Delfi: Big names in energy are enjoying the success wave

Prysmian Group Baltics, the Estonian branch of the largest cable manufacturer in the world, exports 90% of its production, mainly to Northern Europe. Their customers are power distribution and main networks, telecom companies and construction market participants. Production facilities are located in Keila, sales offices are in Latvia and Lithuania in addition to Estonia. “We have only had one unprofitable year in our history, it was in 2008, at the peak of the financial crisis,” says CEO Tarvo Leppik.

The head office of Prysmian is located in Milan and the company is also listed on the stock exchange there. In total, the group has 108 plants and nearly 30,000 employees in 50 countries. “At the end of last year, the President of the United States also visited our Brayton Point plant in Massachusetts. Our role in the transformation of power networks is very important,” says Kadri Armas, the marketing manager of the company for the Baltic countries.

At the centre of major projects

So, they are currently in a hot sector, because the transition to renewable energy around the world means the renewal of power networks and adding more of them.

Distribution network cables are produced in Keila and the largest low-voltage distribution network cable plant of the group in Europe is located there. “The most efficient too,” Leppik interjects. The Keila plant is the most efficient in this region in terms of square meters and the number of people.

A large part of the cables in use in Estonia are produced by Prysmian – the major partners of Elektrilevi. Cables for the distribution networks in Latvia and Lithuania are also produced here.

Estonians enable round-the-clock work

The Keila plant works 24/7, with collective vacation of two weeks in summer and 2-3 weeks in winter. At this time, the necessary maintenance and investments can be made in the plant. During the rest of the time, the plant operates continuously. “This helps keep costs down. You have to know how to use and maintain the fleet,” Leppik points out.

Kadri Armas adds that Estonians also have cultural peculiarities that work to our advantage – we hit the point and are hardworking. It is difficult to achieve continuous production in some other place. “Our employees are valued and they surely do not have to be embarrassed about their salary.”

The company uses employee share programmes that concern all employees. The group strives to ensure that everyone takes part in it and that people feel the importance of their contribution.

Operation is not expanded for the sake of beauty

Both Leppik and Armas admit that what is going on in the world today contributes to their success. At the same time, the marketing manager points out that their company is the “face of the Southern European company”, which means that they have not been big borrowers. This in turn means that they are largely unaffected by Euribor fluctuations.

“The demand is very high now. Most of our plants are producing at full capacity, and here and there the capacity of plants is being increased through investments. Meeting the demand is one of the biggest challenges for us in the coming years,” says Armas.

Could the plant also expand in Estonia? Leppik thinks that there is no need to do anything for the sake of beauty, and it is in the hands of the local team to do their best to use all the current capacity. “We have already expanded over time. There is still some space, but if the walls are the limit, we will invest in what we have. We don't want to build inefficiency,” says the company's CEO.

Full article (in Estonian) HERE.