In three years, Normet has tripled its turnover and doubled the number of personnel, while spreading its distribution network rapidly all around the world.
Underground construction in the world is increasing, metal ores are mined deeper, and there is an ever-growing demand in emerging countries for metals, infrastructure and energy. All these trends support the continuation of global needs of specialised equipment for underground tunnel building. Normet, a Finnish manufacturer of mining and tunnelling equipment, meets the need by strengthening its local organisations (sales, marketing and customer service) around the world and by making substantial investments in R&D and production facilities.
Normet underwent considerable restructuring in October 2007 to become a prominent global player in the underground market. It established a new distribution network with headquarters, Normet International Ltd., in Switzerland, and regional offices in Switzerland, Australia and the United States. This has enabled the company to focus more strongly on its international presence, to build closer customer relations and to offer more comprehensive support on local and global basis.
Previously, the organisation sold 60 per cent of its products through distributors and third parties, and now at least 80-90 per cent of sales are conducted through its own subsidiaries. “Up until last year, Normet was an industrial company whose distribution was mainly taken care of by third parties. The decision was to take over all customer interaction in key markets by our own direct sales and service activities made in 2007,” says Tom Melbye, Managing Director of Normet International Ltd. and COO of Normet Group.
Rapid Growth
In three years, Normet has tripled its turnover and doubled the number of personnel, while spreading its distribution network rapidly all around the world. During the past year, the company has established 14 offices globally and operates now from 17 different locations worldwide; new locations in India, Singapore and Brazil are planned in the near future. Normet’s average annual turnover growth in the past three years has been approximately 30 per cent. In 2007, overall productivity increased by 20 per cent and manufacturing volumes grew by 35 per cent, while production lead times decreased by 45 per cent.
“Over EUR 7 million will be invested in manufacturing and in technology centre. This will enable full-scale prototype manufacturing and testing, and increase our production capacity by 66 per cent,” says Jari Osmala, CEO of Normet Group.
To this day, Normet has produced a total of 7,000 underground vehicles. The company is the only genuinely global player in the industry. The strengths of Normet's personnel particularly include process know-how regarding concrete spraying and charging. In addition, the company provides its customers with local service and support throughout the entire life-cycle of equipment in operation.
In 2008, Normet's turnover will rise to approximately EUR 120 million, and the objective is to exceed EUR 200 million over the next few years. In the summer of 2008, the company closed a deal with the Russian mining company MMC Norilsk Nickel, which totalled more than EUR 20 million, with more than 60 mining vehicles. The equipment will be delivered during 2008 and in early 2009.
“This year, the main emphasis of Normet's front line operations is on substantial improvement of customer service and support. The subsequent step is to focus on R&D, which will further strengthen our offering and position as the world's leading supplier of underground concrete spraying and charging solutions,” says Aaro Cantell, Chairman of Normet Group's Board.
About Normet
Normet provides demanding solutions for selected customer processes in underground mining and tunnelling. Normet develops, manufactures and markets equipment and vehicles for mining and underground construction as well as provides a comprehensive range of life time care services around the equipment and the processes they are used for. Normet Group is the global market leader in its product areas. The company’s head office and factory are located in Iisalmi, Finland, with a combined space of 23,000 sqm. The Group's turnover in 2008 will total approximately EUR 120 million. Normet currently employs 420 employees.
Further information:
Aaro Cantell, Chairman of the Board
tel. +358 400 706 072
aaro.cantell@normet.fi
Jari Osmala, CEO
+358 400 646 611
jari.osmala@normet.fi
Tom Melbye, COO
+41 79 449 85 55
tom.melbye@normet.fi