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Lapua Chains had record breaking year 2020

In picture Tomi Ulvila, Tuomas Luoma and Jarno Ala-Fossi look at the new CNC-turning machine considering it's possibilities for producing parts for our chains.

Press release 18.01.21

Lapua Chains reached over 8 million euros in turnover for the first time. An increase of 8% compared to 2019.

With the exception of the small decline during the spring, the markets worked well for us. The machine manufacturers may have been a little cautious, but the demand from the end-users was good. For example, our most important product segment in the wood industry has been working on a good level. Purchasing of important raw material has also been succeeding almost without problems, both inside Finland and from the rest of Europe according to Managing director Tuomas Luoma.

Reliability remains the most important argument

Lapua Chains’ growth strategy focuses on the export markets, therefore increases in resources for sales and marketing have been made. Our main export markets are Russia, Sweden Estonia, Latvia, and Norway. There has been an increase of 35% in deliveries to Sweden. The direct export has increased to 37% and, when including indirect export sales through machine manufacturers, the share of export is very close to being 50%.

Marketing director Topi Pienimäki states that beside exports domestic customers are still the company's foundation. Because customers aim is in the return of assets, they appreciate the quality and reliability that comes with Lapua’s products. This gives the lowest total costs and is also very important in the export markets, despite the fact that the purchase price of Finnish quality products is often slightly higher.

In addition to our traditional business with chain manufacturing, we also have good growth in our trading department "Chain World", which offers products from other manufacturers under its own name. Together we can offer a very wide range of chain products. Lapua Chains and “Chain World” together form a complete chain store that is unique in Finland. In July 2020, responsibility for Chain World was taken over by Ari Mäkinen.

Investments for the future

Lapua Chains has an ongoing investment program to renew machines and improve lead times. For 2019-20 alone we have invested 700.000 Euros in equipment and a new ERP-system. A big part is focused on digitalisation. The new ERP-system has been improving the operations of production, which for the customers means shorter delivery times, improved reliability, and flexibility.

Even though the situation in the world is difficult to predict due to Corona, Lapua Chains wants to continue the growth and investment rate in a controlled manner. The medium long-time focus is on investments in machines and equipment. In the future, more efficient production lines are aimed at if the growth rate continues and the world market develops in a good direction.