Business and Technology

Transcription

1 ENGLISH Business and Technology Family business to nation-wide success Third stage of the Joensuu Science Park The largest port for exports on Lake Saimaa

2 Number of jobs in North Karelia increasing at a good rate According to advance information from Statistics Finland, there were a total of 61,579 jobs in North Karelia at the end of This was 1,108 more than the previous year. The pro rata increase in jobs was thus 1.8%. On the national level, the growth in jobs was about half (1.0%) of that in North Karelia. Within the region, the development was most favourable in Joensuu where the number of jobs increased by 2.4%. In addition to Joensuu and Kontiolahti, the development in the municipalities of Nurmes, Tuupovaara and Valtimo was also excellent. The greatest increase in number of jobs was in social services, including e.g. welfare services. In the Joensuu region, the building and industrial sectors were in especially good shape. According to the industrial enterprise register kept by the Regional Council of North Karelia, the positive trend continued in SMEs have faith in future According to the SME barometer, small and medium-sized companies expect their economic situations to improve within the next year. Of North Karelian SMEs, 41% expect growth and only 8% anticipate market conditions worsening. The general outlook of SMEs in the Joensuu region on economic trend development is the best in the country and the expectations of the development of financial strength are the second highest in Finland. It is wonderful to hear about the positive outlook of entrepreneurs on the immediate future, says Jouni Mönkkönen, Managing Director of the North Karelian Entrepreneur Association. In North Karelia, entrepreneurs are relatively satisfied with the location of their companies. Among other things, the entrepreneurs list as positive their cooperation with the University and the Polytechnic. The services provided by the Science Park, Puugia and IMTEC, as well as the physical operating environment, are also acknowledged. >>> Exports continued to grow in North Karelia 2 Last year, the value of exports of North Karelian industry was million.the value of exports grew by nearly 4% compared to the previous year, during which national exports declined by 2%. Of the large industrial branches, the plastic, rubber and chemical industry, and the metal and forest sectors were the strongest in the region. The remaining industries, grouped as other branches, showed the greatest growth; that is, 36.6%. By far the largest export market for North Karelian businesses was the EU, with a 60.7% share.the three most important export countries were Sweden, Germany and the United Kingdom respectively. The export targets that grew the most were the Baltic countries and Central and Eastern Europe. Russian exports, on the other hand, fell by 6.6%. Forest products account for more than half of the exports At 54.4%, the forest industry was the largest industrial branch in North Karelia as measured by the value of exports. The metal industry came in at a good second with a 21.9% share. The smallest group, other industry, including e.g. electronics, foodstuffs, sports gear and textiles, showed a surprising growth of 36.4%. >>>

3 Technology Development Centre (TEKES) funds Institute of Physics of the University of Joensuu by nearly one million euros Joensuu Regional Development Company JOSEK Ltd provides cost-free consultation services to regional companies interested in changing ownership. The service assists those wanting to give up their business and those wanting to continue the business both in changes of generation and in company acquisitions. According to the business barometer compiled by the North Karelian Entrepreneur Association in spring 2003, change of ownership will be topical in nearly 1,500 companies in the region within the next five years. These companies employ more than 4,000 people, whose future is at stake here. We want to take part in solving this equation, The Technology Development Centre (TEKES) funded applied technical research at the University of Joensuu by nearly one million euros this year. The sum includes the required share of corporate financing. Projects funded by TEKES at the Institute of Physics include contact-free testing of composite materials, holographic lithography, printable optics and electronics, nanostructures for micro-parts, and filler-free paper. In addition, the Institute of Physics received 100,000 from the European Space Agency (ESA). The primary fields of research at the University of Joensuu s Institute of Physics include wave optic technology, optic materials research, and spectral colour research. >>> OSUVA BRINGS TOGETHER those who want to give up a company and those interested in establishing one by giving advice and guidance, says project manager Tapani Hirvonen. As part of the OSUVA service, the Internet pages of JOSEK Ltd include a marketplace for buyers and sellers, and the YRITYSPÖRSSI pages contain forms to complete for those wishing to give up their business and for those interested in becoming entrepreneurs. Many successful companies can be found in the region, looking for someone to continue the business, for example, because the owner is growing old. And, buying an existing company is often better than starting from scratch. >>> Optoinspection receives international recognition Oy Optoinspection Ltd has recently received a significant international recognition by winning a Best Innovation award at Photonics Europe 2004 in Strasbourg, France. Company has participated a Photonics Innovation Village, a special event, where scientific institutions and university spin-offs were given a chance to exhibit their latest innovations in the field of optics. The solution presented by Optoinspection at the Innovation Village is a high-speed laser profiler, the first optical sensor capable of performing accurate surface profile measurements on the objects moving with as high speed as 30 m/s and more, which corresponds to the real industrial environment. The company expects to hit the market of such applications as scanning acquisition of 3D images and inline measurements of the paper web thickness, which are of the great importance for electronics and papermaking industry respectively. Oy Optoinspection Ltd is a technology start-up located in Joensuu, Finland. The company has been established in August 2002 and operates nowadays within Ideka business incubation program of Joensuu Science Park. Optoinspection develops innovative laser-based solutions for remote industrial quality control and process monitoring. CONTENTS Broman Group Family business to nation-wide success...4 Kim Wrange, Principal Lecturer in Marketing at North Karelia Polytechnic Tracing the perfect customer City of Joensuu expands to the east Excellent communications Tecwill Oy s concrete mixing plants are conquering the world market Suomen Kiitoautot The Eastern Finnish link in the global Schenker chain Know-how is the greatest asset of Europe s leading producer of low-fat cheeses...12 A business economics student believes in the appeal of the Joensuu Region Business economics studies attract attention Joensuu Science Park on track for strong growth Laakkonen brothers sell cars, pigs and golf shares Finnish summer tourism surveyed: North Karelia ranks first as a summer destination Increasing importance of the Niirala border-crossing point The largest port for exports on Lake Saimaa continues to grow The forgotten treasures of Finnish boating waters

4 BROMAN GROUP Family business to nation-wide success Broman Group Oy first started in 1965 as a dealer of Datsun and Dodge cars in Joensuu. Today, the family business established by Väinö H. Broman is a group of companies specialised in car spare parts and accessories and technical equipment employing 180 people in 12 localities. The AD VaraosaMaailma chain of stores represents Broman Group Oy s spare part business. Since 1993, the chain has expanded 5% more quickly compared to the average development in the field. In our spare part business we invest in good service. We always have a repair shop in connection with our stores, and several of our stores include a technical inspection station and a 24-hour petrol station, says Group President Harri Broman contentedly. TKP Tools Oy, selling hand tools, machinery, welding equipment, labour protection equipment, and bearing and power transmission products, is in charge of the group s technical business. The sale of technical equipment has been slower the past few years. There is significantly more growth potential there than in the spare parts business. We have substantially diversified our product range and now offer under one roof nearly everything a customer needs. Family ties are an asset Harri Broman, together with his brother Eero, represent the young generation of the family business. The brothers have been involved in the company, established by their father, since they were small. I knew already as a school kid BROMAN GROUP OY Pielisensuun Auto Oy car dealership established in rented premises. Opening of the first companyowned business premises. Company gives up car trade. First affiliate opened in Kajaani. Second affiliate in Kouvola. Company is chosen Joensuu s Entrepreneur of the Year. 7th place of business opens in Mikkeli. Technical equipment trade started with the purchase of Kouvolan Auto-Moottori Oy.

5 You won t get us to move away from Joensuu very easily, even though we are originally from Helsinki. that I would continue the business. The first summer I earned ice cream money by working as a helper at the warehouse. When I was 15, my job was to distribute purchase orders by moped. This was, of course, an especially nice job for a young boy, recalls Harri Broman about the early days of his work career. Nowadays, the father and his two sons manage the company side by side. Väinö is the Chairman of the Board, Eero is in charge of management issues and Laakerikulma (bearings store), and Harri is the Group President. We always make important decisions about the group by common consent. If even one of us is opposed to a change, nothing will happen. Determination and reliability are two of our company s principal values. These values have been passed on by our father, standing behind his decisions, but always being fair. The family background is our greatest asset in comparison to competitors and colleagues, Harri Broman stresses. Closely involved in regional events Although the Broman Group now operates in most of Finland, the company still regards North Karelia as their home. The group makes considerable donations in the area every year. For many years now, the company has made contributions to the Foundation for Promoting Karelian Culture, war veterans, national defence work, and sports. The gift-giving tradition was started in the 1970s, as soon as the profit was large enough to enable donations. In addition to financial aid, we are all involved in many activities in the region. That way we too get more from the cooperation, says Harri Broman. The founders of this flourishing business have been persuaded to move away from North Karelia on several occasions. According to Harri Broman, however, the family has permanently settled in the Joensuu region. In the 1970s, when our company had just started to make a profit, my father was offered a very nice job in Helsinki. However, my parents decided that they do not want to leave Joensuu. Eero and I have also received many challenging job offers over the years. I have lived, among other places, in Helsinki, Vienna, Stuttgart and Stockholm, and I have seen what those cities had to offer. Now business trips to the world s metropolises are quite enough. North Karelia offers much better circumstances for a good life. With modern technology and the good communications of our region, international operation is not a problem even in remote locations. You won t get us to move away from Joensuu very easily, even though we are originally from Helsinki! promises Harri Broman. >>> Broman Group Oy Established in 1965 Budgeted turnover in 2004: 37.5 million euros About 180 employees 13 spare parts stores 9 technical equipment stores Operation in 12 localities Chosen as North Karelian Entrepreneur of the Year. Group s 11th place of business opens in Kotka. First VaraosaMaailma spare parts store opens in Helsinki. Group s parent company assumes the name Broman Group Oy. Import warehouse completed in Helsinki. Laakerikulma Oy becomes part of the Group. National Entrepreneur Award. TKP- Huoltotekniikka opens in Vantaa. Broman Group Oy s new headquarters completed in Joensuu. The group has 13 spare parts stores and 9 technical equipment stores around Finland. 5

6 Kim Wrange, Principal Lecturer in Marketing at Joensuu Polytechnic Tracing the perfect customer The problem with regular customer loyalty systems and club memberships is that they focus on collecting points. The rush for merchants to acquire as many regular customers as possible by giving out club cards reached its peak in the 1990s. Now the system is going through a change. 6 Wrange, who studied the secrets of lasting customer relationships in his licentiate thesis, says that there are four types of customers. There are those who never commit themselves to any one store and do not want any club cards in their wallets. Not even the most fervent promotional speeches work for this type. It is wise to acknowledge that not all customers can be persuaded. The second group is more problematic. Some regular customers also reject club memberships. These people may have patronised the shop for years, and suddenly they are discriminated against because of some point collection system. The third customer type presents the real problem with expensive regular customer loyalty systems. A larger and larger share of those acquiring club cards never really commit themselves to the company in any way.they hold all possible club cards in their wallets and reap the benefits of each system. The fourth type of customers is the core group, on which the shops will concentrate in the future. They are devoted to the company and want to be members of its regular customer system. One must learn how to identify the right customers The regular customer loyalty systems have undergone inflation with the customers; people just want to reap the benefits of the membership. The systems are very expensive, so we should learn to identify those customers that are genuinely devoted. Regular customers, who do not want a club card, should also be reached somehow. In the future, less and less people want to be club members.to make it, the companies will have to admit that there are no longer customers who will remain loyal for 30 years. Regular customers can be acquired for 3 to 5 years at a time. The merchants should have their antennae up at all times and adjust their marketing to the customers needs. More humane marketing by means of modern technology Customer loyalty thinking is on the wrong track, partly due to the fervent attempts to save costs. There are less and less shop assistants between the shelves. New technology may help in reaching old customers. For example, by means of Contact Centres on the Internet, personal marketing even to large groups is possible at low cost.this is the modern equivalent to offering a cup of coffee in the shop s back room. The customer gets individual service instead of a non-personalised letter. With a slight delay, but individually. There are many channels to use, and the service is not tied to any particular place. However, we are still operating at a very superficial level.

7 There are no longer customers who will remain loyal for 30 years. An important consideration is whether the system is worth keeping. A regular customer loyalty system must not mean automatic discounts. At first, everyone gave out discount cards, but it was soon noticed that profits dropped. These heavy systems are not suitable for everyone, and do not have to be. As far as small entrepreneurs are concerned, the nature of the business is such that they can still operate in the traditional villageshop style. The same applies to business to business trading. Long-standing customer relationships have always been valued in trade between companies. >>> Heinävaara elementary school in Kiihtelysvaara is a model school for timber construction and open learning environment. City of Joensuu expands to the east At the beginning of 2005, the municipalities of Kiihtelysvaara and Tuupovaara will merge with the city of Joensuu. With the consolidation of municipalities, Joensuu will extend to Finland s eastern border and its population will grow by about 4,600 inhabitants to nearly 58,000. Professional expertise at Ouneva Oy, Tuupovaara. Kim Wrange Since 1 March 2000, Principal Lecturer in Marketing, North Karelia Polytechnic Project Manager, Corporate Training and Marketing, Haaga Polytechnic 1998 Diploma in Entrepreneurship 1997 Licentiate in Economic Sciences, Svenska handelshögskolan, Helsinki Researcher, CERS Center for Relationship Marketing and Service Management, Hanken 1995 Master of Economic Sciences, Svenska handelshögskolan, Helsinki Since 1970s involved in family businesses, e.g. Oy Wrange Ab Kiihtelysvaara and Tuupovaara will contribute to Joensuu s industrial strength. They are home to several internationally operating companies which offer a total of about 560 industrial jobs. In Kiihtelysvaara, industrial operations are centralised in Muovilaakso ( plastic valley ) with e.g. Exel Oyj, the leading composite technology enterprise in Europe, the Kivara plant, and Mastsystem Int l Oy, manufacturer of telescope masts. Of the jobs in Tuupovaara, 37% are industrial. Tuupovaara is home to e.g. Karelia Parketti Ltd, and Hukka Design Oy, known for its soapstone products. Ouneva Oy and Jotwire Oy, part of the Ouneva Group offering comprehensive electromechanical solutions, are also good examples of the professional skill found in Tuupovaara. Multifold surface area offers new opportunities With the consolidation, Joensuu s surface area will increase tenfold. Kiihtelysvaara and Tuupovaara, with their beautiful, hilly landscape, will offer new opportunities for living, business operations and leisure activities. The border area, with its unique culture, will bring new resources, especially to the tourist industry. >>> 7

8 Airport tops off the services provided by the Joensuu region EXCELLENT COMMUNICATIONS Joensuu Airport has offered regular services longer than any other airport in Finland. Teuvo Kettunen, Director of Joensuu Airport, believes that charter traffic will significantly increase in the future. Companies in the Joensuu region are spoilt for choice when it comes to transportation: the Managing Director can jump into an aeroplane and have the goods follow by rail, road or water. 8 It takes less than an hour to fly from Joensuu to Helsinki. There are seven regular flights every weekday and, on weekends, depending on the season, four or five flights a day. The region s entrepreneurs have contributed to the good communications with Helsinki and the rest of Europe. About a hundred business travellers take the morning flight to Helsinki and as many return in the evening. My job is to act as a messenger between the airline and the business life, says Teuvo Kettunen, Director of Joensuu Airport. Compared to many other airports in Finland, Joensuu Airport is very close to its users; only 11 km from the city centre. Busy business travellers and their guests appreciate the short drive to the airport. It takes no longer to fly from Joensuu to Helsinki-Vantaa airport than it takes to drive to work during the morning rush hour in the Helsinki metropolitan area. The airport s significance for the area was appreciated long ago Air traffic between Joensuu and Helsinki started back in the 1950s. The service was made possible by the existence of a good airport and the decision of the city to support air traffic. At that time, it was rare for a city to support air traffic. The decision-makers explained their resolution by saying that a developing city requires good communications with the capital. Compared to other means of transport, an aeroplane was by far the quickest, especially as the road network was still modest in the 1950s, Kettunen says, regarding the history of the airport and the region. This spring we celebrate 50 years of uninterrupted airline service from Joensuu Airport. In fact, Joensuu Airport has offered regular services longer than any other airport in Finland. Good prospects for continued growth in air traffic In addition to domestic flights, there are about 40 flights a year taking tourists to holiday destinations abroad. As far as charter flights are concerned, I firmly believe that the tourist flow will reverse in the future. When our marketing is up and running, the unique environment and interesting

9 Tecwill Oy s concrete mixing plants are conquering the world market Exports of Tecwill Oy s concrete mixing plants have surged. activities will attract tourists from all over the world. As we know, tourist flights to Lapland started with one Concorde. Last Christmas, however, 500 charter flights carried holiday guests to Lapland. At one time, there were mail flights and freight traffic from the Joensuu Airport. Today, goods are carried in aeroplane cargo holds only. However, the facilities for restarting cargo flights exist. To start freight traffic we would need one entrepreneur, who would be in charge of the entire logistics chain and gather goods from the area for the flight. If we can find an entrepreneur eager to accept the challenge, the airport will be happy to help organise the service. We have vacant space in the hangar, and additional premises will be built if required. We are here for the customers, not for ourselves. When visitors land at the airport, they get their first impression of the region. And, as they leave, we are the last place they see. An airport is a place of passage, from where the passenger has to have a flexible connection, Teuvo Kettunen summarises the principles of his airport. >>> Tecwill Oy is an internationallyoperating manufacturer of concrete mixing plants and their control systems. The company s products are known for their small space requirement and easy commissioning. The patented, portable Cobra concrete mixing plants have generated interest all over the world. Our latest innovation is a unique weighing system for the Cobra product range. This system enables smaller plant size and improved cost efficiency. We last displayed our product range at the Bauma exhibition in Munich with great success, says Tecwill s Managing Director Viljo Ryhänen happily. Tecwill, aiming to be one of Europe s leading manufacturers, employs 15 people in Joensuu and Lappeenranta. All assembly and some of the design work have been contracted to carefully selected subcontractors. We concentrate on product management, marketing and further development. We engage in continued product development with our customers, aiming at better and better products and improved competitiveness. Primary market in Europe and Russia The North Karelian Chamber of Tecwill Oy from Joensuu is investing in efficiency both in its products and its operations. The state-of-the-art concrete mixing plants are manufactured, designed and serviced by means of a strong cooperation network. Commerce honoured Tecwill Oy with last year s Export Award for its positive development and strong growth of exports. Close network cooperation improves our competitiveness in the international market. The operation of our concrete plants, including service and spare parts, is always ascertained by means of local operators. This helps us to minimise transportation expenses and speed up operation to the benefit of our customers, Ryhänen explains. Exports account for about two thirds of Tecwill s net sales. In the future, the share of exports is expected to grow significantly. The portable concrete mixing plants have an especially good market position, both in the existing and new export areas, Ryhänen estimates. >>> 9

10 Suomen Kiitoautot The Eastern Finnish link in the global Schenker chain Suomen Kiitoautot Oy Responsible for Kiitolinja operations in eastern Finland Belongs to the world-wide Schenker chain 7 terminals 146 articulated vehicles 210 demountable bodies 210 trailers 60 delivery trucks Net sales: 40 million euros Pertti Korhonen, chairperson of the Board of Directors of Suomen Kiitoautot Oy, has been in a good position to monitor closely the evolution of the Finnish transport business from a strictly regulated transport system to computerised logistics. His parents founded Suomen Kiitoautot Oy, and with a pioneering approach, he has made it one of Finland's top transport companies that is now part of the world-wide Schenker chain. The story of Suomen Kiitoautot began in 1959, when Pertti Korhonen's parents bought KiitoKitee Oy. The first thing they did was to sign a contract carrier agreement with Kiitolinja and become the first company in the Kiitolinja chain to service the Joensuu-Helsinki route. The transportation business was very strictly regulated at the time. Carriers had to acquire specific permits for all municipalities in which they intended to provide their services and were only allowed to deviate a maximum of 15 kilometres from their designated routes. Pick-up and delivery locations were dictated by the authorities. For example, we were not allowed to deliver consignments from Joensuu to Outokumpu without a permit, so Outokumpu-based consignees had to arrange the collection of their goods from Joensuu themselves National permits, which were introduced later, were fieldspecific. For example, if we hauled SUOMEN KIITOAUTOT OY chipboards to the south, we had to drive back empty. It was not permitted to transport other types of goods the way back and timber was usually not transported from southern to eastern Finland. Therefore, empty runs usually accounted for 50% of production costs. This resulted in a situation where transportation equipment was bought together with licences. Carriers were not allowed to put price tags to licences that they sold to other companies, so they sold the document together with any old scrap lorry, Korhonen reminisces with a wry smile. Korhonen thinks that the history of the transport business, characterised by strict regulation and the power of authorities to grant licences at their discretion, still has an effect on public attitude towards this industry. Transport and logistics are, regrettably, often considered to be a necessary evil. Business customers are generally not prepared to carry out mutually profitable co-operation with transport companies, so they also miss the benefits of partnership that they could obtain, says Korhonen, who is, naturally, displeased about the situation. A developer who appreciates traditions Pertti Korhonen, who had felt more at ease when unloading a lorry than studying his schoolbooks in the 1960s, took the reins of the family business in Things started to change when the company transferred ownership to the younger generation. I was raring to develop our operations when I started as Managing Director. We built our first terminal in Most of my colleagues shook their heads when they heard about our project, because the business environment had previously not required specific facilities for the handling of piece goods in eastern Finland KiitoKitee Oy is purchased by the Korhonen family The company is renamed Kiitoautot Oy Pertti Korhonen becomes Managing Director The first terminal building is completed The company's basic values are recorded The current premises are built 10

11 Data communication plays a key role in today's logistics. Bits move faster than atoms, so operations are planned well ahead before the goods arrive, explains Pertti Korhonen. Transport is just a long conveyor belt that follows production; it is part of the value-added production process. Many competitors were unsuccessful simply because their operations were inefficient. For us, the 1980s was a period of intensive growth. Company acquisitions more than doubled our transport performance, recalls Korhonen. The company was the first in the transport business to record its basic values. This happened in A certified quality management system was introduced five years later and has since become a comprehensive enterprise resource planning system that now covers various aspects of the company's operations. Management of material assets, capital, knowledge and information The transport business has gone through a dramatic change since the 1950s. The road network has improved by leaps and bounds and companies now make use of a computerised service process instead of placing their orders by phone and ordering their phone calls through regional telephone exchanges as they did 50 years ago. The manufacturing industry is currently based on customerdriven production, which fluctuates at the same pace as shelves in shops become empty. However, the often-repeated phrase of stocks being nowadays kept 'on wheels' is not true. Transport is just a long conveyor belt that follows production; it is part of the value-added production process. Coffee packets have no value for North Karelian consumers before they are readily available on the shelves of the local grocery shop. According to Korhonen, distances in Finland do not have a considerable effect on deliveries in terms of time. 24-hour dispatch and reception service is currently not available in Finland. Goods can be hauled overnight from Helsinki to Joensuu in the same way as they are transported to Järvenpää, which is less than an hour's drive from Helsinki. Overseas transport can be carried out both ways, both from and to Finland, using global cooperation schemes. Some major international companies, such as Nike and Siemens, have already introduced single transport solutions that cover the whole of Europe. >>> The company participates in the establishment of the new Kiitolinja chain The quality management system is introduced The company is renamed Suomen Kiitoautot Oy The environmental management system is introduced The occupational health and safety system is introduced Suomen Kiitoautot celebrates its 45 years of operation 11

12 Know-how is the greatest asset of Europe s leading producer of low-fat cheeses The delicious cheeses made at Valio s Joensuu plant have a special, Finnish character. More than half of the production is low-fat cheeses. Every fourth cheese eaten in Finland is produced at Valio s Joensuu plant. The rise of the dairy as Finland s leading cheese manufacturer and specialist in low-fat cheeses is based on an efficient production process and innovative product development. 12 The Joensuu dairy specialises in cheeses. Of Valio s cheeses intended for the domestic market, 40% pass through the plant s gates.this means a good 15 million kilos of hard cheese and 1.3 million kilos of cream cheese a year. Today, nearly half of our products are low-fat cheeses, which are very challenging to produce. In the cream cheese product range, the share of lowfat products is up to 70%.The rise of the Joensuu plant as the leading manufacturer of low-fat cheese speaks of our staff s great expertise in processes and product development, says Plant Manager Matti Jokiniemi. In addition to the dairy s own production, 7 million kilos of cheeses are repacked at the plant every year, either ready-sliced or in blocks, in long and short shelflife packages. A significant proportion of the production requires repacking, which can be as expensive as the actual cheese-making process. Very often, cheeses are transported to another plant for packing. At our plant, manufacture and repacking take place under one roof, which makes the process much quicker. Of our 200 employees, three out of four work in packaging, says Matti Jokiniemi. The plant also manufactures different kinds of powders and concentrates, for example, the main ingredient of the popular lactose-free milk: lactose-free milk protein fraction. Pioneer in uniform-sized cheese In Joensuu, the process of cheese ripening has been perfected for years. We were the first in Europe with lines for producing uniform-sized cheese blocks. Some of the technology existed already, and the rest was designed in cooperation with the equipment suppliers. Now similar lines have been introduced elsewhere, says Anja Pölönen, in charge of the process. We have plastic ripening units designed for our specific needs, enabling us to control the size of the cheese better and also enabling improved heat transfer. This contributes to quality control, shortens the ripening process, and facilitates the repacking process. A good example of product development at Valio is the Polar 5 low-fat cheese manufactured at the Joensuu plant, chosen as Star Product We follow the market situation closely and are working on several new products all the time. In addition to the award-winning Polar 5 cheese, other internationally recognised products include lactose-free milk

13 We follow the market situation closely and are working on several new products all the time. Process Manager Anja Pölönen and Plant Manager Matti Jokiniemi give credit to the staff for the fact that the Joensuu plant is now the leading low-fat cheese producer in Finland. and innovative functional foods, says Matti Jokiniemi contentedly. We have thought about how to maintain our competitiveness and decided to stay on top through our expert knowledge. People make the difference; technology alone is not enough. We have the asset that professionally-skilled employees are easily available within the region. People are dedicated and committed to their work. Production chain extends from the field to the table Valio s Joensuu plant accepts 200 million litres of milk every year. More than 20 trucks deliver milk to the dairy from within a 100 km radius every day. Thanks to our unmanned reception system, we can handle up to 100,000 litres of milk per hour. The automated system enables the driver to handle the milk transfer alone and operation is possible 24 hours a day. In cheese making, hygiene and a cold chain are extremely important. The ripening of cheese takes several months, and therefore the raw material must be of flawless quality. Our production line is washed twice a day. In fact, we use twice as much water as milk in our plant, Anja Pölönen says. We have to view the production process from start to finish and take into account all stages from raw material and transportation to packing materials. Our products are known for high quality; therefore we want to meet the consumers expectations one hundred per cent, assures Matti Jokiniemi. >>> The cheese ripens in plastic ripening units designed specially for Valio. 13