From Garage to Factory - Scanfil’s Early Years 1976-1989
Humble beginnings
Scanfil’s founder Jorma J. Takanen made his way forward from modest beginnings. His father was a small-scale farmer from Sievi who had fought wars. With his wife, they had 13 children, including Jorma.
Despite the humble beginnings, Jorma, a talented pupil especially in mathematics and got a chance to study further than many of his contemporaries, graduating in chemical engineering from Tampere Technical College while working and raising then a family of four.
Good elsewhere, best in Sievi
Jorma and Riitta and their relatives all shared an interest in entrepreneurship. Jorma envisioned a company focused on manufacturing ventilation filters the market of which looked promising as filters sold in Finland were almost entirely and expensive imported product. The company was also planning to produce vehicle and specialty filters.
The first shareholders of Scanfil were Jorma, his older brothers, his brother-in-law and Riitta’s father who invested an equal share in the company’s capital. The company was based in Sievi as the business-friendly municipality suffering from population shrinkage offered to build the company a new industrial hall designed to specifications and help with other running costs as well.
Scanfil was registered in the Trade Register on 4 June 1976 with Jorma as its CEO. The operations started in his older brother’s garage until the hall was constructed. First employees were hired through a vocational training program.
From filters to metal sheet processing
Recession caused by an oil crisis cast a shadow over the filtering business, as home heating, lighting and the use of cars was regulated in entire Finland. Filters did not sell particularly well. Luckily, the company had invested in machines to process metal sheets needed for filters, which became the basis of new business for Scanfil: mechanics.
Scanfil’s move into mechanics and the issues created by Sievi’s location 500 kms north of Helsinki made Jorma Takanen realize that in order to succeed, Scanfil had to assemble, manufacture, and process customer parts in-house as much as possible as it made no sense to send half-finished metal parts from Sievi all the way to Helsinki for processing as their competitors did. By doing more themselves, margins would increase and customer service would improve. The company invested in new (or used) machines, including Japanese Amada Pega sheet-metal machines, whenever cash flow allowed.
Expanding business and customers through acquisitions in Finland
In 1982, Scanfil made its first acquisition in Finland by acquiring an electronics manufacturer Elektrovieska Oy, who had run into financial trouble. Jorma saw that expanding into electronics fit perfectly with Scanfil’s strategy of producing customer products in-house as much as possible. However, it was a bold move as Jorma did not have expertise in electronics.
In 1980’s Scanfil also purchased a refrigerator equipment manufacturer Dinsi and an electronics engineering company Elacon.
With the purchase of Eletrovieska, Scanfil’s customer base expanded to Kone. Around this time, long-lasting relationships were also built with Vaisala and Nokia. With Nokia, cooperation began with their MikroMikko computers. Partnership with Nokia opened a new chapter in Scanfil business offering immerse growth and international expansion of the business.
