Business-friendly envi­ronment and service attracted Woodio to Lahti

It all started with an innovation by two chemists. The combination of research into polymers and wood fibre led to the development of a completely new type of wood composite material, which they intended to use in bathroom tiles. 

- The founders were intrigued by the idea of using wood in bathrooms, which was still considered to be a contra­dictory concept. However, the tile market was highly competitive, so the company decided to test the material in bathroom furniture, says the company’s CEO, Terja Koskenoja.

About six years ago, Woodio established a demo plant in Konala, where, in addition to small-scale manufacturing, it researched and tested materials, technologies and manufacturing techniques, and refined its designs. In the same year, 2019, the company also delivered its first major project – 400 washbasins to VALO Hotel in Helsinki.

Woodio’s wood composite is also sailing the seven seas

At the core of the Woodio brand are two principles that guide everything that the company does. One of these is timeless design in combination with the unique appearance of the material. The second one is eco-friendliness, and it is equally important. Woodio products offer a more sustainable alternative to traditional porcelain, which has a significant carbon footprint. At present, approximately 50% of the material used in the products – wood chips and resin – is bio-based, and the company aims to increase the proportion of bio-based resin in its products even further. 

Retailers are responsible for consumer sales and smaller projects, while large projects, such as hotels and cruise ships, constitute another significant segment.  Exports account for approximately 30% of sales, with the United Kingdom, Germany and the Benelux countries being the most significant markets. The CEO states that the company is primarily seeking future growth from exports and is working hard to achieve this.

- The sector is very traditional, and our product is so different that even though our material is more durable than ceramics, it takes a lot of persuasion, work and documentation to get people on board.

The CEO Terja Koskenoja explains that Woodio’s products are made from a fully waterproof wood composite developed by Woodio, making them suitable for both homes and public spaces.

Relocation service exceeded expec­tations

When the premises in Konala began to feel cramped a few years ago, Koskenoja started to explore options for a new factory location. There were several potential locations, but discussions with Lahti quickly became more serious.

- In Lahti, I encountered a genuinely business-friendly environment and an incredible service attitude. The authorities worked together, and help was available at every stage. Everything was prepared by using a one-stop shop approach. It was impressive.

Koskenoja says that Woodio’s needs were understood in Lahti almost immediately after a single phone call, and the wheels were set in motion straight away: just one week later, Lahti Region Development LADEC presented a list of various options. No suitable premises were available in the Lahti region, but the problem was solved by building new production facilities in the Jokimaa industrial area. The new construction was carried out by the real estate company Spatium Toimitilat.

- It was an easy decision for us. It is entirely different to build a space based on the requi­rements of the production process than to build a process based on the requi­rements of the space, the CEO points out.

Moving the factory to a different city also meant major changes for the staff. The CEO says that the company and the City of Lahti teamed up a year ago to organise a summer day for the employees to explore different neigh­bourhoods, check out housing prices and learn about the services and activities available in the city. Later, the City also held an information session for those who had decided to move, provided assistance in finding housing and helped their spouses find jobs. 

I have said before that Lahti’s way of doing things is in no way conventional. Our employees have greatly appreciated this high level of personal assistance and support.

Woodio, now based in Lahti, is a Finnish bathroom and design brand. Woodio products combine Nordic design traditions with the use of innovative, sustainable bioma­terials.

Two years from decision to relocation

The construction project took about a year, and the installation of machinery took six months. The CEO charac­terises the project as a major undertaking, considering the size of the company. In addition to the new construction, the demolition and relocation of existing property and the relocation of staff, there was a whole host of small details to take care of. Even those were sorted out with the help of the City of Lahti and LADEC.

"In Lahti, I encountered a genuinely business-friendly environment and an incredible service attitude. The authorities worked together, and help was available at every stage. Everything was prepared by using a one-stop shop approach. It was impressive."- Terja Koskenoja, CEO at Woodio

- For example, the building permit process went smoothly and there was no unnecessary waiting around. We just recently had a board meeting, where we talked about how no one can remember anything like this – a factory project that was completed on time and under budget, Koskenoja says. 

Jokimaa is now home to Woodio’s office, production facilities and laboratory. In mid-May, the machines are in the ramp-up phase, which is expected to be completed by the end of the month. In line with the company’s strategy, the focus for the next five years will be on strong growth.

- Our goal is to grow strongly and increase annual unit sales from the current level of around ten thousand to fifty thousand. This requires a lot of work, but our new factory is an important step towards that goal and provides the framework for achieving it. In addition to enabling growth, modern facilities are also an important factor in terms of credibility.

"We are delighted with Woodio’s decision to set up in Lahti. In accordance with our service promise, we have mapped out Woodio’s needs, sought suitable space options and conducted surveys regarding skilled employees, partners and cooperation networks.

We do not leave our customers to fend for themselves after they have settled in. Instead, we are committed to supporting the long-term growth of Woodio’s business, together with the City of Lahti, Spatium and Kinos Property.” says Marian Vainiomäki, Head of Client Management at Lahti Region Development LADEC.
 

www.woodio.fi/en

Check out Terja Koskenoja's interview in the video!