Like patricide

“Kesla is an upright operator who can take things forward – it’s not just empty talk. Talk flows openly. We can discuss common lines and share our thoughts on where the world is going.” Mikko Lehikoinen

Engagement, a significant step forward for customers, joy in finding common logging ground, opportunity to conquer new markets together. That is how the media characterised the cooperation between Kesla and Valtra that started in January 2016. The new partnership was celebrated on both sides, even though at one level Kesla people felt it was like patricide.

“In 1977, Kesla’s development got a real kick forward when close cooperation with the Hankkija central cooperative began.” That is how Seppo Kärkkäinen, the CEO of Kesla until 1976, has characterised the start of the cooperation that lasted for more than 30 years. Since then, the significance of the cooperation has been described on many different occasions by stating that without Hankkija, Kesla would not exist. Veli-Matti Kärkkäinen, Chairman of Kesla’s Board of Directors, describes the change of partnership as follows:

Valtra had a great interest in us. The Board of Directors had discussed Valtra and giving up Hankkija cooperation years earlier. We considered the focus of the market – as an actor, Hankkija was focused on Finland. Valtra, on the other hand, would allow us to export products to Europe and the rest of the world. In autumn 2015, we then decided to take a leap into the unknown. Ending the long-term partnership with Hankkija felt like patricide.

The world and the market had changed, and Kesla also needed a change. “New men came along, and we no longer had any personal connections with Hankkija. It was a big decision, but I think that in the end it was handled appropriately by both sides.”

According to Veli-Matti Kärkkäinen, the Valtra partnership has created new faith in Kesla.

Valtra also thinks we are a good operator. We have been very pleased with the decision.

According to the Chairman of the Board, the change situation was handled as delicately as possible at the personal level, so that “no one would be left with large cracks in their souls.”

The situation was eased by the change of the CEO of Kesla. Jari Nevalainen’s term of office as CEO ended in April 2015. Simo Saastamoinen was appointed as the new CEO in May of the same year.

Desire to cooperate with Kesla

As a former Kesla employee, Valtra’s Marketing Director Mikko Lehikoinen knew Kesla well.

When Valtra launched a strategic development project, Kesla seemed to be the decisive piece of the puzzle.

Kesla and Valtra’s management in connection with the publication of the cooperation. From the left Janne Sinkkonen, Ville Mansikkamäki, Jari Rautjärvi, Simo Saastamoinen, Matti Kallio, Mika Tahvanainen and Mikko Lehikoinen.

During the year, we went over several different actors, looking for a future partner on the forest side of things. We also went over the process with Kesla and found a common list of priorities. The other companies we considered were far too small to grow with us. We desired to cooperate with Kesla. Kesla was the only partner with experience in the global operating environment. We share the same philosophy.

The dream of many years came true in January 2016. “This is a significant innovation in our forestry product portfolio – market leaders are now under the same roof in this segment as well,” said Matti Kallio, AGCO’s Finnish Sales Director, in a stock exchange release, commenting on the start of cooperation between Kesla and Valtra.

According to Lehikoinen, Kesla’s assets include technological capability, product development and the service and maintenance network. Kesla can take you anywhere on Earth in the forest segment – that is not the case with everyone. Where is the world going to? Lehikoinen says that the importance of meeting the end customer will continue to be emphasised. The important thing is how customers find products and services.

“Digitalisation changes the customer encounter, the connection with customers is getting closer and the dealer is no longer the cornerstone of everything. Today, a dealer has several representations and can no longer be a pro seller for all products. By using digitalisation, we can get more refined commercial decision-making material and support for dealers.”

The world conquest started with AGCO Finland and Kesla working together. New export destinations have opened up and are about to open up in the Nordic countries, Japan, Korea, Russia and Brazil. In addition to geographical expansion, new moves are being made in new customer segments, such as municipal engineering, recycling business and military segments. The Valtra Unlimited Studio customisation tool continues to grow and offers partners new opportunities and countries every year.

Partners are an important resource for us – we must find win-win-win situations in everything we do. We offer partners a good system through which they can grow and network. It always depends on the partner’s own activeness, how well they are able to use these opportunities,

- Lehikoinen sees a bright future. He believes that Valtra and Kesla have tremendous opportunities in developing their cooperation – opportunities that none of Kesla’s competitors will ever achieve.

“Of course, Kesla must also be able to develop at this pace. The Kesla with whom operations were started in 2016 would no longer be able to cope with the new changes – Kesla must also take responsibility for developing operations alongside us.” While for Kesla it was painful to give up Hankkija, at Valtra the end of cooperation with Kronos caused some friction.

There was a rather strict cult of Kronos in the company, so the change was not an open-and-shut case for us either. But if you go to our sellers now and ask them which is easier and better to work with, the answer is clearly Kesla.

AGCO cooperation has since expanded to include e.g. Sweden. Photo from SkogsElmia Fair 2019, where Lantmännen’s team won over their Nordic partners.

Spartan heavy worker

A doer, not a ditherer. That is Valtra’s Marketing Director Mikko Lehikoinen. Born in Lieksa, Lehikoinen obtained a Master’s Degree in Agriculture and Forestry in Joensuu and then built satellite positioning units for forest patterns at Arbonaut Oy. Lehikoinen joined Kesla in April 2003.

“I joined around the same time as my fellow Master’s Degree in Agriculture and Forestry Mika Tahvanainen. We picked up dusty desks in the back of the warehouse, wiped off the dust and got to work. I was the youngest on the team, while the senior employee on the team was Sales Manager Risto Koski. It was an amazing team, and sometimes sparks flew,” says Lehikoinen.

“A man of action, fast on the move. A proper Sales Director, who had to be reined in sometimes – Mikko would have conquered the world already in the early 2000s,” says Veli-Matti Kärkkäinen, Chairman of Kesla’s Board of Directors. The achievements of the energetic team are perfectly illustrated by a writing by pseudonym Bullero-Pena on Kauppalehti’s discussion board, who wrote as follows in spring 2004: “I would describe Kesla at the moment as a Spartan hard worker with concrete growth prospects.” “We were not burdened with history. We were able to do things with open minds. The time at Kesla taught me something important – we can influence things though how active we are,” says Lehikoinen. When Lehikoinen joined Kesla, the company’s turnover was approximately €17.8 million. When he left the company with some high emotions in 2008, the turnover had climbed to €55 million.

Photo from a trip to Japan. Kimmo Paakkunainen (left), Mika Tahvanainen and Mikko Lehikoinen.

Risk-taking pays off

“I have never subscribed to the idea that a common history alone is a guarantee of a good future. Of course, it is worth striving for a long-termpartnership, but only with those who can grow in the same direction as us,” says Mika Tahvanainen.

Tahvanainen played a key role in the creation of the Valtra partnership. The meaningfulness of the cooperation with Hankkija in the changing market situation had been a long-standing concern for him. In autumn 2014, it began to look like the door to discussions on cooperation was opening on Valtra’s side. Jari Nevalainen, who worked as CEO at the time, did not warm to the idea of cooperation with Valtra. “It must have been difficult. Questioning the company’s longest-standing partner was an awkward topic for the CEO, so it was easier not to take it up. However, in my opinion, factory-level cooperation with a tractor manufacturer was such a crucial opportunity for our tractor forest equipment business that it could not be left unaddressed. I felt it was my duty to ensure that the matter was discussed by the Kesla Board of Directors on a neutral basis, whatever the outcome of the discussion.” In autumn 2014, Mika Tahvanainen was invited to a meeting of Kesla’s Board of Directors to give an overview of sales.

“I had decided to take the risk, accepting the possibility that the trick might be my last act at Kesla. I had prepared a long and thorough presentation on the Valtra business. After the sales review had been held, I continued, deviating from the agreed meeting agenda, by presenting my views on cooperation opportunities with Valtra. The Board of Directors saw the light, and discussing the matter was considered important.”

At the Konemessut machine fair in 2014, Kesla was still presenting its tractor equipment with Agrimarket and green tractors.

As a result of the new cooperation, the applications of KESLA tractor equipment have expanded to include agriculture and municipal engineering.