e-Magazine, Spring • 2/2017 (eng)

Spring 2017 harjuelekter.ee
  Harju Elekter on the Swedish market
  An end of one era

  Harju Elekter purchased a majority holding in sales company Energo Veritas
  Harju Elekter Teletehnika received new certifications for quality and environmental
   management system
Harju Elekter on the Swedish market

Harju Elekter has been more active on the Swedish market since 2010, when the Group decided to enter the market of the Swedish energy distribution sector, offering HEKA transformer substations and other energy distribution sector products to local distribution network operators. For Harju Elekter it was a fundamental change, because before that the work had been performed only on a per-project basis with individual customers of the industrial sector in Sweden.

If in 2010 the Swedish-oriented return on sales of Harju Elekter was less than 100 thousand euros, then by 2016 it had grown to 2.1 million, and the annual growth was nearly 50%. During the operation of seven years on Swedish market, we have learned to better understand the needs of our customers and the market's expectations regarding the appropriate technical solutions. Throughout this period, the greatest keyword has been continuous product improvement and development of new products. Essentially, during this time we have updated the entire Swedish market-oriented product portfolio and have developed a number of new solutions, especially suited for the needs of the Swedish market. In addition to the already developed products, there are several new projects being developed that will ready to be presented to the customers in the near future.

Alongside the consistent product development, we seriously contribute also to the development of customer relations. I am pleased to announce that Harju Elekter will participate, now for the fourth time, again in the Nordic region’s largest trade fair of electricity sector Elfack 2017. As a star product of the fair we will present a concrete substation, serviced from inside, which has been especially developed according to the requirements of the local market.

Harju Elekter is represented at Stand A01: 42, where we expect all our current and future customers to visit us. You can obtain a free fair ticket by registering at the following link.

Speaking about the plans of the near future, the goal of Harju Elekter is the expansion of the product portfolio for the customers of the energy distribution sector and the continued improvement of the existing products. We would like to offer also to the Swedish customers the solutions of medium voltage distribution substations (HEJA) and the RTU solutions meant for unit substations that are popular both in Finland and Estonia. We are also planning to expand substantially the supply of suitable products and solutions for the customers of industrial sector.

This short period of time that we have been operating on the Swedish market has been certainly very informative for Harju Elekter and has helped us significantly develop further our products. We certainly wish to continue this practice and together with our customers and cooperation partners to develop and grow also in the future. We are here to stay.

Tiit Luman
The Sales Director of AS Harju Elekter Elektrotehnika

An end of one era
On the 19th of January 2017 Motherson Sumi Systems Limited and the Management Board of PKC Group Oyj entered into a merger agreement in which the main business activities of the companies, namely the production of cable harnesses, will be integrated. PKC Group Oyjrecommended to the shareholders a takeover bid of 23.55 euros per share. AS Harju Elekter owns 1,094,641 shares in the PKC Group Oyj. On the 22nd of March 2017, PKC Group Oyj announced that the takeover bid had been successful.

The sale of its shareholding in the PKC Group Oyj and the company's departure from the Helsinki Stock Exchange certainly marks an end of an era for AS Harju Elekter. The cooperation in the manufacture of cable harnesses began with Nokia (now PKC Group Oyj) in 1991. During this close co-operation period of more than 25 years, we introduced the production of cable harnesses in Estonia which gave an innovative serial productionas well asa just-in-time production management experience for us and an opportunity for the development of the PKC Group. Through a targeted and purposeful operation, we have developed the PKC Group to the level required to meet the high standards of the heavy truck industry.

Participation in the Management Board of PKC Group Oyj in 1994-2014 offered an excellent experience in international business management, companies’ acquisition, stock exchange regulations and listing the companies on the stock market.

During the period thatthe PKC Group has been listed onthe Helsinki Stock Exchange we have earned approx. 50 million euros in dividends and from the sale of the shareholding, or an average of 2.3 million euros per year. A positive cash flow has allowed the ongoing development of Harju Elekter, and corporate acquisitions in Finland, Lithuania, Sweden and Estonia. Beside that we have made investmentsinmodern technological equipment, the enlargement of industrial premises, as well as people - building and maintaining a strong team.

My involvement in the work of the Management Board of PKC Group (from 1994 to 2014) has provided me with excellent experience of managing an international company, the takeover of enterprises, stocks exchange requirements and listing companies on the stock market. This experience was certainly one of the triggers that helped the listing of AS Harju Elekter on the Tallinn Stock Exchange in 1997. All in all, this co-operation has benefitted both companies.

On the 22nd of March 2017, PKC Group Oyj announced that the takeover bid had been successful. Thanksto financial resources that have become available, acceleration in the development ofAS Harju Elekter is now assured. Inevitablythe company’s success will be measured either by its ability to expand into new markets, new business acquisitions, new cooperation or investments in the new technologies, new innovative projects, industrial real estate development or dividends.

Endel Palla
Chairman of the Supervisory Board of AS Harju Elekter

Harju Elekter purchased a majority holding in sales company Energo Veritas
AS Harju Elekter purchased an 80.5% holding in Energo Veritas OÜ, a company trading in electrical materials and equipment. The transaction was completed as at 29 March 2017, when monetary settlements were also made. After the transaction, the business operations of Harju Elekter Trade Group will be merged with Energo Veritas, who will continue as a subsidiary of the Group.

With the purchase of Energo Veritas and establishment of a trade unit operating as a subsidiary of the Group, the Group increases its market share in Estonia, notably expands its offered product range, and creates prerequisites for boosting the sale of the Group’s products in Estonia and the Baltic states. The company focuses primarily on project-based trading activity. The former manager of the company, Kristo Reinhold, will continue as the head of the Group’s new subsidiary, Energo Veritas OÜ.

Energo Veritas OÜ is a company, established in 2015 and based on local capital, trading in electrical materials and equipment, offering technical advice, solution development and kitting in accordance with the client’s wishes as well as deliveries to construction sites. The company’s largest suppliers are most of the manufacturers of electrical materials or their representatives; the company also imports several products. The turnover of the company was 4.2 million euros in 2016, and the company employs 7 people.

Experience energy in change!

Andres Allikmäe
Chairman of the Management Board/CEO of AS Harju Elekter

Harju Elekter Teletehnika received new certifications for quality and environmental management system
AS Harju Elekter Teletehnika became the first company of Harju Elekter Group that was awarded on 4 January 2017 certifications for quality and environmental management system according to the revised standards ISO 9001: 2015 and ISO 14001: 2015. According to the updated standards the quality and environmental management systems are more integrated with business processes and general management. Quality related performance and environmental sustainability are set on the same line as the commercial success.

Alongside with the improvement of the processes, the main focus is now on the risk forecasting, analysis and treatment. It is important to involve employees by way of proactive explanatory work and with the help of monitoring to design the work processes so that the customer satisfaction can be ensured regarding both the product and the service quality. At the same time it is important that the employees feel good about a jointly made contribution.

Possession of the ISO system will provide a tested and approved foundation over the years for systematic management of business processes. Purposefully managed systems allow increasing the income, ensuring the company's development also in the case of continuous changes of customers' requirements and the external environment.

In the case of the management system standards, it should be understood that they include requirements for WHAT to do, but not the details of HOW to do, that in its turn is the reason WHY they help the businesses to operate by common rules without making them similar.

Katre Tulp
Administrative Assistant and Quality Manager
AS Harju Elekter Teletehnika
AS HARJU ELEKTER | Paldiski mnt 31, 76606 Keila, Estonia | Tel (+372) 674 7400, he@he.ee, harjuelekter.ee