Standing by the sawmill unit are Veli-Pekka Hämäläinen (left) and Juho Peteri, a technology partner from Pinja. Entrepreneurs Lea and Juha Kokkonen from Tervolan Saha ja Höyläämö Oy, with their daughter Elina Alajoki next to them.
New technology and a new way of working are taking Tervola Sawmill to the top of the industry. Standing by the sawmill are Veli-Pekka Hämäläinen (left) and Juho Peteri, a technology partner from Pinja. Tervola Sawmill and Planer Oy is run by entrepreneurs Lea and Juha Kokkonen, with their daughter Elina Alajoki next to them. 

Tervola sawmill moves into the digital age with a huge investment considering its size  

Digital-based operations management covers the entire process, from procurement to a ready-made customer package. 

"Since the beginning of the company, we have operated almost manually for 67 years, relying on graph paper and memory, but now we are making a digital technological leap into the future with a cutting-edge saw line. We did good business before, but now we are facing something completely new," says the CFO of Tervolan Saha ja Höyläämö Group, entrepreneur Lea Kokkonen

"When we have made such a large investment with a relatively small turnover, we have to believe in the future and trust it. Our customers play a big role in this. We have incredibly long customer relationships, "mutual trust has been acquired. When the goods arrive on time and are as promised, everyday life goes smoothly, whether in good times or bad." 

Everything is new in the board and plank sawing line. The skimmer came from Valon Kone, the saw feed and bottom saw handling equipment was supplied by Nordautomation, the two-unit (2.2) sawmill was manufactured by Veisto, the timber quality measurement was provided by Microtec, the 30-bin fresh sorting and crate plant by Renholmen, and the production control system by Pinja. The technology partners have therefore been key companies in the industry. 

The sawmill and its daily life are family-oriented from start to finish. The entrepreneurial couple Lea and Juha Kokkonen They are supported by their five sons, a daughter and three sons-in-law, all of whom work at the sawmill. 

Lea Kokkonen says that the biggest concern now is that the investment will go as planned and that the process will work. The jump from “square paper” to a digitalized management system is a major operational change in Tervola. 

"The most difficult decision in the investment was certainly related to the acquisition of digital-based operational management from stump to finished sawn customer package. Of course, we knew Pinja and its products, but the concern was how we at the sawmill would get hold of it. The 'moving forward together' mindset created belief in success," says Lea Kokkonen. 

“We got started quickly because Tervola understood that the more dedicated they were to the task, the easier things would go. Big things were started with surprisingly little training,” says Brother-Pekka Hämäläinen From Pinja. 

Pinja will deliver a software solution to the new sawmill that connects the entire chain from wood procurement to transportation, reception, log storage and further to production. The solution consists of the Forest by Pinja forest system, which covers Tervola's own wood procurement from the forest to the transportation of raw wood to the sawmill. Logging contractors have access to a mobile application that manages logistics in the forest to log reception and log storage. The Timber by Pinja application is used for sawmill operations management, including purchasing functions, material flow and production line management, and production planning. In the product warehouse, sawn timber transfers and warehouse management are controlled with a dedicated application module. The entire system is used directly from Pinja's cloud service. 

Family energy in Tervola  

The family business Tervolan Saha ja Höyläämö Oy has been operating in Hastinkangas, Tervolan since 1956. Eight years ago, the entrepreneurial couple Lea and Juha Kokkonen began planning a sawmill investment for the future. This year, this 27 million euro investment is nearing completion. In the company's size category, the giant investment practically covers a completely new sawmill line with its operations management in a new industrial hall of approximately 4000 m². 

Tervola sawmill and its subsidiary Vk Timber Oy in Kittilä manufacture timber for various needs in the building industry. The logs come from within a 50-kilometer radius of Tervola. The main products are strength-sorted and finger-jointed products, planed and primed products, and pressure-impregnated goods, of which over 50.000 cubic meters were delivered last year. The customers were domestic operators. 

The group generated revenue of approximately 19 million euros last year with 28 people. 

WHAT? Tervola Sawmill made a 27 million euro investment in the acquisition of digital-based operational management from stump to finished sawn customer package. 
 
WHY? An old family business moved to the digital age to streamline its own production and benefit its long-term customers. 

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