Uncompromising work to overcome challenges

When R-Sarkon was established in July 1989, Finland’s economy was booming. The company’s first premises, on the Hakunintie road, accommodated the three owners and an additional two employees. To begin with, the company’s only customer was Oras Oy, which trusted in the robust professionalism of its former employees. 

“Oras initially agreed to order six months’ production from us. In a certain sense, it was our opportunity to shine – time for us to demonstrate our ability to deliver the agreed products on time,” says Jari Salo, a member of the Board of Directors.

The promise was kept and the partnership continued. After this, Electrolux, Hollming Oy and Abloy Oy became customers during the company’s first year in business. R-Sarkon and Abloy met by chance at a subcontracting fair. 

“These things come down to good fortune. We didn’t have much money, but we decided to spend it on going to the fair. Abloy’s people found our booth by chance. They could see the potential in a group of young, enthusiastic entrepreneurs and in the fact that we were the only private entity in Finland with a 6 spindle automatic bar machine,” says Timo Kääntee, the Chairman of the Board of Directors. 

The company has worked with Oras and Abloy for decades and will continue to do so. 

“We supply items to Oras’ factories all over Europe. I strongly believe that service, quality and development are the foundations of our long-lasting partnership,” says Timo Hirvasnoro, a member of the Board of Directors. 

EU levelled the playing field 

R-Sarkon moved to its current premises on the Koillisväylä road in 1991. However, clouds soon gathered over the Finnish economy, which descended into recession in the early 1990s. 

“The recession asked some tough questions of Finnish industry as a whole. Luckily for us, Finland joined the EU,” Kääntee says. 

Finland became a member of the EU in January 1995. Just before that, Finland had to abandon its monopoly on brass shavings. 

“This enabled competition for shavings. All of a sudden we were on the same playing field as other industrial operators in Europe, and we were able to sell brass shavings at market price,” Kääntee recalls. 

As is often the case in business, R-Sarkon’s rise began when it expanded its business. In 1993, the company began making components for the electronics industry. 

“This was a hectic period right up until 2008. In one year, we bought 12 new lathes just to meet the demand of the electronics industry. The machines were also an investment in the future, as we have since used them to make many other items,” Salo says. 

Another downturn began in 2008, presenting new challenges for the company, but it only took a few years to recover to its pre-recession level. Investments with a long-term outlook have always been a big part of R-Sarkon’s business. 

“From the outset, we bought machines that were capable of producing large quantities. Big decisions demand a certain boldness – that is how we move forward,” Kääntee points out. 

Appreciation for employees first and foremost 

The stable, reliable company was named Rauma Business of the Year in 2007 by the Rauma branch of the Federation of Finnish Enterprises. Among the criteria were the company’s growth rate, financial standing, business concept and product development. Back then – as today – it was all about the company’s expert personnel. 

“This award was not for the entrepreneurs – it was for the company. Above all, it was a tribute to the organisation as a whole and to each of its members,” Hirvasnoro says. 

The same year, R-Sarkon acquired the Rauma-based company, Automaattisorvaamo Hannu Laine Oy, and its equipment. A year later, R-Sarkon acquired Rautooling Oy. 

“These acquisitions brought a few more lathes and more professional skills into the company. They also provided us with additional capacity, which is still in use,” Salo says. 

A time for restructuring 

Today, over 30-year-old R-Sarkon employs more than 70 people. If we look at the network as a whole, there are almost 100 people working with the company. Most of our revenues come from about ten major customers. 

The founding trio Timo Kääntee, Timo Hirvasnoro and Jari Salo participate in the company's operations through board work. 

“The operational management handles the company well. As the Chairman of the Board, it is my view that we are heading in the right direction in terms of technology and productivity,” Kääntee says. 

“The company is in good shape and good hands. We all visit once a week in a Board capacity to listen with interest to the things they have to say about production,” Hirvasnoro continues. 

The three founders think that large investments and good employees have taken the company a big step further. 

“Top experts guarantee success. There are plenty of machines in the world, but, overall, it is not always easy to find professionally skilled and motivated people for this sector. Good employees need to be well looked after. We have always paid close attention to this,” Kääntee emphasises. 

CEO Sari Raittila 2021

The founding trio Timo Kääntee, Timo Hirvasnoro and Jari Salo participate in the company's operations through board work.