Elcoline is a long-term maintenance partner of Kotka Energy, which is based in southern Finland. One of the largest projects of the year for Kotka Energy was the replacement of the waste-to-energy plant’s boiler components, the main purpose of which is to secure the energy supply in the coming winter. In the context of the six-figure project, Elcoline’s SVS Supervise Service unit handled the workshop fabrication of the steam boiler components and their turnkey delivery, including the installation.

Kotka Energy’s Operating Manager Antti Lanki, who is responsible for the waste-to-energy plant’s maintenance, particularly appreciates Elcoline’s reliable and efficient project management.

“It was a smart decision to have the steam boiler components made by Elcoline instead of abroad, for example. The project was completed as planned and on schedule, despite the current global situation. Naturally, the increased prices of materials has been a challenge from the start, since Ukraine produces a lot of metal pipes and materials. Fortunately, the investment decision, partner choices and most of the material purchases were done early in the year when the war had not yet broken out. And since everything was made domestically, there was no need transport goods from abroad. Elcoline is a reliable company, the prices are reasonable and they can handle projects of this nature.”

“In the event of failures, we always first call the people we know at Elcoline”

Kotka Energy and Elcoline have more than a decade of shared history working with power plant boilers. The annual cooperation has typically included yearly maintenance, pressure equipment repairs and the handling of unexpected failures, such as boiler and pipe leaks.

“In these situations, we always first call the SVS people we know at Elcoline. We put larger investments out to tender, but Elcoline has always fared well in the competitive bidding.”

The boiler project was one of the largest investments of the year and will secure the energy supply for the winter

The recently completed boiler project was one of the largest investments of the year for Kotka Energy.

“The project involved the planned replacement of the boiler components – the superheater and the feedwater heater, which is also known as the economizer. Boilers wear down more quickly than usual in waste incineration. We prefer to replace the parts before they break. In the current situation, the most important thing is to secure the energy supply so that we can produce energy through the coming winter. In other words, we classified the project as a replacement investment.”

Elcoline manufactured a new section, roughly equivalent to half of the superheater’s size, from material that withstands wear better than before and connected it to the old superheater at its engineering workshop in Voikkaa. Elcoline also handled the replacement work. The economizer was designed in collaboration with the engineering firm before its production at the Voikkaa workshop. The pipes were received early in the year, and Elcoline finished the installation work in two weeks at the turn of September and October when the plant was shut down for maintenance.

“Elcoline’s installation manager and team of experienced fitters overcame the challenges and took the project successfully across the finish line”

“We just pressure tested the boiler and found that everything was firmly and tightly installed. The service test utilizes higher-than-normal water pressure to ensure that the pressurized section can withstand the requisite pressure.  We have yet to fire up the boiler, but our expectations have been met so far.”

The design process had its challenges in terms of the economizer, and there can always be surprises with plants that have been in operation for a long time.

“Elcoline’s people were very helpful in these situations, too. Having people we know at the workshop thinking up solutions with us made things easier. Some challenges came up during the installation, but Elcoline’s installation manager and team of experienced fitters overcame the challenges and took the project successfully across the finish line. We also managed to keep to the schedule. The group of about 20 people who worked on site, 7–8 people per shift, handled the work extremely well. We had no complaints with the welding seams, and everything was firmly installed. The installation manager ran the project very well.”

This year, Kotka Energy also completed a smaller project at the Hovinsaari power plant. The plant’s air preheater was replaced.

“At the Hovinsaari plant, too, the boiler has worked well after the repairs. It is an obvious benefit that we know each other and the fitters are familiar with our plant. Elcoline knows our operating conditions and facilities. This is a benefit to us and Elcoline, since there are no major surprises.”

“We can call Elcoline at any time”

“Elcoline answers the phone at all times, even at Christmas and on other holidays, and they can always arrange help with leaks, for example. This willingness to help is very important to us. We have always felt that the people at Elcoline do everything they can to assist us. Moreover, Elcoline’s fitters understand that in sub-zero temperatures in winter, the work must be done as quickly as possible. They know that it’s expensive to keep a power plant out of operation in particularly cold temperatures.”

So far, Kotka Energy has not had the need to use services provided by Elcoline in other municipalities.

“We have seen Elcoline’s growth and strengthened foundation in the excellent availability of resources. Elcoline has many experts available, so we can always find the ones best suited to our tasks. I have recommended Elcoline to many people and will do so again. The boiler circles are quite small, and there are only a few companies in Finland that repair and update boilers. It’s always a good feeling to be able to say that everything went according to schedule, that the costs stayed within the agreed budget, and that people should contact Elcoline for an offer. The company has also been flexible if there has something to fix.”

Elcoline acquires the Swedish business of Maintpartner AB, which is owned by funds managed by CapMan Buyout. Through this acquisition, Elcoline will grow to reach a turnover of EUR 65 million and become one of the industry’s leading companies on the Nordic market. Elcoline will employ a total of 600 professionals in industrial maintenance, projects and support services.

The parties of the transaction have signed an agreement to sell Maintpartner AB’s Swedish operations to Elcoline AB.

The target of the transaction is the installation services and project business, which focuses on long-term customer relationships and contracts. The roots of the acquired business date back to the 19th century, when these operations were part of Bofors AB, and then part of Fortum Corporation and Maintpartner AB. Geographically, the business focuses on the Karlskoga and Arboga areas. Approximately 140 people will be transferred to Elcoline.

An important growth platform for Elcoline in Sweden

“A significant part of our current big customers wants to expand our cooperation from the current multi-location cooperation in Finland, to Sweden. Through this acquisition, we aim to meet precisely these growing and international service needs that our customers are communicating to us. In 2021, we conducted an extensive study of potential acquisitions on the Nordic industrial maintenance market and developed our acquisition strategy accordingly. With these steps, we are determined to implement our growth strategy.” – Leif Backman, CEO, Elcoline Group

Another important chapter was written in the growth story

“Elcoline’s growth strategy progressed significantly thanks to this business acquisition. The journey to reaching a size of EUR 100 million turnover level, and becoming a company employing approximately 1.000 people, is progressing purposefully after concluding negotiations with Maintpartner and the funds managed by CapMan Buyout. Of course, there is still plenty to do and we also have other very good growth blanks in both Finland and Sweden. This acquisition creates an excellent growth platform for us, especially on the Swedish market.” – Jere Räisänen, Chairman of the Board, Elcoline Group

More information and interviews

Elcoline Group Oy

Leif Backman
CEO
+358 43 824 3460
leif.backman@elcoline.fi

Jere Räisänen
COB
+358 44 559 9144
jere.raisanen@elcoline.fi

Elcoline in a nutshell

Elcoline is a Nordic company specializing in industrial maintenance and project business. Its service areas include industrial maintenance outsourcing and service contracts, mechanical installations, electrical, HVAC, automation and instrumentation work, pipeline installation and welding, and machine shop manufacturing of power plant parts. Elcoline’s customers are e.g. from the energy, petrochemical, metal, mining, marine and construction industries.

Elcoline is a growth company with a vision to reach a turnover of EUR 100 million, employ 1,000 people and internationalize through a highly conceptualized and scalable service model by 2023.

• Established in 2002
• Operations are driven by a growth strategy that focuses on providing comprehensive services to meet the needs of industrial customers, such as total or part-time maintenance outsourcing and service agreements.
• Approximately 20 local service centers in Finland and Sweden and operations in maintenance contract locations around the world
• Elcoline Group employs 600 industrial maintenance professionals
• Turnover 60 – 70 M € (2021: 41 M €)
• 100% Nordic ownership: personnel, management, investors and founders

The gate building completed for SSAB steel plant, located in Raahe, Finland, and the fire station under construction are significant investments which will contribute to the future confidence in the Finnish steel industry. The importance of partners such as installers, designers and component suppliers is also emphasized in large new projects in this size range. Elcoline Group is SSAB’s long-term maintenance partner. With these projects, the co-operation has expanded to include HVAC entities.

Elcoline is known at the SSAB Raahe plant, especially as a mechanical maintenance operator which provides services locally. The cooperation between Elcoline and SSAB in the field of heating, water, ventilation and automation systems started last summer with a gate construction project, which showed that Elcoline also handles complete HVAC deliveries.

– We wanted to test how the cooperation with Elcoline works on HVAC projects. However, we reached them through the normal tender procedure, says Pekka Länkinen, Area House Manager at SSAB’s Raahe plant.

Independent reporting and procurement of materials facilitate the subscriber’s work

The gatehouse and fire station are both new developments that have been built to replace old properties which are already at the end of their life cycle. For SSAB, these are significant investments for the future. Elcoline’s services include complete HVAC deliveries for the gate building and the fire station, which is currently under construction.

Partners are required to have project management skills in large new projects. Total deliveries of this type are suitable for an Elcoline-sized partner, with sufficient experience and competency in terms of resource and financial management to handle a large-scale project. On the other hand, agility and speed are Elcoline’s strengths, and the sourcing of materials emphasizes the smoothness of operations. All Elcoline employees in Raahe are local. If necessary, Elcoline will be able to rapidly increase its capacity utilizing its units in other locations.

– When I have visited the site, I have been able to focus on my own business and Elcoline has taken care of everything else, Länkinen says.

Elcoline’s independent reporting and customer service are also praised. The subscriber’s work is facilitated when several services are available from the same place. For example, all automation and HVAC materials required for building the fire station comes from Elcoline.

– The phone is answered whenever you make a call or at least have been called back during the same day. Elcoline has adhered to the agreed schedules. No project has been delayed due to the work on the HVAC side, Länkinen says

Professional installations

Länkinen has not found any complaints about the work done by the installers either. After the commissioning of the gate building, a wish emerged from the coffee machine line.

– There was feedback from the gate that the installer did a good job. It didn’t take long. A skilled gang, he sums up.

Solid experience in total HVAC deliveries

Elcoline has been cooperating extensively with SSAB on maintenance and projects for over twenty years. The company also has solid experience in total automation and HVAC deliveries since 2017. To date, the largest project involved automation and HVAC work on a 6,000-square-meter school building. Elcoline also offers a lifecycle service including, among other things, remote monitoring, which is suitable for both building properties and industrial building services.

All traffic passes through the gate building of SSAB’s Raahen plant – there is a reception where passes are applied for, where hauliers and guests go to identify themselves. The building comprises the facilities required by the gate functions and staff, the main control room, the office and the social facilities. In addition, a new fire station (approximately 1,150 square meters) is under construction, which is scheduled for completion in late summer 2022.

The aftercare of the gate building includes maintenance inspections twice a year. They are included in the contract. Elcoline’s local forces are ready for service.

Aino Soutsalmi, Päivi Tervonen

Photo: SSAB Raahe