Empower and Stora Enso agreed on maintenance Empower OY

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					            Empower magazine 1/2008

Empower and
Stora Enso agreed on
maintenance services

A time of renewal

Industrial services are
on the upswing
                                                                                            Contents 1/2008

                                                                                            3         Editorial

                                                                                            4–5       A good start in Anjalankoski:
                                                                                                      Empower and Stora Enso agreed
                                                                                                      on maintenance services

                                                                                            5–6       Employment potential taken into account

                                                                                            6–7       Introducing the new Chairman of the Board:
                                                                                                      Industrial services are on the upswing

                                                                                            8–9       A time of renewal

                                                                                            10-11     Comeva opens the door to Scandinavia

                                                                                            12–15     Overalls and laundry service are history:
                                                                                                      Lindström developed a comprehensive
                                                                                                      workwear concept

                                                                                            16–17     Mastmasters supplements
                                                                                                      Empower’s mast business
                                                                  Picture: Susa Junnola

                                                                                            18–23     Growing energy projects in the Baltic countries

                                                                                            25–26     Polarmit ensures the correctness of metering

                                                                                            26–27     Systems development requires
                                                                                                      cooperation with the custiomer

      Empower is a multinational service group with energy, telecom
      and industrial companies and public corporations as clients.
      Market area includes the Baltic Sea region.
                                                                                           9. volume ISSN 1458-0071

      Maintenance and operation, installation and                                          EMPOWER                    SUB-EDITOR          COVER
      project services and consulting                                                      MAGAZINE                   Tuula Sipola        Johannes Wiehn
      Energy Market Services and ICT systems,
      specialised telecommunication services                                               Empower Oy                 LAY-OUT             SUBSCRIBES
                                                                                           Tel. +358 9 4259 2000      Up-to-Point Oy      Tuija Rönni,
      ELECTRICAL NETWORKS                                                                  Fax +358 9 4259 2290                           fax +358 2 5355 356
      Consulting, engineering and design, construction                                     Atomitie 2                 PRINTING            or by e-mail
      and maintenance                                                                      FIN-00370 Helsinki         Erikoispaino        tuija.ronni
                                                                                           CHIEF EDITOR               PAPER
      Network engineering and installation, maintenance,
      planning and documentation                                                           Ari-Jussi Knaapila         Galerie Art Silk

                                                                                          Enabling change
                                                                                          – combining competencies
empowerlink   2

Timo Suominen
CFO, Empower Oy

Service capacity
will strenghthen

     n the operating model change of Em-        com Networks gained a considerable
     power implemented in early 2008, three     amount of new contracts and other busi-
     sectors were determined for the Group:     ness activities from operators, the volume
Electrical Networks, Telecom Networks and       of which will further strengthen Empower's
Industry services. Empower’s business           competitive edge and make the use of re-
strategy and operating model was further        sources more effective. A significant move
specified in the spring. The emphasis ar-       was made in June through the acquisition
eas and the growth strategy were left main-     of the Swedish Comeva Ab, which
ly unchanged. The current annual turnover       constructs and maintains telecom and
of the Group, totalling over EUR 200 mil-       electricity networks with a staff of 150
lion, can still be doubled during the next      people. Later was bought SM-Tele AB,
three years.                                    a Swedish telecom network constructor.
   It is possible to increase the number and    The company employs 90 persons.
extent of services in every field of Empo-          Growth is not an end in itself, but it
wer’s business. The service business is by      makes operations more effective and, first
no means a ready field of business – at         and foremost, meets the client needs of a
least when it comes to the forestry sector,     national and even multinational service ca-
energy production or electricity and            pacity.
telecom networks.                                   Empower's clients are large-scale, well-
   In the spring, Empower has continued its     established companies, which have the
strong growth in every field. The expertise     opportunity to take a look beyond the
related to electricity network masts and        cycles and also utilise them when carrying
steel structures was further strengthened       out structural changes or profitable invest-
by acquiring Mastmasters Oy in April. We        ments. In addition to the growth of
intend to utilise its know-how in the Baltics   business fields and structural change, they
and in Telecom Networks, for example.           also share a number of similar characteris-
   The Finnish order base of Electrical Net-    tics, such as the requirement of a high level
works is at a record level, and the staff are   of safety, reliability and accessibility.
enthusiastic about the good work situation.         Safety is required with respect to internal
In June, after six months of intensive          staff and that of the client, but the safety of   “In the spring,
preparations, Industry services received        other people and property also has to be
the responsibility for the maintenance of       secured. Reliability and accessibility are        Empower has
Stora Enso's Anjalankoski mills. Energy da-     emphasised in maintenance tasks,                  continued its
ta management was reinforced in January         revisions, construction projects and fault
through the acquisition of the Ellarex busi-    clearing in clients' power plants, mills, elec-
                                                                                                  strong growth
ness operations, which gives our clients        tricity networks and data communications,         in every field.”
the opportunity to start using the most         to mention a few.
state-of-the-art customer information sys-
tem in the market. During the spring, Tele-     Have a sunny early autumn!

                                                                                                                     3   empowerlink
              A good start in Anjalankoski
              Empower and Stora Enso
              agreed on maintenance
              Since the beginning of June, Empower has been responsible for the
              maintenance of Stora Enso’s paper and board mill in Anjalankoski.
              As Empower already has wide-ranging operations in the Kymenlaakso
              area, it also employed dozens of people who were facing the threat
              of being made redundant from Stora Enso’s mills.
              Markku Niskanen >> Picture Susa Junnola

                       mpower has become a major

              E        provider of maintenance services
                       for industry. The Industry business
              area is expected to account for almost one-
              fourth of Empower’s estimated turnover of
              EUR 250 million for this year, and its per-
              sonnel is expected to amount to more
              than 500.
                 Empower has also over the past few years
              successfully developed its service provision
              for the paper industry.
                 “Corporate acquisitions in Lappeenranta
              and Kotka and the launch of operations in
              the facilities of the former Voikkaa paper
              mill gave us a running start. The paper in-
              dustry expertise accumulated at the Voikkaa
              office has benefited us. Since the beginning
              of June, we have also had an office in An-
              jalankoski,” says Antti Ruokonen, head of
              Empower’s Industry business area, who
              considers that open-mindedness and flexi-
              bility have been Empower’s advantages
              when entering new territories.
                 As Empower has several offices and
              wide-ranging operations in Kymenlaakso
              and a need for skilled personnel, it was pos-
              sible to employ a larger number of the per-
              sonnel than anticipated from Stora Enso’s
              mills in Kymenlaakso. A total of 154 per-
              manent employees of Kymenso Oy, the
              maintenance company owned by Stora En-
              so, transferred to Empower in Anjalankoski.
                 “Besides ensuring the efficiency of paper            Extensive training and orientation
                                                                      events for personnel joining
              and board production, the fact that we were
                                                                      Empower were launched at the
              able to offer more jobs than our competi-               beginning of June. Antti Ruokonen
              tors contributed to our success in the com-             contributed to these events.
              petitive tendering. The goal is to employ

empowerlink   4
75 to 100 more people by the end of the
year,” says Ruokonen.                          Employment
Flexibility and efficiency
Empower is today an even more notewor-
                                               potential taken
thy maintenance service provider for the
paper industry, particularly in Kymenlaak-
so. The company’s position is strengthen-
                                               into account
ing further as negotiations on transferring
the maintenance operations of Stora En-        Juha Vanhainen, Executive Vice President,
so’s Kotka mill to Empower are under way.      Newsprint and Book Paper at Stora Enso Oyj,
   “Maintenance operations for the paper
industry are managed in a centralised          admits that employment considerations favoured
manner from the Production Services unit       Empower when Stora Enso considered
of the Industry business area, which super-
vises the maintenance service profession-
                                               maintenance options. Social responsibility
als moving from one mill to another. This      contributed to the choice.
arrangement increases the flexibility of
operations and enhances expertise,”            Markku Niskanen >> Picture Susa Junnola
explains Ruokonen.
   He considers the service agreement with                 uha Vanhainen emphasises           “Stora Enso aims to support business
Stora Enso to be a good solution for the
personnel as well. He praises the Finnish
Paper Workers’ Union, which took a posi-
                                               ”J          that Empower was a competi-
                                                           tive alternative not only com-
                                               mercially but also technologically. Em-
                                                                                            operations that can offer jobs to employ-
                                                                                            ees facing redundancy. The fact that Em-
                                                                                            power offered employment to dozens of
tive attitude towards the outsourcing          power’s employment potential was also        people facing the threat of being made re-
agreement that increased the union mem-        taken into account.”                         dundant had an impact on our decision.” >>
bers’ employment opportunities. Ruoko-
nen expects the demand for paper industry
services to continue growing both in Fin-                                                         According to Juha
land and abroad.                                                                                  Vanhainen, maintenance
                                                                                                  requires more and more
   “Finns are pioneers compared with their                                                        specialised expertise,
neighbours, and the market is promising                                                           which service companies
not only in the West but also in the East,                                                        are in a better position to
where new industrial plants are being built                                                       maintain and develop than
                                                                                                  a paper mill that focuses
and old ones are being renovated.”                                                                on its core competence.

Maintenance centres
are under construction
The fact that Kymenso’s partially nation-
wide partner and supplier network is now
available to Empower also contributes to
the company’s good potential for increas-
ing its operations in the paper industry.
   “Service agreements are tailored in ac-
cordance with the strategy used in the
maintenance operations of each factory.
Component maintenance and repairs will
be made more efficient by means of the
maintenance centres under construction,”
says Ruokonen, promising that Empower
will invest in the development of industrial
   The know-how of Empower’s profession-
als providing services to various fields of
industry can be put to wide-ranging uses.
The employees of the Voikkaa office, for
example, participate in the repair and main-
tenance of wind power plants in Finland
and the Baltic countries.

                                                                                                                                5   empowerlink
              The transfer to Empower of the opera-
              tions of Kymenso, the company that was
              previously responsible for maintenance
              at Stora Enso’s mills in Kymenlaakso,
                                                          Introducing the new
              was a special case. At its other Finnish
              mills, Stora Enso manages maintenance
                                                          Chairman of the Board
              operations as before, by itself and with
              its partners.
                 “However, the arrangement in Anjala
              and Inkerois is the first of its kind in
                                                          services are on
              that maintenance is provided entirely by
              an external service company. The cut-
              backs in production in Kymenlaakso led
              to the outsourcing decision,” says Van-
                                                          the upswing
              “Stora Enso aims
              to support business
              operations that
              can offer jobs to
              employees facing

              Making every effort
              As with other companies in the field,
              Stora Enso is making every effort to im-
              prove the efficiency of its operations.
                 “Mill maintenance is one area subject
              to continuous monitoring, particularly
              as cost reductions are possible in this
              sector. In addition, maintenance requires
              more and more specialised expertise,
              which service companies are in a better
              position to maintain and develop than
              paper mills, which focus on their core
                                                          “Empower is succeeding
              competence,” says Vanhainen, who is a       and growing. It has com-
              member of Stora Enso’s Group Execu-
              tive Team.                                  mitted management with
                 The paper industry labour market or-
              ganisations are praised by Vanhainen.
                                                          an entrepreneurial spirit
                 “The basic issues and facts have been    and expertise.”
              recognised and understood. Fortunately,
              improvements in production are no
              longer restricted by a ban on
              subcontracting – which is good as all
              means available are needed to maintain
              the paper industry’s competitiveness.”

                                                                                      Johan Bjurström estimates
                                                                                      that in Sweden, industrial
                                                                                      services will also be
                                                                                      purchased more and more
                                                                                      from service companies.
                                                                                      “It will be important that
                                                                                      Empower establishes a
                                                                                      credible presence in the
                                                                                      Swedish market.”

empowerlink    6
Johan Bjurström has been Empower's Chairman of the
Board for over six months, and he has been positively
surprised by the strength and dynamics of the company.
He mentions that he has undertaken to sparring the growing
company's management, which further develops the
operations model - and even sets an example.
Tuula Sipola >> Picture Ilkka Ärrälä

        ohan Bjurström, Chairman of the         efficiency and further developing the opera-       Perhaps the unhurried progress made by

J       Board of Empower, has built his ca-
        reer in private equity companies,
and he has solid expertise in corporate ac-
                                                tions,” Bjurström points out.
                                                   The ownership structure of Empower is
                                                perfectly suited to increasing the commit-
                                                                                                Swedes is due to the slight differences be-
                                                                                                tween our business traditions. According to
                                                                                                Bjurström’s experience, decision-making by
quisitions. He is currently the managing        ment level towards the company. AAC Cap-        Swedes and the Dutch is similar: it is based
partner of the Stockholm-office AAC Cap-        ital Partners owns 63.5 per cent of the com-    on consensus gradual progress. Finns are
ital Partners. Before this, Bjurström was       pany, whereas the management of Empower         more straightforward.
managing director at CVC Capital                owns the rest. Bjurström is one of the part-       Bjurström praises the spirit of progress at
Partners´s office in Stockholm.                 ners who own AAC.                               Empower, but still emphasises the impor-
   Finnish companies became more familiar                                                       tance of good leadership and new ideas
to Bjurström a few years ago when AAC           Extensive responsibility                        originating in-house. These are things that
Capital Partners acquired Iittala 2004. From       Bjurström describes himself as a Chair-      cannot be acquired from outside as
Iittala it withdrew in 2007. At the moment,     man of the Board who engages in open dia-       “thought products” provided and applied
AAC's more than EUR 2 billion portfolio         logue and is enthusiastic about improving       to all sectors.
includes three Finnish companies: in addi-      Empower in the long run. He finds it
tion to Empower, there is Loparex Oy,           important to stay in regular touch with other
which manufactures siliconised release lin-     Board members and the Managing Director.
ers and speciality papers and Helo Oy, man-        “We hold discussions often and
ufactoring saunas and sauna products. The       extensively with Aappo Kontu outside of             AAC Capital Partners
remaining companies are based in                official meetings. He gives me good view-
Denmark, Sweden and Italy.                      points regarding both the operative activi-        AAC Capital Partners is a leading European capi-
                                                ties of the company and its line of                tal investor. The company administers in excess
Success requires                                business.”                                         of EUR 2 billion. AAC Capital Partners focuses in
commitment                                         Bjurström finds it appropriate that he is       MBO and MBI acquisitions in profitable, northern
Empower's ownership changed at the start        involved in creating and determining the           European industrial and service companies which
of this year. The capital investors 3i and      strategy. As Chairman of the Board, he             produce cash flow, and the value of which usually
Profita Management and the company’s            wants to ensure growth in the company's            ranges from EUR 50 million to EUR 500 million.
management sold Empower to AAC Capital          value and the benefits received by the own-
Partners and to Empower’s management.           ers are a top priority, but he also wants to
                                                                                                   The Board of Empower
From 2003 to 2007, Empower increased its        make sure that the strategic objectives are
sales from EUR 80 million to approximate-       determined properly with respect to both           Johan Bjurström
ly EUR 162 million, and doubled its             the owners and the management and staff as         Chairman of the Board
personnel to just over 2,000 employees. At      well.                                              Managing partner, AAC Capital Partners
the same time, profitability almost tripled.       “Empower does not operate only for its          Kristofer Runnqvist
   In fact, the new investor is expected to     owners and clients. In order to do well, it        Investment Director, AAC Capital Partners
bring quick moves and rapid growth to the       must also approach social requirements             Board member
company. Now the objective is to increase       with an open mind,” says Bjurström.                Bo L Elisson
Empower’s turnover to over EUR 400 mil-                                                            Senior Industrial Adviser,
lion by 2011. This will be achieved through     Finland is followed by Sweden                      SENSA Corporate Advisors
organic growth and business acquisitions.       The sector providing services related to en-       Board member
   AAC Capital Partners became interested       ergy, telecom and industry is growing in           Petteri Walldén
in Empower because it was in its interests to   Empower's market area. In Finland, growth          CEO, Alteams Oy
acquire a new company for its Services sec-     during the last few years has been very            Board member
tor. Bjurström has been positively surprised    strong in the telecom branch in particular.        Aappo Kontu
by Empower’s dynamics and strength.             Industrial services are a close second.            President, Empower Oy
   “Empower is succeeding and growing. It       Bjurström estimates that development in            Board member
has committed management with an entre-         Sweden will gradually move in the same             Timo Suominen
preneurial spirit and expertise. Growth ap-     direction.                                         Executive Vice President, CFO, Empower Oy
pears to be interest in the company´s cul-         “Moves made by Finns are watched care-          Secretary of the Board
ture. The challenges deal with increasing       fully in Sweden,” Bjurström asserts.

                                                                                                                                            7    empowerlink
              A time of
                          New challenges move

              RENEWAL     Empower swiftly forward,
                          and as a growing company
                          it is renewed and developed
                          in many ways. One area
                          that receives attention is
                          marketing and customer
                          relationship management.
                          Renewal of the increasingly
                          wide-ranging Empower will
                          also manifest itself visually
                          when the company’s visual
                          identity is reformed towards
                          the end of the year.

                          Markku Niskanen
                          >> Picture Susa Junnola

                                         Ari-Jussi Knaapila
                                         took up the post of
                                         heading Empower’s
                                         Telecom Networks
                                         business area at the
                                         beginning of this
                                         year. In his leisure
                                         time, he readily
                                         takes the helm
                                         aboard his sailboat
                                         Finngulf 41.

empowerlink   8
         he preconditions for improving          International partners                              “A reputation is created as a combined

T        awareness of the company are
         good, as Empower participates in
the construction and maintenance of soci-
                                                 Empower’s identity and reputation is now
                                                 being dynamically developed on a long-
                                                 term basis. Knaapila says that the change
                                                                                                  effect of acts and the communicated mes-
                                                                                                  sage. Strong growth creates an energy
                                                                                                  around it, whose positive appeal we must
ety’s vital infrastructure.                      process has already accelerated as new           know how to cultivate and deploy skilfully.
   “The importance of electricity and tele-      business areas have grown over the past few      A good reputation attracts customers, em-
communication for companies and house-           years.                                           ployees, partners and financiers.”
holds continues to increase. As Empower             “Internationalisation introduces new as-         The fact that much is going on at
plays a key role in the maintenance of elec-     pects to the renewal of marketing. We focus      Empower may also give rise to undesirable
tricity and data networks, it should not be      in particular on Sweden, where the               developments. The company should avoid
difficult to attract attention. Empower is       prospects for companies providing high-          excesses and resorting to simple solutions
renewing itself and wants to communicate         quality services are favourable. Business        in its desire to do things quickly. Knaapila
more actively,” says Ari-Jussi Knaapila,         development continues in the Baltic coun-        emphasises that promoting the well-being
who joined Empower Group at the begin-           tries, and we are looking for new customers      of Empower’s personnel plays a key role in
ning of the year.                                in Russia, too,” explains Knaapila.              growth management.
     Knaapila, who is in charge of the Tele-        Knaapila believes Empower holds an ad-           “We must carefully analyse the organisa-
com Networks business area and customer          vantage by the fact that companies that op-      tion’s capacity and potential for the next ef-
relastionship process in Group manage-           erate internationally look for partners in ac-   fort. We must also be open to change inter-
ment, says that Empower is moving in tra-        tors operating in a number of countries.         nally.”
ditional ways into a new direction.              Companies that construct electricity and            Knaapila prefers to discuss marketing in
   “The starting points for reputation man-      telecom networks in the Nordic countries         general terms and the customer process as
agement and the renewal of marketing and         are known to appreciate knowledge of the         part of marketing.
visual identity are the same as with other       local conditions.                                   “Customer relations have often involved
                                                    “More than 90 per cent of the construc-       personal connections, which personnel
                                                 tion and maintenance of telecom networks         transferring from the client to Empower
“A good reputation                               has already been transferred to separate         have often intensified. Such relationships
                                                 companies in which the telecom operators         have not always been easy to manage, and
attracts customers,                              no longer own even a small minority share.       having too close a relationship is not always
                                                 At the next stage, competition between           beneficial for the development of a
employees, partners                              service provider companies will become           customer relationship.”
and financiers.”                                 more intense than ever. It benefits all par-        Knaapila considers active market moni-
                                                 ties, including consumers, that there are a      toring and responding to changes important
                                                 number of equally strong companies com-          in terms of developing the service for exist-
companies. We define the target position         peting for customers in sound ways,” says        ing customers as well.
and what we promise to provide to our cus-       Knaapila, describing the development in             “In addition, we must make an effort in
tomers. We then formulate this into as clear     the Nordic countries.                            terms of companies that are not yet our cus-
a message as possible.”                                                                           tomers. A good service provider must retain
   Knaapila has noticed that Empower is          Implementing change                              its sensitivity – including a sensitivity to
fairly little known outside the energy sector,   Empower will more actively listen to the         change.”
even though the company’s growth has par-        customer and recognise new needs.
ticularly focused on services provided to           “Empower’s role has been and continues        From dozens to
the telecom sector and industry.                 to be to enable change and implement             hundreds of customers
   “It is important to intensify communica-      change. As industry continues to focus on        Empower, which specialises in infrastruc-
tions as the new fields have high growth         its core business in accordance with its         ture construction and maintenance as well
expectations. We have new customers and          strategy, there is demand for known and re-      as services to industry, has a rapidly grow-
stakeholders in the forest industry and the      liable service providers in growing              ing customer base. Instead of a few dozen
telecom sector, for example.”                    markets,” says Knaapila.                         customers, the company is now marketing
   Empower has an interesting field of op-           He emphasises that Empower wants to          its services to a few hundred energy, tele-
erations.                                        be proactively involved in the change            com and industrial companies.
“The energy sector is subject to increasing      process, and not just react to it afterwards.       Growth also improves Empower’s poten-
interest, with ecological values also being         “We will succeed in this when our own         tial to develop its services to the energy
discussed. The construction of electricity       organisation carefully monitors the devel-       sector and improve their efficiency.
networks is growing both internationally         opment of various sectors and companies.”           “Our new markets seem to have higher
and in Finland, and data networks continue                                                        growth expectations than the old markets,
to develop. In turn, the changes under way       Deploying the growth drive                       which also continue to provide work and
in the paper industry alter the traditional      Knaapila knows from experience that a            orders,” says Knaapila, emphasising that
operating models. Empower is deeply in-          confidence-building story makes the man-         Empower is not forgetting its roots.
volved in all of this,” says Knaapila.           agement of a company’s reputation easier.

                                                                                                                                              9    empowerlink
             Comeva opens the door to
             Jan Hagenström and his colleagues in Comeva’s management team had no
             plans to sell the company at the end of last year – until, that it, they were
             contacted by the right buyer. Barely five months later, they became Empower’s
             first acquisition in Sweden. “It is both an honour and stimulating to be able to
             open the door to Scandinavia,” says Jan Hagenström, CEO of Comeva.
             Text and pictures Sebastian Persson

                      mpower had been planning to ex-

                                                             for them the turbulence meant transferring    outsourcing these tasks to a contractor, an
                      pand across the Baltic for some        all ground, technical and installation work   extensive process commenced and Jan, to-
                      time, and by autumn 2007 the list of   to external suppliers.                        gether with his colleague and financial
             potential Swedish acquisitions had grown to                                                   manager Håkan Bengtsson, ended up join-
             over 100 companies. At the top lay Comeva,      Flying start for newly-fledged                ing the work group in charge of the spin-off.
             a Gothenburg-based telecommunications           entrepreneurs                                 Soon the idea was born to run the business
             company with branches in five different lo-     Jan Hagenström was Telecom Networks´          without outside help, but some security was
             cations in southern Sweden and very broad       section manager for more extensive ground     needed first – security that materialised in
             expertise. The company was founded in           work in western Sweden, having worked his     the form a contract agreement for continued
             1994, when an operational part of what was      way up from the company floor. Over 24        cooperation with Telecom Networks.
             then Telecom Networks (now Telia Sonera),       years he has held titles such as engineer,       “It was in no way certain that we would
             was spun off. At a time when many state-        planner, instructor and works manager, and    get the assignment, but once we got it,
             owned enterprises were being questioned in      was responsible for ground and construc-      everything quickly fell into place. With a
             Sweden, Telecom Networks was one of sev-        tion work in western Sweden in the mid        signed contract in our hands, we started
             eral that implemented major changes, and        1990s. When the decision was taken to start   Comeva, and from our very first day there

                 Jan Hagenström

                 • 56 years old
                 • Background as engineer, instructor,
                   works manager and section manager
                   at Telecom Networks owned by the
                   state of Sweden (now Telia Sonera).
                 • Family: Wife Charlotte and children
                   Michael (39), Jonas (22) and Lisa (16).
                 • Interests: The whole family loves
                   sailing! First boat purchased 30 years
                   ago, and the family seizes every
                   opportunity to go to sea. Jan is also
                   interested in music and together with
                   his friend Calle, he plays covers from
                   the 1960s and 1970s in “The Come-
                   back Band”. His repertoire includes
                   numerous hits by Cliff Richard, Elvis,
                   Eagles and John Fogerty’s Creedence
                   Clearwater Revival, among others.

empowerlink 10
were 33 employees at the company. It
was bewildering, but incredibly exciting,”
                                                    “Sometimes not                                  Sonera’s decision to move its network own-
                                                                                                    ership to Skanova and become an
says Jan.                                        everything turns out                               infrastructure company for everyone – not
                                                                                                    just individual end customers. A trend and
Stability as a                                     as expected – but                                development that involves requirements for
business concept
In a few months, Comeva will be 15 years
                                                   that doesn’t need                                a larger network and, as previously
                                                                                                    mentioned, improved ability to cover larger
old. In that time, it has experienced enor-         to be something                                 geographical areas.
mous expansion, but also at least as much
stability. While it is not unusual for              negative. Some-                                 Exciting future
telecommunications companies of a similar                                                           The immediate future will be intensive and
size to experience several organisational
                                                 times the results are                              instructive for Comeva, which will now be
changes and changes of owner, at Comeva             even better than                                incorporated into the Empower family in
Hagenström has guided the company as                                                                the best way. The right contacts will be cre-
CEO since day one.                                   you’d hoped!”                                  ated, and, of course, Hagenström hopes to
   “In order to grow, balance and long-term                                                         be able to share as much of our excellent
thinking are required, and that has always                                                          company culture as possible.
been our aim in the management team. Our                                                               “We are looking forward to an excited
customer promise is to be a “reliable part-         “Working solely at a local level is no          development process. When we started the
ner”, which demands not only stability but       longer possible, but with the extra muscle         company, we were exciting about starting
also the courage to dare to develop and          that the merger with Empower brought, we           something new, and we now feel the same
push the business concept forward. The           have significantly greater opportunities to        way about introducing our Finnish friends
feeling of having found a purchaser with         compete in procurement processes at Scan-          to Sweden. It feels like we are really speak-
exactly the same excellent ambitions was,        dinavian level. Various forms of partnership       ing the same language – even if that does
without doubt, a contributing factor for us      are becoming increasingly common and we            not mean error-free Finnish just yet,” says
accepting the offer,” says Jan.                  regard this as an excellent way of expand-         Jan, smiling.
                                                 ing, although we are actually selling our             Empower’s expansion to Scandinavia will
Hotly watched                                    ownership interest. In purely practical            continue, and we hope to create further
– from several directions                        terms, however, there will be no major             links with our future Swedish colleagues.
Initially, ownership of Comeva was               change other than the fact that the feeling
extremely democratic, and all 33 employees       of security will be even greater for both
contributed to the capital required to start     management and personnel,” says Jan.
the business. However, it soon became clear         Other trends have also been noticeable in
that this arrangement was anything but sim-      the Swedish telecommunications industry
ple. It became increasing complicated to         recently. The market is currently
repay colleagues when they retired and the       characterised by considerably more players
owners of the company gradually left. In         than previously, as well an increasing num-
2004, the management therefore decided to        ber of customers who are themselves net-
purchase Comeva from the other joint own-        work owners. Telia Sonera, which was pre-
ers. This was barely three years before the      viously virtually the only player in that po-
first contact with Empower.                      sition, is now joined by operators such as
   “We were already being watched by oth-        Tele 2, Telenor and several different energy
er interested purchasers, but as we had only     companies.
just taken over, we were not the least bit in-      At the production level, increased coop-
terested in selling. But with Empower, we        eration between various technologies such
saw synergy effects we had not seen previ-       as fibre-optic cable, copper cable and radio          THIS IS COMEVA
ously, and after having met Ari-Jussi Knaa-      links has been seen. Speeds are gradually
                                                                                                      • Founded in 1994
pila, we slowly started to come around to        increasing, as is the amount of data being
                                                                                                      • Number of employees: 125
the idea,” explains Jan.                         sent between units – another factor
                                                                                                      • Turnover: EUR 17.8 million
                                                 contributing to increased demand on sup-
                                                                                                      • Offices in five different locations in
Challenging industry in flux                     pliers’ work and products.
                                                                                                        southern Sweden: Gothenburg,
Comeva has recently reached a critical size.        As the number of network owners
                                                                                                        Uddevalla, Borås, Laholm and Svedala.
During the last few years, the company has       increases, so does the number of construc-
                                                                                                      • Some of the company’s customers:
participated in several exciting procurement     tion variants. Many municipalities
                                                                                                        Telia Sonera, Göteborg Energi, CSIT,
processes, but the trend is clear. Purchasers    previously built their own broadband net-
                                                                                                        Relacom and a number of different
are now making increasingly tough                works, whereas today these are currently
demands, not only in purely production           often linked into ‘regional networks’. Pro-
                                                                                                      • Acquired by Empower
terms but also for suppliers’ geographical       jects at a national level are therefore virtual-
                                                                                                        in the end of May
coverage.                                        ly standard. An example of this is Telia

                                                                                                                                              11    empowerlink
                  Lindström’s workwear
                  service has developed into an
                  easy-to-access service for
                  the clients, while also being
                  environmentally sound.

                 According to Marko Pajula, work clothing
                 materials have changed to a great extent.
                 Different tasks set different demands for
                 the characteristics of the fabrics. Related
                 issues are researched at Lindström, and
                 cooperation is carried out with the
                 Finnish Institute of Occupational Health,
                 for example. “Rather surprisingly, thick
                 cotton is still a frequently-used work
                 clothing material.”

empowerlink 12
Overalls and laundry service are history
Lindström developed
a comprehensive
workwear concept
It took 160 years for Lindström to take the leap from being a textile dye
house, situated in a building located on the hill where the Finnish Parliament
House currently stands, and become a concept-oriented international
player. Dye pots, washing the laundry of private households, cleaning and
waste management were left behind along the way. The workwear service
developed from a laundry service provider into a workwear provider that
cherishes the visual look of its client companies.

Tuula Sipola >> Pictures Susa Junnola

         he Roiha family is a fourth genera-

                                                   and repair them if necessary and add the
         tion shareholder in the textile service   finishing touches in order to deliver the
         company Lindström. When he                items back to clients' closets. The service
bought the textile dye house and laundry           ensures that each employee has individual        Group
from AB W.E Lindström in 1922, it is highly        clothing, which corresponds to their meas-
unlikely that Johan Roiha, the principal
shareholder of Uusi Pesula Oy, could – even
in his wildest dreams – imagine what
                                                   ures and work tasks, clean and ready to use
                                                   in their closet. Lindström stores the items
                                                   and also takes care of their disposal when
                                                                                                    L     indström provides for
                                                                                                          companies workwear, mat,
                                                                                                    hygiene, shop towel, restaurant
dimensions the company would reach in the          they reach the end of their life-cycle.          textile and personal protection
21st century. The idea of module laundry              At first, this kind of process might seem     equipment services in Finland.
constructed on the interchangeable platform        to be uncomplicated. However, that is not the    Lindström’s foreign subsidiaries
of a lorry and delivered abroad, or providing      case, since the process requires commitment      provide workwear services in all of
large-scale companies' entire personnel with       from the staff. All stages of the service have   the countries the company has
lease clothing, would have been the ravings        to be repeated as agreed, in a flexible way      operations in. Furthermore, it
of a lunatic.                                      that adheres to the concept, because even the    provides mat services in the Baltics
   Lindström currently operates in approxi-        slightest changes may multiply expenses.         and Russia, among others, and
mately twenty countries in Europe and                 “We pay a lot of attention to employee        hotel and hospital textile services in
Asia. It is one of the largest workwear            initiation. Each employee at Lindström has       Finland and Sweden. A subsidiary
service providers in Europe, and the               received training that suits his or her tasks.   called Vision Design supplies solu-
Finnish market leader.                             The training of staff working in sales and       tions for workwear tailored according
   The company has workwear service cen-           its interface, for example, takes a couple of    to corporate brands, and for
tres all around Finland. The newest centres        months,” says Pajula, and tells that he has      PR and corporate textiles.
were opened in Jyväskylä and Oulu in               also personally familiarised himself with           The company’s turnover in 2007
June. Lindström has approximately twenty           varied work stages.                              totalled EUR 227 million, showing
laundries in Finland.                                 “In the beginning of my employment, I         a 12 per cent growth in comparison
                                                   worked at a laundry and in the delivery ve-      to the previous year. The company
A well-functioning concept                         hicle, among others. This is how I gained        employs 2,300 people and has
According to sales director Marko Pajula,          know-how regarding the work process and          operations in approximately twenty
Lindström’s workwear service has devel-            the concept.”                                    countries.
oped into an easy-to-access service for the
clients, while also being environmentally          Environmentally
sound. Lindström's service representatives         sound operations
all around Finland retrieve the laundry            Pajula emphasises the significance of re-
from the agreed locations, after which the         sponsible operations. Besides financial
textile maintenance personnel wash, check          and social factors, all planning takes >>

                                                                                                                                             13   empowerlink
            sustainable development and the environ-           from Lindström. Empower has operations
            mental impact of the operations into ac-           all around Finland, in dozens of locations.
            count, which are also addressed in staff           Earlier on, Empower’s workwear was
            training.                                          washed and maintained at different loca-
            Washing workwear consumes a consider-              tions, depending on the handiest way work
                                                                                                               The brand is
            able amount of energy and water. The               clothing maintenance could be carried out       taken into
            ecological footprint is also affected by the       in the location in question, or depending
            chemicals used in the washing process,             on how it always had been performed.
            their consumption levels, and emissions            Sometimes, Empower even relied on
                                                                                                                     lthough the tasks in question
            caused by the delivery. Delivery route
            optimisation can have an influence on the
            emission levels.
                                                               its own clothing maintenance resources,
                                                               and workwear was washed in between
                                                               workers' tasks, using a washing machine
                                                                                                               A     determine the model and
                                                                                                               material of work clothing, the
               “Lindström services are emphasised by           situated in the corner of a storeroom or        corporate brand is taken more
            extensive product life and a life-cycle phi-       other suitable facility.                        and more into account.
            losophy. We approach the process from the             However, the number of people who              Adequate practicality and safety
            client’s viewpoint,” says Pajula.                  need work clothing has increased a great        are key issues when it comes to
               According to him, environmentally               deal. The current number in Finland totals      industrial work clothing. In some
            friendly solutions are carried out on all          approximately 1,200. As a whole, the work       cases, the legislation requires that
            areas, as planned. Firstly, they are taken in-     clothing process started to become a func-      outfits include a certain safety
            to account in the entire maintenance and           tion that required an extensive amount of       colour, but otherwise the company
            service process, but also in product acquisi-      work, and it was not related to Empower’s       colours are used to an increasing
            tion and in the disposal of products that ha-      core business.                                  extent.
            ve reached the end of their life-cycles. The          Typically, work clothing is changed          Different trends and market
            laundries recycle water and select the wash-       once a week. This means that one outfit is      changes give their own flavour to
            ing agents carefully. In Hämeenlinna, Lind-        in use, a clean one is waiting in the closet,   work clothing as well – for both
            ström has a sewage plant of its own.               and a third one is being washed. In some        standard models and individually
               Lindström monitors the condition of             cases, e.g. when handling lubricants or         designed clothing.
            workwear and repairs it for as long as is          chemicals, this kind of rotation cycle is         It is unlikely that there is a com-
            reasonable. Worn-out clothing is disposed          not enough. In those cases, a different         pany in Finland, the work outfit of
            of according to applicable legislation –           policy that better suits the situation is       which does not have a corporate
            some of the clothes are still good for recy-       agreed separately.                              logo on the back. This aspect is
            cling, while some of them are delivered               Power line installers and other personnel    taken care of by Lindström as
            to a power station to serve as fuel, for           working on poles and outdoors also need         well: They have a piece of cloth
            example. Disposable products are used              varied outfits for different weather circum-    with the corporate logo made on
            very seldom in the service. Fabric sacks           stances. Even the hardened supermen of          the back of the work clothing. If
            are the number one choice when trans-              Empower do not like working without             the logo is changed, Lindström
            porting clothing.                                  quilted clothing at the height of dozens        has a new piece of cloth sewn on,
               In many cases, oils and different chemi-        of metres, in very cold weather and in a        to replace the old one.
            cals are absorbed in materials. Hazardous          chilly and strong wind. Some tasks, such
            waste is collected in the washing process          as roadwork, require work clothing with
            and delivered to Ekokem.                           safety colours.
                                                                  All in all, the personnel of Empower
            Empower’s workwear                                 have approximately 100,000 clothing
            needs are growing                                  items in use. Their annual costs total
            Empower is one of the hundreds of com-             hundreds of thousands of euro.
            panies ordering their workwear services

                 Interest towards the Estonian
                 market yielded an invention

                         t that point, we did not have any idea of the functionality of the Estonian market.
                         Lindström did not want to carry out any risk investments, so we had to come up
                 with a new solution. For Estonia, a laundry was constructed on the interchangeable
                 platform of a lorry.
                 It consisted of three washing machines, three tumble driers and working facilities for
                 six,” says Marko Pajula, sales director at Lindström.
                     This is how Lindström’s internationally unique innovation, the module laundry,
                 patented in 2002, was invented. With the module laundry, it is possible to extend
                 operations abroad, taking small steps with inexpensive costs, while ensuring
                 the same high-quality service everywhere.

empowerlink 14
business in Sweden
    n the beginning of August, Empower Oy

I   made an agreement with SM-Tele För-
    valtnings AB to acquire the business of
SM-Tele AB and Anläggningtjänst Anders
Blom AB (“SM-Tele”). The companies pro-
vide services in the telecommunication sec-
tor in eastern and southern Sweden; their
turnover for 2008 is EUR 10 million, and the
number of personnel totals 90.
   In Sweden, Empower started out with a
company purchase earlier in the summer.
With the purchase, the telecom and electrici-
ty service provider Comeva AB became part
of Empower Group. SM-Tele AB was found-
ed in 1989, and its HQ is located in
   Empower has aimed at establishing itself
as a new kind of player in Sweden, providing
services related to the construction and
maintenance of telecommunications
networks, data communications networks
and electricity networks. To an increasing
extent, the customers want to cooperate with
the service provider which offers services on
a broad geographical area. Expanding and
strengthening operations in Sweden also
supports Empower’s strategic objective to
become a leading service provider in the
Baltic Sea, area in selected lines of business.

Empower receives a
significant order for
reinforcing Fingrid’s
main grid
         mpower will provide Fingrid with a

E        400kV substation in Petäjäskoski and
         a 220kV substation in Valajaskoski.
The value of the delivery package is more
than EUR 15 million, and it includes optional
   The 400kV delivery to Petäjäskoski in-
cludes the equipment delivery, power line
work, testing and implementation of a
400kV dublex substation. The 220kV
project delivery to Valajaskoski includes the
equipment delivery, construction work,
power line work, testing and implementa-
tion of a 220kV substation.
   Between 2008 and 2010, Fingrid will re-
inforce its main grid connections in north-
ern Finland by investing more than EUR 50
million. Empower is strongly involved in
these projects, which also include the ongo-
ing 220kV Petäjäskoski-Valajaskoski power
line project.
For additional information, please contact:
Miika Tuominen +358 50 514 7494

                                        15   empowerlink
            “For us, it is important to manage the entire
            process from the drawing board to delivery,"
            say (from l to r): Construction Manager Kari
            Rautiainen, Sales Manager Esa Vasama,
            CEO Maunu Penttinen and Project Manager
            Harri Väre. The team is sitting around a
            "scenery pole" in Espoo. The bottom part of
            the pole has been upholstered with wood
            that suits the forest landscape.

empowerlink 16
Empower’s mast business
Mastmasters supplies high steel structures for telecom
operators and many kinds of infrastructure projects.
More and more frequently, masts are required in
demanding locations, due to the terms of the environment.

Tuula Sipola >> Picture Susa Junnola

            astmasters Oy became part of         Special sites and

M           Empower Group in the spring.
            The acquisition supports Em-
powers’ goals of increasing the know-how
                                                 Maunu Penttinen, CEO of Mastmasters,
                                                 is of the opinion that being able to deliver to
                                                                                                         “Now we have
                                                                                                         the suitable team
required in power line and telecom mast          demanding locations is an asset of the com-             with which to
construction in its market area.                 pany. As an example, he mentions the deliv-
  Mastmasters was founded in 2002 and it         eries of the line and radar signs of the new
                                                                                                         implement ideas.”
employs nine people. Its head office is in       Vuosaari harbour’s shipping lanes. When
Espoo, but the installation team is based in     planning the implementation of the work,
Alajärvi. The five founders of the compa-        the sensitive environment in the area was
ny, top professionals in the industry, still     taken carefully into account. The helicopter         influenced by Empower’s resources for
work at the company. All of them gained          turned out to be a suitable tool for this.           supplying nationally comprehensive
mast structure-related expertise for                More and more often, clients request ex-          deliveries and the company's strong
instance from their previous employer,           tensive delivery packages. Mastmasters               foothold in the Baltic market.
Transmast Oy.                                    would not have been able to pull that off               “Now we have the suitable team with
                                                 on its own. Also the Baltic market is now            which to implement ideas. Other signifi-
                                                 open for it through Empower.                         cant things of course include the manage-
                                                    Most of the 100 metre long telecom masts          ment and streamlining of procurement and
“Most of the 100                                 in Finland, and little by little in the Baltics as   the subcontracting chain," says Penttinen.
                                                 well, have been set up. Now the main task is            For example, close cooperation is
metre long telecom                               to remove shadow areas, which can be cov-            carried out with some machine shops that
masts in Finland,                                ered with less than 40 metre masts. The tele-        manufacture steel structures. Similar inter-
                                                 com networks in Lapland´s mountain area              ests are a uniting factor in this as well.
and little by little in                          are also under replenish.                               The annual turnover of Empower’s mast
                                                    However, the tasks of a mast professional         business is approximately EUR 10 million.
the Baltics as well,                             do not stop there, even when the work con-           One third of the total comes from Mast-
have been set up.”                               cerns a mobile network.                              masters, and the rest originates almost
                                                    “Mastmasters hasn’t had the resources             entirely from the Baltics. The figure does
                                                 for maintenance tasks, but in the future there       not include power line poles or other steel
   In Finland, Empower has supplied high         will be more and more mast reinforcement             structures required in electric networks.
steel structures mainly to serve as power        assignments as the technology changes and               Empower is accustomed to supplying
line poles and for street lighting, and it has   the capacity increases. Now the masts set            volume products in its power line projects
designed and delivered telecom and radar         up in the 1970s are replaced," Penttinen             in particular, whereas Mastmasters, being
masts to the Baltic countries. The Lithua-       clarifies.                                           a small-scale company, has specialised in
nia-based mast provider Empower Fideli-                                                               demanding specialty products. Whether it
tas specialises in telecom masts, which it       More together                                        was about volume products or a tailored
has delivered mainly to Lithuania and            Why did Mastmasters choose Empower?                  site, you can’t learn the design process at
Latvia.                                          According to Penttinen, this was                     school, but in practice as time goes by.

                                                                                                                                              17     empowerlink
             Growing energy projects in the Baltic countries

            Growing energy projects in the
            Baltic countries
            The Baltic countries are looking to combine their energy markets with
            the Nordic and west European markets. This development, together with
            the energy markets becoming more open and new energy production
            solutions becoming available, will bring on new grid investments in the
            near future – sooner in some Baltic countries, a little later in others.
            New energy production solutions are also being investigated.
            Tuula Sipola

                    he Baltic energy market is fairly

                                                              is of course no wonder, as 80% of the elec-     build a 700 megawatt connection from
                    small. Traditionally, the grids have      tricity in the country comes from Ignalina.     Latvia or Lithuania to Sweden. The con-
                    been connected to the Russian             If the nuclear power plant is out of the        struction of a 1,000 megawatt transmission
            grid, but the decision-makers in Estonia,         equation, the only major power producer         line between Lithuania and Poland has al-
            Latvia and Lithuania wish to promote              would be the Elektraina power plant, using      ready been confirmed.
            closer connection of the grids to the             natural gas and Orimulsion, a mixture of
            Nordic and west European energy                   bitumen and water, as fuel.                     Entering the open market
            markets.                                                                                          The EU has granted Estonia a transition
                                                                                                              period for the complete opening of the en-
            New connections                                                                                   ergy market by the end of 2012. Currently,
            Estlink 1, the sea cable connection
                                                                      “Energy                                 about one third of the market is open.
            between Estonia and Finland completed at              consumption is                                 The Latvian and Lithuanian households
            the beginning of 2007, conveys electricity                                                        have been able to select their power sup-
            in both directions. No major amounts of             steadily increasing,                          plier freely since the middle of 2007. All
            energy are currently taken to Estonia. The                                                        market participants also have the opportu-
            Estonian power plants, using oil shale as a
                                                                   requiring larger                           nity to use the transmission and delivery
            fuel, would have potential for selling ener-             amounts of                               lines for the transmission of electricity.
            gy to other countries.                                                                               OÜ Jaotusvõrk, the distribution network
               The Daugara river, by far the largest en-         imported energy.”                            operator of the Estonian state-owned Eesti
            ergy source in Latvia, does not offer sur-                                                        Energia power company, intends to invest
            plus capacity. Oversupply exists only dur-                                                        in automatic meter reading technology
            ing the spring floods. For this reason,                                                           once the energy markets are open. In the
            Latvia has been the first to buy electricity                                                      first stage, real time information would be
            from the Nordic market as soon as Estlink            The power companies of the Baltic            available for 220,000 subscribers. The plan
            was completed. Energy consumption is              countries are currently planning an Estlink     is to install meters everywhere in the
            steadily increasing, requiring larger             2 in cooperation with the Finnish main          country in less than three years.
            amounts of imported energy. Currently, the        grid company, Fingrid. The 650 megawatt            The Balts are interested in emission-free
            share of import is 30% of the overall need        cable would cost approximately EUR 250          energy. Wind farms have been steadily ris-
            for energy.                                       million, and would be completed in 2013.        ing in Estonia in recent years. The Latvian
               At this point, it is still uncertain whether   The likely location would be between Nar-       subsidiary of Eesti Energia is also consid-
            Lithuania will decommission the Ignalina          va and Kotka.                                   ering the potential of wind farm invest-
            nuclear power plant at the beginning of              Another interesting plan is the joint ven-   ments in Latvia. Investigations have also
            2009. An extension has been applied for. It       ture of the Baltic energy monopolies to         been launched in Lithuania.

empowerlink 18
Estonian energy projects
keep a service company on the move

   “Estonian energy
   projects are
   interesting, and
   competition is

The Estonian power grid                        esti Energia's distribution network       “Empower has achieved success in this

construction market will
experience major growth
                                       E       operator OÜ Jaotusvõrk, which is
                                               one of Empower’s most important
                                       customers, has published an investment
                                                                                      competition,” he says, pleased with the
                                                                                      company's achievements.
                                                                                         The best success has been reached in the
                                       programme. Most of the investments are         distribution network business, with a 16%
in the next few years.                 targeted at strengthening the distribution     market share. For the distribution network
Distribution network                   network and removing the voltage problems      maintenance operations, Empower's share
                                       and losses experienced in the network.         will soon increase to nearly 40%. This will
investments will increase                 Significant projects also include the       be the result of a three-year contract
by nearly EUR 300 million              adoption of automatic meter reading.           between Empower and Jaotusvõrk on distri-
                                       When the Estonian energy market opens          bution network maintenance and installa-
during the next three                  up in 2013, new meters will be installed       tion work in the Harju, Pärnu and Viljandi
years, and main grid proj-             for 220,000 subscribers. Within three          regions.
                                       years of the opening of the market, all Es-       There have been no transmission grid
ects are expected to recov-            tonians will be able to monitor their ener-    projects in the last couple of years. Now
er from the recent slower              gy consumption in real time.                   it seems that the wait is over and the
                                                                                      investments of the Estonian main grid
period. Major wind power               Changes in the network                         company, OÜ Põhivõrk, will increase to
projects will continue.                According to Managing Director Juho            the earlier level. >>
                                       Järva from Empower AS, Estonian energy
Tuula Sipola >>                        projects are interesting, and competition is
Pictures Eesti Energia, Susa Junnola   increasing.

                                                                                                                         19   empowerlink
             Growing energy projects in the Baltic countries

                                                                                                            “Empower's ambitious objective
                                                                                                            is to achieve 20 per cent growth
                                                                                                            in Estonia. This year, our
                                                                                                            turnover will increase to nearly
                                                                                                            EUR 39 million. To achieve that
                                                                                                            objective, we must work seam-
                                                                                                            lessly as a team and continue to
                                                                                                            develop our competences,”
                                                                                                            says Managing Director Juho
                                                                                                            Järva from Empower AS.

               According to the investment plan,          in Estonia with its 39 megawatt capacity.      gain ground in Estonia. Together with the
            Põhivõrk will carry out several 330 kilo-     Earlier, Empower participated in Winwind       Finnish Empower, opportunities are being
            volt power line projects. Of substation       Oy's Viru-Nigula and Roüste wind farm          investigated to offer various services for
            projects, the most extensive is the Araküla   projects. Projects to be launched soon         telecommunications operators. These op-
            330 kV substation. Construction               include the Vanaküla 9 megawatt wind           portunities include the construction of a
            will begin in 2009. In addition to            farm and the Aser 24 megawatt power            third generation communications network.
            Põhivõrk, AS Fortum Tartu also has            plant; Empower will be carrying out
            110 kV projects in progress.                  the electrical installations for both,”
               Empower is currently repairing a           says Järva.
            110 kV substation in Rapla. At the same          He says that Estonia supports renewable
            time, a 110 kV cable connection is being      energy sources. This has an effect on the
            built in Kadaka.                              price of wind power, attracting wind power
                                                          investors to Estonia.
            More wind power                                  “In addition to new projects, we are also
            “Major Estonian wind power projects           interested in wind farm maintenance work.
            have kept the transmission network            We have developed a 24/7 maintenance
            business busy. Empower performed the          model for wind farms,” Järva explains.
            electrical installations in the Estonian         He also believes that Empower's commu-
            Aulepa wind farm, the largest wind farm       nication network construction services will

empowerlink 20
                                                                                                     Picture Leons Balodis / Latvija Institute

Empower expanded its
in Latvia
Empower acquired the distribution network building
and maintenance business of SIA Elko in Latvia early
this summer. In the acquisition, 135 employees were
transferred from Elko to Empower SIA, headquartered
in Riga. The net sales of the transferred business
total 10 million euro.
Tuula Sipola

         mpower acquired the electricity dis-

                                                subsidiary in Latvia is now 66 percent. The
         tribution network building and         local management owns 29 percent.
                                                                                              “The electricity network
         maintenance business of the Riga-         Empower SIA Managing Director Valdis
                                                                                              construction business in Latvia
based company SIA Elko. Empower has             Rudzis says Elko is a successful company,     requires an increased interna-
been operating in Latvia since 2003, but        but the time has come to look at things       tional focus that Empower will
previously its operations focused on the        from a new perspective.                       provide,” says Empower SIA
                                                                                              Managing Director Valdis
building of power lines and substations.           “The operations must improve and move
                                                                                              Rudzis. He underlines that the
The acquisition made Empower the second         forward. Building an electricity network is   market area will inevitably
largest network-building company in             increasingly international. The business      expand beyond the borders of
Latvia.                                         area extends beyond Latvia and the Baltic     Latvia; otherwise it is not possi-
                                                                                              ble to succeed in the heavily
   As part of the arrangements made with        countries, all the way to the entire Baltic   competitive industry.
Elko, Empower’s ownership share of its          Sea region,” Rudzis says. >>

                                                                                                                                          21     empowerlink
             Growing energy projects in the Baltic countries

             Elko sold its network building ope-          to see cooperation increase significantly in     The expansion of
          rations but continues and further develops      the near future. Cooperation is possible in
          its wholesale business with 65 employees.       material acquisition; best practices are ex-     Empower into Lithuania
          The selection includes products and mate-       changed and personnel are trained for the        began with acquisitions
          rials for the electricity and telecommuni-      new operational model.
          cations industry that are sold to the energy                                                     in 2003, followed by
          and community development sector, and           Through the hard times                           more purchases in
          industry retailers.                             Elko was founded at the end of the 1960s.
                                                          The majority of the workload consisted of        2005. Even at that
          A highly motivated owner                        electrification projects for large, produc-      time, gigantic energy
          Rudzis says competition in the electricity      tion plant type collective farms, or
          network construction business in Latvia is      kolkhozes. This was the Soviet Union era,        production and electricity
          fierce. However, he believes in Empow-          and there were several kolkhozes in the          transmission projects
          er’s success in the market.                     Riga region.
              “Our employees are motivated profes-           As the Soviet Union crumbled, Elko            were being prepared
          sionals who are not at all likely to change     was privatised and 30 employees of the           for in the country.
          jobs. They know the people in the industry      company became its new owners. In addi-
          and have created solid contacts with them       tion to purchasing the machinery and             Tuula Sipola >>
          over the years. As the owners of the com-       equipment, they also acquired a facility         Pictures Susa Junnola,
          pany, they are specifically interested in       and its lot near the Riga airport. Some of       Lietuvos Energija
          developing their own business and making        these people still own a part of Elko, no
                                                                                                                     mpower builds and maintains

          it thrive,” Rudzis affirms.                     longer in the electricity network business,
              At the moment, Empower SIA has sev-         and of Empower SIA as well.                                the electricity network
          eral 110 kilovolt projects underway for its        “The beginning of independence took a                   everywhere in Lithuania.
          largest customer, Latvenegro. Road light-       lot of perseverance and patience. The Lat-       Offices concentrating on these
          ing projects are also continually on the        vian economy was in a miserable condi-           operations are located in Vilnius and
          work list. The largest projects include,        tion. There was no work and there was no         Siauliai in the northern part of the coun-
          among others, the building of two substa-       money,” Rudzis recalls.                          try. The subsidiary Empower Fidelitas in
          tions. The mast building business is also          Little by little, contracts started trick-    Vilnius builds masts for the needs of
          going strong.                                   ling in from Russia in the mid-1990s.            telecommunications companies, for
                                                          These were gigantic projects with cont-          example.
                                                          ractors from several different countries.           About ten independent electricity
                                                          It was around this time that Rudzis met          companies operate in Lithuania, with
                                                          Finnish companies and people in the              the state-owned Ignalina nuclear power
          “Our employees                                  industry.                                        plant clearly the largest. It generates 75
                                                             He mentions the building of a city in the     percent of the electricity consumed in
          are motivated                                   middle of a forest in Russia as the largest      the country. Lithuania has also been able
          professionals who                               and most peculiar project of all time for
                                                          Elko. The former Soviet military bases
                                                                                                           to export significant amounts of elec-
                                                                                                           tricity to other countries.
          are not at all likely                           and their employees from Eastern                    To comply with the conditions of EU
                                                          Germany moved to Russia. A new town              membership, the remaining 1,300 mega-
          to change jobs.”                                for 10,000 inhabitants was built primarily       watt unit at Ignalina should be closed at
                                                          for them near Samara.                            the end of 2009. This would create de-
                                                             “The town was built in a completely un-       pendence on imported energy and drive
                                                          inhabited area, in three years. The entire       electricity prices higher. Thus Lithuania
                                                          infrastructure with thousands of residen-        wants more time for the power plant.
             “We have carried out a lot of mast           tial units, a hospital, day care centres, etc.      The new nuclear power plant being
          building work for Tele2 over the years.         was built there. During that time, Elko in-      planned in Lithuania by the Baltic coun-
          The construction of large telecom masts is      stalled electricity in various targets,”         tries and Poland would not be in opera-
          nearly complete for now. Radar towers are       Rudzis says.                                     tion for years. The European Union may
          still being built. The erection and installa-      He recalls having made his first contact      make its final decision during the
          tion of 14 radar towers is underway,”           with Empower at the beginning of 2000.           autumn on whether the power plant will
          Rudzis states.                                  Cooperation on telecom mast deliveries           be closed or if it can continue in opera-
             He says the nature of customer’s orders      for Tele2 was launched that year. Around         tion for longer. These decisions will nat-
          relating to the electricity network is gradu-   the same time, Empower established a             urally have an effect on not only the
          ally changing.                                  company in Latvia.                               structure of energy production but also
             “”Turnkey deliveries are on the                 For several years, the Empower opera-         on the electricity network.
          increase. The customer also wants to in-        tions in Latvia only comprised transmis-
          clude more design in the delivery.”             sion network building. After the Elko ac-        Focus on competitiveness
             Rudzis is already looking towards the        quisition, Empower is a strong player in         Vida Lukoseviciene, who was nominat-
          other Empower businesses. He would like         the distribution network business as well.       ed the Managing Director of Empower

empowerlink 22
Lithuania on standby for
large energy projects
AB this spring, previously worked at Siauli-     Quest for new targets
ai Energetikos Statyba (SES), a distribution     The main grid operator Lietuvos Energija
network building company that Empower            and the companies managing distribution
acquired from the Lithuanian government          networks are among Empower’s largest
in 2003.                                         clients, according to Lukoseviciene. One of
   Now she also leads the power line and         the two distribution network companies,
substation builder Empower in Vilnius, for-      privately-owned Ruty Skirstomieji Tinklai,
merly Elektros Tinklu Statyba, which was         operates in the Vilnius region in the eastern
purchased from the government in 2005.           part of the country. The other is state-owned
   Lukoseviciene began her career at SES         Rytu Skirstomieji Tinklai. Its operations
about twenty years ago when the company          cover western Lithuania.
was part of Lietuvos Energija, the Lithuan-         According to Lukoseviciene, there are
ian state-owned energy company and main          several companies competing for the elec-
grid operator. SES became an independent         tricity network building projects. While
operator in distribution network building        everybody is waiting for new large projects,
and maintenance in 2001.                         the old networks in the country are being
   The Lithuanian energy business, current-      maintained and partly modernised.
ly in a standby mode, is already offering           The power line project between Lithua-
challenges.                                      nia and Poland that has been on the draw-
   “Empower has grown into the largest           ing board for four years has finally been
electricity network builder in Lithuania.        given the green light. Currently it seems
This, however, is not enough to preserve the     like the 400 kV transmission connection
competitive edge. We need more informa-          would be operational in 2012. The length
tion exchange and cooperation between the        of the transmission connection would be         ”Currently, Empower has
Empower businesses in different countries,”      150 kilometres.                                 plenty of maintenance work in
                                                                                                 both transmission and distri-
Lukoseviciene emphasises.                           The planned undersea cable from Lithua-      bution networks. The largest
   She says another challenge in the near        nia to Sweden is another interesting project.   project is a 110 kV power line
future will be to find skilled labour. This is   Its maximum transmission power would be         construction contract. New
a familiar situation in the electricity build-   1,000 megawatts. The needed length of the       line is being laid to a length
                                                                                                 of 130 kilometres,”
ing business elsewhere in the Baltic coun-       cable to be laid in the bottom of the sea       Vida Lukoseviciene says.
tries, and in Finland as well.                   would be 350 kilometres.

                                                                                                                             23   empowerlink
            Polarmit ensures
            the correctness
            of metering
            A faulty meter or an error in electrical power metering may
            have an enormous and totally avoidable impact on the amount
            of electricity bills. Where electricity consumption is high,
            precise electrical power metering pays for itself quickly.

            Tuula Sipola >> Pictures Kai Tirkkonen

                 “In addition to inspections and error reports,
                 the customer is also provided with informa-
                 tion on power use by consumers in conflict
                 with the agreement, such as excessive fuse
                 sizes, faulty reactive-power compensation
                 equipment and causing disturbances in the
                 network,” explains Jukka Heikinheimo.

empowerlink 24
                                                            “I have come across serious
                                                            errors in a few of my inspec-
                                                            tions. On the other hand,
                                                            smaller errors or risk factors
                                                            are discovered constantly.”

           ot many industrial companies in

                                                 of the electrical power meters at the sub-     els throughout Finland, making around one
           Finland have appropriate measur-      stations.                                      thousand inspections per year.
           ing equipment or professionals of        The issues of importance include how           “I have come across serious errors in a
their own to systematically measure the          much electricity the power plant generates,    few of my inspections. On the other hand,
correctness of electricity consumption in        how much electrical power the energy com-      smaller errors or risk factors are discovered
various process parts. This attracted the at-    pany takes from the grid or how much elec-     constantly. In such cases, the meter error
tention of Jukka Heikinheimo, who, since         tricity the production process consumes.       may have been a few per cent. If the cost of
the latter part of the 1990s, was in charge of   Often companies do not have the answers to     electrical power is one million euro for the
meter installations at Empower.                  these questions. However, precise, correct     company concerned, the error causes a fair-
   He recognised a gap in the market and in      meter readings often have a considerable       ly large loss at the annual level.”
2005 established Polarmit Oy, which spe-         impact on a company’s finances.
cialises in the design, installation and            “If electrical power of ten megawatts       Several potential
inspection of electrical power measuring         flows through the cables and the meter er-     causes of error
equipment. However, he still continues to        ror is 0.5 per cent, this seemingly small      According to Heikinheimo, errors are most
cooperate with Empower. In connection            error causes considerable loss at the annu-    often caused by a faulty or erroneously pro-
with energy data management services,            al level.”                                     grammed meter or incorrect coefficients in
Empower provides its customers with an                                                          the invoicing system. Erroneous
energy measuring equipment inspection            Compensation                                   connections, erroneous rating-plate values
service implemented by Polarmit.                 issues are tricky                              on the current transformer, a cut off meas-
   In addition to inspections, Polarmit is in-   Heikinheimo maintains that the correctness     uring circuit and overloaded current trans-
volved in AMR (automatic meter reading)          of metering is not always paid attention to,   formers may also cause metering errors.
projects in distribution network companies.      even in large power plants. A faulty meter     Meter connections becoming loose over
Its tasks include replacing the meters of        giving false readings or erroneous coeffi-     time may also result in error.
large-scale electricity users.                   cients in the invoicing system may cause          “The most secure and precise result is
                                                 particularly unpleasant surprises to trans-    obtained by inspecting the measuring
Even a small error                               mission companies, for example. Accord-        equipment in operating conditions using a
has an impact                                    ing to electricity supply conditions, the      portable meter inspection device. The de-
In addition to its Managing Director Jukka       user of electricity is entitled to compensa-   vice is connected to the same measuring
Heikinheimo, Polarmit provides permanent         tion based on a meter error, even over a pe-   circuit as the meter to be inspected so no
employment to one other person. Polarmit         riod of ten years.                             break in power supply is necessary,”
and Empower collaborate in a number of              On the other hand, the amounts invoiced     explains Heikinheimo.
projects.                                        from some industrial properties may have          Energy efficiency and the high cost of
   Etelä-Pohjanmaan Voima Oy is one              been too low over a long period. A typical     energy are much debated and topical issues.
power company for which Polarmit and             cause for this is human error during meas-     Accordingly, Heikinheimo wonders how
Empower have jointly provided services. It       uring equipment installation or equipment      even major grid companies have not neces-
acquires the services related to meter data      malfunction. If a property has housed a        sarily taken into account the financial sig-
in its regional grid from Empower.               number of tenants over many years, it may      nificance of correct meter data.
Empower remotely reads the devices locat-        not be a simple task of tracking down the         “Modern measuring equipment provides
ed at substations and transfers the data         company to be invoiced.                        precise meter data. The costs involved are
wirelessly from the meters to the system            Polarmit’s clients include not only elec-   reasonable compared with the potential loss
where it can be presented to the user as a       tricity production and transmission compa-     a malfunctioning meter may cause in the
Web-based report. Polarmit inspects and          nies but also industrial companies with high   long run. The investment pays for itself
reports on the functionality and precision       electricity consumption. Heikinheimo trav-     over a short term,” maintains Heikinheimo.

                                                                                                                                          25    empowerlink
            Systems development
            requires cooperation
            with the customer
            Empower provides its customers with information systems servic-
            es developed for the energy sector. Empower has opened up
            new vistas by acquiring the Ellarex business operations from the
            Finnish CCC Group. The operations include a customer service
            and invoicing system, a measurement data management system
            and related information systems products.

            Text and picture Tuula Sipola

                    he history of Ellarex as an expert in

                                                            to be compared with the new one in order         service function. For Vaasan Sähkö, inte-
                    customer service systems for energy     to secure all of the necessary data, such as     gration into another system is being built,
                    companies has its origin in the year    contracts and invoicing details. The stage       and the annual new system version is being
            1997 when CCC, which developed the El-          was implemented together with new users,         created.
            larex product family, obtained its first cus-   which means that it also provided training.
            tomers from the energy industry. Now this                                                        Synergy benefits
            know-how is part of Empower’s Energy Da-        The system "lives on"                            According to Jurvanen, the Ellarex product
            ta Management services.                         and improves                                     family has not yet been marketed powerful-
                                                            Ellarex, the product name of the system,         ly abroad, since domestic demand has been
            The system was developed                        was formed as the project progressed. Dur-       high. He admits that product development is
            for the energy industry                         ing the years, its features have been            being carried out all the time taking into ac-
            In 1997, the electric companies Vaasan          polished and developed mainly in coopera-        count also the possibility of combining El-
            Sähkö, Kokkolan Energia and Korpelan            tion with the client.                            larex services with other Energy Data Man-
            Voima together started seeking a new data          “It is essential to engage in continuous      agement services provided by Empower.
            system after having been disappointed with      and regular cooperation with the client.            So far, Ellarex has been offered to power
            the previous system for a number of             Clients give us valuable information regard-     companies only. However, Jurvanen finds
            reasons. On the other hand, the electrical      ing the direction in which the system must       that the system would suit any company
            power market became a free market around        be taken and developed. Independent devel-       that needs mass invoicing. The largest El-
            that time, which created a need for new         opment work is mainly related to the man-        larex client has approximately 100,000 in-
            kinds of features in the customer service       ageability and technology of the system,"        voicing objects.
            and invoicing system. Examples included         says Jurvanen.                                      He also reminds us of the evident syner-
            issuing concerning offers, contracts and the       Ellarex has also been a member of the         gy benefits with Empower's Energy Data
            electricity exchange. CCC was selected as       Association of Finnish Energy Industries’        Management systems. CCC and Empower
            the supplier.                                   message task force, where Empower has            started their cooperation in 2006 when Em-
               “The project was a hard effort totalling a   also been involved earlier on as well. This      power started developing the EllaEDM
            couple of years. At first, the most challeng-   channel provides further information to          measurement data management system,
            ing topic for me was becoming familiar          base development to work on.                     which can be used to provide services for
            with the special characteristics of the ener-      The Ellarex system is currently used by       Empower’s clients and to which AMR (au-
            gy branch. Around 20 people from CCC            13 power companies, but from a legal view-       tomatic electricity meter reading) services
            participated in the project, along with a       point, there are approximately 30 user com-      can be connected.
            couple of people from each client compa-        panies. The market share is 15 per cent.            There were 13 employees who
            ny,” says Antero Jurvanen, Ellarex Cus-            A few rather large projects are               transferred from CCC work at Empower’s
            tomer Manager.                                  currently in progress. We have agreed with       office in Oulu. Each one of them is an in-
               According to him, the process started, as    Oy Herrfors Ab on the delivery of a              formation technology expert whose tasks
            is the standard procedure in systems proj-      customer service and invoicing system            mainly include software development. Dur-
            ects, by carrying out a thorough assessment     within the year. It includes the functions for   ing Empower, the Ellarex team has been
            of the old system's data. The old system has    electricity sales and a Web-based customer       reinforced with a few people.

empowerlink 26
                          Antero Jurvanen started working for CCC
                          in 1985. Before that time, he worked for
                          Kajaani-based Edacom Oy, a provider of
                          data systems for service stations. “When
                          my supervisor founded CCC together
                          with a few other people, I joined in,” says
                          Jurvanen about his history in becoming
                          an expert in the customer service
                          systems for the energy sector.

“Clients give us
valuable information
regarding the direction
in which the system
must be taken and

                                                                27      empowerlink
 Enabling change
 – combining

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