Vapo to sell its equipment production unit in Seinäjoki to Peatmax Oy
Vapo Oy is selling its equipment production unit located in the Haukineva region of Seinäjoki to Tampere-based Peatmax Oy. The turnover of Vapo’s equipment production unit has been around EUR 5 million. The unit’s employees will be transferred to Peatmax Oy with unchanged terms of employment. The transaction was signed on 4 October 2013 and the transfer is set to take place 14 October 2013.
Peatmax Oy is a subsidiary of Tampereen Konepajat Oy. The Tampereen Konepajat Oy group is made up of several engineering works in Pirkanmaa. The group’s annual turnover is around EUR 20 million and it employs around 200 people. In addition to normal subcontracting operations and equipment production, the company specialises in engineering works products requiring their own product development, which it produces for the oil-drilling industry, among others.
Equipment production has previously been its own unit at Vapo Group, which has mainly developed and manufactured equipment for Vapo Group’s own use. According to Ilkka Heikkilä, the director in charge of equipment production, Vapo had already been searching for some time for a solution that would allow it to free up capital for its core business and secure the availability, maintenance and product development of production machines through long-term contracts. “I believe that we will achieve the benefits we are seeking by combining the professional resources of personnel with equipment production experience and modern engineering works operations. Vapo will continue to develop peat production machines and equipment in cooperation with Peatmax,” says Heikkilä. According to Heikkilä, 13 of the equipment production unit’s 15 employees will be transferred to the new employer. Two people will remain in Vapo’s employ, one of whom works in product development and one who will work as a contact person, ensuring that operations are transferred smoothly to the new model.
According to Juhani Lehti, Managing Director of Tampereen Konepajat Oy, the acquired engineering works will complement the group’s expertise and production structure in demanding specialised equipment production. “As part of a larger whole, we are also able to benefit from the different areas of specialisation of our engineering works and from collective procurement. We therefore believe that the transaction will lead to significant synergy benefits,” says Lehti.
The parties have agreed that the price of the sale will not be made public.
Ilkka Heikkilä, Director, Supply Chain Management, Vapo Oy, tel. +358 (0) 20 790 5690
Juhani Lehti, Managing Director, Tampereen Konepajat Oy/Peatmax Oy, tel. +358 (0) 50 509 3380