(18.11.2010) Innokas Medical set up a plant in Estonia at customers' request |
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The plant extension was inaugurated at the beginning of November.
Innokas Medical Oy has made an additional investment of 1.2 million euros in Rakvere, an Estonian town of almost 17,000 inhabitants. The investment provides a workplace for 10 new employees who will work on the new production line. The Estonian Minister of Internal Affairs Marko Pomerants and mayor of Rakvere Andres Jaadla attended the opening ceremony of the plant extension. Innokas Medical's managing director Jouni Ihme has been very happy with the Estonians' willingness to cooperate.
“In Finland, political decision-making has lost touch with business life and it's difficult to even have an audience with the mayor.”
The Estonian plant is Innokas Medical's third plant. It was set up in 2006 at the request of customers. Many of Innokas Medical’s old customers transferred to foreign owners, such as Instrumentarium that is now owned by GE. The new owners had a clear message: there had to be production also in low-cost countries in order for Innokas Medical to remain as the contract manufacturer. After looking at suitable places such as China, Jouni Ihme got a tip from his partner that lead to negotiations with Dicro Eesti.
Estonia provides Innokas with what the customers required. Compared to Finland, Estonia is still a country with low labor costs. According to Dicro Eesti's managing director Juha Seppälä, the hourly salary of an Estonian plant worker is approximately three euros. However, the investments in Estonia don't mean that Innokas has abandoned its plants in Finland.
“Our Estonian plant manufactures standardized products whose number can be predicted.”
Innokas doesn't have any Finnish management in Rakvere, only Estonians. Operating the satellite plant is possible with the help of Dicro and an extensive ERP system. The cooperation works so that Innokas leases the facilities from Dicro and most of the company's employees come from Dicro.
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