A company that is about to celebrate half a century of innovation, Peikko Group Corporation is a family-owned company with over 1,000 staff worldwide. The organisation’s main markets are European non-residential construction, the new residential construction sector, and select industrial target groups – such as wind energy. We spoke to Andris Berzins, Product Manager at Peikko Group Corporation.
PES: Welcome back to PES. It’s been a couple of years – perhaps you could acquaint new readers with your business and how you serve the wind industry?
Andris Berzins: Our business lies in wind turbine foundations – our offering is packaged in the Peikko Foundation Solution! It is a uniquely shaped and designed, reinforced onshore wind turbine foundation that creates remarkable savings in the use of steel and concrete. Peikko designs and produces the components, and depending on the needs of the project we also deliver turnkey foundations.
Construction companies buy from us foundation components and they take care of the assembly by themselves. Developers usually prefer to have the foundation construction work included in the Peikko package in order to have one responsible company to deal with. We are happy to work with either alternative.
In fact, we should not be talking just components or their assembly. Peikko adds value to projects in both turnkey and component sales. Our well-defined and organised process makes sure that the foundation project runs smoothly and that the Peikko foundation construction process is as easy as possible for all parties involved.
Peikko’s Foundation Reinforcement Package consists of several components – Modix Splicing Reinforcement, Modix Centre Anchor, PSB Shear Reinforcement and permanent foundation formwork.
Anchor Cages also are part of Peikko’s offering and they can be supplied with our without the Peikko foundation. Its key components, Anchor Bolts and Rings, are produced in-house.
PES: When we last spoke, business was booming. How are things today?
AB: This year has been great for Peikko’s foundation business and we have been very busy especially with projects in Finland. Our customers clearly appreciate our offering and the process behind it, and return with new projects. To date, we have, in Finland, either ongoing or completed projects with a total of 80 foundations. And expect more to come this year.
PES: Do you believe that the wind industry can account for a greater ratio of your entire company’s turnover? Where could you foresee growth coming from?
AB: Yes, we see it growing. We expect very strong growth for Peikko’s Foundation Technology in Nordic countries during the next couple of years. We also believe that Anchor Cage production will bring significant growth on a global scale.
PES: Can you explain the importance of R&D to your operation? Does your investment in this arena reap worthwhile rewards?
AB: Without R&D there would not be the Peikko Foundation and the process behind it. We would not be able to carry out most of wind the foundation projects without the pre-work of our R&D. We have an engineering and R&D team dedicated to the wind foundation business. Some of our recent R&D focus points has been in-house development of our design software.
We have been able to reduce design time four times compared to original and we plan to reduce it even more, even ten times faster than with traditional design methods. High level of computer aided and automated design also reduces the human factor mistakes. Naturally, our R&D also focuses on further developing and improving Peikko Foundation Technology and also finding new technologies and applications with future potential.
PES: How much of a value do you place on safety within your operation?
AB: The Peikko Foundation is a safe and reliable solution made according to existing building codes and industry accepted standards. It is even safer than traditional foundations as our foundation assembly is easier and simpler, thus less prone to assembly mistakes made by construction workers. We also provide assembly manuals and training and quality control templates to construction companies to ensure reliability and accuracy of the assembly work. Like said, our target is to make the foundation construction as easy as possible.
PES: If you could pick one, what is the defining advantage of Peikko over its competitors?
AB: Clearly our main advantage is customer focus. We optimise the price of the foundation by not only reducing the amounts of steel and concrete used, but by optimising the entire construction process. Our customers recognise this focus by returning with new projects.
PES: Last time, we touched upon your efforts for getting the company more well known in the wind sector. Have your efforts been recognised?
AB: Yes, we are seeing that Peikko is starting to be recognised and in some markets we have become very well-known. We are actively promoting Peikko and our foundation technology to further increase awareness. Participation in the main events – exhibitions and seminars – are important for us.
PES: Can you tell us a little about the challenges you have faced this year on one of your Finnish installation projects? How did you overcome those challenges?
AB: The main challenge in almost all projects is foundation design time. Each project has a unique design made according to turbine and site requirements. Some sites can have several different designs for different ground conditions. Early this year we received large orders with expected construction start in late May or In early March and April. Little time was left for design, production and deliveries. Our engineering team needed to make designs for about 80 foundations from March till June with all third party and client consultants and turbine producer checks.
This was possible because of our investments in R&D to shorten design time and own dedicated engineering team. As the designs were ready they were immediately sent to production. The shortest lead time from design until the products were delivered to the site was about four weeks including consultant’s approval. All deliveries were made according to schedule.
PES: How is your business doing away from your Finnish heartland?
AB: We have ongoing different projects and active component sales in Sweden, UK, Italy, Lithuania, and Latvia. Component sales in Germany are also doing very well. We are hoping to close deals on many different projects with varying delivery scopes in France, Spain and in Africa. Naturally, going into new markets will bring full benefits after some three to five years and beyond. That is what happens with new markets, product segments and technologies.
PES: The company is going to be 50 years old next year. How are you planning to celebrate?
AB: We hope to meet many of our customers at the main wind business events and look forward to celebrating Peikko’s 50-years in business together with them.
PES: Finally, what are your thoughts about the coming 12 months? Is 2015 looking as positive for you as 2014?
AB: 2014 will be a record year for our wind business. We are positive and are sure that 2015 will be an even better year for us! We believe in our technology and offering.
Making the connection in wind
Peikko Group’s Finnish subsidiary Peikko Finland Oy has received substantial orders for foundation solutions for wind turbines in Finland. The delivery scope varies between the different projects from foundation components (anchor bolts, anchor and template rings, rebar splicing, shear reinforcement, disposable foundation forms), to foundation design and complete foundation reinforcement including design and assembly.
Altogether Peikko delivers foundation technology to 63 foundations of around 80 wind turbine foundation projects currently under construction in Finland. Peikko’s deliveries have been made between January and August 2014 mainly from Peikko’s Finnish manufacturing unit.
Luhanka, developer Ilmatar Wind, 6 pcs of 3.3 MW Vestas turbines, hub height 140m, foundation construction by Keski-Suomen Betonirakenne
Vaasa, developer EPV Tuulivoima, 16 pcs of 3.3 MW Vestas turbines, hub height 140m, foundation construction by EPV Tuulivoima
Kalajoki, developer Tuuliwatti, 22 pcs of 3.3 MW Vestas turbines, hub height 137m, foundation construction by YIT
Siikainen, developer Tuuliwatti, 8 pcs of 3.3 MW Vestas turbines, hub height 137m, foundation construction by YIT
Sodankyl‰, Joukhaisselk‰, developer Impax Asset Management, 9 3 MW Nordex turbines, hub height 9 pcs of 120m, foundation construction by Keski-Suomen Betonirakenne
Sodankyl‰, Kuolavaara-Keulakkop‰‰, developer Impax Asset Management, 17 pcs of 3 MW Nordex turbines, hub height 117m, foundation construction by Keski-Suomen Betonirakenne
Hilskansaari, developer Empower, 1 pc of 2 MW Vestas turbine, hub height 75m, foundation construction by Empower
Taivassalo, developer Suomituuli, 1 pc of 2 MW Vestas turbine, hub height 75m, foundation construction by Suomituuli
Peikko has a strong focus in developing anchoring solutions for onshore wind turbine foundations. Our foundation solution is flexible and it can be tailored according to customer needs to comprise components, design or the complete foundation reinforcement package including design and assembly. This gives us flexibility in different sized projects.
“Our efficient production units in Europe enable reliable deliveries. We are especially proud that our foundation solution has been used with turbines of all major turbine manufacturers,” said Topi Paananen, CEO of Peikko Group Corporation.
