Ponsse News 2/2018, EN

PONSSE CUSTOMER AND STAKEHOLDER MAGAZINE 2/2018

PONSSE NEWS A WINNING COMBINATION

PONSSE DUAL

MORE EFFICIENCY FOR LOAD HANDLING

PONSSE K121 LOADER

PONSSE IN BRAZIL

A PIECE OF FINLAND WITH BRAZILIAN SPICE

PONSSE NEWS PONSSE CUSTOMER AND STAKEHOLDER MAGAZINE PUBLISHER

Ponsse Plc Ponssentie 22, FI-74200 Vieremä, Finland EDITOR-IN-CHIEF

Katja Paananen

22 24

EDITING & CONTENT

Ponsse Plc EDITORIAL STAFF

Juho Nummela, Katja Paananen, Juha-Matti Raatikainen, Marika Ryytty, Jarmo Vidgrén, Juha Vidgrén LAYOUT

Mainonnan Työmaa COVER PHOTO

Ponsse Plc ILLUSTRATIONS

Henna Ryynänen (Ponsse Kids) PRINT

Painotalo Seiska PAPER

GPrint ADDRESS SOURCE

Mailing list of Ponsse News and Ponsse customer register

Ponsse Plc customer and stakeholder magazine Ponsse News is published three times a year.

Subscriptions and changes of address by email to ponssenews@ponsse.com.

The magazine is free of charge.

Follow us:

2

4 A PIECE OF FINLAND WITH BRAZILIAN SPICE

Ponsse in the Brazilian harvesting market.

9 PONSSE PEOPLE: PRODUCT MANAGER JANNE LOPONEN 10 HARVESTER HEADS

Long experience shows as unbeatable product features.

12 DUAL CUSTOMER IN SWEDEN: SONÖ JORD & SKOG AB

Everything is done with one machine.

4

16 PONSSE MOMENT 18 PONSSE K121 LOADER 20 PONSSE MANAGER CUSTOMER IN POUSSANGES, FRANCE 21 PONSSE SERVICE AGREEMENTS 22 NEW SERVICE CENTRE IN SOUTHERN SWEDEN 24 EFFICIENT USE OF WOOD IS PART OF JAPANESE CULTURAL HERITAGE

GREETINGS FROM VIEREMÄ!

28 26 LOGGING NEWS 28 RESPECT FOR FATHERS' WORK

A good attitude ensures a successful change of generation 32 PONSSE OPTIMAP2 MAP APPLICATION 33 PONSSE KIDS 34 PONSSE COLLECTION

WIN PRIZES

BY SHARING R STORIES! YOUR IDEAS FO

back and Please send feed email to ideas for stories by nsse.com. ponssenews@po each issue, In connection with have shared one of those who a Ponsse wi their ideas will n uct. od pr Collection

2018 has been an action-packed year for Ponsse. The forest industry is doing very well, which is reflected in our business in both Finland and abroad.

Harvesting volumes are growing and our customers are busy trying to meet the needs of their own customers. Ponsse is at a good stage of development and our investments are moving forward. Ponsse now has 1,600 employees worldwide. This excellent group of people ensure our development and the best possible service for our customers wherever we operate.

Our presence in the international harvesting market has developed strongly through the expansion of our sales and service network.

Investments in our worldwide network have been extensive over the past few years.

Our latest service investments include the new PONSSE service centre in Värnamo, Sweden, which is a big step for us in improving our services in the southern part of the country. Our services play an essential role and the development of our service network continues.

The investments in our Vieremä factory have progressed according to plan. During the spring we introduced a new warehouse system and at the moment we are getting ready to move our assembly functions into the new facilities. Most of our assembly lines will move into the new factory during the summer holidays and the final changes to the factory will be made by the end of the year. The factory investments will improve our production quality, productivity, flexibility and safety. We are now taking a major leap forward in terms of production technology and will then return to the normal model of continuous improvement.

This year has brought dozens of event and product launches. The launching of new products will be extensive at the FinnMETKO exhibition next autumn.

Our new products are part of our Boost/Save philosophy, allowing our customers to improve the productivity and cost-effectiveness of harvesting with the help of appropriate products, information systems, training and service.

Environmental responsibility is part of every development step.

Juho Nummela President and CEO

3

REPORT / BRAZIL

A piece of Finland

WITH BRAZILIAN SPICE

Ponsse's Brazilian subsidiary has been described as a piece of Finland in the middle of Latin America – of course mixed with a great deal of Brazilian influences, starting from the product selection. Ponsse Latin America Ltda has been able to increase its market share especially by offering tailored solutions for local needs.

P

onsse established the subsidiary in Mogi das Cruzes in 2006 and the very first PONSSE machines were seen in South America at the turn of the 21st century. The yellow machines have brought the key elements of the family business into

4

the harvesting of Brazilian cultivated forests, in other words partnership and knowledge of customer needs based on personal experience. Over the years, the growth has been supported by technology developed for local conditions.

Ponsse's entry into Brazil shook the market because at the time there was

not much technology designed for the local conditions. The first major challenge was to understand the Brazilian business culture and the challenges of eucalyptus harvesting. “Ponsse's assets were Finnish friendliness and a sincere way of treating other people and doing things in

a clear and straightforward way and a desire to understand the local requirements and offer tailored solutions,” says Fernando Campos, the new managing director of Ponsse Latin America Ltda. The PONSSE H7euca and H77euca harvester heads were specifically developed for Brazil. The challenges of steep slopes were overcome with the help of eight-wheeled machines, winch solutions and special equipment and the services were fully planned in accordance with the local needs, for example in the form of Full Service.

For a long time, the Brazilian market was controlled by two forest machine manufacturers. A majority of the market was dominated by major forest industry companies that had factories, land, forests and machines.

“In order to become their customer, one had to win their trust. Now Ponsse is one of the main players and there are still great opportunities for development,” Campos says. The popularity of the yellow machines can be measured through numbers. If harvester heads are included, there are over 250 PONSSE machines in Brazil.

Although Brazil is the size of our entire continent, its forest machine market is smaller than that of Europe. Ponsse has 230 employees in Brazil, most of them working in service centres.

Ponsse has five service centres in Brazil, one located in Mogi das Cruzes, in connection with the head office, and the others are in Eunápolis (BA), Venda Nova do Imigrante (ES), Belo Oriente (MG) and Telêmaco Borba (PR).

“Timber Forest, our dealer in the south of the country, has its head office in Curitiba (PR) and service centres in Lages (SC) and Guaíba (RS),” Campos says. The value of spare parts is estimated to exceed 40 million Brazilian real.

and marketing manager. The current managing director Marko Mattila will return to Finland and start developing the company's global distribution network.

“We have worked hard to improve the quality of our services and operations in Brazil,” Mattila says.

“In my next job I will focus on the entire Ponsse dealer network which we will develop and expand. We are always working on improving the support offered to our partners in order to ensure that both our dealers and Ponsse will also be successful in the future,” Mattila says.

“I will transfer the responsibility for the company to Fernando with great confidence. He takes his job seriously, he is professional and highlights the Ponsse values in everything he does.

He has been working for the company almost from the beginning, so he has plenty of experience and our customers respect him,” Mattila says.

Campos started at Ponsse in 2006 as a marketing and import planning coordinator, after which he worked as spare parts manager for four years and as sales and marketing manager for six years. He has completed a postgraduate course in business management

and has also studied at the University of Cambridge.

“Our aim is to achieve a good market share in both machine sales and services. The quality of our operations is guided by a rigorous quality programme which includes continuous training of our personnel,” he says.

“We are far away from the parent company but very much guided by the Ponsse values.” The customers' interest is always our priority. It is our lifeblood because flexible customer service is a competitive advantage for us," he says.

FOCUS ON TRAINING AND SAFETY

The safety and training programme is clearly a subject Campos likes to talk about.

“A well-trained team can avoid accidents and is more productive. We take safety very seriously and also our customers have high standards,” Campos says. Training is also offered to customers in their location. Fifty theory lessons are followed by fifty practice lessons in the field. Service engineer Leonildo Camargo tells that machine operators are offered five weeks of training which is especially aimed at improving safety and productivity.

“The training does not qualify them

DUE TO LONG DISTANCES, STOCKS MUST BE EXTENSIVE.

Change of managing director underway Fernando Campos will officially become the managing director of Ponsse Latin America at the beginning of August, leaving his position as sales

5

REPORT / BRAZIL

“We are far away from the parent company but very much guided by the Ponsse values. The customers' interest is always our priority,” Fernando Campos says.

to operate forest machines, but it enables specialisation,” he says. “It will take another six months before new operators are able to work safely and efficiently.”

Through training we can affect the operators' ways of working, for example by eliminating unnecessary movements.

“When work is done at a rapid pace under pressure, a lot of wood may be harvested and the crane moves quickly. The operators often think that they are doing an excellent job, but in reality they don't have time to plan their work and for example eliminate unnecessary movements,” Camargo says.

The new technology plays a major role in our training. The simulator allows the operators to find out which areas they should develop.

“We have advanced training resources, including simulators for different machine types and the possibility to learn through virtual reality. We can test efficiency, compare results and thus develop working methods, for example, using the PONSSE EcoDrive application,” Camargo says.

“It is worth monitoring an operator's performance because only through monitoring can you find areas to be developed and teach new ways of working.”

SERVICE

Ponsse offers the Full Service solution to Brazilian companies with a need to boost their operations.

“In addition to sales, Ponsse takes care of service throughout the life cycle of the machines,” Fernando Campos says. In Brazil, the service is utilised by three paper and pulp giants: Veracel, Cenibra and Fibria Aracruz.

During working hours, the operators can have constant contact with the Ponsse technicians and a professional will solve possible problems on site. If a mechanical or electrical problem is complicated, the machine will be transported to the nearest workshop.

“It is of great benefit to our customers that professionals ensure service quality and costs remain under control. The usability and productivity of harvesters and forwarders improve remarkably,” Campos says.

Service technician Marcelo Paes is an excellent example of skilled personnel. He gets up early, enjoys a hearty breakfast and at 8 am he meets the first customer of the day. He is in charge of customer relationships with major companies in four states, São Paulo, Espírito Santo, Minas Gerais and Paraná.

The region is home to Duratex, a producer of wood panels and other wood products, and

Lorem ipsum caption.

6

Timber Forest sells machines and offers after sales services in the three southernmost states of Brazil and has 72 employees.

major paper and pulp companies Fibria and Klabin as well as Carstran, Martinelli and Prado which provide related services.

“The best part of working in services is the customer relationships. Over the years, many of the customers and operators have become my close friends,” Paes says.

Marcelo Paes started his professional career 29 years ago and has worked for Ponsse for the past 12 years. He believes that his work is done when the customers are satisfied after receiving quick services and effective solutions are found for their problems.

HARMONY SINCE THE FIRST MEETING

It sometimes happens that when you meet someone for the first time, it feels like you have known them for years. This is exactly what happened between Ponsse and Timber Forest which represents Ponsse in the southern parts of Brazil.

“After assessing the expectations and opportunities of both companies, we realised that the synergies our companies' values were so strong that only 15 days after the initial contact we were in Finland signing a contract with the Vidgrén family,” says Jober Fonseca, director of the machine business

segment at Timber Forest. The partnership was announced in mid-2015 and Timber Forest supplied the first PONSSE forest machine at the end of that year.

Timber Forest has 72 employees who sell machines and offer services such as spare parts and technical support in the three southernmost states of Brazil. Jober Fonseca tells that the partnership with the Finnish company has led to professional development, financial stability and Timber Forest becoming the market leader in cutto-length machines in southern Brazil.

The synergy mentioned by Fonseca is reflected in the results. “By the end of 2017, our market share in cut-to-length machines was 58%. We achieved that level through the performance and reliability of PONSSE machines and the reputation of our services,” Fonseca says.

Timber Forest also provides other solutions in the forest machine market, but to achieve these results it has designated three sales representatives to solely focus on PONSSE products.

“We offer our current and future customers annual visits to Ponsse's factory in Finland. During these trips they realise that

Ponsse's history is very similar to their own company’s history as Ponsse's founder, Einari Vidgrén, was also a forest machine contractor,” Fonseca says.

HARVESTING IN BRAZIL

• Brazil is the fifth largest country in the world by area and population.

• Brazil has the second largest amount of forests in the world, covering 58% of the country.

• 485 million hectares of the forests are natural, while only 7.7 million hectares are cultivated forests.

• The annual logging volume in cultivated forests is approx.

194.4 million cubic metres.

• A majority of the cultivated forests are located in southern Brazil, while the natural forests are almost entirely within the Amazon rainforest.

7

REPORT / BRAZIL

CARVALHO FAMILY BUSINESS

There is always something to do at the farm owned by Valdenei “Valdo” Carvalho and Rosemary “Rose” Pereira Carvalho.

Located in the middle of a well-kept eucalyptus forest, the farmyard includes a swimming pool, barbecue area, fishing pond, horses and a lake for water sports.

The family grows organic food and breeds cattle for the production of dairy and meat products. “At weekends we often have our friends and family over and the farm offers an excellent setting for our get-togethers,” Rose Carvalho says.

Living near Pilar do Sul, the couple spends their weekdays running their company Carstran Carvalho Serviços de Transportes e Comércio de Eucalipto which specialises in transporting eucalyptus logs to paper and pulp mills.

In addition, the company offers mechanised harvesting, transportation and loading services. The company also sells timber that it produces itself and buys from others.

The financial situation is challenging in Brazil, but the recession that has strained the country for three years is expect-

ed to fade gradually. The Carvalhos' business has been stable in spite of the challenges. Carstran harvests trees from their 10,000 square metre eucalyptus plantations and transports at least 60,000 cubic metres of wood every month. The trees harvested from the plantations are, on average, 6 to 7 years old and approximately 22 metres tall.

Major paper and pulp producers such as Papel e Celulose and Melhoramentos CMPC use the wood to make biomass.

Established in 1990, the family company has grown significantly over the past three decades. Transportation takes place using ten trailers that are combined to form units of 2-3 trailers. “We also have machines for loading: six loaders and two BuffaloKing forwarders.

In addition, we have three harvesters.

Two of them are eight-wheel Ergos,” Valdo Carvalho says. The company has 50 employees.

Carstran bought its first PONSSE machine in 2011 and the newest one last year. “After buying the PONSSE machines, our net sales increased by 35%,”

Rose says. The most important reason behind the company's steady growth is its systematic approach to management.

Rose, who runs the office, has a degree in business administration as well as MBAs in HR management and business strategy. Valdo makes almost daily field visits to see how the work is progressing together with the supervisors so that decisions can be made on the basis of correct information. “The cattle will only get fatter under the farmer's watchful eye,” Valdo says laughing.

Valdo and Rose don't want to expose their business to risks. “Our aim is to keep our business stable because during a financial crisis it makes sense to focus on maintaining your position,” the Carvalhos say. The couple believes that the main factors affecting the profitability of forest management and timber transportation companies are high fuel prices and a shortage of skilled employees. However, when the Brazilian economy begins to recover – and it will gradually do so – Carstran will consider expanding its business.

Established in 1990, the family company has grown significantly over the past three decades.

8

PONSSE PEOPLE/ JANNE LOPONEN

Working in the worldwide

HARVESTER HEAD MARKET Janne Loponen's path to the position of product manager in Brazil has gone through different jobs and continents. “Customers need to have a feeling that they are really being listened to. It's not always about how quickly feedback is reflected in product development; what matters is that the customers know and trust that progress is being made.”

L

oponen's career at Ponsse began at the turn of the millennium as a summer worker at the Iisalmi warehouse. He spent a short period in Sweden and then did his military service, after which Ponsse did not immediately have a job for Loponen who had studied IT and electronics.

“Then I heard that there was an opening in the measuring device servicing unit in Pirkkala. I bought a car and drove to a job interview,” Janne Loponen (36) says.

“My eyes only opened when I got a chance to work in an international setting.” For six months I travelled around with the local service team repairing French and Belgian customers' machines. My knowledge of measuring devices was no longer enough. I needed to know a lot more about the machines. When a job opened up in technical assistance in Iisalmi, I immediately applied for it. I knew that some of the company's best technical experts worked in Iisalmi. Thanks to Harri Saarela, Pertti Rönkkö, Terho Tanskanen and Jarmo Partanen, I learned a lot about the technology.”

In 2007, Ponsse concluded a collaboration agreement with Stora Enso in China and Loponen was ready to try something new. Ponsse put together a team of three people to start the operations in China and Loponen only met his future colleagues, Kalle Mäenpää and Lars Ahlberg, a few times before departure.

However, the 2009 financial crisis changed everything. “Suddenly there were too many employees and I returned to Finland to lead the Opti team. The thought of working in an international network was still at the back of my mind and when they were looking for a trainer in Michigan, I offered to go. After working all over the United States for a couple of years, I heard that Ponsse had made a big deal in Uruguay and there was need for technical support. I felt that I was once again ready to move forward.”

“My contract included a period of time in Brazil before Uruguay. Six months later I met my future wife. For the first time there was something else in my life besides work. Since then I've been trying to find a balance between

family life and work,” Janne Loponen says smiling.

THOUGHTS CRYSTALLISE WITH CUSTOMERS

The change in Ponsse's international operations has been considerable. When Janne Loponen started in Brazil, the company had 35 employees. Now there are over 230 employees.

“Having a long-range perspective is an advantage for Finnish companies. Things are considered in the long run, while the Brazilian culture focuses on quarterly results. The rapidly changing political environment affects planning and the rapid 7-year cycle of trees also makes forestry a sector of rapid cycles.”

“At the beginning of last year, I left my position as after sales manager at Ponsse Latin America and became the group's product manager for harvester heads.

I travel 150 days a year, so my desk at the Ponsse Latin America office is often empty.”

“As a product manager, it has been a major advantage that I have learned to examine things from the perspective of field operations and especially service. It helps when we are planning new products or improving old models.”

Loponen says that Ponsse is on a good growth path in harvester head sales. Selling harvester heads for a variety of base machines is challenging, but the company puts a lot of effort into it. Loponen explains why Ponsse has such an extensive selection of machines.

“It is incredible how different the operating environments and use of machines can be in different markets. Therefore, the selection of products also has to be wide. The choice of machinery is not only influenced by the environment but also by the culture.”

“Working at Ponsse has given me opportunities and I have learned the most from my co-workers and customers. The international network has offered a variety of challenges.

We have to get our work done and keep our customers satisfied.”

9

FACTS / HARVESTER HEADS

Almost all PONSSE harvester heads are also suitable for the multi-stemming of energy wood without additional equipment and thus additional weight and service needs.

Designed

FOR DEMANDING CONDITIONS Ponsse has a long history of manufacturing harvester heads. The first PONSSE harvester head was made in Vieremä in 1986. PONSSE harvester heads have been designed to withstand even the toughest conditions. They are characterised by a simple and solid structure which enables them to be used in various harvesting applications from harvesters to track-based solutions.

E

ach harvester head model is designed on the basis of efficiency, durability and ease of use.

Harvester heads must withstand extreme conditions while operating accurately and as gently as possible without damaging the trunk surface unnecessarily.

All PONSSE harvester heads are manufactured and designed at the Ponsse factory in Vieremä. The design process is comprehensive and covers, in addition to mechanical parts, operating controls and software. The manufacturing process is highly automated to ensure high quality and measuring accuracy. The frames of harvester heads are machined from a single piece after the welding

10

assembly. This guarantees the highest quality with excellent precision.

Durable hoses and delimbing knives form an important part of reliability. Ponsse's selection includes 11 different harvester heads for different conditions from thinning to regeneration felling and processing. The basic product features in all models include powerful feeding as well as quick and efficient sawing. The harvester heads can be adjusted according to the trees harvested and the base machine used, ensuring smooth operations and a long service life. Their strong grip and accurate measuring system ensure excellent measuring accuracy.

1

4

7

2

5

8

3

6

9

1) The PONSSE H5 is a multipurpose harvester head especially suited for efficient thinning.

2) The PONSSE H6 is praised as the best multipurpose harvester head on the market. It's suited to a variety of uses, ranging from thinning sites with small trees to regeneration felling.

3) The PONSSE H7 is a compact, robust and powerful harvester head for demanding regeneration felling and later thinning work.

4) The PONSSE H8 is a robust and powerful harvester head for demanding work with large trees. Powerful feed and excellent geometry together with efficient sawing enables high productivity. Also available with a top saw.

5) The PONSSE H10 is the largest harvester head in the selection, suitable for processing large diameter trees. With a very robust structure, the H10 is designed for track-based machines weighing over 25 tonnes. In spite of its size, the H10 is not only suitable for processing but also felling.

6) PONSSE H7euca is designed for processing and debarking eucalyptus trees. Thanks to its excellent geometry, the H7euca works well with big trees.

Suitable for both wheeled and track-based machines.

7) The PONSSE H77euca is an efficient and durable debarking harvester head for processing smaller eucalyptus trees. The H77euca is characterised by the feed rollers on the sides, enabling very efficient debarking. If necessary, the H77euca can be equipped for conventional harvesting. Suitable for both wheeled and track-based machines.

8) The PONSSE H7HD is a very robust and strong harvester head primarily for large wheeled harvesters and tracked based machines. The structure is based on the popular H7 model, but it has been reinforced for the special operating conditions of track-based machines.

9) The PONSSE H8HD is a robust harvester head with high power and excellent geometry for demanding conditions. The H8HD is designed for demanding use on large track-based machines with a powerful hydraulic system. Also available with a top saw.

11

CUSTOMER / SONÖ JORD & SKOG AB

“As a Dual operator I make all the decisions”

BO NOAKSSON CHOSE A WINNING COMBINATION Bo Noaksson has over 55 years of experience working in forests, yet he still enjoys his work. He likes both harvesting and transportation and is more than happy with the Dual concept as it allows him to do both jobs with the same machine. “Forests and people have a lot in common: you have to bring out the best qualities in each one,” says Bo who has also worked with young people as an athletics coach.

Sites like these have become the trademark of Sonö Jord & Skog AB, the forestry company owned by Bo and his grandson Fredrik Gustafsson. The two men appreciate these varied jobs that often involve both forest and landscape management tasks. This view is shared by Sonny Pettersson who started working for the company in 2007 and was also a partner in the company for nine years.

THE VERSATILE DUAL CONCEPT

I

t is a beautiful May day in the coastal area of Roslagen in Sweden. The entrepreneur's working environment seems almost idyllic in the middle of the birdsong and little white flowers known as wood anemones. The owner of two PONSSE BuffaloDuals, forest machine entrepreneur Bo Noaksson climbs down from his machine and sits down next to a stack of aspen.

“There is a bit of everything here – conifers and deciduous trees, logs and pulpwood. There is also some old pastureland which needs work, so there is a lot of thinning to do. This is a versatile work site and it feels great to see the results of my work,” Bo says and smiles.

12

“We were already familiar with the BuffaloDual and realised that a ten-wheel model would be the perfect solution for sites with very soft soil,” Bo says.

It is characteristic of Sonö Jord & Skog that work is done using a BuffaloDual which is both a harvester and a forwarder. Bo bought the first machine in 2003. Back then it was the third Dual machine imported into Sweden.

“During the past four years we have only used BuffaloDuals,” Bo says.

One of them was bought in 2013 and it's the world's first and so far the only ten-wheel BuffaloDual.

“Hargs Bruk, one of our customers, asked us to find a suitable solution for sites with very soft soil. First we thought about buying a machine that is designed for soft soil areas, but we were not sure about its performance. We were already familiar with the BuffaloDual and realised that a ten-wheel model would be a perfect solution for the problem,” Bo says.

“Ponsse took the idea and designed a tailored model for us.”

“It's not a coincidence that we have two Duals. The main benefits are their flexibility and productivity and the fact that there is always work to do,” Bo Noaksson says.

The retrofitted 10w solution, where a third pair of wheels is attached to the back of the rear bogie, is normally available with a fixed additional axle for PONSSE Wisent forwarders and with a hydraulic additional axle for the Elk and Buffalo machines.

“The ten-wheel configuration has been a major asset for us. Next September we will get a new BuffaloDual and it will also be a ten-wheeler.”

STRAIGHT FROM THE FINNMETKO EXHIBITION

The new BuffaloDual will be delivered to Sweden directly from the FinnMETKO exhibition where it will be shown to the public for the first time at the end of August.

“Of course we will also visit the event.

Now we have even more reason to be there,” says Bo who is anxiously waiting for the new Dual machine.

“Our new Dual will also have a new generation cabin solution. The crane and hydraulics will also be upgraded. I can't wait to see the machine and use it.”

PONSSE MACHINES SINCE 1995

The new Dual will be the thirteenth PONSSE machine in the company's history. The black and yellow tradition began in 1995 when the company bought an S15 forwarder.

“It all began when one of our employees showed me pictures of PONSSE forwarders. They looked exactly like agile and high-performance forwarders should.

I also heard that Nyströms Mekaniska in Edsbro offers services for the machines.

It is a professional workshop in the middle of our company's operating area, so I became even more interested. A few years later we bought a PONSSE Cobra harvester.”

“The eight-wheel Cobra was a fantastic machine that could almost travel on water.”

Over the years, the company has also owned Ergo and Beaver harvesters as well as Bison and Caribou forwarders.

Bo believes that Ponsse has represented its colours well.

“The machines are reliable and we have always received understanding and enthusiastic service from both the sales

and service departments. It is very important to us.”

Sonö Jord & Skog has kept its fleet new. Most of the machines have been bought new and replaced after about 11,000-12,000 operating hours.

“New machines are nice to work with, which is important to us and our employees. We have also been able to reduce downtime. And, of course, it's always fun to try new technology.”

A NEW BOOST FOR BUSINESS

At the beginning of the 2000s, Bo owned two machines and the company had 4 or 5 employees. As the financial situation within the industry deteriorated even further, Bo got fed up with working as a forest machine entrepreneur.

“Savings had to be made in everything.

It was not a very encouraging atmosphere.”

Nevertheless, Bo decided to continue and after finding the new BuffaloDual his business got a new boost.

“I had never seen a BuffaloDual in action, but I had a feeling that it's a really good machine. So I bought it without seeing it, which is what I also did with

13

CUSTOMER / SONÖ JORD & SKOG AB

the S15 eight years earlier. The Dual was really pleasant to operate. Suddenly I was able to do harvesting, loading and cutting without other equipment.”

“Others should also open their eyes to the benefits of the Dual concept. The features are in a class of their own and downtime is minimal. Switching from one machine to another takes only ten minutes or less. With just one switch we can utilise double or actually triple functions. In addition to the varied jobs, the biggest benefit is the fact that now there is always work to do. Thanks to the Duals we are able to plan our work days in the best possible way. Our work days are full and therefore also productive.”

“Switching between tasks is also beneficial for the machine. The powerful crane is also a major asset in loading use.”

PRODUCTIVE WORK DAYS

Bo has clearly noticed that the high utilisation rate of the Dual machines and efficient work days also show in the positive profitability figures. It is therefore fair to ask why Dual machines are not used more.

“I believe that this is largely to do with the fact that harvesters and forwarders are clearly divided into separate product groups. However, I think many operators would appreciate it if harvesting

and loading could be done with a single machine.”

“I wouldn't want to choose one or the other. Switching between tasks gives variety and a boost to my work days. It feels so natural with the Dual.”

“In the wintertime, all timber needs to be transported by Friday evening of each week to make sure that snow doesn't cover it or block routes during the weekend. Only after it has been transported can I rest without worries.”

IMPORTANT DIALOGUE

FOLLOWING IN HIS FATHER'S FOOTSTEPS

According to Bo, an ideal job is one where first thinning is combined with pastureland work and roadside clearing.

These types of jobs also increase dialogue with the customer and landowner, which is something that Bo and his colleagues value.

“If the weather is too rainy and the soil is too soft for driving in the forest, we just switch to a cutting head.”

Customers are billed almost always on an hourly basis.

“When there are many special tasks, this form of billing makes the most sense and our customers also feel the same.”

It is obvious that Bo enjoys his work and has a lot of professional pride.

“It is nice to see the fruit of my labour while doing something good,” says Bo who likes to return to his work sites even after his work is done.

Bo says that the advantage of the Dual concept is the fact that he can always make the decisions regarding his work – totally independently.

Bo spent his childhood in the countryside.

His father was a logger and immediately after 7th grade Bo also started working for the local forest owners' association.

“It was easy to get work and I paid my first taxes at the age of 15,” Bo says.

Bo also tried carpentry but quickly returned to forestry work.

“I missed the smell of spruce and pine.

There is something about working in a forest.”

In 1970, Bo started doing forest machine work for the local forest owners' association.

The machine picked up the felled trees and then delimbed, cut and stacked them.

“We did not have measuring wheels back then and timber was measured using decimetres, so the measurements were not as accurate as they are today. Cutting was done without computers. Although, even now you have to use your head too in spite of the computers. They are, after all, only an aid.”

After spending four years in a forest machine cabin, Bo started to work as a logger again in addition to his job as a farmer.

In the 1980s, the company invested in a two-grip harvester that was later converted into a single-grip harvester.

“At first I was sceptical about the single-grip technology, but soon they were the only machines we had.”

At first Bo ran his business as a sole trader, but in 1990 the business became a limited company. His big brother, Ove Noaksson, handled timber transportation for several years.

ATHLETICS COACHING

The local forests have benefited a great deal from the fact that Bo Noaksson chose to work in the forest industry. At the same time, the local athletes have also benefited Bo Noaksson values dialogue with customers and timber buyers. In the picture, Bo Noaksson with Brogarn Förvaltning's representative Magnus Berkefelt and timber buyer Henrik Larsson from BillerudKorsnäs.

14

SONÖ JORD & SKOG AB Owners: Bo Noaksson and his grandson Fredrik Gustafsson Operations: Thinning, pastureland work Geographical operating area: Mainly the Uppland area Number of employees: Three, including the owners Machinery: Two PONSSE BuffaloDuals with H53 harvester heads. PONSSE EH25 energy wood harvester head. One of the Duals is a 10-wheel machine.

Monika and Bo Noaksson love the freedom offered by their camper van.

from the fact that he has had time for other activities besides work. As a youth athletics coach, Bo has supported many young talents, mainly middle-distance runners. Bo worked as a coach from 1978 until 2013. The athletes usually trained three times a week and everything was done on a voluntary basis.

“Those 35 years were good years with a lot of joy and wonderful experiences. The kids competed at different levels and won about twenty national championships.”

Bo was also an athlete as a young man and competed at local level. His favourite events were the 100-metre sprint and 80-metre hurdles.

“I didn't want to torture myself for too long, so I stuck to the short distances.”

ENOUGH TIME TO DEVELOP

What business and athletics have in common is that, according to Bo, it takes time to develop.

“Results are important, but you have to find the right ways to get there, be determined and give yourself enough time to develop. Otherwise difficulties can be expected.”

“For an entrepreneur this means that you have to take care of your finances, do your work well and find good customers who are willing and able to pay decent compensation. If your business is not

profitable, you should make the required decisions immediately and not wear yourself out with the wrong customers and see your debt grow. My aim has always been to develop my business without running into debt.”

friends also includes immigrants and she likes to help them deal with the authorities and learn Swedish.

“It's wonderful to be able to help others,” says Monika who is also involved in a local housing cooperative.

TRAVELLING IN A CAMPER VAN

FREE TIME IS FOR RELAXATION

Although coaching young athletes was very rewarding, these days Bo prefers spending time with his family. Together with his wife Monika, they often pack their camper van and head to natural and cultural destinations, both near and far away.

The camper van is also convenient when they visit their children and grandchildren.

“We used to have a boat, but we sold it a year ago and bought the camper van.

Boating is great, but the camper van offers a different kind of freedom.”

Bo and Monika have found many wonderful sites in different parts of Sweden.

Their favourite locations are the Jämtland fell area as well as Älvkarleby which is closer to their home.

“This summer we are going to visit the Österlen area in Skåne. We've been meaning to go there for a long time and now it's time to carry out the plan.”

Monika used to work as a hairdresser and masseuse. The active retiree loves spending time outdoors and going for walks with her friends. Her circle of

Bo knows how to put work matters aside and rest during weekends and Monika confirms this.

“It's true. He doesn't talk about work in his free time,” Monika says.

Bo also thinks that there are many other topics that are more fun to discuss with friends and family.

“I think my work as a youth coach taught me to push work things aside when Friday night comes. If work things come up during the weekend, I try to postpone them until Monday as much as possible,” Bo says. He loves his work but also understands the importance of free time.

“I retired years ago, but I still work every now and then because I like working and I can support Fredrik during the early stages of his entrepreneurship.”

15

16

PONSSE MOMENT THE FIRST PONSSE Scorpion in PORTUGAL at Transportes Ferreirense Lda's logging site in Senhora do Pranto.

17

INNOVATION / PONSSE K121 LOADER

MORE EFFICIENCY FOR LOAD HANDLING

Ponsse has launched a new loader for Elephant and ElephantKing forwarders.

The new PONSSE K121 loader offers unprecedented efficiency and speed for load handling in tough conditions.

T

he PONSSE K121 loader extends Ponsse’s loader selection to a whole new size range. The new loader combines high torque and lifting power with increased reach, a new type of loader geometry and good controllability. These features come together to create the most powerful loader on the market, enabling shorter loading and unloading times.

The new loader makes working more efficient, especially in conditions where load handling takes up a large

18

proportion of the working time. It facilitates the handling of large trees and work on slopes where high power equipment is required.

FAST LOAD HANDLING FOR SHORT DRIVING DISTANCES

Loader capacity is of great importance in conditions where load handling takes up most of the working time.

If the driving distances are short and loads are large, loader use may account for over 60 percent of the working time. Such sites include, for example,

plantations where driving distances are short and loader efficiency has a major impact on productivity. The new geometry and good controllability of the PONSSE K121 loader together with the ability to install a larger grapple enable significantly quicker load handling.

More power for work on slopes and handling of large logs.

HARVESTING ON SLOPES IS BECOMING INCREASINGLY COMMON WORLDWIDE.

PONSSE forest machines have opened up new possibilities for work in steep

The K121 loader was first presented in April 2018 at the ExpoForest Fair in Brazil.

TECHNICAL DETAILS

• Lifting torque 195 kNm • Slewing torque 48 kNm • Reach 8 m/10 m (S/M models) • Tilting base angle -12…+24° • Large grapple surface area 0.50 m2

For a long time, basic loader features have been based on similar solutions. For the PONSSE K121 loader, the traditional structure has been upgraded significantly and the structure of the booms and cylinders has been redesigned.

• Available for PONSSE Elephant and ElephantKing forwarders

The structure and positioning of the cylinders are different from previous solutions. Therefore, it was possible to reduce the number of welded joints and increase the use of castings. These aspects together reduce the tension and strain on the components and extend the life of the loader.

The new structural solutions have undergone extensive field testing as well as fatigue testing at Ponsse's factory.

are handled. The new loader model facilitates efficient handling of large logs and, for example, loading onto freight railway wagons. Thanks to the high torque and lifting power and increased reach, logs can be lifted from far away without having to move the machine or drag the logs on the ground.

The hydraulic system has also been redesigned.

Thanks to the new structure of the loader, it is no longer necessary to have the hydraulic pipes and hoses on the outside of the booms, instead they have been placed inside the structure for added protection. At the end of the grapple, the piping passes through the hanger to the rotator. For this reason, the hydraulic parts are better protected from external damage.

A NEW AND TESTED STRUCTURE

sloping areas. The PONSSE K121 loader further improves performance on sloping ground. In such conditions, smooth handling requires high loader power and a wide tilt angle for the crane pillar. The tilting base of the K121 has a greater tilt angle (-12°… +24°) than other loaders, ensuring that the machine remains in the correct position when working on steep slopes.

PONSSE Elephant and ElephantKing forwarders are widely used on work sites where extremely large logs

A REDESIGNED STRUCTURE

The PONSSE K121 loader has been designed to withstand the toughest working conditions. The loader has been field tested in demanding conditions in Canada, Russia and the United States where it has been put to work for thousands of hours. The field test results have been good. The loader is very powerful and easy to control and also reliable thanks to its sturdy structure. The new loader combines high slewing torque and lifting power, increased reach, and a new type of loader geometry that is easy to control.

The hydraulic hoses and pipes have been placed inside the boom for added protection. The extension cylinders are also protected inside the boom and the rotator piping has been protected by passing the pipes directly through the hanger. In addition, hydraulic end damping has been added to the lifting cylinder to make the operator's work easier when operating at the extreme limits of the cylinder movement. The new structural innovations ensure a maximum utilisation rate and ease of maintenance.

When designing the loader, the impact of work lighting on an operator's well-being was examined thoroughly. The positioning of work lights has been done in a new way and the loader can be equipped with efficient and well-protected LED lights. This solution significantly reduces reflections caused by the log gate and directs the light to the areas where it is needed, in other words the load space, grapple and working area.

Efficient and correctly directed lighting reduces strain on the operator's eyes and helps them cope better with working in the dark.

The K121 loader can be equipped with a 0.50 m2 grapple.

19

INNOVATION / PONSSE MANAGER

Poussanges, France – home to happy

Customers with PONSSE Manager

A

.D.M.L. (Abattage Débardage Mécanisé du Limousin) is a forest machine company in Poussanges, France, established in 2004 by David and Alexander Gregoire.

The company's roots date back to 1978 when Patrick Gregoire, the father of the two brothers, established a harvesting company following in the footsteps of his own father. In 2016, Patrick's firm merged with A.D.M.L. and now they all work together. At the moment the company has 19 employees. The Gregoires bought their first PONSSE machine in 1996 and since then their fleet has increased. Now the company has 11 forest machines, eight of which have been made in Vieremä, Finland.

Over the past few months, A.D.M.L has had a chance to test PONSSE Manager and they are convinced that the tool makes their daily operations easier.

20

“We use the Manager system for locating our machines, transport arrangements and real-time flow of information between different people such as supervisors, lowbed operators, fuel suppliers, machine operators and service staff. What we like the most is the fact that we can show our customers the production volumes per assortment,” the Gregoires say.

According to the Gregoires, harvesting site planning can be done with the help of PONSSE Manager.

“It's quick and easy to monitor a large fleet with the Manager system and see what's going on in different locations. We don't need to call the operators every day to check if the work is done and transport is needed. We realised immediately that with Manager we can achieve savings in transport planning. We have also tested the PONSSE Sync and it works well when the data network is not available.”

“We trust that Ponsse will continue to develop applications that will truly benefit us and other forest machine companies. Let's imagine that one day we can just check our phone to see the current machine-specific costs and the yields it produces... Coming soon?” the Gregoires ask enthusiastically.

DID YOU KNOW? PONSSE MANAGER is a user-friendly tool that helps maintain your harvesting machines and makes work planning and reporting more efficient. PONSSE Manager provides comprehensive real-time data on your fleet in terms of both performance and sites. PONSSE Manager is available on smartphones, tablets and computers.

INNOVATION / PONSSE ACTIVE CARE

PONSSE service agreements

THE BEST SERVICE FOR FOREST MACHINE COMPANIES

P

onsse has offered its customers service agreements for over ten years. Over the years the agreements have been developed according to the advancement of machines and customer needs. To date, a total of 720 PONSSE Active Care service agreements and 300 PONSSE Active Care+ additional cover agreements have been made worldwide.

“Forest machines develop rapidly and the pace of development is not going to slow down. The service of these machines also requires more expertise and new types of tools. When a customer brings their machine to an authorised PONSSE service centre, they can trust that the service work is always done by a professional mechanic.

All service procedures are documented in the machine's service history, which increases its resale value,” says Harri Saarela who is responsible for the global development of PONSSE service agreements.

While Ponsse takes care of scheduled service and machine optimisation, customers can focus on harvesting. It is fair to say that the PONSSE Active Care service agreement is the best service for forest machine companies. With the additional cover, customers can add to their normal service agreement and extend the warranty for parts. Active Care+ fully covers all main components, computers and control modules.

Regular service defined in service agreements directly translates into improved machine performance and thus better productivity. Modern forest machines also require more and more information system upgrades in addition to mechanical upgrades and they are always checked as part of service. Correct adjustments and settings improve machine productivity and fuel efficiency in line with our Boost/Save

philosophy.

The PONSSE Active Care service agreement includes both Basic and Complete service procedures. They include preventative service work on the engine, pump gear box, transfer box, front axles, bogies, middle pivot, cooling, hydraulic and electrical systems as well as checking the greasing of the machine and, for example, tire pressures. Additional work can be agreed on separately.

A fixed-price agreement is a major benefit for a customer from a financial perspective. The agreed prices will remain unchanged during the validity of the Active Care service agreement (3 years / 7,200 hrs) even if raw material costs increase. When combined with the additional Active Care+ cover for a new machine, the customer will know the exact service costs and avoid unpleasant extra costs.

“When talking about the cost-effectiveness of service agreements, you should also take into consideration the costs of service facilities. PONSSE service agreement customers don't have to invest in service facilities, warehouses for spare parts or separate tools. Last but not least, customers also earn bonuses for service agreement purchases in countries where the PONSSE bonus system is used,” Harri Saarela adds.

“PONSSE service agreement customers don't have to invest in service facilities, warehouses for spare parts or separate tools,” Harri Saarela says.

DID YOU KNOW? The service agreement is also available for older PONSSE forest machines. Request a quotation from your nearest sales outlet or through the PONSSE Service Application.

21

PONSSE NETWORK / SERVICE CENTRE IN SWEDEN

NEW SERVICE CENTRE IN VÄRNAMO, SOUTHERN SWEDEN

HIGH-QUALITY SERVICES An interest in engineering is what made Johan Andersson choose a career in the aircraft industry. After working as an aircraft mechanic, technician and supervisor for 18 years in both Sweden and many other countries, he returned to Småland, only a few dozen kilometres from his hometown. Planes have been replaced by forest machines as he has been involved in opening the new Ponsse service centre in Värnamo, Sweden.

At the end of May, a black and yellow ribbon was cut at the opening ceremony of the new Ponsse service centre in Värnamo. However, the centre had already started to sell spare parts in early April. The building project and geographical location are the result of careful consideration.

“Here we are closer to our customers and we can reach a large number of the PONSSE machines in southern Sweden within a few hours. We have a well-equipped repair shop and an extensive selection of spare parts. The service centre is also a natural meeting place. We want everyone to feel welcome, whether they have big or small needs,” says Johan Andersson who is clearly excited about his new industry as well as new people and machines.

THE FIFTH SERVICE CENTRE IN SWEDEN

The Värnamo facility is the fifth and southernmost Ponsse service centre in Sweden. The new centre will respond to the existing customers' needs, but there is also enough capacity to serve new customers. The aims are clear: to increase the number of PONSSE machines in southern Sweden and offer excellent service to each and every customer.

22

The centre also plays an important role in terms of customer guidance and delivery services.

“With a growing number of machines, it calls for high-quality service and southern Sweden is a strategic area where forestry is of great importance,” says Jarmo Vidgrén, Ponsse Plc's sales and marketing director.

TWO SERVICE VEHICLES

“It has been interesting to learn about an entirely new industry,” says Johan Andersson, manager of Ponsse AB's unit in Värnamo.

At the beginning the service centre will have three employees: service centre manager Johan Andersson and field mechanics Johan Claesson and Jonas Bromin. The service vehicles are based in Anderstorp and Ljungby, bringing Ponsse even closer to the customers. Claesson has already started working at the centre and Bromin will start on 20 August.

Ponsse AB's after sales manager Urban Folkesson tells that the company's long-term goal is to take care of a larger part of after sales in the future.

One indication of this is the new Ponsse service centre in Värnamo at Runemovägen 1c.

“The number of machines in this area is among the highest in the country. Through our presence we can develop our operations as the number of PONSSE machines increases and

ensure that the required services are always available to our customers.”

The number of authorised subcontractors has decreased slightly, but at the same time the company has improved its cooperation with the existing service contract network.

IN THE VICINITY OF THE SERVICE CENTRE

One of Ponsse's customers is Niklas Savilahti who now has both maintenance and spare parts services nearby. His forest machine company, Savilahti Skog AB, is located only about twenty kilometres from Värnamo.

“The location could not be better,” Niklas Savilahti says.

Originally from Övertorneå, Savilahti has always been interested in forests and machines and he has worked in forests ever since he graduated from the Kalix forestry school. In the mid-1990s, Savilahti helped both his brother and sister when they moved to the Småland area. After he met his future wife there, he decided to move to southern Sweden as well. He had already noticed before that there were many PONSSE machines in the area and he felt that it was clearly an advantage.

In 2005, Savilahti established his own business. Since then he has had three PONSSE Ergos and two PONSSE Bear harvesters. In August his company will get another Bear. The new machine will be an 8-wheeler, just like the current one.

Savilahti is an uncompromising harvester operator. He is also a sole trader who works the day shift. He does work for a big local sawmill, Ture Johanssons Trävaru AB. His wife Jenny handles the company's bookkeeping and other administrative duties.

“I take care of daily service procedures myself, but for bigger work I always use an authorised service centre. This system has worked well and I have been able to schedule appointments for my days off.”

EFFICIENT WORK

Savilahti enjoys his work as a PONSSE operator, which also shows in the form of efficiency. He spends about 1,800 hours a year in the harvester cabin and planning takes another 200 hours. His annual harvesting volume is about 65,000 m³.

“The more reliable the machines are, the easier it is to achieve targets,” Savilahti says. According to him, PONSSE machines are efficient and have good ergonomics.

SPARE PARTS STRAIGHT FROM THE SHELF

Construction work at the Värnamo service centre has not yet been completed, but there is already a wide selection of spare parts on the shelves. Niklas Savilahti and other local entrepreneurs get spare parts and fluids straight from the shelf.

“If we have to order something from Västsura, the products are usually here the next day. It's the same with products that we order from Finland. It is of benefit to our customers that they always get the products free of freight charges, even if the products come from another Ponsse location,” Johan Andersson says.

Andersson says that it has been a challenge to set up a spare parts warehouse and equip a service shop in an industry that is new to him.

“It would have been a lot easier to set up an aviation service centre, but my Ponsse colleagues have been very helpful. Our aim is to keep a wide selection of spare parts and offer a product selection that is based on the customers' needs.”

“Buying from Ponsse is easy. It is clear that customers are important to them. All customers are valued regardless of whether they have one or thirty machines,” Niklas Savilahti says.

23

PONSSE NETWORK / JAPAN

SHINGU SHOKO LTD Shingu Shoko Ltd, founded in 1906, sells timber and machinery and runs sawmill operations. Shingu Shoko has been an official Ponsse dealer since 2008, but the company has sold PONSSE harvester heads in Japan since the 1990s. The company has 200 employees.

Efficient use of wood is part of Japanese cultural heritage

C Hiroaki Itagoe.

24

elebrating its 10th anniversary this year, Itagoe Ringyo Co., Ltd is a forestry company that harvests 60,000 m³ of wood every year. The work is mainly done in an area where 70% of the trees harvested are cedar and 30% are cypress trees. The logs are transported to Itagoe’s own sawmill or to customer sawmills or exported to China.

Itagoe Ringyô Co., Ltd's managing director Hiroaki Itagoe is a rather radical entrepreneur. At the beginning of the summer he bought a PONSSE Gazelle with rubber tyres even though track-based machines have always dominated the Japanese harvesting market. He decided to buy the machine because the work situation seemed good, but there was a shortage of skilled workers.

“I was very relieved to see that the machine operator is able to work safely and efficiently with the PONSSE Gazelle. We will probably buy another PONSSE Gazelle and a harvester head. The construction of my other sawmill will soon be completed and I am hoping that it will expand my business. I want to continue working with Ponsse, Nangoku Corporation Co.,Ltd. and Shingu Shoko Ltd,” Hiroaki Itagoe says.

PONSSE GAZELLE WORKS WELL ON STEEP SLOPES

Due to the mountainous terrain, the traditional harvesting methods in Japan are manual logging with a chainsaw and the tree-length method in which trees are felled and then transported with an excavator grapple to the processing site for delimbing and

cutting. Forest machines are mainly track-based machines with a harvester head. Before establishing his own company Sakoda Kousan Co., Ltd, managing director Narimitsu Sakoda worked for a forestry management company.

He set up his own business in 2006 and now, 12 years later, the company has 10 employees. Sakoda Kousan Co., Ltd mainly operates in areas where 60% of the trees harvested are cedar and 40% cypress trees. The logs are delivered to log markets and are used as a source of bioenergy, transported

to plywood factories and sawmills and exported to South Korea and China.

Sakoda Kousan Co., Ltd's current fleet consists of a PONSSE H6 harvester head, two track-based forwarders, another harvester head and five other machines.

“I first saw PONSSE machines when a customer organised a logging demonstration. In 2014, we bought a PONSSE H6 harvester head and it has been in use for 4,300 hours. Its capacity and the quality of work are so high that other machines have not been

able to reach the same level,” says managing director Narimitsu Sakoda.

“I strongly believe that the demand for Japanese wood will grow. In the future, more and more machines with rubber tyres will be used for regeneration felling and a smaller number of people will be needed to operate the machines” Narimitsu Sakoda says.

HARVESTING IN JAPAN • Two-thirds of Japan's land area is covered by forests, 40% of which are cultivated forests.

• In total, 25 million cubic metres of wood is harvested per year and 50 million cubic metres imported from other countries.

The degree of self-sufficiency is 33%.

• The majority of trees grow on steep slopes where harvesting is difficult.

• At the moment 35% of the cultivated forests are at least 45 years old, in the 2020s their share will be 60%.

• The most common tree species are cedar, cypress, larch and spruce.

• Ponsse's best-selling product in Japan is

Narimitsu Sakoda (right).

the PONSSE H6 harvester head.

A Gazelle at work on the mountainous island of Kyushu. Logs are transported from the processing site to the roadside along terraced paths. Typical driving distances are 1 to 2 kilometres.

25

LOGGING NEWS / 2018

LOGGING NEWS SUBSIDIARY OF THE YEAR AND DEALER OF THE YEAR AWARDS WENT TO RUSSIA

EINARI VIDGRÉN FOUNDATION REWARDED

Juha Vidgrén, Valeri Andruhin, Oleg Sheverev, Ismail Magomedov and Jaakko Laurila

FORESTRY PROFESSIONALS Maintaining the lifelong work of Einari Vidgrén, the Einari Vidgrén Foundation gave EUR 143,000 worth of awards in Vieremä. This year the foundation gave the main prizes, known as the Einari Awards, to Janne Mutikainen of Koneurakointi Mutikainen Oy and Janne and Tuomas Paakkola of Iin Metsätyö Oy. The awards were given in recognition of exemplary business operations and a successful change of generation.

Einari Vidgrén, the founder of Ponsse Plc, established the Einari Vidgrén Foundation in 2005 with the aim of increasing an appreciation for work in the field of mechanised wood harvesting. The purpose of the foundation is to heighten awareness of entrepreneurship related to wood harvesting and to make the mechanised harvesting sector more attractive as a potential workplace, especially among young people. www.evsaatio.fi PONSSE PARTS ONLINE HAS OVER 350 USERS The PONSSE Parts Online service has been available for over a year and now has over 350 users.

In addition to the ordering feature, the service displays the prices and availability of parts in real time. The parts you need can be ordered through PONSSE Parts Online from the outlet of your choice. The service also contains spare parts and manuals, and machine-specific notes can be made and saved in it.

The browser-based PONSSE Parts Online service can only be used for PONSSE forest machines manufactured in 2005 or later and it can also be used to combine data for multiple machines. The service works on both computers and mobile devices. Customers can register to use the PONSSE Parts Online service at their nearest PONSSE service centre or online.

26

For the second year in a row, OOO Ponsse was chosen Ponsse Subsidiary of the Year. The strongly developing market and positive growth in sales were the main reasons behind the selection.

“This is a wonderful and important recognition for our energetic and constantly improving team,” says Jaakko Laurila, managing director of OOO Ponsse.

“We have a strong desire to be successful and we are prepared to work hard. We also strongly support our dealer network in producing and developing local services. The values of the Ponsse founder, Einari Vidgrén, are sharp and clear in our minds and we always pass them on to new employees as well,” Laurila adds.

OOO Remtechnica, which operates in the Krasnoyarsk area of Russia, was chosen Dealer of the Year. The reasoning behind the choice was that the company has increased the sales of new machines significantly and gained a good market share in its area. The level of customer satisfaction is excellent and the operations are in line with the Ponsse spirit.

The company has also invested in the development of operations to ensure future success.

PONSSE AND SOTREQ LAUNCH COLLABORATION IN BRAZIL

PONSSE LAUNCHES NEW STAGE-V EMISSION ENGINES ON EU MARKETS The new mercedes-benz / mtu stage v emission engines feature the latest engine technology and are an excellent solution for forest machines that require productivity, reliability and fuel economy while at the same time being environmentally friendly. The new engines have been extensively tested in different market areas. The engines have been subjected to comprehensive testing in both cold and hot climates and they have been field-tested for thousands of hours on both forwarders and harvesters. The results of these field trials are encouraging. A high level of power is attainable with fast response even at low rpm rates, which improves machine productivity and fuel economy.

Stage V is a European Union emission standard that will come into force in 2019. Ponsse’s forest machines for EU markets will switch to the Stage V engines in the first quarter of 2019.

Ponsse Plc and Sotreq S.A. have signed a collaboration agreement for the sales, service and marketing of PONSSE harvester heads in the state of Minas Gerais in Brazil.

“Minas Gerais is an important forestry area in Brazil and we want to offer better services to our customers operating in the area. This collaboration will support our aim of being a strong player in the Brazilian harvester head market,” says Ponsse Plc's sales and marketing director Jarmo Vidgrén.

According to Sotreq S.A.'s Chief Operating Officer Marcelo Orberg, Ponsse and Sotreq share common goals in Minas Gerais.

“We have been serving forestry customers in Minas Gerais for over 75 years in the field of track-based machines and now, thanks to the Ponsse collaboration, we can offer our customers a complete range of products. We are very excited to offer PONSSE products in Brazil. Ponsse’s long history of developing harvesting products is beyond compare and coupled with Sotreq’s after sales support, this will be an industry-changing partnership,” Orberg says.

Sotreq has four service centres in the Minas Gerais region. In addition to being a harvesting machine dealer, the multi-industry company also operates in the fields of construction, mining, energy, oil and gas as well as material handling. The family-owned business was founded in 1941 and has its head office in Rio de Janeiro, Brazil. The company has 4,345 employees in 40 locations across Brazil.

Ponsse's Brazilian subsidiary, Ponsse Latin America, was established in 2005. In addition to Sotreq, Ponsse also has another dealer in Brazil. Timber Forest Equipamentos is responsible for PONSSE services in the three southernmost states (Paraná, Santa Catarina and Rio Grande do Sul).

The new engines will be launched at the FinnMETKO fair in Jämsä, Finland, from 30 August to 1 September 2018.

OOO Ponsse management team Sergey Sviridenko (left), Mikhail Menshikov, Tatyana Trishevskaya, Harri Perätalo, Jaakko Laurila and Arbo Louke.

27

FOUNDATION / CHANGE OF GENERATION

A good attitude ensures a successful change of generation

RESPECT FOR FATHERS' WORK Running a family business in the harvesting sector requires perseverance.

A successful transfer of business to a younger generation requires courage from both those taking over and those stepping aside. Iin Metsätyö and Puunkorjuu Mutikainen are good examples of companies that have carried out a change of generation successfully. For both companies, a family-centred approach has created a solid foundation for the future.

W

“In a family business people speak frankly,” says Janne Paakkola with his son Väinö on his lap.

28

hen you enter Koneurakointi Mutikainen Oy's service workshop, the first things you see are a tricycle and a pedal tractor.

The family and business go hand in hand – another example of this is the two little pairs of overalls hanging on the coat rack.

The miniature equipment and overalls belong to 6-year-old Aino and 2-year-old Aaro, the children of Koneurakointi Mutikainen Oy's managing director Janne Mutikainen.

“Entrepreneurship demands a lot from the family. Without their support and flexibility this would not be possible,” Janne says.

33-year-old Janne Mutikainen runs the company that was established by his father before he was even born. His father Matti Mutikainen began transporting wood from forests in 1979.

Little by little the company grew and so did Janne. He started working for the company in 2005 at the age of 20 and two years later he took the reins. The change of generation took almost ten years in total as the last shares were only transferred to Janne a few years ago.

The beginning of Janne's entrepreneur-

ial career was an educational experience as the global recession struck in the autumn of 2008. The volumes of industrial wood harvested plunged in Finland.

2007 was a good year. It was easy to get started and the company was doing well.

In 2009, there was a slow period with machines standing idle from April to August.

“I wasn't sure if we would make it. In hindsight, it was good that I had those challenges early on. I gained valuable experience for the future,” Janne says.

To date, 2009 is the only year the company had to lay off operators. Koneurakointi Mutikainen Oy is a regional contractor in Metsä Group's Lappeenranta delivery area with Simpele as its operating area. The company's fleet includes five harvesters and three forwarders as well as a lowbed truck for transporting the machines. The company also has a service van, including equipment for servicing air conditioners.

Janne focuses on the planning of harvesting, work site arrangements, running the company and taking care of the machines and people. His father Matti handles machine transportation and also his mother Pirjo and wife Emmi are involved in the family business, taking care of payroll duties, bookkeeping and spare parts transport.

“I have to trust that the company will do well. I would be happy if I reached the same situation as my dad did,” Janne Mutikainen says.

29

MATTI TRUSTED HIS SON WOULD TAKE OVER

Janne is a qualified electronics technician and has gained his forestry and harvesting knowledge through practical experience – “through trial and error”, as he puts it. Janne was one of those kids who used to take naps in the cabin of a forest machine.

“I always trusted that Janne would take over the business. Even as a student he came back on weekends and holidays to

help with harvesting,” Matti Mutikainen says.

“I have never had second thoughts about continuing the business. Sometimes there are many things going on at the same time, but nothing too daunting,” Janne says.

“IT'S ENOUGH THAT HE LISTENS TO ME”

The father and son have never had to argue about the management of the

company. There may have been some disagreements, but Matti adds laughing that through negotiations the two men have always reached a decision that one of them is happy with.

“We don't always agree on everything, but we've always been able talk to each other,” Janne says.

“The best thing is that I can ask my dad for advice and I know that I will always get an honest answer. If his opinion is different from mine, it makes me think and question my own thoughts. Although often I still end up following my own vision,” Janne laughs.

“It's enough that he listens to me. He doesn't have to do as I say,” Matti says.

Janne's aim is to develop the company cautiously. The aim is not only to grow the business, but rather to build a reputable, financially sound and productive company with a good harvesting performance. We want to be known for keeping our promises.

“I have to trust that the company will do well. I would be happy if I reached the same situation as my dad did,” Janne says.

STAYING AND GROWING

This is what Wikipedia says about Janne´s hometown: “Today there are houses on both sides of the rapids, but often young people move elsewhere in search of a better livelihood.” Iin Metsätyö Oy's managing director Janne Paakkola did not want to look for a better livelihood somewhere else, instead he decided to build a house by the rapids.

Paakkola's family has always lived by the riverside. His old home is a few kilometres downriver from his current house and it is where his parents still live.

In 1975, agricultural mechanic Heikki Paakkola bought a forest machine and an excavator. The forest machine was used in the wintertime to transport logs after

“Through negotiations we have always reached a decision that one of us is happy with,” Matti laughs.

30

being cut down by loggers and the excavator was used in the summer to dig forest ditches. In 1991, Heikki Paakkola bought its first harvester.

Back then the current managing director Janne was 13 years old and operated a forwarder as a summer job. There was also work to do on weekends.

“For a teenager it was annoying to work in the forest when all my friends were going out, but now I'm thankful for it,” Janne says.

Janne went to forestry school in Rovaniemi and did his practical training in his father's company. In 2001 Janne was 23 years old and ready to take on more responsibilities. Heikki Paakkola Ky became a limited company, Iin Metsätyö Oy, with six forest machines. The change of generation was finalised 15 years later and the shares were divided between Janne and his brother Tuomas.

The brothers have an age gap of 13 years and therefore the change of generation took time because Tuomas had to finish school and turn 18. After 9th grade Tuomas

“We have always had a really good relationship and I have a lot of respect for my dad's work. He has been very supportive and these days I also get support from Tuomas.” didn't go to forestry school but instead chose truck driver training.

While waiting for Tuomas to reach adulthood, Janne and Heikki continued working hard and developing the company.

The number of forest machines increased to twelve. Iin Metsätyö Oy now also has two excavators and six timber trucks. The company has approximately 40 machine operators.

“We bought our first timber truck in 2004 and our fleet kept growing in one or two-year cycles,” Janne says.

Due to the company's growth and transition to the provision of comprehensive harvesting services, Janne had to make the inevitable decision. He had to focus on running the company and let others operate the machines. Janne's mathematical skills were already useful when his father was still in charge and now even more so.

“I have sometimes wondered if I should

have studied more, but I was more interested in being an entrepreneur. It all turned out well and I definitely get to use my brain,” Janne says.

Tuomas never even thought about another career. He has always known that he wants to continue the family business.

RESPECT FOR HIS FATHER'S WORK

In a family business, people speak frankly.

Janne starts laughing when he tells that sometimes he has even argued with his dad when they have agreed on something.

“We have always had a really good relationship and I have a lot of respect for my dad's work. He has been very supportive and these days I also get support from Tuomas.”

When talking about the company's future, Janne Paakkola chooses his words carefully. The current situation is good, but future growth is also possible.

“I can't say no if someone asks us to do work for them. Expansion is a possibility, but it would have to be sensible and steady growth.”

31

INNOVATION / OPTIMAP2

OPTIMAP2 boosts work planning

O

“Two years ago Wahlers, the Ponsse dealer in Germany, gave me a chance to test the OptiMap2 and I ended up getting it for six of our 11 machines. Especially when there is a need to transport logs from several stands that are close to each other, the application allows us to react more quickly.

When harvesting fallen trees after a storm, the application makes forwarder work about 20% quicker. The system is easy to use and very handy, even for a driver who normally operates a machine of a different brand,” Johannes Goldmann says.

32

ptiMap2 is a map application for PONSSE forest machines and it can be utilised to plan harvesting and short-distance transport. When harvester output files are transferred to the forwarder's OptiMap2 application, the forwarder operator will have access to important information to make their work easier and the information can flow smoothly between people working on different shifts.

Driving optimisation saves time and fuel and protects the soil. Through the OptiMap2 application the forwarder operator can see the harvester's trails as well as assortments, amounts and pile locations per trail or within a defined area. This allows the operator to plan the number of trips and assess the most optimal way to carry the logs to the roadside for further transportation.

The advantages of the application are even more evident at special sites. For example, at sites with storm or insect damage or a lot of snow, fallen trees may be scattered around the area and finding them can be difficult. In the wintertime the application helps the operator find the piles covered by snow, thus ensuring that all logs

are carried to the roadside. When working on soft soil or in demanding harvesting conditions, the application is very helpful in planning the trails and thus reducing the number of trips. When the operator knows the assortment volumes, it is also easy to assess how much space is needed for the roadside piles.

The forwarder operator can also use the update feature to remove the transported piles from the map by selecting the assortment on the list and by clicking the driven trail on the map or by selecting a defined area where work has been completed. If the harvester later sends an updated file for the same area, the application will update the situation and add the new piles to the map.

The OptiMap2 application is part of the PONSSE Opti4G information and control system. The requirements for a harvester include GPS and the possibility to set the saving of coordinates for PRI files. Data transfer between machines is possible via regular email or data can be transferred using a flash drive if work is done in areas outside of telecommunications networks.

The application can be tested for free for 30 days.

OPTIMAP2

The trail network view shows the trails as well as assortment volumes and locations per trail or within a defined area.

Wood has many uses Wood is a versatile material and can be used for making many different things. Paper is made from spruce, while birch trees are used in the process of making xylitol, so even chewing gum is a wood-based product. Also furniture, everyday items and houses can be made of wood. How many wooden items can you find at your home?

Squirrel´s Competition

Follow the wooden items Lead Kurre the Squirrel through the maze by following the squares with items made using wood.

How many items did you find? Send us your answer by the end of September by mail to Ponsse Plc / Communications, Ponssentie 22, FI-74200 Vieremä, Finland, or by email to ponssenews@ponsse.com. Remember to include your contact information! In our next issue we will publish the right answer to the task and the name of the lucky winner.

Build a tree bark boat Playing with tree bark boats is a fun summer activity and they are also very easy to build.

You just need a piece of bark for the frame, a stick for the mast and a piece of birch bark or a big leaf for the sail.

Make a hole in the bark for the mast. Stick the mast through the sail and place the mast into the hole.

These little boats are fun to make with friends.

Whose boat is the fastest?

Ponsse News 1/2018

Competition

winner Minttu Lönnroth, Riihimäki

Congratulations!

33

PONSSE COLLECTION In the United States: www.ponsseshopusa.com

SUSTAINABLE PRODUCTS ADDED TO PONSSE COLLECTION For the summer of 2018, the new T-shirts added to the Ponsse Collection are from the Neutral® collection. Neutral® products are manufactured in accordance with the highest ethical and environmental standards from the growing and harvesting of cotton to the production process.

Further information: www.neutral.com

34

ORGANIC COTTON The cotton is grown without harmful fertilisers and chemicals. This results in cleaner groundwater and lakes as well as a non-toxic harvesting process that will not cause damage to people’s health.

ENVIRONMENT The wastewater produced during manufacturing is treated and reused. This translates into cleaner drinking water, healthier food and a cleaner environment.

PONSSE COLLECTION www.ponsseshop.com www.ponsseshopusa.com

SCORPION T-SHIRT €20 Black, sizes S–4XL. Product no. 1354 LOGO T-SHIRT €15 Black, sizes S–4XL. Product no. 1332 INTERLOCK T-SHIRT €25 Navy, sizes S–4XL. Product no. 1333

ENERGY Production utilises wind power instead of traditional energy sources. This plays a key role in terms of local air purity and environmental impacts in general.

WORKING CONDITIONS The workers have a safe and good working environment. The production of sustainable Neutral® products always complies with the SA8000 standard to safeguard the workers' rights.

FARMERS The farmers receive extra compensation for the cotton grown as a result of hard work, giving the families an opportunity to invest in more modern equipment or to send their children to school.

TEXTILES The manufacturing process does not allow any harmful chemicals to be used in cotton production.

The final products can be worn immediately without having to wash them first.

35

SOMETHING

NEW

IS

COMING...

...FAST. Wait and see what the future holds.