Year 2017

Sales revenue, net and operating profits

Sales revenue


Motherson Sumi Systems Limited and the Management Board of PKC Group Oyj signed a merger agreement on 19 January 2017 and to the shareholders of PKC Group Oyj was submitted a takeover bid at the price of 23.55 euros per share. On 22 March 2017, PKC Group Oyj announced that the takeover
bid had been successful. AS Harju Elekter owned 1,094,641 PKC Group Oyj shares, of which AS Harju Elekter, received 25.8 million euros on 30 March 2017.

In January 2017, the subsidiary AS Harju Elekter Elektrotehnika received a large order from Konecranes, for the supply of 86 special substations to the USA. Together with the agreements concluded with Finnish distribution networks companies at the end of 2016, the production of substations in the Estonian and Finnish plants of the Group increased to 3,000 substations annually.

In March, AS Harju Elekter purchased an 80.52% holding in Energo Veritas OÜ, a company trading in electrical materials and equipment. AS Harju Elekter Trading Group and business activities of Energo Veritas OÜ was combined.  As of 1 June, the united business activities continue in Group’s subsidiary, under the name of Energo Veritas OÜ.

On 27 April, the AGM of shareholders of AS Harju Elekter was held; it approved the 2016 annual report and distribution of profit, appointed a new Supervisory Board and approved the remuneration of the members.

On 2 June, AS Harju Elekter signed a contract for the purchase of all shares in Telesilta Oy, an electrical engineering company specializing in electrical contracting for the shipbuilding industry. Telesilta Oy continues to operate under its own name and brand as a wholly-owned subsidiary of the Group. The purchase provides new knowledge and skills in manufacture and installation of the electrical and automation equipment for ships and opens the door to the promising Finnish shipbuilding sector.

On 29 August, AS Stera Saue opened a new factory, with 3,400m2 of production space, in the Allika Industrial Park owned by AS Harju Elekter. In 2018, AS Harju Elekter will be building an additional 4,000m2, followed by another 3,000m2 of new production space for AS Stera Saue, with the total amount of production space rented by AS Stera Saue growing to 10,400m2.

In March, AS Harju Elekter received the traditional Export Deed of the Year award from KredEx Credit Insurance. The company was recognized thanks to its outstanding contracts with foreign partners and increased export in 2016.

In June 2017, the Lithuanian subsidiary of the Group, Rifas UAB, was awarded a prestigious Rolls-Royce award for the maritime product and service sector “Innovation and technology company of 2017”. This acknowledgment was given for innovation in developing, and the industrial introduction of a complex electricity distribution and control system SAVe CUBE.

Rifas UAB received an award as „The most innovative company 2017“from Panevežys City Government.

AS Harju Elekter Elektrotehnika was acknowledged in 2017 by Elenia Oy with the title of” The Best Supplier”.

Endel Palla, Chairman of the Management Board of AS Harju Elekter, was awarded the Distinguished Service Medal Mente et Manu, the highest form of recognition from TUT, for his long-term fruitful cooperation in the development of curricula and support for students through programs as well as scholarships.

During the year, the Group’s subsidiaries participated actively in the professional fairs in Estonia, Finland and Sweden: the largest exhibition of electrical energy and power distribution in the Nordic Countries - Elfack in Gothenburg; the fairs Verkosto and Alihankinta in Tampere as well as Teknologia 17 exhibition in Helsinki. Group’s Trade unit continued to introduce its products in the international building fair in Tallinn.

Events after the reporting date

On 12 December 2017, AS Harju Elekter signed a contract to acquire all of the shares of Swedish company Sebab AB, a provider of sales and technical solutions, and its sister company Grytek AB, a manufacturer of pre-fabricated technical buildings, from the company Tnåa AB. Sebab AB is a marketing and engineering company for MV/LV power and distribution solutions for the construction,
infrastructure and renewable energy sector. The acquired companies will initially continue to use their names and trademarks, operating as 100% subsidiaries of the Group. The transaction completed on 8 January 2018.

On 18 January 2018, AS Harju Elekter Elektrotehnika signed a contract with Caruna Oy, the largest electrical grid company in Finland, to supply LV cable distribution cabinets and metering cabinets to them in the course of 2+1+1 years. According to estimates by Caruna, the expected volume of the contract is at least 5 million euros. Harju Elekter Group already has valid contracts in place with the Caruna Group to supply pre-fabricated substations, due to which the production of substations in the Group’s factories in Estonia and Finland has grown from the annual 1,000 substations to 3,000 substations in a single year.

On 1 February 2018, AS Harju Elekter Elektrotehnika opened its new factory in Keila Industrial Park. Thanks to several large orders, the Group’s subsidiary, manufacturer of LV/MV distribution and control engineering devices, experienced significant growth in its production volume during the year, which resulted in the need to expand the working premises. Their move, which lasted for nearly six months, was completed in December 2017. In comparison with the previous 10,400m2, the new factory has 16,715m2 of space. The increase in production capacity, along with the growth in the number of employees to 236, including 43 sales, production and R&D engineers, is sufficient to seamlessly fulfil the current sales volume without any interruptions.

AS Harju Elekter Elektrotehnika won a tender for the supply of pre-fabricated substations in Sweden. In February 2018, largest distribution network enterprise in Sweden E.ON Energidistribution AB, made a public announcement on the winner of the tender, based on which more than 2,000 substations will be supplied to Sweden in the 3-year contract period. The framework contract is planned to be concluded in March.