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Tulikivi Corporation
2.5.2012Heikki Vauhkonen
Tulikivi Corporation
2.5.2012Heikki Vauhkonen
• Listed family company
• Business areas: fireplaces and natural stone products
• Turnover 58,8 million EUR
• Personnel: more than 400
• Five production facilities: Suomussalmi, Espoo, Heinävesi and two in Juuka
• Head office in Juuka, North Karelia, Finland
• Parent company: Tulikivi Oyj
History of Tulikivi
2.5.2012
2012 New sauna stoves and Hiisi products2011 Tulikivi expands into sauna business2011 Tulikivi concentrates on its core business2010 Tulikivi interior design fireplace range2010 Tulikivi Green products: water heat exchanger, control and pellet systems2006 Acquisition of Kermansavi Oy2004 Tulikivi finds notable new soapstone deposit in Juuka2003 Acquisition of Kivia Oy2003 Tulikivi Rakennuskivet Oy merged with Tulikivi Oyj
Heikki Vauhkonen
History of Tulikivi
2.5.2012
2002 Mittakivi Oy, Kiantastone Oy and Tulipuu Oy merged with Tulikivi Oyj
2000 Tulikivi Rakennuskivet Oy established troughbusiness acquisitions
1999 Suomussalmi factory founded (Kiantastone Oy), Tulikivi 20 years
1994 Tulikivi listed on the Helsinki Stock Exchange
1988 First range of export models
1987 Mittakivi Oy (tailor-made fireplaces) established as a Tulikivi subsidiary
Heikki Vauhkonen
History of Tulikivi
2.5.2012etunimi sukunimi
1979 Reijo Vauhkonen acquires capital stock of Suomen Vuolukivi Oy
End of 1800: Quarrying carried out in the village of Nunnanlahti in Juuka.
Soapstone fireplaces exported to St Petersburg, for example.
Production Units
2.5.2012Heikki Vauhkonen
a
Tulikivi Factories
Customer Pledges and Procedures• Tulikivi’s manufacturing processes and products and their
life cycles appeal to environmentally conscious consumerswho use the products as primary and secondary heatingsources, for interior decoration and for creating acomfortable atmosphere.
• Tulikivi focuses on finished consumer products but alsoprovides consumers with tailor-made solutions.
• Tulikivi sells lining stones to important European heating-appliance manufacturers and supplies customers in Finlandand Scandinavia with building stones through business-to-business deals.
2.5.2012Heikki Vauhkonen
Product Groups
Fireplaces
2.5.2012Heikki Vauhkonen
• For customers living in towns or the countryside who are building or renovating their home
• For second homes and summer cottages
• Customers interested in the environment, energy and cost efficiency, and comfortable heat
Fireplaces
2.5.2012Heikki Vauhkonen
• Heat-retaining Tulikivi and Kermansavi fireplaces and fireplace/bakeovens
• Available in all Tulikivi’s market areas
Tulikivi Stoves
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• For customers living in towns orthe countryside who arebuilding or renovating theirhome
• Customers are interested in aesthetic design, durability, comfortable heat and the environment
• Interior design fireplaces under the Tulikivi and Kermansavi brands; surface materials are natural stones and ceramics
• Available in all Tulikivi’s market areas
Tulikivi Green Products
2.5.2012Heikki Vauhkonen
State-of-the art combustion technology
Interior Stone Range
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Extensive collections and solid know-how inInterior Stones
Tulikivi’s interior stones are suitable for the hallway, kitchen, bathroom and garden.
Sauna
2.5.2012Heikki Vauhkonen
• The sauna market is growing
• Well-known brand
• Solid distribution channel
• Design competence
• Own raw materials
• Technology competence
• Fire, Stone and Water
Product distribution channel
2.5.2012Christian Kraft
• Sauna heaters are sold at Tulikivi Showrooms acrossFinland, but the plan is to expand distribution
• Target is to launch exports to Russia, the Baltic Countries and Sweden
New products and new logo
2.5.2012Heikki Vauhkonen
• New logo represents renewed product selection
• Clear departure from the earlier industrial-based theme
• Logo expresses quality, warmth, atmosphere, well-being
• Grey colour symbolises materials: stone and clay
• Background can represent a boulder, sauna stone, soft clay or drop of water
Sales
Sales
0
10
20
30
40
50
60
70
80
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Kotimaa
Vienti
Sales by country
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Other countires: Italy, the Netherlands, Slovenia, Poland, Ukraine, Czech, Slovenia, Slovakia, Canada, Great-Britain, Spain
Strategy
Strategy 2011-2015
2.5.2012etunimi sukunimi
Trends• Bioenergy• Interior
design• Well-being
Business areas• Fireplaces• Sauna• Interior stone
products
• B2B• Lining stones• Worktops• Building stone
Profitability• Returns• Brand• Distribution
channels• Individuality
• Expenses• Volume• Processes• Raw materials• Synergies
Development• Volume• Customer
focus• Processes
Targets 2015• Return on equity
20%• Profit 10% net sales• 10% organic growth
• Healthy structure• Long-term
operations• Well-defined core
competence and good resources
• Respectedworkplace
Introduction to Production with Soapstone
Soapstone Process
2.5.2012
Tulikivi Factories Tulikivi Quarries
Heikki Vauhkonen
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Quarries
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Removal of Blocks
• Chain saws used to cut blocks• Height of block approx. 2 metres
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Cutting of Blocks
• Blocks cut into a size suitable for production
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Gang Saw
• Blocks sawn into smaller pieces• Sawn at a right angle against the grain
Heikki Vauhkonen
2.5.2012
Block-Cutter• Blocks sawn into slabs
along the grain
Heikki Vauhkonen
2.5.2012Heikki Vauhkonen
Production Line
• Blocks are sawn along the grain into slabs. Ends of the slabs are cut, their thickness and width is calibrated, the surface is matt finished. Blocks are then bevelledand cut into certain lengths.
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Waterjet Cutting
• Computer controlled• Robot cuts preshaped
stones
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2.5.2012
CNC Machine
• Rounds the edges on differentshaped objects
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2.5.2012
Finishing• Bevelling, polishing and
quality control• Work done with grinders
and bevelling machines thatoperate with compressed air
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2.5.2012
Transport Packages
• Finally, products are packed in durable transport packages
• A fireplace package includesdoors and assembly materials
Heikki Vauhkonen
Ceramics production at Heinävesi
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Ceramics ProcessTulikivi factory
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Ceramics Process
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Production of elements
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Production of elements
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Packing of elements
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Storage of elements
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Installation of elements
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Installation of elements
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Ceramic tile production
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From clay to final product
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Glazing
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Firing in a tunnel kiln
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Quality control
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Heat-accumulating ceramic fireplaces
Ceramic fireplaces are sold under the Kermansavi brand in Finland and exportedunder the Tulikivi brand.
Heikki Vauhkonen
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Heat-accumulating ceramic fireplaces
Heikki Vauhkonen
2.5.2012Heikki Vauhkonen
Final productsThe strength of Tulikivi sauna heaters and products lies in theirown, distinctive design and raw material.
Interior stone production in Espoo and Taivassalo
Interior stone process
2.5.2012
Tulikivi factories
Heikki Vauhkonen
Interior stone process
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Natural stone in the kitchen
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Natural stone in the bath
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Natural stone in the hallway
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Natural stone in the garden
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Personnel and the Future
Personnel
2.5.2012
• Approx 400 motivatedemployees with multiple skills
• This skilled group is made upof men and women
• Personnel have receivedvarious forms of training for their tasks
• Personnel have solid basicexperience from variousindustries
Heikki Vauhkonen
Future
2.5.2012
• Professionally skilled and motivated personnel
• Personnel well-being, focus on safety
• High quality, delivery reliability, customer satisfaction
• Continuous development of methods, improving productivity
• Taking environmental values into account
Heikki Vauhkonen
Thank You!