Quality of work keeps zipper manufacturer in Finland
|
|
|
By Päivi Isotalus
Finns like to think that high technology is what attracts foreign companies to Finland.
That was not something that British company Coats was thinking about when it decided to buy a zipper plant in Kerava over a decade ago. The aim of becoming a global player in the market was behind the move. In addition, transporting small sewing supplies from one country to the next turns out to be so expensive that it pays to manufacture the products as close to the clients as possible.
Coats Opti has stayed in Finland even though many others have switched to countries with lower labour costs, or Eastern Europe and China. What is keeping the company in Finland?
"We will stay here as long as we have customers. Of course our opportunities are narrowed when even state-held companies - such as VPU Pukutehdas in Hämeenlinna - close down their business. Our other pillar is the retail sector, and that is not going anywhere", Coats Opti head Fred Saks explains.
Coats does naturally have production in cheap countries as well, in a total of 70 nations. Finland's labour expenses are not competitive in comparison, but according to Saks, the Finns have many advantages on their side.
"There is an extremely high level of learning here, and quality is an important factor. It takes time before others learn and achieve the same level."
According to Saks, the Finns are a giant leap ahead of the former Socialist countries in product development, sales, and marketing. The lead will not last forever, though.
"We have around ten years of a head start on Eastern European countries. They are catching up fast", Saks observes.
Helsingin Sanomat / First published in print 4.9.2004
More on this subject:
 Reliability now key factor in drawing businesses to Finland
PÄIVI ISOTALUS / Helsingin Sanomat
|
|
