Peikko experienced staggering growth since your arrival 17 years ago - how did this happen?
When I took over leadership of Peikko we embarked in an international expansion, during a very favorable context; we were boosted by the boom of 2005-2008, our membership in the EU and the trade deals inherent to it, and the internet coming through as a connecting bridge. Thanks to this last one, we could see Spanish engineering companies doing projects in South America, among many other examples - this international way of working increased dramatically, requiring global suppliers such as Peikko. Today, we are ten times bigger than 17 years ago.
Your interest in the circular economy is fairly recent. How did it come about?
In 2017, we appointed an architect who was a "guru" of the circular economy to our board of directors. Bringing him on board challenged our methods, and resulted in a change in our approach; we started conducting technical studies across our operations, experimenting with how we assembled and disassembled precast concrete structures in order to allow multiple utilizations of it in different buildings. Nowadays we are doing this already in real buildings, it is no longer just talk. Overall, what we want to achieve is a retention of construction value while being sustainable.
We face the challenge of thorough checks for this type of reusable structures. If we are constructing our buildings with a certain component and want to reuse it, we need to learn how to secure that same component and verify that it can be used for the next building. This technical obstacle has to be meticulously surpassed in order for the product to be approved, regulated, and then reused across our projects.
Do you feel supported by EU policy in your efforts towards a greener future?
Strongly so. National policies provide fewer solutions so we need regulations at the European level, which are currently at the making. A regulated market will create a competitive advantage for European companies; as demands for sustainability become an imperative, they will ensure that we have the technology to not lag behind everyone else and to engage with markets that have these same strict rules. We are already experiencing such an advantage when conducting business with countries such as Canada. Thanks to the advanced technologies and strict regulations of our products, we are allowed to operate there, which would not be the case if we did not meet the relevant sustainability requirements. Countries within the EU, such as Denmark and the Netherlands, are leading these efforts by requesting some objectives to be fulfilled before the deadlines - this will not only result in reduced emissions, but in an enhanced position in relation to investment, business and efficiency.
Is the transition cost aligned with business revenue for Peikko?
It depends on the solution itself. We were the first steel company to bring certified steel beams made of 95% scrapped steel. This is our DELTABEAM Green, which is manufactured in Finland and Romania and approved by all the relevant regulating standards. Overall, it is a slightly more expensive product than regular steel, as in order to make it you need more energy. Yet, the contractor gets the relevant CO2 documentation which, if required by the investor, makes it profitable, as they will be willing to deploy bigger amounts of capital for it. Most other products follow this example, proving that a slight increase in cost is often rewarded with a better product and its corresponding price.
What innovative technologies is Peikko currently exploring?
Sustainable development needs software development, and we are working on this and showing that the digitization of the industry has arrived.
In fact, our biggest launch in autumn 2022 will be a CO2 calculator, which gives clients the possibility of comparing in order to assess their choices. Peikko is also making physical tests of its products with universities, and testing them carefully so as to rate them according to their efficiency. Overall, we are spending more than 7 million euros annually on research.
The most exciting development regards onshore wind foundations, where we want to utilize the strength from the ground, giving that the right rock-quality exists, to make bases more efficient. By doing this, we can save considerable amounts of concrete, emissions, and capital. The formula is simple - become efficient, save energy, have an impact on emissions and cost.
What excites you the most about Peikko's future?
When you have good solutions, you yourself are creating the market. When you do it in 40 countries, the whole constitution of the market lies at your disposal. Our solutions are solving cost and labor-related problems, safety issues and ecological challenges - all while also saving time. To continue solving these problems across the globe excites us and motivates us to continue improving every day.
