1. 15.10.2007 Metsäkoneurakointi Piirainen Ltd asko.piirainen@pp3.inet.fi 1 EFECT  from contractor’s point of view ENFE seminar in Berlin 15.10.2007 Mr. Asko Piirainen CEO Metsäkoneurakointi Piirainen Ltd

2. 15.10.2007 Metsäkoneurakointi Piirainen Ltd asko.piirainen@pp3.inet.fi 2 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

3. 15.10.2007 Metsäkoneurakointi Piirainen Ltd asko.piirainen@pp3.inet.fi 3 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

4. 15.10.2007 Metsäkoneurakointi Piirainen Ltd asko.piirainen@pp3.inet.fi 4 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 ???

5. 15.10.2007 Metsäkoneurakointi Piirainen Ltd asko.piirainen@pp3.inet.fi 5 Metsäurakointi Piirainen Ltd – EFECT prospects EFECT- European Forest Entrepreneurs Certificate Prospects: Benefits f or 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

6. 15.10.2007 Metsäkoneurakointi Piirainen Ltd asko.piirainen@pp3.inet.fi 6 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 defined easy to understand easy to implement easy to maintain - Uses as much as possible existing tools Conclusion: I as a contractor support creating EFECT -scheme

7. 15.10.2007 Metsäkoneurakointi Piirainen Ltd asko.piirainen@pp3.inet.fi 7 Thank you!