“We want to conquer the world” – Junttan spearheading the emission-free construction of work machinery
Hydraulic impact hammers made by Junttan, a Finnish company, have been deployed in the world’s metropolises: in the Opera House Bay in Sydney and in the project to expand LaGuardia Airport in New York. Junttan is thought to have manufactured the world’s first fully battery-powered piling machine. “We are at the vanguard of the green transition and emission-free machinery construction,” says Satu Marjo, Vice President of Operations at Junttan.
When a tall building goes up, a land area requires more load-bearing capacity, or the sea bed is put to use, the odds of seeing a Junttan pile driving rig or hydraulic impact hammer on the site are good. Junttan specialises in hydraulic piling equipment.
Little Island, an artificial island park, was built in the Hudson River in New York City with the help of Junttan’s machinery. Similar equipment can be found on many of the world’s airport construction sites. In Finland, the company’s machinery helped build the foundations for the Kemi bioproduct mill.
Junttan, a Kuopio-based company that will soon celebrate 50 years in business, mainly serves customers abroad. The company’s vision is to be the world’s most successful manufacturer of piling machines and the most sought-after partner.
- Junttan Oy, based in Kuopio, designs and manufactures hydraulic piling equipment, rotary heads, and power packs and sells related services.
- The company was established in 1976 and built its first hydraulic piling machine in 1979. The company’s roots go back to the 1960s, with a foundation construction company called Savon Varvi.
- Exports to Sweden and Denmark began in 1984. In the 1990s, Junttan became Europe’s leading manufacturer of hydraulic pile-driving rigs.
- In 2021, the company launched the world’s first electric piling machine.
- Its net sales were EUR 55.5 million in 2021.
- The company employs more than 200 people.
- It has subsidiaries in Sweden, the Netherlands, the United Kingdom, the United States, and Australia.
“We have pioneered pile-driving technology and gained large market shares. We have succeeded in making efficient equipment that our customers like. Furthermore, we are at the vanguard of the green transition and emission-free machinery construction,” says Satu Marjo, Vice President of Operations at Junttan.
The carbon-neutral construction site – and Juttan’s solution for it
Junttan’s piling machines have long been diesel-powered. In 2021, the company manufactured what is thought to be the world’s first battery-powered pile-driving rig with zero local emissions. Junttan developed the machine in a pilot project with its customer, Aarsleff, a Danish company operating in Sweden.
“Sweden was the first country in the world to amend its legislation and begin talking about emission-free construction sites. Our customers could not submit a tender for a contract without emission-free machinery. We began developing a suitable machine together,” Marjo recalls.
The pilot project benefited both parties: Junttan put its majestic new machine to work straight away while gaining a solid reference and the opportunity to scale the machine. The customer won the contract and gained experience in how such machinery can work. The Swedish state subsidised the green transition.
Indeed, Marjo praises the support measures introduced by groundbreaking states. For example, the Netherlands now supports investments in carbon-neutral electric machinery.
“These investments would not be viable for customers without subsidies. The battery technology required is still very expensive to implement in this size category. Subsidies make the investment viable for companies in comparison with a conventional machine at a similar price point.”
Bio-oil for hydraulics
Sustainability and respect for the environment are among Junttan’s core values. The company uses responsible partners and reliable material sources. It also tracks its energy use at the plant and in its other operations.
Moreover, Junttan has developed energy-saving machinery. The hydraulics and control systems are built to maximise energy efficiency and minimise fuel consumption. Thus, even diesel devices have the minimum possible emissions.
Junttan has begun using various bio-oils in its hydraulic machinery. For example, in Sweden, the controls are very strict, with checks to ensure that the machinery on construction sites uses biodegradable oils.
The metal used to build Junttan’s machinery has a large carbon footprint, but the devices can be in service for decades, and the materials can be recycled.
“Junttan was established in 1976, but we do not have many scrapped machines. Most of our machinery is still in service. This is exceptional.”
The machinery passes from one owner to another. Pioneering companies interested in remaining at the cutting edge of technology upgrade to the newest machines. The older machine is sold to a user in an emerging market where it continues its life.
Next-generation equipment in the near future
Junttan’s toughest competitors are global mechanical engineering giants, for which piling is just one piece in the puzzle.
“We want to conquer the world. We are a small manufacturer, but we compete on specialist expertise, versatile products and services with larger multidisciplinary machinery manufacturers,” Marjo says.
One challenge for Junttan – and many other companies – is cutting trade ties with Russia. The volume accounted for one-fifth of the market.
In the future, the company aims to expand the global market through bored pile driving and a more extensive portfolio.
“We aim to be a trendsetting in selected piling solutions. The company intends to launch its next generation of machines in the coming year or two, offering different energy options and piling techniques. In the future, our machines may be powered by diesel, electricity or alternative fuels.”
Junttan has received support from Business Finland for the development of its next generation of products.
Network of subsidiaries in six countries
Junttan has made significant investments over the past five years. It opened subsidiaries in its main markets, taking control of the markets under its own companies. In other markets, the company continues to actively develop its dealer network.
Junttan has subsidiaries in Sweden, the Netherlands, the United Kingdom, the United States, and Australia.
Services have accounted for an increasing share of revenues in recent years. They now account for about one-quarter of the company’s revenues.
“It is highly profitable and strongly contributes to the bottom line. Having a presence around the world has enabled growth. It would not have happened if we had operated only in Finland,” says Satu Marjo.
“Having a presence around the world has enabled growth. It would not have happened if we had operated only in Finland.”
She fully supports the subsidiary network.
“We believe that each of our six subsidiaries has the potential to grow enormously and double its growth over the short term. The service business has been growing at an annual rate of 15 per cent.”
Over the years, Junttan has “grown organically by doing things in-house,” but Marjo does not rule out future acquisitions.
Junttan has also invested in equipment at its plant in Kuopio: Finnish equipment manufacturing is close to its heart, as is in-house research and development.
However, Marjo is a firm believer in the power of cooperation.
“We work with various networks, educational and research institutions, and design agencies. We buy in specialist expertise from third parties, but Junttan always takes a leading role.”
As machinery constantly gets smarter, Junttan has brought the development of software and machine control systems in-house.
“It is becoming a core competence. It is an investment because we need different people, expertise, research and testing than before.”
We asked Satu Marjo, Junttan’s vice president of operations, what RDI policies Finland should have.
- Products must deliver on their promises
“Products that promote the green transition are a profitable and essential business for Finnish exporters. If we want to compete in this area, our products must deliver on their promises. This is a prerequisite for the future. The state has significant power and responsibility in steering Finland’s exports and investments and implementing its green transition in various ways.” - More agile decision-making
“We need rapid, agile decision-making to channel grant money more sensibly. Operators in the field need even more information about the options for support and networking. We are a medium-sized enterprise, but there are plenty of small businesses in Finland with growth potential. They may not know or understand how to apply for subsidies.” - The power of networking
“When you don’t have the resources to do everything yourself, networks play an important role in innovation and development. Companies often end up slogging away at something on their own, slowing down the creation of new products. There are lots of good specialists in Finland. It is important to identify the right partners to simulate innovation and share experiences.” - Open information
“Finland is a small country. We build machines, but we have no direct competitors. We can share information very openly and benefit from it – we are stronger together. Our machines are based on engineering from many disciplines: hydraulics, electricity, bus technology, and control and measurement technology. We also need sales and marketing experts.”
Text: Marjo Vuorinen
Photos: Markus Aspegren