Market expansion continued

Followed the market price very closely, but the margins are “very tight indeed”.

“Steel prices are a big problem for the industry, as is the high price of tungsten carbide. To overcome this we've used a high degree of automation in the production process, and made a significant investment in the buttonhole drilling line and heat treatment, which has helped double our production capacity.

“Our price rises have therefore been modest, even though the actual need from the contractors could have pushed them much higher. However, it's important to remember that the consumables business is a global business so there are no major differences regionally, all the suppliers are in the same boat,” said Mr Mattila.

Staying ahead of the game is also important. “Automation saves money. I expect we will continue to invest in this area; we are doing so already in Finland, alongside further development of our distribution network.

“There is also the possibility of having a manufacturing base abroad. However, any expansion means you have to focus on marketing and sales in old and new channels, which is what we intend to do,” said Mr Mattila.