The main restructuring of the Group into an international industrial group within the chemical-technical sector was chiefly carried out in 1992. Since then, core operations have largely remained unchanged or been developed further, though with some major changes.
KWH Pipe
The German market for pipe products did not live up to expectations, and for the second time in the company’s history, KWH Pipe was forced to withdraw from Germany in 1998. A promising start in India indicated potential for rapid growth in a huge market. But demand soon deteriorated and a decision to discontinue operations was taken in 1999. Work on establishing a pipe factory in California met with the same fate. Following establishment in 1996, the Californian factory was eventually hit by a slump in local construction, and it was closed in 2002.
A joint venture district heating pipe factory in Dalian, China, proved unable to achieve adequate volumes and profitability even in the long term, and was closed in 2002. Similar plants in Poland and the Czech Republic, founded as joint ventures in 1992 and 1993 respectively, have performed satisfactorily, however.
www.kwhpipe.com
KWH Mirka
Mirka underwent the biggest changes. Systematic and determined investment in product development created products for the company which measure up to the market leaders. From a modest starting position in the international field, Mirka has reached a leading position, especially in automotive refinishing (ART), where it is now second on the global market. In the past twelve years, turnover has increased fourfold to EUR 110 million (2003), while the personnel figure has doubled and now stands at 610. In volume terms KWH Mirka is one of the five biggest operators globally in the coated abrasives sector.
This rapid expansion has resulted in continuous expansion of the main factory in Nykarleby (Jeppo) and the old Oravais Textil factory building is now also used entirely by Mirka. In 1991, a new coating line, Maker III, came on stream; two years later, the Maker IV was ready to start producing non-woven abrasives, and in 1995, the company was able to launch a completely new product, ABRALON®. Further capacity was added by the Maker V, which came on stream in 2001.
ABRANETTM is a unique, patented product, for dust-free sanding. It was launched in autumn 2000 and marketed on a full scale as of 2002; it has won environmental awards in several countries and generally attracted a great deal of attention.
Mirka’s presence and visibility on the market has been boosted through its own marketing companies on its main markets. In addition to the UK, Germany and USA, there are now Mirka marketing companies in Sweden, France, Italy and Spain, and also an export office in Singapore.
www.mirka.com
KWH Plast
The 1990s were a decade of change for KWH Plast, too. The use of PVC sheeting in the stationery sector had been declining, but the manufacture of polypropylene (PP) film for packaging applications is compensating.
A third extruder line for polypropylene film came on stream in 1993. A fourth line, completed in 1998, enabled the company to focus more forcefully on customized packaging film products for the food industry. Work is now under way on new and more highly processed PP films, with properties such as retortability and modified sealability. A decision on construction of a fifth extruder line was taken in 2003 and the new line will come on stream in 2005.
www.kwhplast.com
KWH Logistics
Oy Backman-Trummer Ab in Vaasa was formed in 1988 through the merger of two smaller shipping and stevedoring companies. The KWH Group owned 50% of the shares and Silja Line the rest. KWH bought Silja Line’s share of Backman-Trummer in 2000, adding a group of companies with 149 employees and EUR 34 million in turnover to the KWH Group.
At the end of 2001, a new division, KWH Logistics, was formed, consisting of KWH Freeze Ltd and the Backman-Trummer Group. Operations comprise international transports, shipping, stevedoring, and storage operations at the ports of Vaasa, Kokkola, Uusikaupunki, Naantali and Turku, as well as cold storage facilities in Vantaa and Inkoo. The division had a turnover of EUR 55 million and 263 employees in 2003.
www.backman-trummer.com
www.kwhfreeze.fi
KWH Invest
Since a sectoral restructuring measure in the 1980s, the KWH Group had owned a third share in Oy Prevex Ab, which manufactures injection-moulded products for the plumbing sector and food packaging. In 1999, Prevex became a subsidiary of the KWH Group following the purchase of more shares, and in 2003, Prevex became a fully owned subsidiary. In 2003, Oy Prevex Ab was the most important part of the KWH Invest division.
www.prevex.com