Less paper reel damages, page 4

Invest in product development, page 6

Smart labels and food products, page 10

M A G A Z I N E 1 2 0 0 3T H E C E N T R E O F L O G I S T I C S K N O W H O W I N K A U H A J O K I R E G I O N

Kauhajoen keskusta

Karijoki

Honk

ajoki

Karvia

Teuva

Kaskinenkantatie 67 Aro

Kurikka

Seinäjoki

Jalasjärvi

tie 669

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Teknologiakeskus Logistia,

Pesmel Oy,

Done Logistics Oy,

Vesme Systems Oy,

Antti Lindfors Oy,

Forsfood Oy,

Kometos Oy,

Oy,

Pinomatic Oy,

Kauhajoen Konevalmiste Oy,

Loumetal Oy,

Elmega Oy,

Kauhametalli Group Oy,

Teknologiapuisto 1

Jussilantie 2

Hakasivuntie 1

Enontie 2

Keskustie 23

Ajokkikuja 5

Keskustie 23MKT-FinlandLustilantie 29

Pohjolantie 7

Puusepäntie 14

Nikkarinkuja 4

Hakasivuntie 5

Kurikantie 144

The Map of the region

Contents

Editorial

The new loading system reduces paper reel damages

Product development as a challenge for materialshandling and part of the operation strategy

www.logistia.fi

In addition to materials handling equipment,Antti Lindfors Oy also supplies packaging technology

Tracking the Origin of Food by using the IC-technology

At Corporate University, it is possible to combine working and studying

Know-how and town competitiveness

Logistic systems – a research professorship on the limit oftraditional branches of science, new viewpoints are opened

The extension of Logistia, the technological centreof Kauhajoki, will be realized already in 2003

Contacts

2234689101112131415

Publisher:the Kauhajoki TechnologyProgram Logistia

Technology ManagerJaana SuksiTeknologiapuisto 1,61800 KauhajokiFINLAND+358-40-5711 305jaana.suksi@kauhajoki.fiwww.logistia.fi

Chief Editor:Pekka Bäcksrtöm, F-Cons Oy+358-400-622 663

LayoutMainostoimisto Bock's Office Oy

Printing By:Arkmedia Oy

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business-to-business marketingthe future vision of

One of the strategies in fashion intoday's business life is the outsourcingof different business activities notrepresenting what is called businesses'core expertise. The development ofcontract supply is an essential part ofthis.

Contract supply can be regarded asbusiness-to-business marketing in itspurest form, if marketing companies'modes of action are not included in thedefinition. Contract supply, partnership,joint supply, is a mode of action referredto by various terms, in which the level ofcooperation goes very deep at every levelof different business organisations, notonly e.g. within a purchaseorganisation or in cooperationbetween business managers.Cooperation betweenorganisations is done bothhorizontally and vertically. Thus,the operationally importantsegments and departments ofan organisation take care ofsectors related to theirrespective business activities in directinteraction. In such a case, activities areefficient, prompt, taking place on timeand, above all, as flawless as possible.

Contract supply is persistent andsystematic contract-based cooperationbetween the main supplier and thecontract supplier, for the best of bothparties. It is profitable and necessary forboth that each one prospers and makesa good result, which means that thewin-win principle comes true. Whenbusiness is down, this can also beaccompanied by the loselose principle,which is almost the contrary of theformer. In such a case, the lower volumeof orders is divided with the contractsuppliers, whose subsistence is thusensured during the downward trend,too. As activities related to contractsupply are open and transparent

enough, both parties' objectives can beachieved; and they usually are.

When analysing the nature ofcontract purchase, we find that all theparties have very similar objectivesregarding the results of the activities. Itis obvious that all the parties aim atobtaining a better result and a betteryield on the capital invested.

There are only a few differencesbetween the objectives and they canbe found rather in the area of expertise.The main supplier wants to concentrateon his own core expertise while thecontract supplier aims to achieve know-how about the supply of larger lots.

What is core expertise, then? It is oftenthought that core expertise is connectedwith some function or process carriedout in the process. This is, however, notthe case: core expertise is such know-how that others are not able to achievethrough reasonable investments nor it isworthwhile for them even to seek toachieve.

Likewise, the Kauhajoki metal industryand, in particular, the enterprises in thefield of materials handling, will have tochoose in the future if they will act asa main supplier, contract supplier or asubcontractor within the network.Having decided on its own role in thenetwork, en enterprise will have to takeits strategic, operational decisions onthis basis.

It is worthwhile for main suppliers,too, to consider developing joint projects.

For example, the efforts and resourcesprovided by single Kauhajoki-basedmetal-sector enterprises are insufficientfor the large-scale projects of big CentralEuropean customers. Cooperation net-works made up of clusters, with contractsuppliers and subcontractors committedto comprehensive quality standards, canonly achieve bigger and bigger projects.How can these contract suppliers andsubcontractors be brought about? Theonly way of doing it is through commontraining and development projects.Contract suppliers and subcontractorsthat are able to and -first and foremost-willing to develop must be brought to a

meeting with main suppliers todecide jointly on the requiredtargets for development anddevelopment projects. They willlearn from each another, trustwill increase, and, in the end,all will understand why net-working pays off. When eachmember of the chain satisfiesa customer's needs and desires,

all are able to make a good result. To beachieved, this requires two things. Thefirst one is commitment to the rulesagreed on, including the Principles ofOpen Books. The second one is the saleof solutions, overall packages andservices a customer is willing to payfor when he feels he earns real surplusvalue that will help him make his ownproduction or operations more effective.

Main supplier,contract supplier,subcontractor?

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Networks and contract supply,

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The Veto-Ketju Project Customer benefitsThe Veto-Ketju project was initiated in2000 with the objective to raise thelogistic quality of the transportationchain between the paper mill and theport using automation. The project has

been a success and resulted in a reliable,fast and flexible way of handling. Theapplicability of the new system to theexisting action models, control systemsand port structures has been verifiedand the future needs have been takeninto account.

The material handling concept, whichwas created during the productdevelopment and is generally applicable,can be widely used in storage andterminal handling of industrial products.In the initial phase, the system will beintroduced in the Finnish paper industrybut it will most certainly gain marketshare in other domestic industries aswell as in the foreign industry.

The most significant difference betweenthe new loading concept and the presentaction model is the essential decrease inforklift handling of reels. Instead of up toeight lifting times needed in the

traditional loading and unloadingpractices, now only 2 to 3 lifting timesare necessary, which inevitably has apositive influence on the product quality.Moreover, decreased forklift traffic in theloading zones means higher workingsafety and lower operating costs.

Along with faster loading andunloading, the turnover time of wagonsbecomes faster and the unnecessarystoring of valuable rolling stock in theyard decreases. Investments in wagonpositioning equipment at loadingstations are neither needed becausethe loading systems delivered to boththe mill and the seaport are capable ofmoving even full-loaded groups ofwagons.

Unmanned, automatic identificationand dimensioning stations as well asautomatic data transfer ensure thecorrectness and correspondencebetween deliveries and orders. Inpossible situation of failure, the operator

Pesmel will provide UPM-Kymmene paper mill in Kajaaniwith an automatic railroad wagonloading system and the seaportoperator Rauma Stevedoring witha corresponding unloading systemas well as a sea cassette loadingsystem. The system developmenthas been carried out in associationwith the VETO-KETJU projectfinanced by Pesmel, UPM-Kym-mene, Rauma Stevedoring, VRCargo, M-real and TEKES (NationalTechnology Agency). The newsystems at the mill and theseaport will be put in productiveuse in the early 2003.

Text and photos: Jaana Suksi

reduces paper reel damagesThe new loading system

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has several optional ways of handlingthe situation.

The major part of the production ofUPM-Kymmene's Kajaani mill isexported by sea through the Port ofRauma. Instead of moving single reels orstacks of reels, the new railroad wagonloading system handles reels in stackswith a maximum weight of 6 tons.Even the biggest reels produced by theKajaani Mill can be loaded using thesystem where the height of the stack islimited only by the height of the wagon.

The system consists of the fork lift andthe conveyors for load formation. Theloading device requires no additionalequipment in the wagons; only acorrugated floor surface is needed.Despite the corrugated floor structure,the wagons supplied by VR Cargo canalso be loaded or unloaded in thetraditional manner, with a truck.

The handling capacity of the loadingdevice is half a wagon, 35 tons at a time.The loading device moves on rails besidethe wagons and is capable of movingeven a fully loaded line of wagons.

Furthermore, the loading systemembodies a complete reel identificationand dimensioning equipment. We havepaid special attention to the real-timecontrol of information flow withoutwhich the advantages of the newsystem would only be partial.

The wagons loaded in Kajaani areunloaded by Rauma Stevedoring with anunloading equipment that will be placedin a new terminal. The construction of theunloading equipment is a counterpart ofthe loading equipment at the mill.According to the loading data receivedfrom the mill, the fork lift unloads halfa wagon at a time.

At the Load Formation Station, theloading pattern made up according tothe dimensions of the wagon isdischarged and remade to follow thedimensions of the cassette. Thereforming of load and identification of

reels are carried out using the loadingdata automatically transferred from themill to the port's data system.

After the identification of the reels inthe stack, they are conveyed on the railsto the cassette loading station.

The flat sea cassettes are loaded withPesmel's sleeve yoke loader. The reelsare slid on the cassette with thin plasticyokes. With the loading boom supportingthe reels, the sleeve yokes are drawnfrom under the reels. The cassetteloading station is capable of producinga desired loading pattern and placing iton the cassette one row at a time. Thewhole procedure takes place fullyautomatically.

Pesmel Oy is specialized in completedeliveries of material handling systems.Apart from machines and equipmentmanufacturing, Pesmel's deliveriesconsist of such important elementsas control automation, projectmanagement, training and service.Pesmel systems are made of modulecomponents according to the wish ofthe customer. Pesmel provides a wideproduct range for pallet and platepackaging and loading. We have a longlist of references from bulk and paperindustry to steel industry.

Rauma Stevedoring operates in the Portof Rauma and ships more than a third ofall paper exported from Finland by sea.Rauma Stevedoring provides all servicesassociated with port operations:Bulkhead handling, storage, forwarding,clearance, international shipments. Thecompany has specialized in the exportsof products of the chemical forestindustry and the imports of various rawmaterials. The total quantity of goodshandled annually by Rauma Stevedoringis over 4.5 million tons.Reliability performance is a very

important factor for us because in thefuture, Rauma will carry out theunloading of paper carrying wagonsequipped with a special floor comingalso from other mills than Kajaani, saysProject Manager Arttu Lehto.

UPM-Kymmene's mill in Kajaani producesan annual amount of approximately600,000 tons of magazine paper andnewsprint paper. Currently, about 85percent of the production is exportedand mainly by train to Rauma to befurther shipped.Project Manager at UPM-Kymmene,Risto Miinin, expects the new systemto reduce the transport damagesconsiderably. In the beginning, 4 to 5special wagons are used in a train, i.e.about 25% of the production are handledusing the new system.

Loading of wagons at mill

Unloading of wagons

Loading of cassettes

Complete system deliverieswith service

Rauma Stevedoring

UPM-Kymmene Kajaani

Additional information:

Pesmel Oy

Mr. Hannu Mäki-Rahkola,Chairman Director and Mr. Iikka Upanne,Area Sales Manager

Jussilantie 2,61800 KauhajokiFinlandTel. +358-6-2341 111Fax: +358-6-2341 200www.pesmel.comforename.lastname@pesmel.com

UPM-Kymmene, Antti VilkkiPesmel, Raine AaltonenVR Cargo, Esko KorpinenRauma Stevedoring, Arttu LehtoUPM-Kymmene (Kajani Mill), Risto MiininEP-Logistics, Jani Tikkanen

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as a challenge for materials handlingand part of the operation strategy

The activities of Vesme Systems Oyas an international expert in theline of materials handling requireheavy investments also in thedevelopment of know-how andthe level of technology.

The enterprise, acting as the operatorfor fast developing branches of industryand the target of which is to improvethe client's productivity and to clarifythe logistics according to final productrequirements, has to grapple especiallywith the product- and systemdevelopment. The equipment and thesystems have to answer the client'sneeds and the requirements of the finalproduct.

In this line of business the wordsproduct development get new differentdimensions and notions.

”Product development” is at Vesmedivided into many different spheresdepending on the activity.

Product development: the developmentof an invention or idea to a new product.

Equipment development: thetechnical development of an existingproduct or equipment to correspond torequired functions.

Product making: development ofexisting products to be more productionfriendly or the appearance is improvedby different means of forming.

System development: the developmentof the whole system to a working unityin which many product development,equipment development and productmaking projects can be included. In theimplementation also the possibilities ofsimulation are often used to solvedifferent problems.

5. In addition to the above mentionedmethods of development it is also veryimportant for the activity to findexternal enterprises in our country andabroad, that have for their part investedin e.g. equipment development. A devicewith superior features compared withthe competitors, joined with our owndeveloped products, gives the systemssuch characteristics that cannot beachieved, economically or temporally,effectively enough by one's own efforts.

Vesme Systems Oy, that serves as asystem supplier in many lines ofbusiness, like paper and pulp industry,heat and power station industry,reclamation of recycling products,

What is R & D activity?

The R & D activity at Vesme

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Product developmentProduct development results, wrapping machine Text: Juhani Rauhala

Photos: Kari Anttila

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further processing of timber and bulkindustry, has to apply all the abovedescribed possibilities of development.

The cornerstone of the activity ishowever the R & D activity of our ownproducts and systems, in which wecontinue to invest.

The enterprise has invested in R & Dactivity about 5-10% of its volume ofbusiness. Even at this moment there is aproduct development project going on,with a completely new product thesuperior characteristics of which areconcentrated on the systems of theWood-group. The enterprise is preparedto invest nearly a million euros in this.

Another story completely in the R & Dactivity is the decision of developing aseparate line of activity for equipmentand system know how. In the case ofVesme this decision was made quicklyin the beginning of 2002. Then VesmeSystems Oy built a new supportingcolumn for its activity, the Wood-linethat realizes further processing systemsfor mechanical wood processingindustry.

This was carried out in the following way:· the manufacturing rights and the

brand name of an enterprise in thesame branch were bought

· the staff of the above mentionedenterprise, and with them also theknow-how of the enterprise weretransferred to Vesme

· a well versed person in the trade wasemployed to run the activity

· foreign representation of specialmachines with superior characteristicswas obtained and they are patented.

· a share was purchased in anautomation enterprise with know-how in the branch.

· Two large product developmentprojects were started to developcertain special devices and existingtechnology was developed toproducts.

· Additional premises were obtained fortesting and assembly.

With this outline the new line ofbusiness was started after two monthsof efforts.

At this moment Vesme is a significantenterprise, almost the only one withtotal delivery in this branch.

The system in its whole includesspecial products and superior know-howof many producers in our country andabroad

Vesme Systems Oy has during the lastyears invested especially in such superiorfeatures of packing systems of folio inthe paper industry that help the finalclient improve the productivity andthe marketability of the final product.A good example of this is Stora-EnsoInkeroinen, where the board packing linewas rebuilt so that, in addition to theautomation of the package, also thefeeding to the cutter is automated.The system included clear productdevelopment objects, like productstraightening apparatus, registeringequipment and feeding apparatus.

Further the control part of the systemand the product sorting apparatus in thestorage part were developed. The aimof this development is a functioningstorage and loading.

Another focus of the R & D activity isin the Wood group, where the aim is torealize mechanical wood-processing bymeans of technological know-how sothat the operating and quality level isalmost equal to that of a paper machine.

This work requires also heavyinvestments from the foreigncooperation parties in the productdevelopment of their own specialproducts.

From the view of the enterprise the R & Dactivity is often economically a very hardactivity and it may seem insurmountableto realize, but for the development of thebusiness it is necessary. Without R & Dactivity the enterprise fades and theproducts stay on levels where they haveno market value. The risk of failure has tobe taken, but it should be as controlled aspossible. The R & D activity should alwaysbe based on the satisfaction of theclient's needs.

Enlargement of the R & D activity

The great challenges ofthe R & D activity at Vesme Why is the R & D activity

so important

Further information:ceo Juhani RauhalaVesme Systems Oywww.vesme.comEnontie 261850 Kauhajoki, FINLANDTel. +358-6-2340 400

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Done Logistics OyBox 521,FIN-61801 KauhajokiTel. +358 (0) 205 253 000Fax. +358 (0) 205 253 090logistics@donesolutions.com

The Logistia-portal has been designed tobe actual all the time. The headlines ofnews of the branch can easily be foundfrom the front page, www.logistia.fi.

The most of the enterprises in thebranch have their contact informationsand links in the portal.

Also the research and development,for example the Corporate Universityand the research professorship havetheir own pages. There will be alsoinformation about actual happenings ofthe branch, seminars, conferences, fairs.

Because the web-pages arementioned to be actual, on-time, theyhave be easy to update.

The answer for that, is a newpublishing-program, eSITE, designed bythe IT-company Neviso Oy, located inTechnology Center Logistia in Kauhajoki.

The advantage of eSITE-program is itshierarchtical structural. It's easy to makestructural changes by “pull and drop”method. You don't need to input theinformation again and again. It is therealready.

By using the eSITE-program forupdating, you can easily program thepublishing time for pages by one setup.Also the pages can be parted and youcan allow licences for several users.

Please, welcome to visit our LOGISTIA-portal, www.logistia.fi.

The enterprises of logistics system and materialhandling in Kauhajoki region have a newinformation channel in internet, a Logistia-portal.The portal is like a window to the current interestsof the logistics systems and material handlingbusiness in Kauhajoki region.www.logistia.fi

More information:

The eSITE-program:

Technology ManagerJaana SuksiEmail: jaana.suksi@kauhajoki.fi

Neviso OyTeknologiapuisto 1, box 74 61801 Kauhajokit. +358-6-2308400, f. +358-6-2308419www.neviso.fiemail: neviso@neviso.fi

We accelerate logisticsto your success

Comprehensive customer service conceptfrom prestudy to implementationIntegrated data management

Done Logistics Oy intensifies the customer’s material and information flow by means of logistics software,automated materials handling systems and outsourcing services. Our most important customer segmentsare food and beverage industry and reel handling in paper, film and foil industries. We deliver solutionsfor product logistics and supply chain in the Nordic countries, in Europe and in USA.

Product and informationgo together

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The expertise of Antti Lindfors OYincludes production equipment forfood industry as well as packaging,where hygiene plays an importantrole.

UDA packaging machines

The market outlookfor UDA is good

In addition to the UDA product line, thepackaging machine business that AnttiLindfors Oy bought in Denmark last yearincludes automatic seaming machines,dosing machines and much specialequipment related to packaging lines.The packaging machine business willstrengthen the company's position asone of the leading manufacturers ofequipment used for the rationalisationof food production.

Antti Lindfors Oy is now the third todevelop the UDA packaging machine.By its features, UDA is quite sophisticatedand falls on just the right marketsegment, between small manualmachines and expensive heavy-dutymachines. Now that Antti Lindfors Oy isgiving the machine its own development

contribution, from the point of view ofcustomers, the result will be moreinteresting than ever.

UDA meshes seamlessly with theother cottage cheese machines ofthe company. For a long time, ourmanufacturing programme hascomposed of cottage cheese kettles,dryers, cream machines and otherdevices, including a packing centre.Thanks to UDA, our activities also coverpackaging, and the manufacturer is ableto supply entire cheese production lines.

The first new UDA will go to theSeinäjoki plant of Valio to be used in thepackaging of cottage cheese. The UDAproduction is a good addition to thecomprehensive manufacture of foodequipment by Antti Lindfors Oy.

The company has a partnershipcontract with Tetra Pak Tebel B.V. on thesupply of cheese-making equipment.The present product range of AnttiLindfors Oy is most suitable to cover theneeds of cottage cheese production bythe dairy industry worldwide. The TetraPak group has retailers and agents in 78countries, which means that also UDAhas a worldwide market within its reach.

Antti Lindfors Oy

Antti Lindfors OyThe operations started from the cutting,packaging and box handling equipment25 years ago. Later on, they werefollowed by cheese-making equipmentand stainless conveyor systems. Atpresent, the bulk of the machines aremanufactured for meat and fishprocessing industries as well as for dairy,vegetables and confectionery industries.

All the equipment is made of stainlesssteel, some of the conveyors also ofspecial plastics. In addition to reliability,the products manufactured by thecompany are characterised by theirease of wash and the maintaining ofproduction hygiene. It is our principlethat the user must be able to clean allthe lines without dismounting anystructures. The company also fulfils theUSDA-3A standard, which representssome of the strictest legislation in theworld. In its production, Antti LindforsOy applies the ISO 9001 standards.

In the sector of meat processing, thedeliveries include the internal andexternal logistics of the plants, basedprincipally on the utilisation of theTransbox plastic box. Most packingcentre and dispatch departmentsystems are manufactured to match itsstandard dimensions.

Antti Lindfors Oy has a turnover of about7 million and some 40 staff. Of thedeliveries, the share of export accountsfor more than a half. Last year, theequipment for meat processing andcheese industries accounted for 80 percent of the production. This year'sbiggest projects have been theimplementation of a production line forPohjan Poika at Kuusamo, a line for Auracheese at Äänekoski, a meat cuttingplant at Rakvere, a handling system formeat boxes in Germany, salting plant forcheeses in Norway, as well as cottagecheese production lines in Slovakia, Israeland Austria, respectively.

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The UDA packaging machine fits the product range of Antti Lindfors Oy perfectly. When equipped with tworows, the capacity of the machine is 6,000-7,000 tins a minute.

Further information:Antti Lindfors Oywww.anttilindfors.fiKeskustie 2361850 Kauhajoki, FINLANDTel. +358-6-2345 200

Writer:Jarmo Rajamäki

also supplies packaging technology

In addition to materials handling equipment,

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In South Ostrobothnia there hasbeen researched the InformationTechnologies known today thatcan be applicable to tracking theorigin of food. The main interest inthe research was, that which foodproducts need origin labelling, themost applicable technology, theinformation now available of theorigin, the information of theorigin buyers valuate, the positionof readiness in the business,possibilities of manufacturers.Also it was found out the demandsthe new regulations of the originof food in the European Union inthe future.

The research was made of a domesticmeet product, South Ostrobothniaorigin. The meet was chosen, because ofthe risks known nowadays, like animaldiseases, for example BSE, Scrapie. Alsothe high price of the final product wasone of the main reasons choosing themeet product. The costs of the smartlabels and work done for tracking andinputting the information for labelsaren't then too high for a product.In the research, there was find out all theinformation of the meet origin includingthe hole chain from the farm to a finalbuyer. In the product researched, theorigin of animal could be easily tracked,because of the indentification numberof birth. In poultry tracking gives theinformation of the farm and the batch.

First we need to know what is thevaluable information of the origin for abuyer. Does the information influence tothe decision to buy the product. Or is itbetter to share the information so, thatthe customer can easily read it at home?Could there be some more valuableinformation, recipes, tips of using theproduct beside the information of theorigin? The additional informationshould easily be found at home.

The transportation of the knowledge- A text on a sticker- Bar codes

- A knowledge in barcode, code 128- Identifying a product, code 39- RFID, (radio frequency indentification )

smart labels- CombinationsThe easiest and cheapest way is usinga sticker with text of origin information.The problem nowadays is, that therearen't space for any other stickers. Whileusing bar codes, there have to considerthat they don't disturb the bar codereaders in teller terminals. Theadvantage using the code 39 is thata customer can take a contacts to adatabase from his PC at home by usingthe internet.

While using RFID, so called smartlabels, all the necessary data will bewritten to a programmable microchipwhen packing the product.

Data can be read or written withreader devise, without a direct line ofsight. The markets have to have a specialreader devise while using smart labels.Nowadays the customer cannot read thedata at home. It is also possible to usethe combinations of these methods sothe customer can have the informationin a market or at home.

It is possible to give the information ofthe origin using the technologiesavailable nowadays. The costs of thetracking-systems depend on the chosentechnology. In the research, the costsdidn't influence to the different

technological solutions. At the momentthe reader devises for barcodes ormicrochip costs 1000 -1500 , RFID-equipments are a little more expensive.The readers cost about 100 -1500 .The cheapest manual readers are forbarcodes, but automatic readers havealmost the same price in bothtechnologies.

As a result of the research, there willbe a larger and more profound researchusing smart labels in food industrytracking the origin. There will be aresearch of buyer behaviour and pilot-tests of using smart label in meetproducts. The larger research will carryout in 2003.

The research was ordered by FoodwestOy. It was a financed by ePohjanmaa-program. It was carried out by twoenterprises: LC Logistics Center Oy andHavu-Tuote Ky. They both are placed inTechnology Center Logistia in Kauhajoki.

€ €

€ €

The technologies used fortracking, smart labels and barcodes

The summary

the IC-technology

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Tracking the Origin of Food by using

Further information:

Markku Havu

Jaana SuksiLC Logistics Center OyTechnology Center LogistiaB.O. 64, 61801 Kauhajokijaana.suksi@kauhajoki.fitel. +358-6-405711305

Havu-Tuote KyTechnology Center LogistiaB.O. 618, 61801 Kauhajokimarkku.havu@havutuote.fitel. +358-400-268191

Text:Jaana Suksi, Markku HavuPhoto: Rafsec Oy

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Today, the pace of change isastonishing. On the basis ofinquiries carried out in the districtof Kauhajoki, know-how relatedto areas such as technology,business and project work, aswell as to languages andinternationalisation are regardedas content that people wish tolearn in order to manage changetaking place in working life. Buthow can change be managed insuch a way that studying wouldbe possible in one's own sub-region, close to its inhabitantsand the people working there?

University model for the future

University model with a human face

Corporate University is a model alreadyin use abroad, which has been applied tomeet the needs of the district of Kau-hajoki. This model for in-service training,unique in its kind in Finland, is based onclear study routes that have beenplanned beforehand as well as on theaccreditation of the student's previousstudies. On the basis of existing needs,the University of Vaasa acts as a 'broker',searching for know-how at centres ofexpertise that are important to thedistrict. Therefore, the key issue is net-working with institutions providingsuch training in logistic systems andmaterials handling that is adequate ascontent in the furniture and foodsectors. By serving both above keysectors, the training aims atinterdisciplinarity and utilises at thesame time the open training alreadybeing implemented in the district. Theunique thing about the model is that itallows the students to obtain creditswhile learning at work.

The aim of the Corporate Universitylearning cluster is to promote thedistrict and to improve its image byproviding high-level know-how alsofor those coming from other regions ofFinland. It is also hoped that this imagewill attract highly skilled workforceensuring the growth andcompetitiveness of the local companiesto settle down in the district. In order tomake the model work, the companies'engagement in the project, as well asfinding people willing to learn, is of key

importance for ensuring the continuityof the activities pursued.

Educational routes providing optionsand opportunities imply that people andcompanies can continue living, studying,doing business and working in theirhome area. Through the studies,individuals will learn and improve theirprofessional know-how. The objective ofCorporate University is not to providedegrees but the student will know atwhich university the credits taken can beaccredited and where he can take adegree if he wants to. The student'scurriculum is based on his personalgoals and those set for his professionaldevelopment. Working life and trainingare quite well combined, as the studentobtains credits for carrying out andreporting on predefined developmenttasks to the company. The aim is thatcompanies see that the trainingcontributes to their own developmentprogrammes and that managementcreates an atmosphere encouragingstudying, which, in turn, increases theemployees' willingness to committhemselves to the companies and toinvest their energy in them. An exampleof this would be a company that buildsits employees' personal curricula onCorporate University, because content issearched for on the basis of proposalsmade by the companies involved. When

learning in the companies takes place inteams, the employees learn from eachother. In a learning organisation,communication will increase and somuch discussed tacit knowledge willreach the others and the wholecompany. The students receive fromtutors extra support for this kind oflearning, which utilises open learningenvironments and which, among otherthings, takes place in learning baseslocated in the district.

In the district of Kauhajoki, all thepeople interested in learning -bothcorporate and individual adult students-can participate in the training. The keysectors in the district benefit from theinterdisciplinary character of thetraining. If, for instance, an engineerwishes to improve his professionalqualifications, it is now possible throughan extensive training programme. Hecan take studies in technology andmanagement or quality assurance. Inparticular, the latter are suited ascontent in the food sector, too. Anotherexample is the furniture sector, in whichknowledge about Russia appears to betopical at the moment.

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Further information:Mari KempasDevelopment Coordinator,Knowledge CapitalUniversity of Vaasa, Levón Institute /Kauhajoen seudun verkostopilotti(GSM +358-400-617 877)

it is possible to combine working and studyingCorporate University,At

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The Kauhajoki region is one of 35national district centres in Finland.The Kauhajoki region's districtcentre program,“IntegratingSuupohja network pilot,”particularly focuses on improvingthe level of know-how and theestablishment of new modelsfor business. One of the districtcentre's three leading branches ofindustry is logistics systems andmaterial handling.

Businesses in Kauhajoki beganconcentrating heavily on export in the1990's. Exports have significantlyaffected the growth in the turnover oflocal companies. Growth in commercialactivity requires an increase in researchand expertise. The growth rate inresearch and development in the Kauha-joki region was the fourth highest of allregions in Finland during the years 1995-2000. The Kauhajoki region's investmentin research and development was morethan ten times (c. 240%) the growth ofthe whole country (c. 20%).

The district centre supportscompanies' opportunities for growth,cultivation of capital for expertise, andresearch and development operations.A professorship for logistics systems,which is part of the EPANET professornetwork, was established at the

University of Vaasa with the support ofthe town of Kauhajoki, businesses andthe TE centre of South Ostrobothnia.The professor, with his/her group ofresearchers, will be placed mainly atLogistia in Kauhajoki. The CorporateUniversity brings expertise in logisticssystems to Kauhajoki from variousuniversities, which allows companiesaccess to the latest informationconcerning development in the field.

The people involved in logistics systemsare M.Sc. (Eng.), B.Sc. (Eng.), exportinstallers, electricians, metal workers andother highly specialised professionals.The strong development in employmentincreases the level of education and theappeal of the town, and in this way alsothe competitiveness. The simultaneousgrowth of all fields has also enabled theemployment of spouses. Over 500 newjobs have been created in Kauhajoki sinceJanuary 1999. Development continues tobe strong. Advantageous developmentalso has an influence on the population,which has been on the rise since thesummer of 2002.

Kauhajoki has become a magnetic basefor businesses and a place of residencefor workers. The nearly 15,000 residentsof the town receive good educational,health and day-care services, as well asadvantageous taxation. A diversity ofrecreational hobbies in the areas ofsports, music and culture, Lauhanvuoriand Kauhaneva-Pohjankangas nationalparks and the Kauhajoki Food Fair are allexcellent complements to our selectionof services. Kauhajoki's economic areaincludes over 50,000 residents. Growthin retail sales in Kauhajoki for the year2000 was over 12%, while it wassignificantly lower in the other towns inOstrobothnian provinces. The growth intrade that accompanies new businesseswill also continue into the future.

The town's values, customer-orientedservice, openness, justice andentrepreneurship, will continue to bethe guiding factors for both the townand our businesses.

town competitivenessKnow-how and

Jorma RasinmäkiMayor, Doctor of Administrative ScienceTown of Kauhajoki

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The research professorship is part ofa research team consisting of 50researchers and being established inSouth Ostrobothnia, the EPANET-research professorship network. TheLogistic systems research professorshipis administered by the discipline ofProduction Economics in thedepartment of Engineering Science inthe Faculty of Information technologyat the University of Vaasa. The selectionprocess of the research professorshipis in progress and for the time of theprocess a provisory officeholder is goingto be selected as soon as possible. Theprofessor and the research team will beplaced in Kauhajoki at the technologycentre Logistia.

The research professorship standsbetween the scientific institutes ofhigher education and the business life.The research professor and the team of

5-6 researchers concentrate on applied,practical and international researchwork for the business life and otheractivities in the area. By theprofessorship the regional technologypolicy, individual enterprises, and thenetworks between them are supported.

On the enterprise level theprofessorship serves the internationalcompetitiveness of enterprises withintensive knowledge and know-how,and also the competitiveness of theirproducts and production processes.The know-how and research knowledgeoffered by the professorship can be usedas a resource e.g. in accounts inconnection to starting a new activity,applying new technology and in thedevelopment of the business process.On the regional level the professor andthe research team give strength to thenetwork of experts in the line of logistic

systems and also to the “critical mass”operating in the region.

The main financers of the Logisticsystems research professorship are theprovincial government of westernFinland /EAKR, the municipality ofKauhajoki, the municipal federation ofbusiness activity in South Ostrobothniaand lots of remarkable enterprises in thearea ( Antti Lindfors Oy, Atria Oyj, DoneLogistics Oy, Foodwest Oy, Isojoen Kone-halli Oy, Pesmel Oy, Pinomatic Oy, SkaalaOvet ja Ikkunat Oy, Vesme Systems Oy )

Logistic systems – a research professorship on the limit of traditionalbranches of science, new viewpoints are opened

Further information:Tarja Pienimäki,development coordinatorLC Logistics Center Oy/The pilot network of the regional centreprogramme in the district of Kauhajoki.Tel. +358-6-2308305 or +358-40-5800273tarja.pienimaki@kauhajoki.fi

In the Logistic systems researchprofessorship the interestsof logistic research, themanufacturers of logistic systemsand the enterprises using logisticsystems in their production areunited. The professorship standingon the limit of the traditionalbranches of science is a rarity. Theresults of applied research areexpected to lead to increasingefficiency of production,competitiveness and even newbusiness possibilities for thosewho utilize the results. International

finance andnetworks

Nationalfinance and

networks

The basic research,New aspects given

research

Applicationalbranch of research,supporting the field

of research– modern way

Organization fordevelopment,

Development project-education

Activeenterprises,

New products,Better services

Regionalfinance for

projects,networks

Entrepreneurialfinance for

projects

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A new important resource for theresearch activity is theresearch professorship with its researchteam placed in Kauhajoki. The researchprofessorship is administered by theProduction Economics in theDepartment of Engineering Science atthe University of Vaasa and it is part ofEPANET, a research corporation with 12research professorships beingestablished in South Ostrobothnia.Along with the research activity anotherremarkable new actor in the expanding

Logistia is theadministered by the Levón-institute atthe University of Vaasa. The essentialrole of the corporate university is to offertraining for the needs of enterprisesworking with logistic systems andmaterials handling and for the staff inthe enterprises in this interdisciplinarybranch. This Corporate University is thefirst of its kind in Finland.

A new kind of service supporting theresearch and training activities in theexpanded technology centre is theLogistia learning center , anopen learning seat and informationpoint. The learning centre that servesenterprises, students and researchersin the branch offers a possibility forindependent information search underthe guidance of an informationspecialist when neededThe Logistia getsadditional premises and the incubationactivity expands and diversifies. Theinformation services for both new andworking enterprises improve with theregional enterprise service point. Theservice is produced as cooperationbetween the TE- centre of SouthOstrobothnia, other regionaldevelopment organizations and thecommon business activities in the area.At the enterprise service point thosewho are going to start a business andexisting enterprises in different lines of

business get information on differentfields of their activity, like establishmentand financing.

According to the second phase of theexpansion program of the technologicalcentre Logistia, the extension that willbe built in 2003 is about 3000 m2, andthe total area of the facilities is over6000 m2. The number of theorganizations acting in the house andthe people working in the premises willbe doubled. The extension includes freepremises for new enterprises. If you arelooking for a good working atmospherewith important cooperatives around youfor your enterprise, please contact theundersigned.

Logistic systems

Corporate University

Teknopesä

Business incubator

will be realized already in 2003

Further information:Tarja Pienimäki,development coordinatorLC Logistics Center Oy/The pilot network of the regional centreprogramme in the district of Kauhajoki.Tel. +358-6-2308305 or +358-40-5800273tarja.pienimaki@kauhajoki.fi

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The first phase of Logistia wasfinished in the spring of 2001 andit has been a success. The house isfilled with people from developingand ambitious enterprises andorganisations. Now eager bustleof work can be perceived in theatmosphere. When the nearbybusiness activities concentratingon logistic systems and materialshandling are developing at leastat the same tempo, thedevelopment and expansion of thetechnological centre rests on a firmfoundation. In addition to businesspremises the expansion concernsmany new, remarkable research-,development-, training- andinformation services. Especially theresearch- and training activities inthe branch will be in top gear.

The extension of Logistia, the technological centre of Kauhajoki,

Asianajotoimisto Martti Lepistö Oy

Celbaico Oy

EnerLo, energia- ja logistiset palvelut

Etelä-Pohjanmaan maaseutukeskus

F-Cons Oy

Habia Cable SAB

Havu-Tuote Ky

Hinkutiimi Oy

JL-Trading

JK-Mixer Ky

Kauhajoen oppisopimustoimisto

Kevytkuljetukset Jukka Juurakko Ky

LC Logistics Center Oy

LR Mainos

Mobida Oy

MV-Tilipalvelu

Neviso Oy

Oy Linseed Protein Finland Ltd

Piece Of Wood Oy

Postin It Oy

Rinne-kartano Oy

Ruokapalvelu Johanna Laaksonen

SEITEK

Sonera Entrum Oy,kunta- ja yhteisöpalvelut

Suupohjan elinkeinotoimen kuntayhtymä

Suupohjan kehittämisyhdistys ry

Tili-Center Nurmela Ky

Wenetor Oy

kauhajoki@marttilepisto.comwww.marttilepisto.comJukka MäkinenTel. +358-20 198 0423Fax +358-20 198 0425GSM +358-40 751 5275Law firm.

takohta@kauhajoki.fiwww.kauhajoki.fi/celbaicoTapani KohtanenTel. +358-6-230 8290Fax +358-6 236 0002GSM +358-400 662 306The Commercial house, especiallybusiness consultation to Russia.

tapani.makela@enerlo.fiwww.enerlo.fiTapani MäkeläTel. +358-230 8745Fax +358-6-230 8749GSM +358-400 837 5573Consultation of energyservices andlogistics.

marja.savioja@maaseutukeskus.fiwww.maaseutukeskus.fi/epMarja SaviojaTel. +358-6 230 8670Fax +358-6 230 8279GSM +358-400 743 040Countryside Develoment Center.

fcons@kauhajoki.fiwww.kauhajoki.com/fconsPekka BäckströmTel. +358-6 230 8500Fax +358-6 230 8510GSM +358-40 555 8831Company consultation, special programsProStart, PostStart, and eAskel.

mauri@habia.sewww.habia.comMauri KokkonenTel. +358-20 155 2530Fax +358-20 155 2539GSM +358-40 561 6537Designing and manufactoring specialcables.

markku.havu@havutuote.fiwww.havutuote.fiMarkku HavuTel. +358 -6-2308 520Fax +358-6 2308 521GSM +358-400 268 191Engineering office. Planning of indoorlogistic and projectcontrol inmanufacturing plants.

marita.pukkila@kauhajoki.fiwww.kauhajoki.fi/hinkutiimiMarita PukkilaTel. +358 -6-230 8280Fax +358 -6 236 0002GSM +358 -40 566 7221Hiring labour, manpower.

jltrad@kauhajoki.fiJuhani LähdesmäkiTel. +358-6 230 8600Fax +358-6 230 8601GSM +358-400-366 118The center of trading and companyconsultation.

jyrki.koskela@mixer.inet.fiwww.vital-visionstore.comJyrki KoskelaTel. +358-62360150Fax +358-62315183GSM +358-400-667874Engineering office, cad and automation.

oppisopimustoimisto@kauhajoki.fihttp://sai.suupohja.net/YpaErkki J. HautalaTel. +358-6 230 8550Fax +358 -6 230 8557GSM +358 -40 507 6876Apprenticeship office.

jukka.juurakko@kevytkuljetukset.comwww.kevytkuljetukset.comJukka JuurakkoTel. +358-6-230 8440Fax +358 -6-230 8441GSM +358 -500 662 189Transportationservices in SouthOstrobothnia.

risto.uusitalo@kauhajoki.fiwww.kauhajoki.fi/logisticsRisto UusitaloTel. +358-6-230 8300Fax +358 -6 230 8350GSM +358 -40 589 3287Company consultation, technologystrategias, regional development-projects.

LRmainos@LRmainos.comwww.LRmainos.comHeikki Lahti-RöysköTel. +358-6-230 8470Fax +358 -6-230 8475GSM +358 -400-496 501Advertising agency.

antero.autio@mobida.fiwww.mobida.fiAntero Autio, Arto RäikkönenTel. +358 -6 230 8740Fax +358 -6 230 8744GSM +358 -400 268 193Mobile communications systems, xplore.

mv-tilipalvelu@luukku.comMarkku VesalaTel. +358 -6 230 8480Fax +358 -6 230 8481GSM +358 -500-564 581Firm of accountants.

pekka.metsaranta@neviso.fiwww.neviso.fiPekka MetsärantaTel. +358 -6 230 8400Fax +358 -6 230 8419GSM +358 -40 514 5745IT-company.

matti.sepponen@kauhajoki.fiwww.linseed.comMatti SepponenTel. +358 -6 230 8580Fax +358 -6-230 8350GSM +358 -400 666 569Manufacturing the high-tech products oflinseed for food industry.

jarkko.kivela@pieceofwood.comwww.pieceofwood.comJarkko KiveläTel. +358 -6 230 8730Fax +358 -6-230 8738GSM +358 -500 861 156The Trade house of wood products.

heikki.yli-pentila@posti.fiwww.posti.fiHeikki Yli-PentiläTel. +358 -20 451 3707The IT-solutions for the Finnish mail.

raimo.rinne@rinnekartano.comwww.rinnekartano.comRaimo RinneGSM +358-400 568087Real estate business, manager

johanna.laaksonen@pp.inet.fiJohanna LaaksonenGSM +358 -40 508 5272Cafe and restaurant.

juha.m.palomaki@seamk.fiwww.seamk.fiJuha PalomäkiTel. +358 -20 124 5266Fax +358 -20 124 5267GSM +358 -40-830 4247Office of Seinäjoki Polytechnic Technologyandf Business Centre.

jaakko.panula@sonera.comhttp://Jaakko.Panula.netJaakko PanulaTel. +358 -6 2308 250Fax +358 -40 643 1290GSM +358 -40 543 1290The municipal anf corporational IT-services.

risto.kuutti@suupohja.fiwww.suupohja.fi/sekRisto KuuttiTel. +358 -6 230 8260Fax +358 -6 230 8279GSM +358 -40 530 7680Southern Ostrobothnia DevelopmentOffice.

timo.vesiluoma@kauhajoki.fihttp://leader.suupohja.netTimo VesiluomaTel. +358 -6 230 8450Fax +358 -6 230 8452GSM +358 -40 525 7207Suupohja Development Association.

sirpa.nurmela@tilicenter.comwww.tilicenter.comSirpa NurmelaTel. +358 -6 230 8750Fax +358 -6 230 8759GSM +358 -40 532 3502Firm of accountants

arto.tuominen@wenetor.comwww.wenetor.comArto TuominenTel. +358 -6 230 8200Fax +358 -6 230 8210GSM +358 -40 756 2715Media center, web-pages, Domain-services, IT-education and consultation.

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Logistia, Technology Center, Teknologiapuisto 1, 61800 Kauhajoki, Finlandwww.logistia.fi/teknologiakeskus, info@logistia.fi, tel. +358 6 2308320

www.logistia.š