Oilon International Oy is a privately owned Finnish company founded in 1961 that designs, manufactures, and services burners for liquid and gaseous fuels. It has 350 employees and annual turnover of over 70 million euros. To remain competitive and grow, Oilon has expanded operations to China and India through new production facilities, strategic partnerships, and adapting products to local markets and fuel sources. International growth has helped increase jobs in Finland and other countries while protecting Oilon's position abroad from copying through intellectual property registration.

1. Oikeat valinnat ratkaisevat kehittyvillä markkinoilla
Oilon International Oy
23.10. 2012
G.W. Sundmans Helsinki

2. Oilon International Oy briefly
• Founded in 1961
• Private-owned company
• Wide range of burners for liquid &
gaseous fuels like gas, heavy fuel
oil and light fuel oil. Capacities
from 20 kW to 80.000 kW per
burner
• Complete ground source heat
pump family up to several Oilon facilities in Lahti, Finland Oilon facilities in Hollola, Finland
hundreds of kW.
• Turnover over 70 million euros,
350 employees
• Activities
 Designing
 Research and development
 Sales
 Manufacturing
 Customer Service
Oilon facilities in Wuxi, China Scancool facilities in Kokkola, Finland

5. Oilon Group Turnover 1986-2011 (milj. €)
80
70
60
50
40
30
20
10
0
86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

6. Real GDB growth , index 1950 = 100
China
Japan
Brazil
USA Finland
Germany
UK
Sources: Conference board, ETLA.

7. Year 2010 Prediction for 2030 Prediction for 2050
Posi Country Real GDP, Posi Country Real GDP, Posi Country Real GDP,
Billiondollars Biljlion Billion
t t t
dollars dollars
1. USA 14,1 1. Kiina 38,5 1. Intia 86,0
2. Kiina 10,0 2. USA 24,6 2. Kiina 80,0
3. Japani 4,3 3. Intia 23,3 3. USA 39,1
4. Intia 3,9 4. Japani 5,6 4. Indonesia 13,9
5. Saksa 2,9 5. Brasilia 5,3 5. Brasilia 11,6
6. Venäjä 2,2 6. Venäjä 4,8 6. Nigeria 9,5
7. Brasilia 2,2 7. Indonesia 4,3 7. Venäjä 7,8
8. Britannia 2,2 8. Saksa 4,0 8. Meksiko 6,6
9. Ranska 2,1 9. Britannia 3,7 9. Japani 6,5
10. Italia 1,8 10. Meksiko 3,2 10. Egypti 6,0
11. Meksiko 1,5 11. Korea 3,0 11. Britannia 5,7
12. Korea 1,4 12. Ranska 3,0 12. Filippiinit 5,7
13. Espanja 1,4 13. Turkki 2,4 13. Saksa 5,4
14. Kanada 1,3 14. Kanada 2,4 14. Turkki 5,1
15. Indonesia 1,0 15. Nigeria 2,3 15. Vietnam 4,9
16. Turkki 0,9 16. Italia 2,2 16. Bangladesh 4,7
17. Australia 0,9 17. Egypti 2,0 17. Ranska 4,6
18. Iran 0,8 18. Iran 1,9 18. Korea 4,5
19. Taiwan 0,8 19. Espanja 1,9 19. Iran 4,3
20. Puola 0,7 20. Saudi-Arabia 1,8 20. Thaimaa 4,0
Lähde: Citi Investment Research and Analysis

9. Oilon Burner Family

10. Waste Incineration
Hazardous Waste Incineration Plant
Ekokem – Riihimäki, Finland

11. Pulp and Paper Industry
UPM / WISA Pietarsaari, Finland

12. Gaseous and Liquid Bio Fuels
Waste to Energy
Hartwall brewery – Lahti, Finland
CH4 Thermal
Energy
Thermal
Energy
Gas Collection Pipe

13. Liquid Bio Fuels
Pyrolysis Oil Concept
Pyrolysis oil refinery
Biomass Oil
transportation transportation
Energy
Forest residue
CO2 from flue gases
forming new biomass

14. Oilon Heat Pump Family

15. Solar collectors
Oil / gas boiler
Piping
Oil / gas burner Heatpumps / cooling

16. Oilon Wordwide Activities
Competition had to be taken far away

17. Oilonin tuote
Oilon product in Finland and in neighboring countries
Product Attitude towards problems
Willingness to be Development of the branch
of service
Impression of personnel
Customer visits Reliability
Product image/outlook
Interest groups’ impression - burner
- documents
- spares Service speed Flexibility
Company image
User experiences Renewability
Finnishness
Product development Quality
Honesty Friends’ impression

18. Oilon product abroad
Product image /outlook
- burner
- documents
- spares Flexibility
Quality

19. Tuote
Speed of service
Experiences
Honesty
Product image / outlook
Renewability
Attitude to problems
-burner
-documentation Product development
Company image -spares
Flexibility
Service ability
Quality
Customer visits

20. From Lahti to China
- Our jump to the world

21. Oilon in China
Oilon burners for oil and gas:
Total 30 000 MW in China
Coal to Gas Conversion Example in Beijing

22. Beijing District Heating Group
Oilon Natural Gas Burners,
18 units, total 720 MW
Oilon Low-NOx Technology
60 % decrease of NOx emission

23. Coal to Gas Conversion Examples in Beijing
Natural Gas Burners Oilon GT-25S
Capacity 17 MW
Beijing District Heating Company, China
Hot Water Boiler 34 MW

25. Oilon’s new production facilities in Wuxi 2011

26. Oilon burners
Wuxi Ltd
Factory and
Office

27. China sales

28. Wage changes Finland/China, years 2002-2012
• Finland average 15,60 €/h – 23.00 €/h increase 47%
• China average 0,82 €/h - 2,55 €/h increase 212%
Calculated with rate 1€ = 8,2 Rmb
Calculated with China’s social security costs 40% and Finlands 60%
In euros Finland’s increase is 5,67 € more

29. Results of the operation in China
0
0
0
tulos 55%
teknol ym
t€
0
ostoetu
0
0
0
0
vuosi

31. Our jump from Lahti China
- Has helped us to grow
- Helps us to stay competitive
- Helps us to greate new jobs both in
Finland and other parts of the world

32. Competition chances for a Finnish medium size company
Traditional weapons;
• fast changes
• unique in products
• good and efficient in global, but small
market

33. In China you may face copying !
• The Company should protect his position
- Name and logo
- model
- inventions
Oilon International Oy, Eero Pekkola

34. Magnate

35. Magnate

36. Oilon in India
In India we worked several years but in the beginning results were
modest till total turnaround when we signed strategic alliance agreement
with Thermax company from Pune in India.
This agreement proved to be excellent solution for both of us.
Thermax can fully utilize all earlier mentioned techniques and we
enjoy theirs. It has also led to very positive commercial results.

37. Within the agreement we are able to utilize each others know-how and
product palettes very efficiently.
We can develop environmentally friendly and cost effective solutions with
full trust to each others.
Our company values and way of servicing customers are amazing near to
each others.
We have learned to understand and respect Indian people.

38. Co-operation between Oilon and Thermax

39. Research and Development Center
R&D Laboratory after enlargement in 2007.

40. R&D Laboratory

41. Energon, laboratory for renewable resources