15.10.2007 Metsäkoneurakointi Piirainen Ltdasko.piirainen@pp3.inet.fi

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EFECT from contractor’s point of view

ENFE seminar in Berlin15.10.2007

Mr. Asko PiirainenCEO

Metsäkoneurakointi Piirainen Ltd

15.10.2007 Metsäkoneurakointi Piirainen Ltdasko.piirainen@pp3.inet.fi

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Metsäurakointi Piirainen Ltd

• Location of company: Sotkamo, Finland (east from the centre of Finland)• Business branches: Wood and forest energy procurement • Annual turnover: 2 000 000 € • Customers; Forest owners management association, Stateforest, Kainuu Energy mill ,

Contractors joint company OK-Companies Ltd , • Operations in several countries for last years: Finland, Sweden, France• Wood procurement resources:

– CEO: Asko Piirainen– Employees: 25– Harvesters: 6 units– Forwarder: 6 units– Trucks: 3 units– Chipper: 2008 -> 1 units

• Certified quality system since 1997

• Co-operation partner in bioenergy business:– OK-Companies Ltd, Sotkamo Finland

• Memberships:– TAFFEC (Kainuu region)

Sotkamo

Norway

Russia

Sweden

15.10.2007 Metsäkoneurakointi Piirainen Ltdasko.piirainen@pp3.inet.fi

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Metsäurakointi Piirainen Ltd – contracting abroad

• France– Year 2000 ; for 1,5 years– Reasons for going to France

• partly by accident ; France faced large-scaled storm damages need for extra capacity• some operators were willing to work abroad• reasonable price level compared to domestic prices

– How we found customers ; • TAFFEC, Finnish contractors association helped in finding customers.

– Our experiences: • satified with contracting in France for 1,5 years• Important detail: we got a bank guarantee from our customer helps to get receiveables• we really felt that Finnish worker were respected as real professionals

• Sweden– Years 2005,2007– Reasons for going to Sweden:

• Large storm damages in Sweden need for extra capacity • working environment like in Finland, easy to reach and easy to operate• language skills; contractor speaks Swedish

– How we found customers; • TAFFEC, contractors association helped, finnish consultant living in Denmark helped in

negotiation– Experiences:

• 1st time; too many contractors, work proceeded too fast, customer broke the contract too early

• 2nd time; all knew how to react, experiences were extremely good

15.10.2007 Metsäkoneurakointi Piirainen Ltdasko.piirainen@pp3.inet.fi

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Metsäurakointi Piirainen Ltd –prerequisites in creating businessrelationship • Creating business relationship – prerequisites

- knowledge- working skills- appropriate means of production; machines, trucks, excavators etc..

One needs these to fullfill quality demands- competitive price level

One needs this to get a contract

- credibility , the most important factor- In your neighbourghood everybody knows you- In the long run customers have become aquainted with you- but

... new people in your business don’t know you…nobody knows you in the new market areas

Problem: How to create in a short time a credible image on the market not familiar with you

Efect ???

15.10.2007 Metsäkoneurakointi Piirainen Ltdasko.piirainen@pp3.inet.fi

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Metsäurakointi Piirainen Ltd – EFECT prospects

• EFECT- European Forest Entrepreneurs Certificate

Prospects:

Benefits for a single contractor might be: – handbook for contractor to develop his company (criteria must be relevant)– chance to raise company’s profile

”EFECT –company”- image better credibility ? better credibility in the eyes of current customers ? makes it easier to get new customers ? employees respect an EFECT-company more ? benefits in getting finances ? benefits in purchasing machines and equipments ?

For the forestry contracting as sector

– if widely used same criteria level to all competitors on the market more equal competition circumstances to all contractors higher performance level in the branch better image to whole sector ”shit” drops out of market

15.10.2007 Metsäkoneurakointi Piirainen Ltdasko.piirainen@pp3.inet.fi

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Metsäurakointi Piirainen Ltd – contracting abroad

• EFECT- European Forest Entrepreneurs Certificate

Important to keep in mind in creating the EFECT -scheme

- Cost effectiveness

- As little as possible admistrative work

- Only the most essential criteria clearly definedeasy to understand easy to implementeasy to maintain

- Uses as much as possible existing tools

Conclusion: I as a contractor support creating EFECT -scheme

15.10.2007 Metsäkoneurakointi Piirainen Ltdasko.piirainen@pp3.inet.fi

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Thank you!