John Deere Forestry has been granted EUR 2.58 million in investment aid by the Finnish government for its forest machine factory in Joensuu, eastern Finland. According to Factory Manager Janne Haapasalo, the investment aid will be directed to ongoing and planned projects.
Last year John Deere Forestry invested about EUR 8 million in the factory to improve productivity, increase manufacturing capacity and improve quality. A four-hectare Supplier Park is currently under construction near the factory site, where many of the company’s subcontractors are planning to relocate.
Supplier Park benefits
“It’s a big deal to get our suppliers close to our production flow,” says Haapasalo. He believes that the close proximity of the Supplier Park provides a good basis for cutting logistical costs, reducing capital tied up in stock, and improving communications, all of which will benefit the company’s customers.
The land for the Supplier Park is owned by the City of Joensuu, which has cooperated closely with John Deere Forestry for many years. “The investment in the Supplier Park is a strategic choice for Joensuu which aims for the global strengthening of business,” says Kari Karjalainen, Mayor of Joensuu. John Deere Forestry’s planned development projects are estimated to create about one hundred new jobs, with more new jobs expected in the subcontractor companies.
Source: Karjalainen, John Deere Forestry