at the end of the 1980s booklovers were flocking to the bookstore every week asking where to get decent bookshelves. At the time the selection on the market was not so wide, and in the end solid wood is the only solution for books. In addition the books have to be protected by glass doors. “Next door we had an antique shop where we sold old furniture. Parts of old American bookshelves from the turn of the century (1900) and Billnäs bookshelves were on sale, to name a few, together with old silver objects. My father had a close relationship with these shelves that had been patented in 1889 in the United States, and ones that Billnäs produced in Finland in 1909–59. After all, it was something he was used to seeing in the antiquarian bookstores,” Jokko Salmevaara conJokko Salmevaara Managing 42 Director of Boknäs

tinues. “We then organized an exhibition of one private collector’s books, actually Estonian children’s books. The collector happened to be an Estonian cabinet maker’s son. My father was prompt to make an order for the shelves he was looking for, and he got what he wanted. Then his brother wanted some, and then friends came along.” Boknäs had found its first maker. “When the shelves started to be exhibited in the antiquarian store, people noticed the shelves right away and asked where they could buy them. And that is how we started selling the shelves.” In the beginning the shelves came with no cardboard boxes. Father and son picked them up themselves and just threw blankets over them. “The doors came without glass and we mounted them in a tiny workshop. We were not very efficient: we had one consignment on the way to Oulu, and one car coming back,” Jokko Salmevaara says.

Chapter II: “The Average Age Of A Boknäs Bookshelf Is Over 200 Years” The Salmevaara family is grateful to the Finnish interior decor magazines that liked the idea of a peculiar Töölö antiquarian that was also selling his own bookshelves. “In 1995 we signed up for the annual Habitare interior decor fair, and the success was just overwhelming – 43

The fast pace of doing business in big companies leaves a slow-moving family business standing. A single quarterâ&#x20AC;&#x2122;s results for them translates into a quarter of a century for a family business.â&#x20AC;?

there were so many people that were interested in selling our products. Actually our first exports were from that time. Our first export client was from Bologna, Italy.” Today the main markets are Germany and Sweden, and the company exports as far as South Korea. According to Jokko Salmevaara the selection and variety of products has grown naturally: when you have the bookshelves, you need a reading chair, a table, a sofa and then a lamp… “It has also been interesting to note how the way people decorate has genuinely changed – not only because of the changes in taste but because of technological advances: In the 1960s everyone opted for chipboard. In the 1970s the huge televisions came in, and in the 1980s people wanted to hide them. Now people again want their TVs on an altar… The massive bookshelves with upward opening glass doors are nevertheless what we are best at.” Boknäs employees tour the world a lot, and the Boknäs furniture is complemented by other products. Among

them is Flamant, a Belgian family business founded in 1970. This carries an overwhelming amount – over 10,000 items, from knives and forks to wall paints. “With Flamant, it is almost like the fashion business. There are several collections a year: ‘spa’ in the spring, ‘tartan’ in the autumn,” Jokko Salmevaara points out. In addition Boknäs carries a wide selection of Chinese furniture and objects. “We also go to China 3–4 times a year to visit workshops that repair old objects and furniture. They are all hand picked, which is important for an antiquarian, whereas it is not of importance where the object resides, as long as it will be preserved. Unfortunately only a couple of top designers appreciate these objects in China. By the way, the Ming era actually bears resemblance to the Jugend. It is full of symbolism: heraldic symbols and butterflies.

Chapter III: Happy Ending The Boknäs logo is a turtle shield comprising the letter B. “We looked for

symbolism that describes us well, that is important to us. At the same time we started to work with Sea Life to save sea turtles at risk of extinction. We too believe we are near extinction, in the midst of ever-bigger chains. But we are not willing to die – no, on the contrary, we will survive! We do have the will to carry on.” “There has to be a reason to get up in the morning. We are passionate about what we do and we don’t always think about the dollars. It is possible that we entered the business the wrong way around but we are progressing, notwithstanding the minor problems. The word is getting out, and the number of clients is growing. We just have to develop. It takes time and effort. After all, we are a tranquil kind of people: we want to proceed slowly, one step at a time.” Jokko Salmevaara concludes that the fast pace of doing business in big companies leaves a slow-moving family business standing. ”A single quarter’s results for them translates into a quarter of a century for a family business.” www. boknas.fi

I am in this with an entrepreneurial spirit. This is what my career path was lacking.â&#x20AC;?

Friitala On Course Towards New Horizons

Text: Katja Kangasniemi Photos: Sini Pennanen/ Leena Aro

Business Finland met Annika Paasikivi, COO of Friitala Fashion, a women’s and men’s leatherwear manufacturer with over 100 years’ experience in high quality leathers and leather fashions. In the capable hands of the new skipper, a sailor herself, the company has set its course towards new horizons.

nnika Paasikivi has a long family business background. She entered Friitala six months ago in the capacity of a capital investor. And she is not planning to step back any time soon. “I am in this with an entrepreneurial spirit. I had been looking for such an opportunity, as my own family business has already grown so big that it no longer offers entrepreneurial challenges on a daily basis. This is what my career path was lacking.”

What’s Ahead? The new Friitala collection has just been launched. The new designers are Ritva Falla and Matti Seppänen, responsible for the women’s and men’s collection respectively. Both designers are renowned designers of Marimekko. The collection preserves the classic features of the Friitala brand, and yet there is a new edge. “Ritva’s collection has been received very well. The collection is now more business oriented, and for businesswomen,” says Annika Paasikivi. The decision to hire new designers had been taken just before Annika Paasikivi en-

Ritva Fallaâ&#x20AC;&#x2122;s collection has been received very well. The collection is now more business oriented, and for businesswomen.â&#x20AC;?

tered, but something changed when she came on board. She says: “For the first time in three years we are preparing a small spring collection. Right away I noticed that there will be no business without new collections. It does not have to be anything grand, but at least two collections per year are necessary to remain competitive as many more are the industry norm,” Annika Paasikivi stresses. The new Friitala autumn collection will be presented in January 2010.

International Waters According to Annika Paasikivi the Friitala brand has been suffering from inflation lately. It is still known by the Finns, with the exception of the young. Today Friitala is facing three tasks, especially abroad. “For the first thing, we have to reconquer the lost foreign customers, attract new

Our main raw material is reindeer leather which is a high quality exotic Finnish material.â&#x20AC;?

customers abroad and – most importantly – we have to rethink the whole distribution channel strategy, and make it seamless,” Annika Paasikivi says. Today the main export markets are France and Russia, and the company is expecting to invest especially in the latter. Central Europe and the Nordic countries are also showing potential. According to Annika Paasikivi it all depends on the agent. It is paramount to have a local agent. Annika Paasikivi reveals to us that whereas the Finnish consumers are looking for something that is rather understated, the French go for silent elegance while the Russians prefer something impressive and shiny!

Finnish Production of Finnish Leathers Friitala products are mainly made from the best European shearling and Finnish reindeer leather. There are some fur accessories (such as detachable fox fur collars) but fur is used to a lesser extent. The emphasis will continue to be on leather. “Our main raw material is reindeer leather which is a high quality exotic Finnish material. This

For the first time in three years we are preparing a small spring collection.”

also has its backing in sustainable development and, most importantly, the animals are reared for food industry purposes,” Annika Paasikivi emphasises. Friitala no longer tans the hides to leather. It buys, for example, the ready reindeer leather from Ahlskog Leather, in (Ostrobothnia), Finland. Ahlskog is one of the few companies in the world that tan reindeer hides. The actual clothing production is located in Ulvila, Finland – where the facilities have been for over 110 years. Today the company employs 20 people, whereas in the 1970s there were over 1,000 employees. Some of those remaining are long-time, invaluable employees – veterans of the leather clothing industry. Annika Paasikivi leaves us with an important message: “In Finland the clothing market is quite small and currently experiencing a certain amount of disintegration. There are too many small players. I would like to call for co-operation. We should see what we could learn from each others’ experiences instead of casting sulky glances at each other,” Annika Paasikivi concludes.

Some international milestones of Friitala Fashion Ltd, founded in 1892 by Arthur Hellman. 1930s – In 1930 the Friitala collection is presented at the Leipzig fashion fair. 1950s – Exports start again after World War II. Friitala starts to participate in international fairs. 1960s – Friitala starts to build its own export networks in Scandinavia, Europe and the USA. The brand is strengthened and built by, e.g., PR tours for the press in Paris, London, Zurich, Amsterdam, Vienna, Copenhagen, Oslo and Stockholm. 1970s – Friitala upholsters the chairs of Finlandia House designed by architect Alvar Aalto as well as the National theatre. Also the cruise liners start using Friitala leather. 1980s – Friitala launches a water-resistant “Water-Free” leather. 1990s – Friitala’s flagship store Friitala Shop opens in Helsinki. www.friitala.fi

PulPaper 2010: Implementing The New Rise Of The Paper Industry

Text: Katja Kangasniemi Photos: Sini Pennanen

In the field of technological breakthroughs we especially want to emphasize the results obtained by nano and biorefinery demonstration plants.â&#x20AC;? 54

Pirkko Molkentin-Matilainen, President and CEO of the Paper Engineersâ&#x20AC;&#x2122; Association (PI)

First organized in 1995, PulPaper 2010 is the most significant international event of the forest industry anywhere in 2010. We talked about the conference that is now staging its seventh event, with Pirkko Molkentin-Matilainen, President and CEO of the Paper Engineers’ Association (PI), and owner organisation of the whole event. “The last PulPaper event in 2007 in Helsinki attracted over 16,000 visitors and a conference audience of 550 people from 78 different countries. It was a true success as we only expected around 12,000 participants. We are looking forward for the same attendance this coming year as well,” says Pirkko Molkentin-Matilainen. The organizers are expecting to welcome a Chinese delegation, possibly a whole Chinese pavilion, and participants from Asia in general, Russia, South America, North America, India and, naturally, Europe. On the last occasion, the number of Russians went up a lot. There will be visitors from as far away as Australia and New Zealand.

An Interesting Bio-Conference The conference organized in association with the PulPaper 2010 will deliver the participants a vast overview of the forest industry bio energy issues and new business opportunities. “Our aim is to organize an inter-

esting conference. We will portray the new coming of the forest industry under the theme of ‘Implementing the New Rise’, concentrating on new technological breakthroughs and solutions for sustainable development,” says Molkentin-Matilainen. A longer session will be held on forest industry bio energy together with efficient resourcing and solutions for sustainable development. “In the field of technological breakthroughs we especially want to emphasize the results obtained by nano and biorefinery demonstration plants,” continues Molkentin-Matilainen. This time PI has the best possible partners for organising the event: Adforum has commissioned the exhibition and AEL, the biggest Finnish technical training house, is responsible for the conference contents.

A Forest Of Knowledge According to Pirkko MolkentinMatilainen the global operating environment of the paper industry has

changed at a fast pace. And in the new setting innovative products and operating models are key concerns for the sector to remain competitive. “We have strongly emerging competition from China, among others. And we have to do all that is possible in order to remain competitive. Finland has held the position of technological leader in the sector. Forty-five percent of all European paper engineers still get their degree in Finland. Even though company subsidiaries are to a great extent located abroad, we want to emphasize Finnish knowledge, especially the world-class knowledge cluster that is due to be located in Otaniemi (Espoo) made up of Aalto University (for more See page 6) and VTT Technical Research Centre of Finland,” says Molkentin-Matilainen. As a part of the preparation for the conference a series of papermaking science and technology books published by the association is being updated. The 20th volume, entitled Biorefining, will also complement the series. www.pulpaper2010.com

PulPaper 2010 – Preliminary Conference Programme Tuesday, 1 June

Wednesday, 2 June

Thursday, 3 June

Exhibition

Opening

• Technological breakthroughs

Forest industry bio • Resource efficiency • Energy energy conference

• Sustainable solutions

• Bio demos

• Fibre ICT

• Footprints (carbon & water)

• Nano demos

(implementing)

• EU regulations vs. global policy

• Other success stories

• Process improve-

• New bio-based busi-

ments

Forest industry bio energy conference

nesses • Printed intelligence/ Hybrid media

PulPaper 2010 Party 55

Jari Laakkonen, CEO of Gutta

Gutta:

Presenting the CFO of the Year

Text: Katja Kangasniemi Photos: Sini Pennanen

Gutta is a Finnish company that specialises in expert financial management services. Since 2006 Gutta has been organising a CFO of the Year competition and carries out a CFO Barometer twice a year. Business Finland will report the results of the barometer each time. We talked to Jari Laakkonen, CEO of Gutta.

“T

he first CFO of the Year competition was arranged in 2006. That year the winner was Pekka Paalanne from Amer Sports Corporation, and the competition has been widely quoted ever since. We have managed to generate discussion on financial management,” Jari Laakkonen points out. According to him there has been nothing of the kind in Finland before nor does he know of such a competition internationally.

What is a good CFO like and – most importantly – what’s on his mind? “The position of a CFO is often very demanding and sometimes even a target of a conflict of pressures. Traditionally the position of a ‘brakeman’ calls for a person with a profound understanding of the business and vast technical knowledge. On top of that strong leadership skills are needed as the person often also manages the personnel, legal and logistics departments, to name but a few. More often than not

the CFO is also called to appear before the media next to the CEO, at times in the quality of a vice-president. So he or she really isn’t a brakeman, after all, although managing risk is important,” stresses Jari Laakkonen. According to Jari Laakkonen, there’s a need for capable CFOs especially in the current economic situation. The aim of the competition is in fact to grant recognition to a multiskilled head of finance on an annual basis and to encourage finance directors in Finland to aim to enhance their performance. The twice-yearly CFO Barometer again portrays the views of over 100 CFOs on the development of business results. According to Jari Laakkonen, the CFO’s role has been emphasised in the current economic situation. “Compared to the second barometer of last year, in the latest barometer the CFOs were more concerned about the profitability, cash flow and financing than before”. 57

The CFOâ&#x20AC;&#x2122;s role has been emphasised in the current economic situation.â&#x20AC;?

Main Concern of the CFOs (Barometer 1/2009)

Source: Gutta/ CFO Of The Year (2009)

Full responsibility – Gutta CFO services Gutta offers two types of financial management services, CFO services and consulting. Gutta CFO services are not only about producing spreadsheets and stylizing figures. Rather the company focus is on acquiring an in-depth understanding of the client’s business and on proactive work. “It is our role to help the business management to better understand the profit/ risk factors involved with their decisions and the effects of these,” Jari Laakkonen says. Gutta always appoints at least two people for each project and these people have the entire finance management expertise to support them. So, instead of one person, the client has access to a concentrated expertise of 20 people. “In medium-sized and emerging companies we can assume a comprehensive responsibility for the company’s financial management. We work side by side with the CEO and challenge decision-making from a treasurer’s point of view. We put the routines in place to allow the organisation to concentrate on its core business. In large companies we work as part of the in-house finance management team, either working as a business controller for a specific business entity or taking charge of the CFO function of a certain legal entity on a project basis,” Jari Laakkonen says. Typical tasks include business case

calculations for different decisionmaking situations, management group work as a CFO and Finance department control and supervisory tasks, and rolling business results and forecasts. “Let’s say that a company reorganization is taking place, a CFO is made redundant, or a capital investor comes in or is backing out, we step in as a temporary solution,– normally ranging from as short a period of time as three months to three years. We take care of the daily responsibilities but also go through the mode of operation. Maybe a completely different person will eventually be hired, or no-one at all. The solution is rarely permanent. Elisa and Electrolux are among our biggest customer references revenuewise,” Jari Laakkonen continues.

Easing transition – Gutta consulting Gutta consulting services are always aimed at increasing the productivity of basic accounting routines and / or to improve the business control function. Implemented projects include turnarounds – from loss-making to profitable business, controlling-focused business orientation measurement and improvement plans, and efficiency measurement and improvement plans for accounting service centres including benchmarking and development roadmap definition. Company references include the Finnish State Railways (VR) and Etteplan. www.gutta.fi

Gutta will announce The Finnish CFO of the Year 2009 and results of the CFO Barometer (2/2009) on September 29. This year’s finalists are Ari Jattu (Sinebrychoff), Jari Karlson (Orion), Jari Kinnunen (Elisa), Jouni Lintunen (Vaisala) and Veli Ollila (Panostaja). An expert selection committee will make the CFO of the Year selection. Areas to be assessed include business orientation, expertise, general leadership skills, communication competence and operative results. Winners from past years are: 2006: Amer Sport Oyj, Pekka Paalanne 2007: Metso Oyj, Olli Vaartimo 2008: Stockmann Oyj, Pekka Vähähyyppä Gutta, founded in 2002, is a Finnish company offering CFO services. Gutta acts as a parent company to Clarus (founded in 2003), which offers accounting services. Company turnover is EUR 4.7 million.

Providing Unique Solutions for Unmet Clinical Needs –

VIVOXID Ltd Inderjit Kaur Khalsa Photos: Sini Pennanen, Vivoxid

“The technologies are all based on our scientists’ long expertise in bioactive and bio resorbable silicaand titanium oxides, and a specific understanding of how these materials and surfaces react favorably with living tissue.”

Tomi Numminen, Vivoxid Ltd President and CEO

or decades Finland has been known for its innovative scientists who have been searching tirelessly for new and better solutions for the future of health care. Since 1985, research groups at the University of Turku, Finland have been studying biomaterials, in particular bioactive glass, that could one day replace the use of a patient’s own bone as bone filler. Vivoxid Ltd develops, manufactures and markets a new generation of biomaterial products and production services for the medical device sector. The company markets its bioactive glass and biodegradable load-bearing polymer composite products for the purposes of bone healing and bone reconstruction as well as its soft tissue attachment technology for implant surfaces.

Finnish Innovation Vivoxid Ltd was established in 2001 as a consolidation between three Finnish biotechnology companies – Bioxid Ltd, JSV Polymers Ltd and Consulting Hannu Aro – and a group of scientists within the biomaterials research groups at Turku and Helsinki universities. The aspiration was to create sufficient critical mass and know-how to commercialise the bioactive and biodegradable biomaterial technologies that had been developed by these companies and in the academic research groups. Vivoxid is currently on the verge of international expansion. The company’s main equity investors are Sitra (the Finnish Innovation Fund), Varma Mutual Pension Insurance Company and Canelco Capital. The dynamic business operations are based on the company’s extensive combined knowledge of both biomaterials and the tissue healing process. Vivoxid has a strong intellectual property rights position, with over 20 patent families covering its core technologies, effective networking and experienced personnel. Vivoxid Ltd participates in the research and development of projects with different departments and runs its own R&D in collaboration with sci62

entists from different universities. The company’s bioactive glass products have obtained the CE marking and FDA 510K clearance, certifying that the products meet both EU and USA consumer safety, health and environmental requirements. “The technologies are all based on our scientists’ long expertise in bioactive and bioresorbable silica- and titanium oxides, and a specific understanding of how these materials and surfaces react favourably with living tissue,” says President and CEO Tomi Numminen, who was appointed CEO in 2007. “We are revolutionising common surgical procedures in the fields

of orthopaedics, cranio-maxillofacial and spinal surgeries as well as in many applications requiring soft tissue attachment, such as skin and mucosapenetrating implants and catheters, cardiovascular implants, and subcutaneous implants, to mention just a few,” continues Numminen.

Life-Changing Products BonAlive is a CE-marked and FDAcleared synthetic bone substitute that can be used in orthopaedic and cranio-maxillofacial bone cavity filling and bone reconstruction. It is a fully synthetic, silica-based bone graft substitute with a clinical history of more

than 15 years; no complications have been seen as a result of using the material. This means that in addition to the clinical experiences gained with BonAlive bioactive glass, the product has a long and extensive research pedigree. BonAlive has a unique bacterial growth-inhibiting property that is especially important in chronically infected bone sites and open fracture procedures. “BonAlive can be used after an accident, where it actually helps the bone to heal. The gold-standard material in bone cavity filling, it has been used in place of the patient’s own bone material, which traditionally has been har-

BonAlive™ 63

vested from the hip. This procedure causes patients chronic pain in almost 25 per cent of cases and is also an expensive secondary operation for the healthcare system to perform. The synthetic bone fillers developed by us and used in hospitals not only save patients from a painful secondary operation, but also reduce hospitals’ surgical expenses,” Numminen points out. BonAlive granules can be used as bone cavity filling material for nonload-bearing defects in orthopaedic and cranio-maxillofacial bone reconstruction and bone cavity filling. Typical clinical applications of BonAlive granules include the treatment of bone defects caused by trauma, the removal of benign bone tumours and the treatment of chronically infected bone defects. “BonAlive granules provide a foundation for new bone to grow and also stimulate new bone formation,” says Numminen. Another product that Vivoxid is producing and marketing itself is FiberLive – a long-lasting, reabsorbable composite implant product. One of the product’s key benefits is its loadbearing property. Mechanical strength is a crucial property not only for the screws, pins and plates that are commonly used in medical procedures, but also for other products where load bearing is the key element of product performance. FiberLive has achieved unique results in its development stages. “Currently, in a normal procedure a metallic plate is used in cases such as a long bone fracture, and a secondary surgical operation is needed to remove the plate. With FiberLive products this secondary operation is not needed, because the composite plate manufactured using FiberLive technology actually resorbes during the healing process of a bone fracture,” says Numminen.

Between Implant And Life MetAlive is a licensing technology for companies manufacturing medical implants. This technology can be used in dental implants, for example. 64

Added value for our FiberLive technology gives the fact that the biomaterial implants created from our technology are also strong to carry weight in comparison to any other biomaterial based implants currently developed in the world.â&#x20AC;?

“The technology creates a nanostructured surface on the implant, which allows human cells to grow and attach themselves firmly onto the surface of an implant. Secondary complications such as infections and scarring are removed thanks to the firm softtissue attachment and thus the implant performs much more safely and effectively compared to implants without a firm soft-tissue attachment,” states Numminen. MetAlive represents a treatment option for any medical device implanted in the body, be it metal, ceramic or polymer, giving the implant new life. MetAlive provides safe attachment to soft tissue, drastically reducing inflammatory reactions while speeding up the healing response without scar tissue side effects.

The Future of Bio Implants Metal as a material for implants is known to have its problems, although it is still commonly used worldwide. Vivoxid Ltd is at the forefront of the development of biomaterials for implants. “The added value of our FiberLive technology is the fact that the biomaterial implants created from the technology are strong in terms of their ability to bear weight in comparison to any other biomaterial-based implants currently being developed anywhere in the world,” Numminen highlights. The Technology Academy Foundation in Finland granted Vivoxid the Millennium Distinction Award in January 2009 in recognition of the company’s development and innovative application of new-generation biomaterial products. The award is presented biannually to acknowledged Finnish scientists, new technology and application developers, and companies at the leading edge of advanced technology developments . Recognition this year was focused on the field of biomaterial and nanotechnology following the awarding of the 2008 Millennium Technology Prize to Professor Robert Langer for his achievements in the field. www.vivoxid.com

Defence technology special report 2009 68 The Leading Manufacturer of Fast Pilot Boats in the Baltic Sea Area – MARINE ALUTECH 74 Abrasion Resistant and Ballistic Steel Centre – Miilux Ltd. 78 Protection for People, Environment and And Property – Environics Ltd. 82 vihtavuori: World-Class Gunpowder From Finland, A People Commonly Accused Of Lacking Spark… 86 INDESEC 2009: Meeting India’s National Security Needs 92 Innovative Products for Defence Forces – Raikka Ltd 98 High Mobility Catering Systems From Teuvan Defence 104 The Total Responsibilities Of Turnkey Services – KOMAS Group 110 Communications Equipment For Demanding Conditions – CEF 116 New Mobility With Mine And Ballistic Protection – Sisu Defence 122 Mission Critical Communication – When Every Second Counts – ASCOM 67

The Leading Manufacturer of Fast Pilot Boats in Baltic Sea Area â&#x20AC;&#x201C;

The companyâ&#x20AC;&#x2122;s civilian and military concepts are based on a few well-planned designs to which both the company and the users have contributed the best of their knowledge and experience.

MARINE ALUTECH Text: Inderjit Kaur Khalsa Photos: Sini Pennanen, Marine Alutech

ocated in the scenic and secluded Teijo, a small town in southwest Finland is the Marine Alutech factory. The company’s factory and warehouse stands in the middle of a beautiful landscape conveniently located next to a bay that has a straight connection to the Baltic Sea, which leads to any Sea in the world. Inside the factory large custom-made boats are built for private and public national and international customers. Although the atmosphere is calm a visitor can sense that there is something big in process. In this building the most up to date technology has been combined with old fashion boat crafting. While walking through the warehouse, company CEO Niko Haro is picking up an empty envelope from the floor and disposing it to the garbage. Such a small thing can mirror so much respect to this family owned business that reaches as far back as in 1985. Mr. Niko Haro was named as CEO in 1998. The company’s first name was Teijo Yard Ltd and it specialized in aluminum boat production. In 1991 the company was named as Marine Alutech Ltd. Shortly after that, in 1992 the Finnish Maritime Administration made its first order for pilot launches, and it can be held as a landmark for the company’s continuing success within Scandinavia. The second significant step for the company was with the Brazilian Army in 2004 when M8 was presented in the Amazons. The following year M12 and M8 were demonstrated to authorities in Malaysia.

A Market Leader Marine Alutech Ltd is the leading manufacturer of fast pilot boats in the Baltic Sea Area. The company has been market leader since 1990 in national trade markets for troop transportation boats and landing crafts. Marine Alutech offers their customers retailed products with service and maintenance through the whole life cycle of the boat. Some of the company’s biggest customers are the Finnish Navy, Swedish Maritime Administration, Swedish Defense Material Administration, Estonian Pilot, Finnish Coast Guard and Riga Harbor/Latvia. In 2009 the company made a contract with Norwegian Navy. “For navy we normally build transport vessels. For Malaysian Police we built multipurpose patrol vessels. The order was large and we sent two of our specialists to Malaysia for a year to make sure that the vessels were assembled correctly”, says Mr. Haro who keeps the service as important in business as the quality of the product. “Although it seems that our customers are all national or international authorities we do have private customers as well”, says Mr. Haro. While on our visit to the factory the finishing touches were occurring for a vessel that will end up being a fishing boat for a private customer. Vessel Types Marine Alutech Ltd offers customer solutions for special equipment, maintenance and service, transportation and training of the personnel. The company’s civilian and military concepts are based on a few well-planned designs to which both the company and the users have contributed the best of their knowledge and experience. At the moment the company is concentrating on building and developing five different types of vessels, which are Military Transport-, Pilot-, Fire Fighting-, Patrol- and Rescue Vessels. These boats can be equipped with armor protection, camouflage systems, high advanced electronics and communication equipment, gun systems such as active protection, and transportation system. “We design and engineer all our products here by ourselves. If possible we build up and establish the entire vessel here in our warehouse so that we can be sure that the end product is exactly as we wanted it to be,” says Mr. Haro. Marine Alutech is specializing in extremely high tech vessels. “Our technology is one of the top worldwide. Each vessel we build and design already has advanced technology built into them. Everything works with electricity nowadays. The sky is the limit for solutions, and our programmer is the one to say what can be done and what can not,” Mr. Haro states. An Economical Rise The change in the economical climate for clearer skies can already be seen in the company’s business. Last fall when everything dropped Marine Alutech also got its share, and many of the contracts were left without signatures. But during the week of the interview, less than a year after the fall, the company is receiving new bids each day. “Finland is graded high in both quality and service. There are approximately ten companies in our field worldwide. Our networks and own design makes it possible for us to take part in larger projects”, says Mr. Haro. For the company it’s also important to take each and every bid seriously. Sometimes it seems that the bids are made most difficult just to eliminate those whose interest is not the highest possible. Marine Alutech has no problem with this one and because the company’s exactness, accuracy, and staying in schedule they have won 25-30% of the bids they have been taking part with.

â&#x20AC;&#x153;We design and engineer all our products here by ourselves. If possible we build up and establish the entire vessel here in our warehouse so that we can be sure that the end product is exactly as we wanted it to be.â&#x20AC;?

Future Standards from the NATO Even though Finland is still considering its possible joining of NATO, Marine Alutech Ltd has already been delivering vessels to countries such as Germany and Norway. “These orders gave us readiness to design vessels that are combatable with all NATO standards together with documentation.” According to Mr. Haro these standards will indirectly affect all civil vessels as well. Within the few last years the national crisis control has been developed considerably. Many dry runs have shown the problems that have been possible to correct. One of the problems has been that there is no converging refueling system in vessels that don’t follow the same standards. It is important to establish the same standards within the same seas, and at the moment it seems that NATO is the one establishing standard for others to follow. “Already the bids that we are receiving are requesting the standard AQAP2110, which has been taken from the NATO. This documentation is available for everyone,” says Mr. Haro. Product Development The product is constantly developing based on the changing times and technology as well as the feedback from the end-users. “The most important force that is moving us forward is the feedback that we are getting from our customers. We take each proposition seriously. This feedback improves the quality of the vessels and makes us as a company more competitive,” Mr. Haro says. www.marinealutech.com 73

“Either a customer submits the plan itself or it has been carefully customized with our product developer. We focus on serving our customers´ variable ballistic requirements and therefore continuous development work is one of our priorities in Miilux.”

Abrasion Resistant and Ballistic Steel Centre – Miilux Ltd.

Inderjit Kaur Khalsa Photos: Jaakko Mylly / Jäljen Jättiläinen

iilux Ltd is part of a larger company called Miilukangas Group, located in Raahe, Finland. Miilukangas Group is one of the largest engineering companies in Finland, which means it has top capabilities and expertise. Miilux Ltd was established in 2000 and its range of Miilux Protection steels was launched in 2005. “Today the company has clients in 30 countries – in addition to Europe, they are in South America, South Africa, India, the Middle East, South Korea and China,” says Export Director Veikko Kyllönen. Miilux Protection steels are of high quality and are specialized for demanding applications. The company has its own hardening plant completely engineered for its own use, which utilizes press hardening. Miilux Protection steels are tested in compliance with Stanag 4569, PM2000 and MIL-A-46100D, among others. Typical applications of Miilux Protection steels are buildings such as embassies, banks and bureaux de change, shooting ranges, guard towers, secure money transportation vehicles, police and diplomat vehicles, Mine Resistant Ambush Protected (MRAP) vehicles, and a wide range of applications in the protection and defence equipment industry. “Our revenue has increased steadily each year we have been in business. Our export sales started in 2005 and our turnover increased by more than 50 per cent in 2007,” says Kyllönen. Miilux Ltd has won Technology Employees Safety Awards three times. The company is also certified for quality, environmental and safety standards.

Development of Protection Steels The requirements for the manufacture of protection steel have increased, especially in vehicles. The current trend is to make the material as light as possible and at the same time with the ability to protect, while maintaining optimum strength. “New solutions such as ‘sandwich structure’ and perforated solutions are increasing. Bullet types and explosion materials are developing. Production material must develop to match the demand,” says Kyllönen. The company’s specialized product developer, Timo Sipilä, focuses on working with customers so that their precise needs are taken into consideration. Each order is carefully customized with the client. “Either a customer submits the plan itself or it has been carefully customized with our product developer. We focus on serving our customers´ variable ballistic requirements and therefore continuous development work is one of our priorities in Miilux,” Kyllönen states. Miilux protection material can also be delivered with delivery-specific ballistic test results. 75

Steel is an alloy consisting mostly of iron, with carbon content of between 0.2 per cent and 2.1 per cent by weight, depending on the grade. Carbon is the most cost-effective alloying material for iron, but various other alloying elements are used such as manganese, chromium, vanadium and tungsten. Carbon and other elements act as a hardening agent, preventing dislocation in the iron atom crystal lattice from sliding past one another. Varying the amount of alloying elements and form of their presence in the steel (solute elements, precipitated phase) controls qualities such as the hardness, ductility and tensile strength of the resulting steel. Steel with increased carbon content can be made harder and stronger than iron, but is also more brittle. Source: www.wikipedia.org 76

The co-operation with defence forces in several countries, as well as with vehicle manufacturers, has made it possible for the company to keep up with the present trends in the market. It is not easy to foresee the future changes in bullets and explosion materials. “New demands always come from our clients. We work together with testing laboratories to make sure that the product we offer is always of high quality. We are known for our fast delivery times. Some years back in Afghanistan protection types were not sufficient and there was a necessity to add extra armour. We were able to manufacture and deliver it very fast,” says Kyllönen. Miilux Ltd’s steel centre factory is not tremendous and because of the recent economic downturn this has proved to be an advantage. The company is able to keep the heat processing as well as pre-treatment of material within their own premises in Miilukangas. Miilux Ltd also has a large warehouse, which gives the company an opportunity to react promptly – as happened with Afghanistan.

Threats In The Market Steel has been produced by various inefficient methods long before the Renaissance, but it became more common after the 17th century. In the mid-19th century, steel became a relatively inexpensive mass-produced material. In the more recent past questions have arisen as to whether there is an alternative to heavy-weight steel. “Protection Steel is still the most cost efficient compared to other fibre materials that are mostly used in personal protection such as bullet-proof vests,” Kyllönen states. Steel is generally used in buildings and it is difficult to even think of any material that would be better suited than steel. In buildings the weight is not a problem. Even the foundation of the vehicles will always be built on steel.

Pekka Miilukangas, CEO In 1967 the current CEO’s mother and father, Anja and Erkki Miilukangas, founded the company which specialized in plumping. Soon after that the operation expanded with the construction of a small workshop. In 1983 Pekka Miilukangas became a partner of the company. In 1987 the company bought an engineering workshop from Kone Ltd. Miilux Ltd was separated from its parent company in 1999. In 2000 the tempering facility began operations in Raahe. In 2005 exports of the protection steel began. In 2009, today Engineering Workshop is under Miilukangas Ky and Abrasion Resistant steel center is included in the company Miilux Ltd. The company’s turnover in 2008 was approximately EUR 40 million. The company employs 200 people in Raahe.

Success Based On Service In just four years the company has spread its client network to reach as many as 30 countries. “Our reputation has spoken for us. And of course the long history of Miilukangas Group has made our path more even. Our marketing and product developers are also working hard to make our name known globally,” Kyllönen says. The company’s advantage lies in the kits that are installed on location. Diplomats’ vehicles need several parts and components and they are normally put together on location. “We are able to deliver plates in the most common sizes and thicknesses within a week of order because we already have them stored in our warehouse. Also, with customized orders we are able to deliver them quickly within a few weeks,” Kyllönen states. The delivery state of the product is either quenched, or quenched and tempered. The company can handle orders of any size. According to Kyllönen: “Our order sizes can vary from a single part to several hundred tonnes.” The warehouse and the factory are located only 3 km from the harbour in Raahe. This makes the deliveries even quicker when they are exported in shipping containers. The Raahe Harbour connects to each of the largest harbours in Europe. www.miilux.fi

The ownership of the company remains with the family.

Veli-Matti Lahti, Vice President of Sales and Marketing

Protection for People, Environment And Property

Environics Ltd Text: Inderjit Kaur Khalsa Photos: Sini Pennanen

he right to safety is everyone’s from birth; unfortunately, some places in our world do not share this ideal. Within the last 10 years everyone has come to know that preparation is essential when it comes to living safer lives. Every country, city, large factory and business has procedures for monitoring and measuring any harmful chemicals, biological, radiological or nuclear substances (CBRN) that may somehow find their way into the air around us. These potential CBRN incidents can be either accidental or intentional, and to ensure the safety of all there are systems that can notify and raise the alarm within seconds of the contaminants being recognised. Environics Ltd is one of the companies providing this sort of system. Environics is an advanced technology enterprise based in Mikkeli, Finland, which provides its customers CBRN and environmental information for situational awareness and

consequence management through its individual detectors and turnkey solutions. These include scalable CBRN detection networks, CBRN reconnaissance vehicles as well as fixed and mobile CBRN laboratories. Established in 1987, the company’s annual revenue is now approximately EUR 20 million. “Within the last 15 years our business has extended to cover the entire CBRN security field, including equipment and solutions,” says Veli-Matti Lahti, Vice President of Sales and Marketing. Lahti took up his current role over a year ago following his return to Finland from Japan and Indonesia, where he worked for Nokia for almost 10 years.

The Changing World

A turning point for Environics was 11 September, 2001, as it was for all companies in this field. “There have been two huge significant events that have had an impact on our company’s history. The first one was the Sarin gas

attack on Tokyo’s metro system in 1995. That incident was a reminder to always be prepared. The real turning point, however, was after 11 September, 2001, when it became known that there are other threats that are more likely to happen than war,” Lahti states. The active preparation in the USA has also helped Environics to grow, and in 2002 the company opened a subsidiary in Maryland, close to a US military customer. The company also has a representative office in the United Arab Emirates.

Technology And Solutions

The company’s product selection ranges from the ChemPro100 – a personal detector following the CBRN concept which is able to detect chemical, biological and radiological threats using only one piece of equipment, so the user does not need to handle several different devices. There is also an

It is always possible that something will happen, so it is best to be prepared. The investment will pay for itself many times over if anything ever happens.”

entire system that can cover a whole country from border to border. “The largest system we have delivered was a detection network for a Middle Eastern country. This network can detect if there is any chemical, biological or radiological threats entering the country from outside its borders. This solution was the first of its kind in the world, and for that reason it took a long time with careful plans for the customer. The system is now very close to being complete,” Lahti says. The company’s constant improvement and product development are the main factors for its global success. It is well known in this field that Environics is an innovative company that has gained the respect of multi-million euro competitors that have recognised the quality and technical excellence of the company’s products. “We have to keep up constantly. When demand rises, our product needs to match that demand. Our equipment can quickly recognise any CBRN-related threat, giving our customers – whether industrial businesses, fire brigades or military organisations – more time to protect themselves from the harmful effects,” Lahti points out. In Environics’ patented aspiration IMS, sample air is drawn continuously via the sensor. The signal from the electrodes, the fingerprint vector, is characteristic of the measured sample and is used as a detection pattern. The technical advantages of true aspirating, high-flow sensors include reliability, usability and their low life cycle cost. “The ChemPro100 detector can be used to detect almost 100 different harmful gases, and we are adding new gases to the selection whenever our customers need a gas to be recognised which is not yet in the selection,” Lahti says.

Preparation Is Wisdom

Veli-Matti Lahti, Vice President of Sales and Marketing

Finland is known to be very conscious about the safety of the country and its people. For decades there has been a civil protection law stating that every area needs to have a certain number of air raid shelters ready to protect people should the need arise; Kuwait

is the only other country in the world where such a law exists. According to Lahti, “Representatives from Kuwait came to Finland to study our civil protection in the mid 1990s. Their law was modelled on the Finnish one.” Environics also builds equipment for gas-tight and air raid shelters, such as Stand Alone Shelters, in association with its sister company. These systems are easily linked to the nationwide detection networks mentioned earlier. “It is always possible that something will happen, so it is best to be prepared. The investment will pay for itself many times over if anything ever happens,” Lahti points out. A threat does not always have to mean terrorism; it can also be from an accident, such as chlorine spilling out from a truck, a fire inside a chemical mill or an accident at a nuclear plant.

New Developments On The Horizon

Earlier this year Environics announced that it is to begin manufacturing and selling products for the detection and analysis of radiological and nuclear threats. The concept, including portable products and a vehicle, is the first of its kind in the worldwide market. These products enable detection and identification of radiation threats faster than ever before. Environics has already sold the first line of vehicles, which will be delivered to the customer later this year. “These new products are for fast detection of an irregular source of radiation within the environment of the product. It may be from natural sources, a patient who has received isotope treatment, a missing radiation source or a criminal carrying radioactive, possible dirty bomb material. These new products will rapidly detect and identify the threat,” Lahti concludes. Environics Ltd purchased the product rights from the Finnish Radiation and Nuclear Safety Authority (STUK) in February 2009 and will handle the production, manufacture, sales and further development of these innovations. www.environics.fi 81

World-Class Gunpowder From Finland, A People Commonly Accused Of Lacking Sparkâ&#x20AC;Ś Text: Katja Kangasniemi Photos: Sini Pennanen/ EURENCO Vihtavuori Oy

Vihtavuori, in central Finland, is home to world-class gunpowder. Business Finland met Ari Makkonen, Managing Director of EURENCO Vihtavuori, in the historic surroundings of Suomenlinna, a 250-year-old fortress and major Finnish monument of military architecture â&#x20AC;&#x201C; the perfect backdrop for a conversation about this traditional gunpowder factory.

Ari Makkonen, Managing Director of EURENCO Vihtavuori

unpowder is a traditional Finnish product, but exports are relatively new.

Challenging Shift In Markets

Traditionally, Vihtavuori caters to the domestic market. As recently as the beginning of the century, the Finnish Defence Forces accounted for more than half of sales; today, sales to the armed forces account for less than 10 percent of the output. There has been a rapid change in the markets; the key markets are now Europe and the civilian market in North America. According to Ari Makkonen this entails a challenge, as the company’s production facilities are designed to produce powder for both artillery and small arms in equal proportions. “Today the majority of the powder manufactured is destined for small arms,” says Makkonen. “This means that half of the plant is operated at reduced capacity as we seek to maintain a share of the domestic markets. At the same time we have to raise capacity in the light weapons powder. In addition, due to the closure of some plants, the production of some EURENCO artillery powders has been moved to Vihtavuori, and some to Sweden,” he continues.

Vihtavuori Reloading

The Vihtavuori range covers more that 20 different types of powders, with the right choice for all disciplines, guns 84

and shooting styles. Reloading powders are used by high-class sport shooters. Reloading is very popular in both target markets and not only among sport shooters but also hunters as well. The reloading powder market is currently the fastest growing market segment, and Vihtavuori reloading powders have gained a strong reputation among top-class shooters around the world. There are 26 different pow-

der types available, divided into three different product families: the N100, N300 and N500 series powders. Vihtavuori has also gained a strong foothold in other market segments.

The company has been located in the town of Vihtavuori since 1922. The choice of location was ideal: there is a waterfall providing electricity and a clean lake for water. At the time there was also a railway line in the area. In addition, after the civil war the local population offered a suitable workforce. (Photo Pertti Torikka: Vihtavuoren seitsemän vuosikymmentä, 1992.)

Vihtavuori Stands For World-Class Gunpowder

According to Makkonen, almost a century of marketing has made the Vihtavuori brand a strong one. Notwithstanding its difficult name, the brand has gained a good reputation, especially in northern and central Europe and North America. Some European cartridge producers are careful to mention that their product contains Vihtavuori gunpowder. There are challenges though, as the shipping costs on such a delicate product are rather high. “Sea containers are basically the only option for transporting gunpowder, and it really doesn’t make much of difference whether it is 20 kilos or the whole container. So it’s no use sending only small batches – we have to include the whole product repertoire in one,” Makkonen says. “As a small company with limited resources, another challenge we have to face is securing distribution deals with chains of stores. Today Nammo Lapua Oy markets Vihtavuori reloading powders,” he continues. “We seek to build upon the traditional quality image of Finnish gunpowder, which offers us a competitive edge.” The superior quality of the product is ensured by the small size of the production facilities, making careful quality inspection possible. “The quality image also stems from the conscientious Finnish way of working. In fact, the whole business culture emphasises cutting-edge facilities where security is paramount. It also helps that the workers, often gunpowder users themselves, take pride in the product!” Makkonen concludes.

EURENCO Vihtavuori • Vihtavuori is a traditional industrial establishment operating in Vihtavuori, central Finland, since 1922 – the year the state gunpowder factory was established. Together with adjacent companies Nammo, Forcit and Patria, it forms a medium-sized centre of the domestic defence industry. • Today Vihtavuori employs 134 people and is part of EURENCO (European Energetics Corporation), formed in January 2004 and jointly owned by SNPE Matériaux Energétiques (a subsidiary of GROUPE SNPE, with 60.2 percent), Saab (19.9 percent) and Patria (19.9 percent). • EURENCO is the only European manufacturer to offer a complete range of cutting-edge energetic materials for both the defence and commercial markets. The company’s operations are organised into two business units, the Explosive Charges and Additives Business Unit and the Propellants and Propelling Charges Business Unit. • EURENCO’s annual sales exceed EUR 140 million. It has more than 800 employees and five modern production plants in Belgium (Clermont), Finland (Vihtavuori), France (Sorgues, Bergerac) and Sweden (Karlskoga), plus full support from the SNPE Matériaux Energétiques Research Center (Vert-Le-Petit/Le Bouchet, France).

www.vihtavuori.fi www.eurenco.com

Minister of State for Home Affairs, Government of India, Mr. Prakash Jaiswal speaking at INDESEC Conference 2008

We are looking forward to welcoming the people responsible for determining and meeting Indiaâ&#x20AC;&#x2122;s maritime, border, airport, transport and critical infrastructure security.â&#x20AC;?

INDESEC 2009: Meeting India’s National Security Needs

Text: Katja Kangasniemi Photos: INDESEC

The INDESEC 2009 conference, focused on India and its buoyant homeland security market, gives Indian and international companies the opportunity to promote their solutions to just the right audience. The attendees will all have specific product and service requirements to enhance India’s national security. According to Alex Nicholl, former director of Defence Systems & Equipment International (DSEi) and current Executive Director of INDESEC Expo 2009, preparation work for the exhibition “is going extremely well”.

he INDESEC Expo exhibition conference, first organised in 2008, will take place on 11–13 October 2009 at Pragati Maidan, the only international exhibition venue in the centre of New Delhi. It is India’s only exhibition and conference dedicated to homeland security. INDESEC Expo is unique in India and one of only very few exhibitions in the world with a total focus on meeting the

requirements of a country’s homeland/ national security requirements. “The 2009 expo has generated phenomenal interest from both Indian and international companies,” Nicholl points out. “Senior visitors will include the ministers and decision-makers from the Ministry of Home Affairs, central police and paramilitary forces, the intelligence services, MOD, coastguard as well as state ministers and se-

nior police representatives. These are the people responsible for determining and meeting India’s maritime, border, airport and transport security, disaster management and critical infrastructure security requirements,” he continues.

The VIP List

“We are looking forward to welcoming the people responsible for determining

I am looking forward to visit Indesec expo 2009 which will be held at Pragati Maidan, New Delhi from the 11th to 13th of October. It will be an opportunity to see how other countries with the aid of latest technologies are able to effectively combat terrorism in their countries. Some of those technologies may help us neutralize terrorism in India. Mr. M S Dangi, District commander, Indian Coast guard, Goa

Over 130 exhibitors from more than 20 countries will be represented, showcasing the latest technology solutions.” 88

and meeting India’s maritime, border, airport, transport and critical infrastructure security. Considerable time and effort has been invested to ensure that INDESEC Expo delivers the right visitor audience, in other words the people who influence budgets and are responsible for the procurement of equipment in the area, whether you call it homeland, national or public security. The Union Minister for Home Affairs, The Honourable Mr P Chidambaram, has kindly agreed in principle to inaugurate the exhibition and give the keynote speech at the conference,” says Nicholl. Over 130 exhibitors from more than 20 countries will be represented, showcasing the latest technology solutions. There is a huge array of large international companies taking part, including Microsoft, Boeing, L3, Reliance, Wipro, Bharat Electronics, EADS, BAE systems, Panasonic, MKU, Carl Walther, Armet Armored Vehicles, Blucher, Harting and Seabotix. There will also be national pavilions from Australia, Denmark, Finland, Israel, Italy, South Africa, the UK and the USA.

An Exciting Two-Day Conference

In today’s world, almost any man made or natural disaster has security implications. How much preparedness is enough? Or will it ever be enough? From natural calamities to acts of terrorism, pandemics, systems failure and much more, challenge the internal security of a country. Acquiring state of the art technology, and modernizing our forces is a pre-requisite now to combat the internal security challenges. The basics, however, continue to remain the same. A bottom to top approach covering educational institutions, effective and influential NGOs could be sourced to efficiently build up a security and safety conscious public. The end point, is to have a simple, responsive yet seamless bulwark in containing threats to the Nation. Indesec Expo 2009 is providing a timely forum in bringing these technologies and other security related problems to the fore. Mr. W. R. Marbaniang, I.P.S, Director General, Civil Defence & Home Guards, Meghalaya

Alongside the exhibition will be the two-day INDESEC Conference, ‘Meeting India’s homeland security challenges’, which takes place on 11–12 October. The exciting conference programme covers eight themes. The conference will concentrate on the international experience gained and the technical solutions available from both a public and private sector perspective to strengthen India’s national security capability. The general theme of the first conference day is the macro picture of the threat of terrorism and how it affects India. The industry will share its views on technologies available to protect against international terrorism, followed by a session on information gathering and information sharing. Speakers include The Honourable Mr P Chidambaram, the defence 89

The Indian homeland security market is growing by 16 percent a year, with expected purchases of USD 10 billion worth of homeland security solutions over the next two to three years. (Source: Defensenews.com) * USD 10 billion to be spent on India’s homeland security requirements within the next 2–3 years. * USD 30 billion to be spent on the Indian armed forces’ modernisation programme within the next 5 years. * India’s Ministry of Home Affairs and state governments have initiated urgent programmes to augment and train the police and paramilitary forces, modernise their weapon systems and procure state-of-the-art technology to guard India’s land borders, coastline and entry points at airports and ports. The Indian homeland security agencies have received a 25 percent increase in their budgets for 2009–10, with the paramilitary forces budget now at USD 4.3 billion, clearly reflecting the Indian Government’s priority towards homeland security.

ministers from Israel and South Africa, Vinay Kumar (Secretary, Border Management), Vice Admiral Anil Chopra (Director General, Indian Coast Guard), Lt Gen Kamal Davar (former Director General of the Defence Intelligence Agency), Ajai Sahni (Executive Director of the Institute for Conflict Management) as well as international speakers and senior representatives from the FBI, UK police, Dutch defence ministry and industry. “During the second day of the conference we will be addressing maritime security and denial of sea routes 90

to terrorists. As the whole world watched the emerging events following the terrorist attacks in Mumbai on 26 November, 2008 it brought into stark focus the urgent need for India to overhaul its national security capability. Terrorism and the various facets that we have come to recognise it by continues to pose a unique and devastating threat to the country’s security. India needs a well-trained force prepared to react quickly to counter such terror attacks,” Nicholl concludes.

More information on INDESEC: www.indesec-expo.com

Seppo Liikkanen, CEO of Raikka Ltd

Innovative Products for Defence Forces

Raikka Ltd Text: Inderjit Kaur Khalsa Photos: Sini Pennanen, Raikka

aikka Ltd is a family-owned Finnish company manufacturing and selling machinery and pyrotechnical products. The company’s turnover is approximately EUR 5 million and it employs 40 people. Operations are divided between two production plants, the machine workshop and the explosives workshop. Raikka Ltd was founded in Rauma, Finland, in 1946. The company was founded by Ilmari Liikkanen, father of the present CEO Seppo Liikkanen, who has been with the company since early 1970s. “The biggest changes in the industry during the company’s history have been the changes to regulations and safety related standards,” says Seppo Liikkanen. The company’s first products were cardboard-shell detonators, starting charges and glowpapers for diesel engines, and Raikka rock bombs.

For two decades Raikka Ltd’s operations were concentrated on the manufacture of electric detonators and the expansion of machine workshop operations. In the 1970s the company began manufacturing mechanical fuses and training devices for engineering troops, and since then it has continued to focus on the needs of the defence field by intensively expanding the product range. “Our main client at the moment is the Finnish Defence Forces. We also have clients and longterm partners in other parts of Scandinavia, the Baltic region and the rest of Europe,” says Liikkanen.

Innovative Ideas

Raikka Ltd has an innovative group of people working on new ideas to respond better to clients’ needs. “Our international business started as early as the 1960s, and back then we were

already winning awards and recognition in the international field. Product development has always been a key factor in our business, and despite the small size of the company we are able to offer our customers an extensive product range,” Liikkanen points out.

Mine-Clearing Devices

Some of the company’s most important products are Explosive Ordnance Disposal (EOD) devices that are used in mine-clearing operations. “I see EOD products being a large part of our business in the future. With our products the unexploded ammunition can be made harmless,” Liikkanen says. The mine-clearing hook is used for the clearing of tripwire mines. The clearing hook is shot using an assault rifle with an adaptor installed on the barrel. A bullet trap inside the hook catches the bullet and gives the hook

Our main client at the moment is the Finnish Defence Forces. We also have clients and long-term partners in other parts of Scandinavia, the Baltic region and the rest of Europe,” 93

motion energy, allowing it to reach a range of 75 to 90 metres. The attached line then pulls back the spring wires of the hook, detonating the mine. The EOD Disruptor allows the ammunition’s fuse to be detached without detonating the ammunition. The disruptor can also be used for other targets that are to be detached or destroyed. The device can also shoot a modified mine-clearing hook. The cartridge’s powder gases project a steel bullet, iron powder or water at the target. By installing the disruptor on the

stand, the target range and direction can be adjusted. The disruptor can also be used without the stand. After detaching, the device can be reused or packed away in its transport case. The third mine-clearing product from Raikka is the rocket wrench – a reusable device that can be used to remove the fuse from unexploded heavy ammunition or a bomb without detonating the target. The rocket wrench is fixed to a conical or cylindrical fuse. The cartridges are screwed into the cartridge chambers and connected to

Rocket Wrench type Raikka With the rocket wrench, the fuse of the unexploded heavy ammunition or bomb can be removed without detonating the target. The rocket wrench is fixed to a conic or cylindrical fuse. The cartridges are screwed to the cartridge chambers and connected directly or with a firing pin to the firing device. Powder gases give the rocket wrench a rotational movement, which releases the fuse. After the bomb clearing the rocket wrench can be reused or packed in the transport case for future use.

the firing device directly or with a firing pin. Powder gases give the rocket wrench rotational movement, which releases the fuse.

Simulation Systems

“Customers have also shown interest in our simulation systems. These systems are used for training purposes and in army exercises,” says Liikkanen. Several types of simulators can be used to simulate weapon fire. The system simulates artillery or mortar fire using flashes and bangs.

The system that Raikka produces includes 25 detonators, which explode at two-and-a-half second intervals for one minute. Setting up the simulation system is straightforward, and it is ready for use out of the box. The electric or mechanical Flash & Bang simulators are used in the simulation of hand grenade and mine operations. These simulators use special, safe flash powder. “Before Flash & Bang products the entire field had to first prepare for the simulation, which would take hours.

With this new product the entire system fits in one box, and it is ready to be used within minutes,” says Liikkanen.

Pyrotechnical Products

“A product for more common use in the future is the Shock Tube System, which has been developed to replace the electronic ignition system. With our product there is no danger of static electricity causing a fire, which allows smaller launching systems,” Liikkanen says. “It is also safe, cost efficient and easy to operate,” he contin-

ues. The Shock Tube System consists of a shock tube, a mechanical ignition system and a detonator. The length of the shock tube can be customised for each client’s needs. The mechanical igniter is equipped with two independent safety pins for possible rearming. Two handles make the bobbin easy to unwind and rewind. “The system is being used for civil purposes as well, such as demolishing buildings and in mining sites,” Liikkanen says. Though it is the largest, the Finnish Defence Forces is not the only client

Mine Clearing Hook type Raikka The mine clearing hook is used for the clearing of tripwire mines. The clearing hook is shot by assault rifle (calibre 7.62 or 5.56) with the help of an adaptor, installed on its barrel. Inside the clearing hook there is a bullet trap, catching the bullet and giving the hook motion energy to reach a range of 75 to 90 metres. The attached line is then pulled back the spring wires of the hook detonating the mines.

using Raikka’s products. Pyrotechnical companies can also benefit from Raikka’s know-how in their own use of explosives and charges. Friction primers and electric igniters are used for igniting fuse, safety fuse, other special fuses and various pyrotechnical charges, which can produce heat, gas, sound or movement. Applications include, for example, fire extinguishing systems for opening valves or closing fire doors. Raikka Ltd specialises in developing and manufacturing various pyrotechnical, often customised, products combined with explosives and mechanical parts produced by the company itself. Other products include charges and primers, and the RASS Cartridge – less-lethal shotgun baton ammunition designed for use in crowd-control situations such as riots as well as against criminals. It is mainly used by defence forces, the police 96

and security guards.

Strength Through Cooperation

Raikka’s advantage as a small company is the co-operation of its two production plants – the machine workshop and the explosives workshop. “The synergy and cooperation between these factories strengthen the operation of the entire company, especially production and product development activities,”, saysLiikkanen. As well as internal co-operation, working with other companies in the same field as well as the company’s long-term relationships with its many international partners are the strengths behind Raikka Ltd’s growing business. www.raikka.fi

Product development has always been a key factor in our business, and despite the small size of the company we are able to offer our customers an extensive product range,â&#x20AC;?

High Mobility Catering Systems From

Teuvan Defence Text: Inderjit Kaur Khalsa Photos: Sini Pennanen, Teuvan Defence

Co-operation with the Finnish Defence Forces began in 1929 with the development and manufacture of the M29 field kitchen. Since then, several new models have been developed and delivered worldwide.

Kari Penttil채, CEO of Teuvan Defence

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ne thing still astonishes people when they hear about the war between Finland and the Soviet Union which took place in the early 20th century: how was it possible for a small country like Finland to defeat an opponent of such size, in a war where there were 10 Russians for every Finn? Kari Penttilä, CEO of Teuvan Defence, who has been with the company since 1975, has a strange but at the same time obvious answer to this question: “The Russians were hungry after fighting for so many days without a hot meal that when they came closer to the Finnish positions, they were mesmerised by the smell of

LFK 150

one. The Finns, meanwhile, could reposition themselves and attack.” Teuvan Defence has been producing reliable field catering equipment for use in extreme conditions since 1929. One product, the M29 field kitchen, has been successfully used in two wars and is still in use today, although it has been modified to enable vehicle towing. Teuvan Defence began operations in 1925 when Penttilä’s grandfather, originally from Estonia, established the company in Finland. “The first cookers were designed for cattle ranches. There was no industrially produced food available for cattle;

instead the food, for example potatoes, was steamed on the cooker,” says Penttilä. Schools were also utilising the cookers. Teuvan Defence specialises in catering equipment and solutions for the Finnish Defence Forces as well as civilian markets. Co-operation with the military began in 1929 with the development and manufacture of the M29 field kitchen. Since then, several new models have been developed and delivered worldwide. “Armies, rescue departments, the Red Cross, the Red Crescent as well as disaster response teams have been utilising our field kitchens globally,” Penttilä points out.

FK 2000

LFK 150

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All our units are specially designed to maximise mobility, reliability and ease of operation while at the same time allowing fast deployment.”

FK 2000

Field Kitchens For Defence Use

Soon after its establishment, the company’s kitchens were put on wheels. The development of the food industry then made it possible to take semiprepared goods into the field, and this also brought diversity in terms of the development of field kitchens. Earlier models were heated by wood, while modern versions use gas as well as diesel. Today the requirements for field catering are diverse because of the variable operating scenarios and environments. The Teuvan Defence product range meets these requirements 102

with a wide variety of mobile catering equipment and systems. All Teuvan units are specially designed to maximise mobility, reliability and ease of operation. “Some military units need to be able to prepare meals while on the move, for example while travelling to their destination. Often troops are waiting for the food immediately after arriving at their destination following a long journey, and our systems make this possible,” says Penttilä.

The Modern Field Kitchen

The FKO2000, with its turbo air oven, has been specially developed for the

military. It has a wide range of kitchen equipment for cooking, frying and baking, and efficient lighting with optional camouflage. “It has the capacity to serve three meals a day for up to 300 people with a choice of menus, or up to 500 people if they prefer the soup menu,” Penttilä says. The FKO2000 has multi-fuel burners that use diesel, paraffin, gas and solid fuel. A powerful on-board diesel generator set is located inside sound-proof casing. “This product is based on standard components that are available worldwide, and it is ideal for serving rapid-deployment troops. The FKO2000 makes it possible to cook on the move,” says

Penttilä. It is supplied with infrared (IR) protection so that it is not visible to thermal cameras. Our field kitchens can be customised to suit every client’s needs. Field kitchen menus vary between countries. Soup is a common meal in Finland, but in England, for example, it is out of the question. Italians prefer different kinds of food than Pakistanis or Finns. These differences between national cultures have been taken into consideration when developing the field kitchens.

Global Markets

“Globally speaking, the markets are small. The largest markets are the USA, Russia and Finland. Field kitchens are not a new invention – Napoleon used them in his campaigns in the 18th and 19th centuries, so the field kitchen actually originates in Europe,” Penttilä says. Teuvan Defence currently employees 25 people. The company has extensive expertise and a long history in the development of field kitchens. “We have all the latest production technology at our disposal, including 3D laser cutters. We do all the most labour-intensive work ourselves in our workshop, and the subcontracting network we have available works well,” says Penttilä. Delivery times are reasonable and are often considered fast: Delivery to Bosnia Herzegovina took just one month to complete when the client requested a very fast delivery. The town of Teuva is located close to Finland’s west coast, just 130 km from the nearest international port. “This is always a huge advantage for us when it comes to delivering on schedule,” Penttilä emphasises.

Other Products And Services

The Teuvan Defence product range also includes kitchen equipment, kitchen containers and special installations such as storage and food preparation trailers with freezer and refrigerator facilities. The company also offers services such as personnel training for

the use and maintenance of the field kitchens. Training can be arranged at the dedicated training centre as well as at the customer’s premises. The company also develops Parra water heaters, chimneys, wood stoves and electric stoves for use in saunas. “We have developed our heaters and stoves utilising the same technique we have used with the field kitchens,” Penttilä says. The company’s future plans include expanding its international markets and continuing to develop products

that meet the needs of each individual customer. “Our service has always been, and will continue to be, customer oriented. Our advantage as a small company is that we have the ability to meet the needs of our customers exactly. Working closely with our customers also gives us an indication of the needs that exist out in the field, and this means we can continue to develop our products in the right direction,” says Penttilä. www.teuvan.com 103

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The Total Responsibilities Of Turnkey Services

KOMAS Group Text: Inderjit Kaur Khalsa Photos: Sini Pennanen, Komas

ne of the new trends within major businesses worldwide in the last few years has been the outsourcing of production. Outsourcing gives the company more time for product development, creating the brand and marketing. Komas Group is one of the companies providing outsourcing services as a reliable system supplier. Komas Group is an engineering industry system supplier with several locations around Finland – and also in Janow Lubelski, Poland. “Our mission is to provide customers with turnkey deliveries,” says Business Director Marko Penttinen. He has been with the company since 2006 and in his current position since 2007. Most of KOMAS Group’s customers are international companies operating in the vehicle, machine engineering, power transmission and defence industries. The services include material purchasing, manufacturing of machined components, welded steel

structures, ready-fitted hydraulic and power units, mechanical assemblies and sub-assemblies. In addition to turnkey deliveries, Komas Group offers a wide range of demanding machining services. The company was established in 2002 in its present form, in Jyväskylä, Finland, although it has roots reaching as far back as 1925, when the company was established as a rifle factory in Tourula, Finland. Over the years, the company has been part of the Valmet Group and Sako Defencetec, to name but a few. The main reason for the rapid growth of Komas Group in recent years is the company arrangements and outsourcing, but the company has also grown organically.

International Business Is Key

Komas Group’s annual turnover is approximately EUR 140 million, with the largest part coming from civil cus-

tomers, although the defence industry is now becoming a much larger part of the company’s business than before. “The defence industry has always been one of the most important parts of our operation. We are working together with many important Finnish companies in the weapon and pellet industries, as well as with military vehicle manufacturers,” Penttinen says. In the global military business, some countries require the entire product to be made within the country utilising their own know-how and employees. For other countries it is enough if the product is only partially made in the country. “We have a desire to internationalise our business. Utilising our experience from the past decades, we are now ready to take our business more global,” says Penttinen. Partly because of local manufacturing demands, Komas Group has also acquired a factory in Poland. “This was a natural decision. One of our major clients had operations in the area, and we

were enthusiastic to continue our strong co-operation and at the same time take our markets in the direction we were aiming at – international,” Penttinen says. In the engineering workshop industry, globalisation is the key element in terms of staying in business and remaining competitive, especially in the current climate. “For us as a company, the way to go global is together with our partners. Our goal is not to go out there building more factories unless it is in co-operation with our customers,” says Penttinen.

Global Competition

The past year has been challenging for Komas Group because of the economic downturn, but in spite of this the company has been aspiring to develop future prospects together with their long-term customers. Competition in the defence industry has been fierce as well. For this reason, price competition and cost efficiency are significant factors - as is quality and fast, reliable, deliveries. “There are four ways to look at the competition situation in our field,” says Penttinen. “First, our clients are still manufacturing the products themselves. Second, there are superior regional companies such as Komas Group that are looking to become a provider of entire systems. The third factor is the smaller companies that are specialised in one section, and the fourth, which is a growing trend in manufacturing, are the countries with lower cost levels.” 106

For us as a company, the way to go global is together with our partners. Our goal is not to go out there building more factories unless it is in co-operation with our customers.â&#x20AC;?

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Co-operation With Sisu Defence

Last September Komas Group and Sisu Defence signed a contract that will have a long-lasting influence on Komas Group’s business in the defence industry. “Sisu Defence is going to outsource the entire manufacturing operation for their vehicles to Komas Group. This is very welcome news for our company,” Penttinen says. Komas Group currently employees 1,350 people, and the new contract with Sisu will bring almost 100 new employees to the company. Within the past seven years, Komas Group has grown from just 100 employees to over 1,400. The new addition to the company fits well with its strategy. Assembly and logistics features have always been an important part of Komas Group’s business and service; in the future it is going to play an even bigger part. The new contract is a great opportunity to develop a long-term business relationship between Sisu Defence and Komas Group. It will also help the customer to feel more secure when it comes to future deliveries, especially at a time when the military vehicles market seems to be on the up. Komas Group is well on its way to making the defence industry business more global than ever before. “Now is a good time for expansion. We are very fortunate to have this new contract with Sisu Defence. It will also give us an opportunity to keep concentrating more on the future rather than just surviving the present,” Penttinen concludes. www.komas.fi

Sisu Defence is going to outsource the entire manufacturing operation for their vehicles to Komas Group. This is very welcoming news for our company.”

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Markku V채nttinen, Managing Director of CEF

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CEF CEF Communications Equipment For Demanding Conditions

Text: Inderjit Kaur Khalsa Photos: Sini Pennanen, CEF

EF, formerly Control Express Finland, aims to fulfil its clients’ needs for computing and communications technology. Tailored solutions and active product development are the main reasons for the company’s continuing success. In Finland, CEF is the largest designer and manufacturer of rugged industrial and military computers as well as computer displays and communications equipment. “Our expertise is in focused customisation of tested and proven COTS (Commercial Off-TheShelf) technologies that can be used in demanding environments,” summarises Markku Vänttinen, Managing Director of CEF since 2005. The company’s customers include the Finnish Defence Forces as well as many international industrial and security companies. The family-owned company was established in 1993 in its present form. Currently, CEF employs 43 people, 25 percent of whom work in product development. “For many years all our exporting has been done through our partners such as Metso Automation, Kone, Nokia and Patria, but this year we launched our first products to be exported straight from CEF,” says Vänttinen. The products belong to the company’s security section.

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Computers For Defence Forces

A combat soldier’s computer designed for the most severe conditions has been one of CEF’s main products. “This portable computer contains GPS navigation equipment plus command and control information features, as well as a compact carrying device that protects the PC from impact and moisture,” Vänttinen says. CEF’s computers and networking products for defence forces are a natural extension to the company’s industrial product line, offering products that are designed, manufactured and tested to more strict military standards and specifications than their industrial PC products. CEF’s defence force products combine power with an ultra-tough construction that is well able to cope with the most hazardous environments. These products have been designed to survive in situations where normal industrial computing products usually fail. The aluminium casing used on the military products is corrosion resistant and designed to offer best-of-breed protection against external shocks. The military products even have IP65-rated protection against dust and water as a standard feature.

Through continuous research and development, we can provide our customers with various innovations that will lead to major improvement in terms of both safety and cost efficiency.” 112

CEF makes an effort to adapt technology for varying temperatures as well. This is an important issue for outdoor conditions as well as industrial premises where the temperature can rise to high levels. Advanced thermal technologies are used in a wide variety of climates. Automatic heaters protect against sub-zero temperatures and heat exchangers dissipate surplus heat while keeping the computer air isolated from the dust and humidity of the environment. An independent control and monitoring unit forms the first line of defence against hardware malfunction; it is able to switch the heaters and fans on and off, and send alerts to maintenance personnel when human intervention is needed.

Customisation

CEF is divided into two sections: industrial and security. The company’s technical solutions are based on long experience and product development. “Through continuous research and development, we can provide our customers with various innovations that will lead to major improvement in terms of both safety and cost efficiency,” says Vänttinen. In 2006 CEF received ISO 9001:2000 quality system certification. The CEF PCs for defence forces are secure even in those situations where the computer is left unattended. The re113

movable cradles add exceptional flexibility to the normal use of these PCs. The CEF PCs for defence forces are secure even in those situations where the computer is left unattended. The removable hard drives add exceptional flexibility to the normal use of these PCs. CEF has also developed a wide range of PC-based components. One of the company’s cutting-edge solutions is the hard disk suspension system that enables the hard disk to withstand shocks of up to 100G while in operation. The suspension system has already been patented in Finland and the UK, and patents are currently pending in various other countries as well. “All our products are compatible with military standards. They tolerate shocks and vibration extremely well. It is well known that the hard disk is the most vulnerable part of any computer. With our solution, it is easier to protect the hard disk, whether it is for security or for industrial applications,” Vänttinen states.

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All our products are compatible with military standards. They tolerate vibrations and impacts extremely well. It is well known that the hard disk is the most vulnerable part of any computer. With our solution, it is easier to protect the hard disk, whether it is for security or for industrial applications.”

Safety Through Sensor Technology

“It must be possible to deliver information in real time from the base to a person in the field and vice versa. There is no single solution for a well-functioning system, rather a combination of many separate solutions working together,” Vänttinen says. In particular, he highlights CEF’s Property Sensor Network, which is able to notify the user of any changes in its environment. Digital mapping makes it possible to track movement inside a property or building. “This technology is based on sensitive, highly advanced sensors,” Vänttinen states.

The Strongest Company

CEF is based in Savonlinna, Finland. The town belongs to Savo, one of the largest regions in Finland. Savonlinna is known for its natural beauty and the city’s promising future prospects. The lake district of Saimaa, with its historical fortress and linden trees, is a summer paradise for local residents as well as travellers from all over the world. In 2008, a jury assembled by Suomen Asiakastieto (a Finnish business and credit information provider) elected CEF as the Strongest Company in South Savo. This was the second year of the award. The reason given for the nomination was that CEF had rapidly progressed to its current turnover level of EUR 7.8 million while still ensuring the company’s profitability and solvency. The company was given the highest (AAA) rating in the Suomen Asiakastieto Ltd Rating Alfa classification system. This rating is only given to 4.4 percent of all Finnish companies. www.cef.fi 115

Olof Elenius, President of Sisu Defence Timo Korhonen, Vice President of Sisu Defence

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New Mobility With Mine and Ballistic Protection –

Sisu Defence Text: Inderjit Kaur Khalsa Photos: Sini Pennanen, Sisu

ccording to Timo Korhonen, Vice President, Operations, “Quality assurance systems and standards originate from the early days of the car industry, in aiming to ensure that output from the mass production factories is of a uniform, specified quality.” When it comes to designing and developing a massive truck or armoured vehicle that is able to operate safely – also in regular road traffic – the challenge is a tough one. “The frame, suspension and steering system forming the chassis are the spine of a truck, which creates the performance capability of the vehicle. This is especially the case when the target is to develop an off-road military vehicle. Additionally the base chassis, the platform, must be variable enough to install different systems on it to form different end products according to the needs of the customers,” says Korhonen. He has recently returned to Sisu Auto Group where he started as a research engineer in 1988. Sisu Defence’s main products are mine, ballistic and NBC (nuclear, biological and chemical) protected high mobility vehicles that are specifically designed to protect the people inside. The development of the protection systems began in 2004 and there has since been a huge increase in the demand for even heavier protection. It is for this reason that product development is such a great part of the company’s business. Sisu Defence’s ETP (Tactical, Protected) product family includes vehicles with two to five axles varying in weight from10 to 50 tonnes. In terms of the protection performance

Olof Elenius, President of Sisu Defence • Born in Korppoo, Finland, in 1951 • Worked in administrative positions with Wärtsilä, Partek, Loglift Ltd, and Partek Cargoteck • Since 2007, President of Sisu Auto “The reason why we outsourced our product assembly activities to Komas Group is simple; we needed more resources to concentrate on our core competences such as project management and product development together with our customers. Komas Group has the ability and know-how of the production and material logistics in general and this will support our targets in delivering variable amount of quality products rapidly to the customers.

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of the cab, which in different forms can be used in all vehicles belonging to the ETP product family. “Developing our protection capability to its highest possible potential is our goal in the long run,” says Korhonen. Sisu Defence is a part of the Sisu Auto Group. The company’s main business area is the development, production and sale of civilian and military high power, multi-axle, special vehicles for demanding driving conditions. Sisu Auto’s factory is located in Karjaa, Finland, where Komas Group, a supplier of Sisu Auto, has been assembling these vehicles since September 2009. Sisu Auto’s yearly turnover is about EUR 45 million and the company employs 45 people. Sisu Auto’s owner, Suomen Autoteollisuus Oy, is owned by a group of Finnish private investors.

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Part Of Finnish History

The company’s name Sisu (strength) is a word that has been frequently used to describe Finns for many decades. The company began operations in 1931 when the truck manufacturing plant was established in Finland in order to make robust trucks for use in extreme arctic conditions. The trucks were given a name that is well known in Finnish culture. Sisu manufactured the first armoured vehicle in 1938. Since 1990 SISU vehicles have also been seen in UN peacekeeping operations worldwide. In 1998 Sisu introduced a new type of off-road military vehicle, the Sisu ET 6x6, and in 2006 Sisu launched the new generation protected product family, the Sisu ETP. The top-of-the-range model is the 10x10 vehicle, which can be used as a platform for a 26-metre bridge – a much

Our main goal is to make sure that the people inside the vehicle are safe.” lighter and faster alternative than a tracked vehicle. “The E15TP is the heaviest military vehicle we produce. It has the ability to stand at one side of the ravine and push out a bridge for other vehicles,” Korhonen summarizes. Sisu High Mobility Vehicles are designed to operate under varying transport conditions; they are known

to have high top speed and high average speed in convoys. They also have excellent transportation capacity and load-handling capability including the ability to perform in demanding offroad conditions. An efficient weightcarrying capacity, major load rating in extreme terrain as well as adaptability for various operations are characteristics that apply to Sisu Defence and

Sisu civilian trucks alike. “All our vehicles for defence forces are designed for military purposes. Those are designed and developed closely together with the end customer. Unlike many other companies we do not use only standard chassis for each vehicle; instead, we have several products so that we can match to the needs and demands of the vehicle’s intended end use,” Korhonen says.

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Mine Protection

Normally eight kilos of TNT, the amount of explosive in a tracked vehicle mine, could cause a huge amount of damage. Sisu Defence constantly tests the armoured vehicles to ensure that the protection functions as it should. After the latest test was complete there was a barely visible dent in a protective shield between the wheel and cab, if there had there been anyone inside the cab they would have been able to walk away unharmed. “Our main goal 120

is to make sure that the people inside the vehicle are safe. Of course the vehicle will not be any more driveable after the explosion, but that is not important, people are,” Korhonen points out. Sisu High Mobility Vehicles are all mine, ballistic and NBC protected. “An integrated mine shield provides the mine protection. The shield is installed in the chassis under the cabin. The shell structure is completely welded and airtight, so the cabin can be pressurised. We do all the necessary

armouring during the manufacturing process of the vehicles since this allows for more solid armouring than would be possible post-production,” says Korhonen. Sisu Defence aims to be one of the global market leaders in the protected vehicles industry. The company has achieved this leading position based on its protection technology. “Exports are important to us. We do not have so much competition in our specialised field, which is the high level of vehicle protection. We are still aiming to develop even better protection than we

currently offer,” Korhonen states.

Co-operation With The Finnish Defence Forces

The demand for effectively protected vehicles has been increasing steadily, especially in terms of vehicles intended for use by international reservist troops and in peacekeeping opera-

tions, where the lightweight yet effective protection of troops, equipment and vehicles plays a significant role. “It is vitally important to our marketing efforts to have the Finnish Defence Forces as one of our main customers. This technically capable, demanding customer is strongly supporting and guiding our development activities. Earlier this year we sealed

a contract with the Finnish Defence Forces to deliver 60 new armoured vehicles,” says Korhonen. According to Korhonen attacks in the future are most likely to target logistics. “In crisis situations roadside mines are going to be the biggest threat. Without logistics the country will stop. This is why we are paying so much attention to protection in our vehicles,” he says. www.sisudefence.fi

All our vehicles for defence forces are designed for military purposes. They are designed and developed together with the customer. Unlike many other companies, we do not use only one kind of frame for each vehicle; instead, we have several frame types so that we can match the frame to the needs and demands of the vehicle’s intended end use.”

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Mission Critical Communication â&#x20AC;&#x201C; When Every Second Counts

ASCOM Efficient networking of people requires a communication network that can reach everyone regardless of their function and physical location.

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Text: Inderjit Kaur Khalsa Photos: Sini Pennanen, Ascom

Ascom Finland’s Managing Director Tommi Malinen

scom is an internationally known provider of tailormade communication solutions that are entirely based on IP, or Internal Protocol. The company’s mission is to provide its customers with products and solutions which optimally address time-critical needs and operates swiftly and reliably, even under the most demanding conditions. The company’s headquarters is located in Berne, Switzerland and it has over 2,300 employees working for the company in 20 countries. Ascom was established in 1987 although the origins of the company go back over 100 years. In 1992 Ascom acquired Fintel Ltd, which then became Ascom Finland. Fintel Ltd was first established in 1968 to market and produce Auto Phone-radios for railway security. This was the company’s first connection to Switzerland. “In 1957 there was a big railway accident in Kuurila, Finland. In those days there were no radiophones in the locomotives. It turned out that two trains were accidentally travelling on the same track and the outcome was that 26 people were killed. This incident made the founders of our company think of solutions for the future. Although the first radiophones were already in use in WWII, a small number of radio amateurs and engineers studied the possibility of using radio waves to send messages in a more advanced way. This is in fact how the build up began of this highly developed information technology – one that we are living with 123

and using now,” says Ascom Finland’s Managing Director Tommi Malinen. Ascom has two main divisions: Security Solutions and Wireless Solutions. The third solution, TEMS Optimization Solutions, was recently acquired from Ericsson. In 2010 it will bring approximately 600 new employees to the company. TEMS Optimization Solutions is a complete portfolio of software solutions for air interface monitoring and radio network planning.

Open Access Node

Efficient networking of people requires a communication network that can reach everyone regardless of their function and physical location. In this environment the communication network becomes the centre of operations by connecting people involved in the operation. Ascom Finland’s most important and widely known product is the Open Access Node. These nodes are integrated voice and data switches that are used by national and international military forces, peace-keeping troops and crisis management teams. The first unit was delivered in 2004 to the Finnish Defence Forces. Since

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then significant amounts of access node variants have been delivered and are deployed for everyday use. “Open Access devices can safely link different information networks. They can work as a link from the base to the outer world. Phone calls are only one example of how the device can be used. Our devices have been in use, for example, in crisis control in Afghanistan,” says Malinen. The Open Access Node connectivity and operational features provide secure and scalable functionality for voice; data and imagery applications demanded in the combat arena and homeland security relations. The device is built on proven hardware and software technology. The Open Access Nodes are compliant with global industry and governmental standards for vehicle and military grade electronics. Open Access Nodes are designed to serve users with traditionally different skills. These include telephone and transmission network experts that can each configure their respective parameters for the device, and data network experts can handle the services provided with the device. The graphical user interface runs on common web

browsers, and all traffic can be encrypted for a high level of information security. “These devices are easy to assemble and operate. So they are an ideal solution for dynamically changing situations and needs. We are also able to customize things for our clients’ needs at affordable prices,” Malinen states.