JARTEK news JARTEK. Page 4 Sawmill news from the East. Page 8 Goal line approaching in Nebolch

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JARTEK

news

YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY 2009

Page 4

Sawmill news from

the East

Page 8

Goal line approaching

in Nebolch

Page 10

Russia brings great

challenges and

lucrative prospects

JARTEK

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY

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Russia,

Russia, Russia…!

Text by Heikki Sonninen

2

Editorial

3

Jartek is believing in future and Russia... still and anyway!

4

Far - Far away

6

Review on deliveries of thermal modification plants

8

Goal line approaching in Nebolch

9

Important drying kilns business transactions

10

Russia brings great challenges and lucrative prospects for the project supplies of the saw industry

12

The investments can not be preferred to human resources

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Our visit to St. Petersburg

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News PUBLISHER: Jartek Oy CONTACT INFORMATION: Jartek Oy Svinhufvudinkatu 19

P.O.Box 14, 15101 Lahti, Finland Tel. +358 3 787 5400

Fax +358 3 787 5282 sales@jartek.fi www.jartek.fi EDITORIAL STAFF:

Editor: Heikki Sonninen Layout: Mainostoimisto

Poickeus Oy Cover photo: markuva777

www.imagepark.biz Editorial

ø Without anyway commenting on the speech of our Minister of Defence Jyri Häkämies, I can state once again that for us, being involved in the Finnish wood processing industry, Russia means challenge, threat and opportunity.

The export duties for raw timber seem to become valid either at the end of this year or after some delay. This will change the structure of wood process-ing industry in many countries. Up to now, besides Finland, also Baltic coun-tries, China, Japan and Korea have been significant importers of Russian round timber. The annual export of round timber might have been ca. 60…80 Mm3. Consequently, a considerable decrease in its exports will not affect only

the operations of the purchasers but also the market situation of Russian log harvesting enterprises will be impaired drastically.

Finland is hardly likely to obtain enough domestic raw materials of competi-tive quality and at a sufficiently competicompeti-tive price. That will result in decreasing domestic production during years to come. With decreasing quantity, we have to concentrate on increased upgrading. And we all, the entire wood processing cluster, will be in the same boat. The producers and machinery manufacturers must close ranks to develop new, sophisticated wood products and respectively proper production machines and equipment.

Furthermore, we have an option to invest in the basic production of sawn timber in Russia, which has already been adopted by the biggest Finnish com-panies. The Russian domestic production is on the increase but the growth is retarded by lack of skilled staff and by insufficient knowledge of marketing. Ad-ditionally, due to their initial stage, the operations are lacking strategic know-how in selecting the product range and market segment. All that will easily lead to a situation where a lot of efforts are made to produce everything for every-body, which in turn results in inefficient operations.

Presently, the Finnish medium-sized sawmills are offered a lucrative op-portunity to acquire shares in recently started Russian companies. The proper knowledge can enable a shareholder to keep the financial investment rather small. The greatest challenge is to build up a structure to prevent the Russian company from becoming a cuckoo in the nest which will take over the entire nest together with the markets.

Jartek has recently been cooperating in several Russian projects where the investing firms were looking for a Finnish strategic partner. If some of you are interested in this possibility to utilise the Russian forest resources, please don’t hesitate to contact us. We are pleased to place our expertise at your dis-posal.

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY ø In January we attended the floor

covering event, Surfaces 2008 in Las Vegas. Our goal was to gain a foot-hold in the market of thermal modifi-cation plants.

In March, it was in turn Paris where we introduced our thermal modification technology and the other fields of our expertise as well. In Russia, we participated in the fairs in Khabarovsk and Syktyvkar and after that in Perm.

And the same pace continued; dur-ing August and September we attend-ed the most significant transatlantic fair IWF in Atlanta, then the Interna-tional Timber Fair in Klagenfurt,

fur-Jartek is believing in future

and Russia…still and anyway!

Text by Jukka Nousjoki

ther the Russian fairs in Moscow and Irkutsk. Finally, at the end of Septem-ber we took part in Finnish event of Sawmill Industry in Jyväskylä.

Later on in last year we attended the Russian fairs in St. Petersburg, Krasnoyarsk and Vologda.

The list of fairs reveals clearly our expectations and confidence in the Russian market.

At the same time we are, howev-er, looking for lucrative prospects in other continents and Central Europe as well.

In the matter of fact we have to acknowledge the tough situation at the markets. Financial worries are

In year 2008 we were considerably investing in international fairs. By

participating in significant international fairs we were effectively

sear-ching for growth and new markets worldwide.

very common around the world and due that the projects are at hold. Some have been even cancelled. Tough financial situation have forced also us to temporary reductions. But still we truly believe that this is only of a temporary nature. Our international fair investing will be considerably re-stricted this year than a year before. Our main fairs will be in May Ligna in Hannover, Germany and in September Wood and Bioenergy Fairs in Jyväsky-lä, Finland. During the autumn we will also participate on fairs in Irkutsk, Russia.

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY

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ø But let’s not hurry ahead of things. Firstly the salesmen had to clear the way for bargaining. By using the Google Map, our salesman, the sea-soned traveller, searched the place. A quick measuring showed the distance from home office to be not less than 6428 km. Actually, that didn’t seem to be an excessive distance to us who had travelled a lot and even farther.

For the reasons to be described later, the initial slight snootiness turned slowly into genuine humility; Russia is a huge country, indeed. Due to the typi-cally short notice, the flight from Mos-cow to Khabarovsk was, of course, fully booked. “Let us not give up that easily”, said the salesman and booked the tick-ets for another flight route. The journey was, should I say, interesting.

The trip commenced by taking the regular flight from Helsinki to Tokyo. After unexpected and various adven-tures at Narita airport, our

sales-Two cars were used to transport two passengers. The reason for that was disclosed during the day.

The driver was not willing to ap-proximate the duration of the drive. According to him, the travel time would depend on how many tires will blow during the drive. In fact, the scenery was really beautiful but endless at the same time. The unfinished gravel road, made of head-sized gravel blocks, as-cended up to a height of over 2000 m in the mountain. After one blow-out and 9 hours of travelling along the extremely man found himself on a Korean Airlines

flight bound for Seoul.

Finally he managed to clear the rather complicated border formalities in Seoul and was able to continue his journey.

The plane to Khabarovsk seemed to have seen its better days as early as during the Vietnam War. Arriving in Khabarovsk, our salesman felt com-pletely confused. Exhausted after his long journey, he felt he had lost even his identity and he had to look at the mirror to win it back. To further con-firm his identity, he checked his photo on the page 2 of his EU passport. The photo in the passport was slightly simi-lar to his mirror image.

After coping with the hard flights, still the worst was to come. In the sum-mer 2007, there were no flights to Vanino and the goods train could not take any passengers. Therefore the cli-ent had arranged the transport by car.

Far - Far away

Text and photos by Klaus Jansson

In the summer of 2007, Jartek’s Russian trade achieved one milestone when our

cont-racts reached as far as the Pacific Ocean. Jartek signed a contract for the delivery

of green and dry sorting line to the new sawmill located in the seaport Vanino on the

Pacific Coast. The delivery was completed in 2008 and commissioning will take place in

spring 2009.

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY uneven road we arrived to Vanino

sea-port.

The negotiations were actually the easiest part of this travel and we signed the contract during the second meeting.

Our customer, Arkaim has been en-gaged in considerably extensive trade of round timber and small- scale saw-ing as well. The changes in customs clearances motivated them to change the strategy.

The project is named as a so called Brown-Field project since the

Japan-based saw line was demolished in the spring 2007.

The log sorting to the saw is deliv-ered by Holtec, saw line delivdeliv-ered by EWD. The lower saw is in Vecoplan’s responsibility and the supplier of the power plant is Polytechnik

Jartek’s delivery scope comprises green sorting, sticking, dry sorting and packing plants.

At the first stage, the annual capac-ity of the plant will be 205.000 m³ sawn timber. At the second stage the annual capacity will be raised up to the level

of 350.000 m³. The second investment stage will include another green sort-ing and sticksort-ing plant.

As raw material they use almost solely the local Siberian larch (Larix Siberica).

The installation work was started in September 2008 and commissioning is carried out in early 2009.

LEFT PAGE:

ø On the halfway and 4,5 hours’ drive to the next city.

ø View from the gravel road. ø Finally a hall with a high enough ceiling.

ø Reached the Pacific Ocean. RIGHT PAGE:

ø The rock had a hole big enough for a truck to go through.

ø The fisherman felt attracted by the hundred kilometres long river with an abundance of salmon.

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY

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Majur -PPS-Galekovic,

Croatia

ø The first thermal modification plant of our Croatian customer PPS-Gale-kovic has been in production for two years now. Last winter the custom-er placed us an ordcustom-er for the thcustom-er- ther-mal modification kiln of 20 m³. The kiln has been in production since July 2008. Jartek’s supply comprised all main components of the kiln as well as operating devices along with elec-tric and control accessories including software. Our Croatian representa-tive was in charge of local implemen-tation, just as in the previous delivery. Additionally, our representative to-gether with the customer supervised the installation work. The commission-ing and user traincommission-ing were in Jartek’s responsibility.

PPS-Galekovic is the biggest pro-vider of wooden floor materials in Croatia. Currently the main species of thermal modification are ash, beech and hornbeam.

Scandinavian Fine Wood,

Sweden

ø The first thermal modification plant in Sweden was started up in the be-ginning of year 2008. The scope of delivery comprised the complete ther-mal modification plant, including the thermal modification kiln of 20 m³ and thermal oil boiler of 500 kW. Jartek delivered the plant on turnkey basis.

Scandinavian Fine Wood’s main product is thermal modified birch.

Superior Thermowood of

Brainerd, Inc. Minnesota, USA

ø In the USA, Jartek’s first thermal modification plant for productive use was started up in June 2008. Jartek supplied the customer with a ther-mal modification kiln of 20 m³ together with a thermal oil boiler. The delivery was executed completely on turnkey basis including freights, installation of equipment and pipeline as well as electrification.

Superior Thermowood of Brainerd produces thermal modified hard wood to manufacturers of floor and wall materials. The main wood species is red oak.

Lunawood, Finland

ø During summer 2008 Lunawood in-creased its product capacity of ther-mal wood. Jartek delivered the auto-mation and measuring devices to the kiln of this customer.

Lunawood is a reliable industri-al provider of thermindustri-al wood having steadily increased its production ca-pacity. In 2008 the capacity grew up to 35 000 m³.

Review on deliveries of

thermal modification plants

Text by Antti Tiittanen

BELOW:

ø Majur/Galekovic ø Scandinavian Fine Wood

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY BELOW:

ø Scandinavian Fine Wood RIGHT:

ø Three images of Superior Thermowood of Braivnerd, Inc. thermal modification plant.

Images:

Bois Durables de Bourgogne, France

ø Jartek and Bois Durables de Bourgogne entered into a contract in autumn 2008. Scope of delivery comprised the complete thermal modification plant, including the thermal modification kiln of 20 m³, thermal oil boiler plant and exper-imental kiln with 1 m³ batch. This is Jartek’s first delivery to France. The experimental kiln has been in production since October 2008. The production chamber will be installed this spring.

Oy SWM-Wood Ltd., Finland

ø In February 2009 Oy SWM-Wood Ltd. and Jartek signed a delivery contract for new 45 m³ ThermoWood chamber to be build to Mikkeli. Project will be completed and new capacity in use in August - September 2009.

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY

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ø The installation work of Stora Enso Timber sawmill in Nebolch is complet-ed now. (This sawmill is also known as SetNovo). This is a very extensive investment project since the capac-ity is raised from 100.000 m3 up to

280.000 m3. The project involves log

sorting, used and overhauled saw line, green and dry sorting lines made by Jartek as well as drying kilns and heating plant. Planing operations are to be started later on. The schedule of the entire project was nothing less than ambitious but, despite that, we had to make only a few compromises. This deal was Jartek’s first delivery on turnkey basis. The customer’s only task was to take care of that every-thing is going on as agreed. The

de-Goal line approaching

in Nebolch

livery comprised among other things mechanization, electrification, trans-portation and customs clearance. As for the Russian trade, we would fore-cast that, due to the buyer’s rather narrow organisations in project work, this kind of deliveries will be on the constant increase.

In the green sorting, Jartek will be capable of beating the current Russian speed record of ca. 120 pcs/minute of the sawmill in Pestovo. The new line will run at a speed of 160 pcs/minute. The quality requirements for dry sort-ing will not be equally tight since a part of material flow is directly transferred to planing. This is the first sorting line project between Jartek and the Rus-sian customer. In 2003, Finnish project

Text by Kari Puustinen

staff was cooperating in the UPM-project in Pestovo. The UPM-project provided a lot of experience how to operate in Russia. This knowledge will be needed; even more extensive projects are wait-ing for startwait-ing up very soon. Also this project showed us how difficult it is to establish the infrastructure in Russia where the earthwork is expensive and materials might be hard to obtain any-where.

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY ø Kontiotuote: The drying capacity

was raised by six quite big two-stage drive-through chambers. This chose was an obvious result from their pos-itive experiences in the dryers pre-viously supplied by Jartek. To their special sawing operations the cham-ber drying suits better than channel drying.

ø ER-Saha: We built 4 pieces of

two-stage drive-through chambers. The channels might have been a better solution but due to their logistic it was not feasible.

ø Veljekset Vaara: We supplied an

automatic two-stage channel dry-er dimensioned for both boards and

Text by Pertti Kähkönen

Important drying kilns

business transactions

planks. The drying kiln is equipped among other things with pressure frames and air humidification. ø Our old customer already from the 60’s, Carl Rundberg from Åland,

or-dered a drying chamber that was tak-en into production in November 2008. Chamber is equipped with pneumatic pressure frames.

All these drying kilns are made of stainless steel. The kilns use our so-phisticated WinTek control system which is steadily advanced by us and extremely successful among our cus-tomers.

ø OOO Koskisilva, owned by

Finn-ish Koskisen Oy, ordered four new

drive-in chambers to their saw mill in Russia. The previous eight chambers were supplied in spring 2008. ø Our good co-operation is continuing with Karelia-Upofloor. Jartek will

de-liver three chambers to Russia during this spring. This is a turnkey project and all the previous drying kilns will be connected to Jartek automation at the same time.

ø Our very considerable order to

Trans Siberian Forest Company Ltd.

has been supplied to plant. The scope of delivery comprised of 30 chambers. The installation takes part when the spring arrives to Siberia.

ø Further, the deliveries to Russia in-cluded several chamber dryers, one of the customers is Koskisilva owned by Koskisen Oy.

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Russia is scooping up the

capacity

ø The order amounting to over 10 mil-lion euro, for green and dry sort-ing plants of sawn timber to the new sawmill in Vanino on the Pacific Coast, is under construction now. Addition-ally, another giant supply is presently going on; the installation work of the order from autumn 2006 to Irkutsk, Siberia, comprising the green sort-ing, sticksort-ing, dry sorting and packing plants as well as 30 chambers of dry-ing kilns.

Because of these giant orders Jartek’s production capacity runs at full speed, which can also be attrib-uted to the deliveries of the sorting plants ordered to SETNOVO Nebolch sawmill in the previous spring. Ad-ditionally, the strong Russian demand provides employment for many sub-contractors in the area of Lahti and in Southern Finland.

Russians want to saw on

their own

ø The orders received are telling about the ongoing investing boom in Russia. The living standard is rising at a brisk pace. That contributes to increased building activities and ac-cordingly to demand for timber. Due to the customs duties the exporting of round timber is not as lucrative as before. Russians insist on sawing on their own. According to Mr. Hän-ninen, the business line has attract-ed a lot of newcomers, which in turn increases our challenges. Jartek’s turnkey deliveries include also the us-er training on site.

Well functioning co-operation

ø Although the deals, compared with the western investments, are exten-sive, the delivery times are not as tight as we have got used to in Fin-land. We at Jartek are able to meet the agreed delivery times. In many cases the delays are caused by in-sufficient prearrangements in lo-cal infrastructure and inadequate preparation of buildings to be ready for installation work. Mr. Hännin-en agrees that the projects feature a great deal of challenges for both the seller and buyer. Thanks to the Finn-ish and Russian speaking interpreters being always available, Jartek per-sonnel copes with the communication on site very well, he states in conclu-sion.

Russia brings great challenges and lucrative prospects for the project

supplies of the saw industry

Mr. Risto Hänninen, Director of project department, has more than 10 years of project

ex-perience at Jartek. Over these years – and in the 2000’s in particular – we have been faced

with many considerable changes. We have gained a great deal of customers, projects have

become more extensive, particularly the Finnish delivery schedules have been shortened and

work sites have been shifted beyond the eastern border, he says. Travelling has increased;

the flying terminals in Moscow have become familiar as well as the various means of

commu-nications to destinations in a distance of many hundred kilometres and even behind the

road-less laps. Rapid recovering from jetlag is very vital in the hectic work schedule. Two days’

project negotiations together with travel time can take a whole week. – For Jartek, Russia

means an extremely versatile and interesting market. And up to now we have been successful

in our operations, the leader of project department assures.

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY

Russia brings great challenges and lucrative prospects for the project

supplies of the saw industry

Text by Katriina Nikula

ø Going against wind and frost… Jartek’s salesman and project man Klaus Jansson Jr. (left) and Risto Hänninen on the move.

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY

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The investments can not be

preferred to human resources

Text by Maria Solovjeva, Irkutsk

ø Mr. Anatoli Anatoljevich, you have really great and courageous plans in-volving a lot of work. That requires money and financing. How much mon-ey is needed? What is the schedule for setting up this production?

– Presently, the total sum to be fi-nanced amounts to ca. 400 – 500 mil-lion euro of which 180 milmil-lion euro will be used for forest felling and sawing. We want to set up comprehensive tim-ber production including everything from felling to production. Nothing will be left in the forest – wood will be processed completely and without any waste.

Firstly, we have to provide the raw material and the operations are al-ready going on. In Kirenskij and Ust-Kutskij regions, the felling is carried out by using Canadian Tigercat ma-chines. The felling amounts are very big but since the selling of raw timber is unprofitable right now, we are not hurrying. Our current task is to take care of human resources and profes-sional skills.

We spend a lot of time on discuss-ing and processdiscuss-ing the experiences of the previous work. The sawmill plant is under construction now. The

equip-ment is about coming, installation work is made during this summer and the starting up is scheduled for as early as autumn.

In the winter we are going to start felling timber according to planned quantities of 1,5 million m3. Then we

add 600.000 m3 which we hope the

state will give to us because this is the leading investment project in the forest industry of this region. I will mention the big financial allowance granted by the Promsvjaz bank. – Which kind of problems occurred? What is the difference between set-ting up production in Siberia and else-where in Russia?

– In my opinion, we are building the most advanced wood production plant now. Everything is new: ideas, equip-ment, and technology. But we are newcomers as builders in the area which is completely lacking previ-ous building industry. All the build-ing costs are much higher than for ex. on the European side of our country. The local companies can keep their prices high. To save money and to get the work completed fast and reliably, we were forced to set up the building

company of our own. All work in the site is carried out by our own compa-ny, which has all the necessary build-ing permits. It is a paradox, somethbuild-ing like that is not found anywhere in the world. Normally, the building work is distributed to various companies spe-cialized for ex. in concrete work, elec-tric installations, heating, plumbing and air conditioning etc. Instead of that, we do everything by ourselves. Employing a building company from Irkutsk caused us a lot of trouble and finally we had to pay a big penalty to Chinese people for repairing all the buildings. After that we made the de-cision on purchasing the machines and starting our own building activities. – Did that cause any increase in fi-nancing?

– Yes, the financing had to be in-creased.

– What is the situation with the avail-ability of labour force in this region? – It is a big problem, indeed. We must search for workers in Irkutsk and Central Russia. We plan to arrange training for young people coming from

“Trans-Sibirskaja Lesnaja Kompanija” executes the most extensive Russian investment

project. in the region of Irkutsk. The project comprises setting up saw industry and

tim-ber production in Ust-Kut's region. The annual production of the factory will be

500.000 m

3

timber, 160.000 ton heating pellets, 94.000 m

2

glued board, 72.000 m

2

ho-neycomb board, 500 prefabricated wooden houses, each 122 m

2

in area, gluelam logs

100.000 m

3

and wood fibre board as well. This is an interview with Mr. Anatoli

Anatol-jevich Jakimov, Managing Director of Trans-Sibirskaja Lesnaja Kompanija. The interview

was made in June 2008.

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY

ø TSLK building site.

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Bratsk, Irkutsk, Ust-Kut and Kiren-skij. At the same time we will build an accommodation for 160 persons com-ing from distant places. Due to the ad-vanced technology and computers to be used in the factory, we need highly skilled staff. According our experi-ences, the local workers treat the new machines (Volvo, Iveco, Caterpillar) as they were old broken gadgets. It takes only a few weeks to convert the new Volvo into an old wreck. On the parking place we can see tens of cars crashed by drunken drivers.

– Does the local administration cause any problems to ”Trans-Sibirskaja Le-snaja Kompanija”?

– There have been no troubles with the local administration but they pro-vide all necessary support. All au-thorities of Irkutsk are helping us – the deputy governor Viktor Dolgov, the director of forestry Sergei Zhurkov, the mayor of Ust-Kut Vladimir Sen-in, administrative representatives of Ust-Kut, Vladimir Krivonosenko and Vasili Morozov. Only the supervising authorities made an exception. Once informed on our building work, they came to supervise us. We were men-aced and got penalties even without any reason.

– Does the position as a leading in-vestment project of utilizing forests contribute to your benefits?

– According to the administrative pro-vision we are entitled to 50% reduc-tion of rent. Further we are granted extra felling areas without public auc-tion. As mentioned before, we hope to gain 600.000 m3 more forest for

fell-ing.

– Which problems are likely to still oc-cur while building the factory? Are you able to execute the project as planned?

– Certainly, there will be delays. Ever since 1979, we have not built equal-ly extensive wood processing facto-ry in this countfacto-ry. We started build-ing in Ust-Kut and faced, of course, many problems there. As I told before, our problems are caused by lacking services in general. Everything must be brought from elsewhere which in turn results in very expensive build-ing costs. This problem does not apply to the whole Siberia but it is typical of this remote region. Anyway, these problems were to expect.

– Do you have any problems in select-ing and importselect-ing the equipment?

– We are satisfied with our foreign partners. The machinery and equip-ment has been planned and select-ed in cooperation with our suppliers: EWD, Jartek, Holtec, Polytechnik and Vecoplan.. This factory is designed by us. The factory features new and so-phisticated achievements of technolo-gy which can not be found in any other factories. This saw line is unique; you can not find similar anywhere. This represents the state-of-the-art fac-tory equipped with the newest tech-nology and capable of versatile wood processing.

We will give special thanks to Jartek Oy which made us the most interesting offer for high-speed line equipped with automatic quality con-trol. First we tried to cooperate with another provider but then selected the Finnish Jartek as our partner, for following reasons: firstly, because of the well-priced offer and second-ly, Jartek had to offer a project with more lucrative technical solutions. We examined in advance the plants where Jartek had installed its lines and as a result we made the decision on se-lecting Jartek as our supplier. It was particularly Jartek’s managing direc-tor Heikki Sonninen who contributed to our decision.

I am not yet familiar with the dry-ing kilns by Jartek but have experi-ence of Italian and German drying kilns. Now I would like to see what Jartek has to offer to us.

We really like to cooperate with Jartek. They have competitive solu-tions and a great deal of interesting innovations. I hope the plant will work well which will contribute to our fu-ture cooperation.

I will mention once again, that ac-cording to experts of the saw indus-try, we run unique wood processing facilities. We are capable of sawing timber 12 – 80 cm in diameter to var-ious shapes. (edge grain sawn timber, tangential sawing).

– Finally, what is your estimation of future investments in the saw industry in Siberia?

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY – There will be no investments

with-out human resources. Within the for-est industry, it is hard to find compe-tent directors nowadays. Many people are ready to invest in ”forest” but who wants to make use of forests? We built a factory in Kaliningrad and were faced with the same problem: there were no skilled people available. If the investments in Siberian forests could obtain enough human resources, there would be a lot of factories rising one after another at a brisk pace. This will, however, not happen. We took the risk but what will happen to the others… My personal opinion differs from those of others – I consider this as lucrative business. We had only to recognise the point: the investments are not the most important factors.

Our president said once that first we must learn to make use of what we already have and only then we are allowed to invest in something new. In our country, the productivity is on the lower level compared to more developed countries. That’s why it is important to turn the minds towards working. You can see what is going on in the forest industry of Western Eu-rope. In Germany and Austria, within

one year they have built numerous heating plants which produce energy from wood waste.

We have favourable conditions for investments; there are a lot of peo-ple and organisations who are will-ing to provide assistance. But the reality can be described as follow-ing: I imported sawmill and employed the workers. But for some reason, the same kind of sawmill in Canada has a production capacity of 1000 m3

and our sawmill has merely 500 m3,

although the forest is by far better. As a result, our production is making losses. We buy Volvo machines at a price of 300.000 – 400.000 euro but we are not able to find proper opera-tors. If we employ a person who has in his lifetime driven only K-700, we give him Volvo and… after one week it has turn into K-700. The work-er nevwork-er opens the bonnet or takes care of machines. I will tell you about an event occurred to me recently: A drunken driver crashed the Iveco ma-chine for which we had paid 150.000 euro. As an answer I heard him say:”Yeah, I took a little but it might happen to anybody.”… What to do? We can always take the man to court but

how many years it will take to repay the crashed machine? And as I men-tioned, we have already got tens of crashed machines including our Ural machines which were broken in the winter.

In my opinion, we should, in ad-dition to investments, arrange the proper working conditions and pro-vide the employees with adequate education and training. I will repeat once more, the investments are not the most important factors; many things depend on the human mentality which in turn varies widely according to places and conditions.

LEFT:

ø Two greensorting lines during installation in TSLK.

BELOW:

ø On the group photo members of companies (EWD, Holtec, Jartek, Polytechnik, Vecoplan) participating project TSLK with the hosts.

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ø We arrived in St. Petersburg at around midnight. After cheking-in to the hotel, most of us still had drive enough to immediately get further ac-quainted with the city. The actual pro-gram started with a guided visit to the Hermitage on Friday morning. To see every artwork, a couple of hours was by far not enough. According to our guide it would take approximately eight years to see every piece in the

Hermitage if each object were ad-mired for 30 seconds utilizing a full working week of 37,5 hours.

Anyway, the magnificence and glory of the Hermitage made a strong impact on many of us and we were sure to come back some other time. After shopping and eating we had the night off for entertainment. Most of us wanted to enjoy the Swan Lake ballet. The others went to listen to the

Our visit to St. Petersburg

Text by Veera-Kaisa Penttinen

concert by Italian Zugghero. On Saturday, after breakfast and checking-out we started the guided sightseeing tour of St. Petersburg. Our tour comprised the most famous attractions and glories of the town, including St. Isaac's Cathedral and the Peter and Paul Fortress. The tour was crowned by one hour’s cruise along the Neva, Moikal and Fontanka.

All in all, St. Petersburg with its 305-anniversary parades and pro-cessions showed us its most favour-able face. And the sunshine all the days long contributed to being in a good mood as well. Consequently, on the homewards journey there were a train coach full of tired but happy Jartek-people.

At the end of May 2008, the clerical personnel of Jartek Oy spent two interesting and

educational days in St. Petersburg. This travel was arranged as an excursion due the

fact that Jartek has been very dependent on trade in Russia. We found it very important

for us to get to know our main export destination country better. Pleasingly, a majority of

Jartek’s clerical personnel, all together 28 persons, were able to come along. For some

of us, the visits to Russia belong to everyday work, but there were also many who visited

our eastern neighbour for the first time.

Images:

LEFT:

ø On the river cruise ø At the St. Isaac’s Cathedral

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY

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ø YOUR VALUE ADDING PARTNER IN THE WOOD PROCESSING INDUSTRY

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News

Personnel news

The new assembly hall rised close to

the production premises

German planer manufacturer REX

in our program

ø Jartek has been completed once again with additional personnel. Ms. Mari Rainikka,

de-parted from Lahti Precision Oy, is responsible for developing tasks of project operations. ø Mr. Ari Suontakanen, departed from

Merivaara Oy, started working in subcontract-ing purchases with Jartek.

ø Mr. Kari Hauta, moved from Jartek

Automa-tion, is now responsible for electric and automation installations.

ø Mr. Lasse Stylman joined Jartek as project

engineer particularly specializing in the thermal modification.

ø Ms. Marika Ollikainen started her work as

assistant of financial management.

ø The sales and marketing department has also met some changes. After Mr. Antti Ratia’s departure in April 2008, Ms. Veera-Kaisa Penttinen became responsible for marketing.

ø Mr. Pekka Kuuslahti became responsible for

further processing.

ø Mr. Matti Huttunen, departed from

Ferroplan Oy, joined Jartek as stock and ship-ping supervisor.

ø Mr. Jari Puolitaival, moved from Entop Oy,

joined Jartek as design engineer.

ø Jartek built a new assemply hall of 1400 m2 in

area. The new hall is situated near the production premises in Pajaniemenkatu, Lahti. The construction was started in May 2008 and the new hall was com-pleted in the autumn.

ø Jartek continues representing Georg Schwarz-beck GmbH & Co. KG in Finland. REX is well known in secondary processing and has significant part in our program. REX manufacture planers for laminat-ed beams production and also for log house facto-ries. Our program includes planers for high speed Lamella planers, wide (max. 2600 mm.) beam plan-ers and also profiling planplan-ers.

Picture:

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Managing Director Mr. Heikki Sonninen Tel. + 358 500 710 457 Sales Director Mr. Jukka Nousjoki Tel. +358 50 330 7888 Marketing Ms. Veera-Kaisa Penttinen Tel. +358 44 588 0180 Director, Projects Mr. Risto Hänninen Tel. +358 50 570 0422 Engineering Manager Mr. Petri Järvinen Tel. +358 50 548 5001 Export Mr. Klaus Jansson Tel. +358 40 500 2299

JARTEK OY

Saw mills Mr. Kari Puustinen Tel. +358 50 313 7370

SALES

Further processing Mr. Pekka Kuuslahti Tel. +358 50 340 2776 Drying kilns Mr. Pertti Kähkönen Tel. +358 500 357 048 Thermowood, Thermal modification of Wood Mr. Timo Tetri Tel. +358 50 302 1803 Jartek Oy Tel. +358 3 787 5400 Fax +358 3 787 5282 Head office Visiting address: Svinhufvudinkatu 19 Lahti, Finland Production Address: Pajaniemenkatu 3, Lahti, Finland Mailing address:

P.O.Box 14, 15101 Lahti, Finland

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