PDF Document 2.46 MB - Geveko

ChemTech business area / Geveko OyGeveko OyDevelopment of innovativeproducts gives a competitive edgeHead office: Pargas, FinlandSales office: Vantaa, FinlandMD: Anssi SeppinenTurnover 2007: SKr 61 (58) millionNumber of employees: 28 (22)Products: Industrial paints,domestic paints, and road markingpaint.Markets: Finland, Sweden,Estonia, Latvia, Lithuania, Polandand Russia.Competitors: Akzo Nobel AB,Becker Acroma AB, RemmersGmbH, Teknos Oy and TikkurilaOy.Share ofbusiness area’s turnover48%Revenue by productPaint (subcontract)21%Industrialpaints63%Nature of businessGeveko Oy, whose head office andproduction facilities are located inPargas, Finland, was founded in 1946and has an established position onthe Finnish market as well as exportsto Sweden, the Baltic countries,Poland and Russia.Geveko Oy manufactures nicheproducts using advanced paintchemistry. The products are mainlywater based and production is to alarge extent based on specific customerrequirements. The products’specific, customer-adapted characteristicsmean that sales are largelyhandled by distributors with a highlevel of technical competence.Customers include the hardboard,joinery and building industries.Geveko Oy develops, manufacturesand markets domestic paintsfor the consumer market. Geveko Oybegan production of domestic paintsin 1959. The first product was analkyl oil paint for outdoor use.Geveko Oy has been manufacturingwater-based industrial paints since1987. Thanks to the use of innovativeproduction methods these matchcustomers’ specific needs andrequirements, which gives an edgeon intensively competitive markets.The company also manufactureswater-based road-marking paint forthe Scandinavian market on behalfof Cleanosol, a sister company thatis a member of the Road Markingbusiness area.MarketsThe market for industrial paints forthe joinery and hardboard industrieshas declined in Finland. In all probabilitythis will result in a process ofconsolidation and lower margins.Geveko Oy is, therefore, focusing itsbusiness on the development ofniche products in close co-operationwith customers on most markets.Outlook 2008Geveko Oy has been successful inreplacing customers’ solvent-basedproducts with water-based systems.In addition, Geveko Oy has replacedits older range of water-based paintswith new products, which hashelped to reduce costs and raiseproductivity in the customers’ productionprocess. The acceleratingtransition from solvent-basedproducts to water-based or solventfreesystems will benefit Geveko Oyin 2008, particularly on exportmarkets.Future prospectsGeveko Oy will focus more on salesof niche products with a high levelof value added. There is clearly agrowing trend towards fewer paintcompanies on this market. In orderto boost its ability to launch inno -vative products, Geveko Oy willinvest more in R&D. At the sametime, the aim is to further raiseprofitability by means of cost-effectivesolutions for the use of raw materialsand production technology.Domesticpaints16%42