Interview: “Up-to-date technologies for efficient processing”

Peikko Group Corporation is a leading global supplier of Slim Floor Structures, Wind Energy Applications and Connection Technology for Precast and Cast-in-situ construction. Peikko’s innovative solutions offer a faster, safer, and more sustainable way to design and build. With subsidiaries in more than 30 countries and manufacturing bases in 12 countries, Peikko operates in APAC, Europe, Africa, the Middle East and North America. Peikko is a family-owned and managed company that employs over 2,000 professionals. Peikko was founded in 1965 and is headquartered in Lahti, Finland.

Peikko Group established a manufacturing base in Zhangjiagang Economic Development Zone, Jiangsu Province, China in 2011, and has become the regional headquarters of Peikko in the Asia-pacific region (see BFT 10/2024). For this issue of BFT, Martin Fenčák and Huafei Shi (Management Peikko China) welcomed Silvio Schade (Editor-in-Chief BFT International) for an interview.

BFT International: Mr. Fenčák and Mr. Shi, where is Peikko APACs headquarters located and can you give us a short description about your Company?

Martin Fenčák: Our Headquarter is in city Zhangjiagang, Jiangsu province, where factory and all main services are located. ZJG serves at the same time as a HQ of whole Peikko APAC activities and team in ZJG support whole region with centralized HR, Financial, IT and Marketing and Communications (other Peikko units in APAC area are: Peikko Korea – Sales and Engineering, Peikko Singapore – Sales and Engineering, Peikko Malaysia - Sales and Engineering and factory which main purpose is to produce, store and deliver good in South East Asia region as well as some good to Peikko Australia and Peikko Australia unit – Sales and Engineering and small workshop.

Back to China, besides Zhangjiagang, there is also Sales office in Shanghai and small engineering office with about 15 engineers in Hefei, Anhui province, which we acquired in 2022.

BFT International: When was the company founded, and how did the company develop in the course of its history?

Peikko is still family owned company founded in 1965 by Jalo Paananen. Now run by the second generation; Topi Paananen, owner and CEO is with Peikko since 2005.

Peikko China was founded back in 2011. Till beginning of 2000s, it was mostly Finnish player. Major boom came with internationalization started by early 2000 and then continued by Topi when he took a lead. Expansion started with neighbor markets (Sweden, Norway), then continued to Germany, Central Europe and Baltics, later also to Middle East and North America. In 2011 also to APAC regions. Starting with China, Australia, Singapore and later Korea and newest unit is Malaysia since 2022.

BFT International: What is the overall situation resp. what does the precast market look like in China and Asia Pacific in general?

Martin Fenčák: Precast is in general just under development. Residential market is mostly in-situ, but there are some precast elements in use already (e. g. sandwich façade panels, double walls and filigree slabs). Public buildings are still mostly in-situ and some (like schools or hospitals) will most probably remains in-situ as there is higher requirements for seismic resilience. Some possibilities for pre-cast in office buildings or some auxiliary objects. But in case of industrial buildings, some industrial clients understand and value benefit of pre-cast, especially its “dry-connection” alternative, which is offered by Peikko. We are in general proud and happy to say, if somebody says Peikko, it means dry-connection precast if somebody wants precast structures with dry connection, Peikko is usually first alternative. Although there is a long way to go to mature the precast market, there is a clear shift in thinking among some investors and/or designers, and there is pressure from the government to be more efficient in construction and pre-cast is one of the option and Peikko wants to be part of that.

BFT International: How does Peikko see itself in the market, and which products account for the largest portion of its sales revenues?

Huafei Shi: Strengths are in some cases unique solutions, pioneering, know-how, respect in the market and proximity to customers by wide network of Sales and Engineering teams as well as well distributed factories and warehouses.

Largest accounts vary from the market. In Europe those are Deltabeam for slimfloor structures, recently besides hollowcore concrete slabs in increasing cases combined with hybrid timber/concrete slabs and of course Bolted Connections for connecting of pre-cast elements. In APAC majority are Bolted Connections and Flooring solutions and e.g. in North America Deltabeams.

BFT International: Are there any plans regarding further development, e.g. where is the focus of forthcoming investments?

Huafei Shi: As we are in China still creating our own market, we keep focusing into segment of introduction of Bolted Connections to those markets which value its benefits. Those are investors which needs speed of construction and high safety standards e.g. foreign investors to China, local petrochemical companies, NPP companies or infrastructure companies. However, “Green Construction” has started to play a role, so we focus also to this area with our solutions which are standard in Europe; ties for sandwich façade panels and e.g. thermal break connections for balconies.

BFT International: What are the expectations for the future, and are there any specific areas to be strengthened further?

Martin Fenčák: In the moment, Peikko’s “Gangjie” Bolted Connections for “dry connection” of pre-cast elements. Once pre-cast is going to be more mature, we see a good opportunity for our Deltabeam – slim beam, which with combination with e.g. hollow core slabs can create slimfloor without visible drop panels. We are sure there will be a market, but it will take time.

BFT International: Which type of production line resp. which plant and machinery has been installed, and which suppliers were involved?

Martin Fenčák: As we process the steel, we use mostly standard steel processing technologies. We have two major commodities which are used in our products; plates and reinforced steel and we use all up to date technologies for efficient processing. All machines in China are actually Made in China and in many processes we use highly automated machines.

BFT International: What was the approximate amount of the related capital expenditure?

Martin Fenčák: We keep investing regularly. As the steel processing only is not that investment demanding comparing to e.g. different type of processing. However major investments were when we started operation in first, 3,000m² workshop back, in 2011, then back in 2014 when we moved to new, 10,000m² facility and then in 2020, when we acquired additional 5,000m².

BFT International: What are the further plans for this production facility?

Martin Fenčák: The demand at the local market for “dry connections” is rapidly increasing and if things go as planned, existing production facilities will not be enough to meet the demand. Medium-term plan is to acquire additional space next to existing premises. In the future we’ll open a new factory in other part of China.

BFT International: Have special services/works been carried out?

Martin Fenčák: The reason why customers value our solutions is not only products themselves, which make their construction processes faster, safer and more sustainable, but also the engineering and on-site services. Our engineers cooperate with customers engineering team or partnering design institute or EPC contractor to design the more efficient solution. And our on-site service team is then helping on site; to precasters, to make sure our products are embedded into precast elements properly as well as at final erection site with proper and safe erection. We are now in the stage of creation of the market, dry connections are relatively new solution in the market and education is one part of our job.

Current production capacity is set to meet the demand in short- and medium-term. But if the demand keeps increasing, we have plan to expand.

BFT International: Mr. Fenčák, Mr. Shi, we thank you for this conversation, and we wish you continued success.