Developing Furniture Component Manufacturing Technology and the Production Chain in Karelia and Kainuu
Funded by Euregio Karelia Neighbourhood Programme 2001-2006

Objective of the project

The goal of the project was to develop furniture industry components and business activity related to manufacturing edge-glued boards.

Main activities

• The use of new technologies and business models for the production of furniture-industry components • Recognising development opportunities in the procurement of raw materials for the wood product industry and building sourcing technology to match the industry’s delivery processes • Improving and expanding the furnishing network in Northern Finland through improving business models in order to make it one of the top international networks. Competent entrepreneurs should be recognised and integrated into furniture industry operations. The definition of business functions to be transferred to this cooperative network.

Achievements

The main emphasis of the project was on seeking a reliable Russian partnership and generating commitment within the cooperative chain and network. Creating the sourcing network and purchasing agreements was seen to be taking longer than planned; therefore, the network was not completely finished and strengthened. Increasing actual cooperation with sawmills in Kainuu and specifying the cooperation network for manufacturing components suitable for each counterpart remained a task to be completed in a follow-up project; however, the connections with the Republic of Karelia management were established and strengthened. As a result of the project, a contract was signed between the Republic of Karelia, JSC Karellesprom and JMC Finance in order to obtain a significant amount of raw materials from Karelia. In addition, a delivery agreement for components was made with the Russian counterparts. Preparations by Finnish owners for taking ownership of a few sawmills, which were studied in the project and located in Karelia, were underway when the project concluded. ‘Development of manufacturing technology and the supply and production chain for furniture components produced in Karelia and Kainuu’ by Kainuun Etu was an associated follow-up project. Project implementation during the period Jan 1, 2004–Feb 2, 2006 was approved. The costs and activities of the project were, however, too heavily focused on JMC Finance, and thus the network consisting of subcontractor companies received little attention. The project was discontinued primarily for this reason.