KWH Group
Encyclopedia
KWH Group is one of Finland's leading companies in plastics, abrasives and logistics
services. It is headquartered in Vaasa
, Finland
.
From a modest start in the timber industry, by 1939 it was the biggest timber
exporter in Finland, accounting for 26% of the country’s total lumber
exports and some 20% of pulpwood
exports . The company was the world's largest fox
and mink
fur producer in the 1960s and 1970s, producing approximately 10% of all Finnish mink furs, equivalent to 2% of world production .
After expanding into plastics production in the 1950s, the company was the first in Finland to manufacture expanded polystyrene
sheets, and its brand name Styrox became synonymous with all such products in Finland. Establishing a niche expertise in plastic pipe manufacturing, the company was the first in the world to manufacture a 600 mm diameter pipe in 1964, thereby gaining international recognition .
Today, the KWH Pipe unit is one of few companies in the world with ability to manufacture PEH
pipes with a diameter 1600 mm and larger, while the KWH Mirka unit is probably the fourth largest manufacturer in the world in volume terms in the "flexible abrasives materials" industry.
, pit props and pulpwood
. Wiik acted as a buyer, and Höglund, having studied at a commercial college and spent some time in England
in 1928, was responsible for sales
and bookkeeping
.
Though they had a prosperous first year in business, thanks to their previous experience in the timber sector, the company also faced periodical difficulties, for example during the depression years of 1930-1933. However, in the late 1930s, the company expanded fast, and became one of the major round timber exporters in Finland, with Emil Höglund travelling as a salesman to Germany
, Holland, Belgium
, France
and Britain. By 1939 Wiik & Höglund was the biggest timber exporter in Finland, accounting for 26% of the country’s total lumber
exports and some 20% of pulpwood exports.
Their commercial success allowed them to make investments outside their own company operations, and in 1937 they become a major shareholder in the Jakobstads Cellulosa Ab pulp company (majority owned by Oy Wilh. Schauman Ab
), and in 1939 they took a significant stake in the Vasa Rederi Ab shipping company, later buying up the entire stock. Their holding in Jakobstads Cellulosa Ab also increased, and in the 1960s Wiik & Höglund and Keppo jointly held 15% of Oy Wilh. Schauman Ab, making them the biggest private shareholder.
During the war years, Wiik & Höglund exports were virtually halted, and other products were produced to compensate for the loss of exports. Firewood and woodchips now became the most important products, and were mainly purchased by the German
and Finnish
armies, as well as Finnish State authorities.
After the war, exports of round timber started up again and the company’s previous customers in West Germany
, France
and Holland again became the biggest trading partners. Profitability was good and profits were re-invested into fixed assets, mainly forest. The most important investment came in autumn 1951, when the plastics company Holmsund AB in Umeå
, Sweden
, (one of Wiik & Höglund's customers), offered them the sole manufacturing rights in Finland. The production started in Vaasa
in 1951, and moved to new premises in 1952, where KWH Group’s plastic pipe plant (KWH Pipe) is still located today.
Wiik & Höglund made major investments and acquisitions to expand their plastics business. In 1954, the Vaasa firm Lars Berts was purchased, and in 1955 the first plastic pipes were produced. Wiik & Höglund was also the first company in Finland to make expanded polystyrene sheets, which were marketed under the brand name Styrox, a name that is synonymous today in Finland with all products made of this raw material.
Other companies that were acquired were Forss & Govenius and Nars
, both from Jakobstad
, which have developed into today's KWH Plast. In 1969, Wiik & Höglund and Oy Finlayson Ab jointly purchased a rival polyethylene pipe company Muovitehdas Oy in Ulvila, becoming a Wiik & Höglund subsidiary in 1986 during a restructuring of the pipe business.
In the 1970s, Wiik & Höglund embarked on several large international projects, later to be formed into the WH Pipe International division. Pipe projects in
Brazil
, Iraq
, South Korea
and Thailand
increased the company’s familiarity with these markets. Restructuring and concentration on certain products continued in the 1980s, while the company continued to expand abroad. Factories making polyethylene pipes were set up in Denmark
, Thailand
, Canada
, and in 1990 in Malaysia and Portugal
. Industrial piping was added to the production programme when Oy Muotekno Ab, Oy Sul-Mu Ab, Laurolon Oy, Plastilon Oy and the French company Sipap Pipe Systems S.A. joined the Group. As a result of restructuring in the Group, the complete pipe manufacturing was transferred to KWH Pipe, which today accounts for around half of consolidated turnover of the KWH Group.
has been characterized by small-scale industrial activities for several centuries. With the Keppo rapid
s providing access to water power, and in combination with the close proximity to the shipping port
in Nykarleby
, alderman
Samuel Lithovius recognized a business opportunity for processing timber from the surrounding forests, and setup up a water powered saw mill at the site in about 1740. Subsequent owners developed the site further with a tobacco plantation, spinning mill, pitch works and a linen-, cotton- and textile-mill until 1829 when Keppo was acquired by Carl Otto von Essen.
During the time of Otto von Essen, the sawmill experienced a boom in business. Peter Malm
from Jakobstad, a well-known shipowner and industrialist, became a corporate member at the sawmill in 1840. He financed the sawmill and sold the finished products, while von Essen worked as saw inspector and timber purchaser. In the 1860s, the annual production exceeded ten thousand logs. A fire in 1893 destroyed the sawmill, and no saw mill has been operational at the Keppo rapids since. The von Essen family owned the Keppo mansion until 1899 when Hugo Grönlund acquired it, who then sold it to the Wilhelm Schauman Ab
company in Jakobstad
in 1906.
Viktor Schauman
(the son of Wilhelm Schauman
) bought the Keppo Mansion in 1918, and after a renovation, lived at the mansion with his wife until 1930, when the mansion was again sold. The main building then became an evangelical High School, and was owned by the guarantee association during 1930-1942. After a period as army accommodation during World War II
, the house was again bought and restored by the Viktor Schauman
family, who lived at the mansion until 1954.
In parallel with his activities within the Wiik & Höglund company (see section above), Emil Höglund had been active in mink
farming already since 1937, first together with Karl Johan Stuns from Vörå
until 1944, and later with Karl-Johan Tidström. Their farming activities expanded rapidly over the following decades and in 1953, the systematic breeding programmes had resulted in a unique mutation, the Finlandia Topaz, which gained world-wide recognition. In 1954, Emil Höglund and Karl-Johan Tidström bought the Keppo mansion with the accompanying 37 hectares of cultivated land and 418 hectares of forest, establishing the company Keppo Ltd. All their mink farming activities were now owned by Keppo Ltd, and a new mink farm was established next to the old mansion. This farm also experienced rapid growth and became the biggest mink farm in the world by 1962. Peak production was reached in the 1970s, when approximately 130,000 skins were produced at the Keppo farm, while the production of all of the Keppo owned farms together were approximately 480,000 mink- and 150,000 fox-skins.
Keppo Ltd (since 1985 KWH Group Ltd) divested its farming activities in 1992, and the mink farm standing close to the Keppo mansion is now leased and is run by an outside proprietor. The Keppo mansion is still used for KWH Group board meetings. Due to its runaway success in mink farming, Keppo also had available cash flow for making investments outside the farming business. Almost by chance, Keppo found itself as a shareholder in Mirka (now KWH Mirka), which is now one of the mainstays inside the KWH Group. Kimo Bruk (founded in 1703), was taken over by Keppo in 1962, and in 1965, Keppo invested in a refrigeration ship to safeguard its supply of animal feed.
In 1966, Oravais
Klädesfabrik Ab (founded in 1885) was offered to Emil Höglund. Though the textile business was in decline, the deal went through, owing to the attraction of its assets of some 700 hectares of forest (in an area in which Keppo and Kimo already owned some 2,000 hectares). In 1979 Keppo acquired a majority holding in the Vaasa printing company Oy Litoset Ab.
By the 1970s Keppo had become a company which relied on industry for about half its turnover. The company had appreciable assets in forest,as well as a large holding in Oy Wilh. Schauman Ab
. Emil Höglund died in 1973, and when Karl-Johan Tidström died in 1975, the company had lost both its founders. The second generation assumed the mantle of management, and Henrik Höglund was appointed as Managing Director of the Keppo Group in 1975.
family. Oy Keppo Ab had already purchased half of the company from the Höglund family in 1981. A key driver was the need to shape a new corporate culture for the KWH Group, and to formulate coherent strategies, goals, operating principles and ‘rules of play’.
The conglomerate was restructured in the late 1980s and early 1990s, and several divestitures were made, most notable the selling of approximately 13,000 hectares of forest and the share holdings in Oy Wilh. Schauman Ab
, as well as the gradual selling of all activities related to the mink and fox farming business.
According to the new strategy, the Group’s resources were to be focused on developing its core operations, which were defined as KWH Pipe, KWH Plast and KWH Mirka. All other aspects of the operations were gathered together within KWH Invest. In the beginning, KWH Pipe received the lion's share of new investments. A new production facility was opened in 1990 in Portugal, output in Canada was doubled and new and expanded production facilities were opened in Malaysia and Thailand, while operations in India began in 1992 in the form of a joint venture. Additional investments were made in Sweden, Poland and Germany. However, due to changing market conditions, the operations in China, Germany, the US and India have since closed.
A second area of investmen was KWH Mirka, which from modest beginnings now have achieved a leading position, especially in automotive refinishing (ART). In volume terms, KWH Mirka is one of the five biggest operators globally in the coated abrasives sector.
In 1999, Prevex became a subsidiary of the KWH Group following the purchase of additional shares, and in 2003, Prevex became a fully owned subsidiary. In 2003, Oy Prevex Ab was the most important part of the KWH Invest division.
The division specialises in plastic pipe systems for industrial, municipal and building construction application, such as HPAC, sewage and waste water treatment, gas transportation, district heating distribution and cable conduits, as well as domestic waste water treatment plants.
It also develops and markets production technology and equipment, and designs and supplies production solutions tailored to a specific customer.
, Finland
, Oravais
, Finland
and Karjaa, Finland
. The core business segments are automotive refinishing and industrial finishing. KWH Mirka exports about 95% of the production mainly to Europe, the USA and Far East.
The product range includes abrasive materials, polishing compounds and sanding machines for different types of abrasive processess in automotive refinishing and production (OEM), the manufacture of composite parts, furniture production, metal processing and for sales via the hardware, paint and machinery trades. Sales are increasingly in the form of systems sales, for which reason the product programme has been augmented by products such as sanding discs, backing pads, sanding and polishing machines, vacuum cleaners and other accessories.
KWH Mirka is one of the global market leaders in its largest business segment, Surface Finishing (including automotive refinish (ART)), automobile manufacturing (OEM) including subcontractors), marine and composite. In the Wood market segment, focus had been on small and medium-sized users. The Power Tools business unit is formed for the manufacture and developing of sanding machines and accessories. The development unit Engineered Surface Finishing develops microproducts for the OEM sector and searches for new attractive market areas.
Prevex develops, produces and markets complete ranges of drain traps for dish-washing tables and bathroom fittings. Prevex produces the most functional and space-saving drain trap in the world today and is the market leader in Scandinavia and Poland.
Prevex also collaborates with a variety of partners regarding customer-specific product solutions, such as centerings and centering belts to district heating producers in Scandinavia.
Logistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
services. It is headquartered in Vaasa
Vaasa
Vaasa is a city on the west coast of Finland. It received its charter in 1606, during the reign of Charles IX of Sweden and is named after the Royal House of Vasa...
, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
.
From a modest start in the timber industry, by 1939 it was the biggest timber
Timber
Timber may refer to:* Timber, a term common in the United Kingdom and Australia for wood materials * Timber, Oregon, an unincorporated community in the U.S...
exporter in Finland, accounting for 26% of the country’s total lumber
Lumber
Lumber or timber is wood in any of its stages from felling through readiness for use as structural material for construction, or wood pulp for paper production....
exports and some 20% of pulpwood
Pulpwood
Pulpwood refers to timber with the principal use of making wood pulp for paper production.-Applications:* Trees raised specifically for pulp production account for 16% of world pulp production, old growth forests 9% and second- and third- and more generation forests account for the balance...
exports . The company was the world's largest fox
Fox
Fox is a common name for many species of omnivorous mammals belonging to the Canidae family. Foxes are small to medium-sized canids , characterized by possessing a long narrow snout, and a bushy tail .Members of about 37 species are referred to as foxes, of which only 12 species actually belong to...
and mink
Mink
There are two living species referred to as "mink": the European Mink and the American Mink. The extinct Sea Mink is related to the American Mink, but was much larger. All three species are dark-colored, semi-aquatic, carnivorous mammals of the family Mustelidae, which also includes the weasels and...
fur producer in the 1960s and 1970s, producing approximately 10% of all Finnish mink furs, equivalent to 2% of world production .
After expanding into plastics production in the 1950s, the company was the first in Finland to manufacture expanded polystyrene
Polystyrene
Polystyrene ) also known as Thermocole, abbreviated following ISO Standard PS, is an aromatic polymer made from the monomer styrene, a liquid hydrocarbon that is manufactured from petroleum by the chemical industry...
sheets, and its brand name Styrox became synonymous with all such products in Finland. Establishing a niche expertise in plastic pipe manufacturing, the company was the first in the world to manufacture a 600 mm diameter pipe in 1964, thereby gaining international recognition .
Today, the KWH Pipe unit is one of few companies in the world with ability to manufacture PEH
Polyethylene
Polyethylene or polythene is the most widely used plastic, with an annual production of approximately 80 million metric tons...
pipes with a diameter 1600 mm and larger, while the KWH Mirka unit is probably the fourth largest manufacturer in the world in volume terms in the "flexible abrasives materials" industry.
Wiik & Höglund
Prior to the founding of Wiik & Höglund, Emil Höglund and Edvin Wiik were both in the timber business. Emil Höglund worked as a clerk and Edvin Wiik worked as an independent buyer of timber for the Hellnäs sawmills. As the sawmill was expected to foreclose after defaulting on its payments, both were faced with unemployment. Discussing their options, they decided to establish their own company Wiik & Höglund, which was founded on August 28, 1929. The company was to engage in trade in round timberTimber
Timber may refer to:* Timber, a term common in the United Kingdom and Australia for wood materials * Timber, Oregon, an unincorporated community in the U.S...
, pit props and pulpwood
Pulpwood
Pulpwood refers to timber with the principal use of making wood pulp for paper production.-Applications:* Trees raised specifically for pulp production account for 16% of world pulp production, old growth forests 9% and second- and third- and more generation forests account for the balance...
. Wiik acted as a buyer, and Höglund, having studied at a commercial college and spent some time in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
in 1928, was responsible for sales
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
and bookkeeping
Bookkeeping
Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, receipts and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting. The accounting process is usually...
.
Though they had a prosperous first year in business, thanks to their previous experience in the timber sector, the company also faced periodical difficulties, for example during the depression years of 1930-1933. However, in the late 1930s, the company expanded fast, and became one of the major round timber exporters in Finland, with Emil Höglund travelling as a salesman to Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, Holland, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
and Britain. By 1939 Wiik & Höglund was the biggest timber exporter in Finland, accounting for 26% of the country’s total lumber
Lumber
Lumber or timber is wood in any of its stages from felling through readiness for use as structural material for construction, or wood pulp for paper production....
exports and some 20% of pulpwood exports.
Their commercial success allowed them to make investments outside their own company operations, and in 1937 they become a major shareholder in the Jakobstads Cellulosa Ab pulp company (majority owned by Oy Wilh. Schauman Ab
Wilhelm Schauman
Berndt Wilhelm Schauman was a Finnish industrialist, the most important in Jakobstad at the beginning of the 20th century. He was the older brother of Ossian Schauman. Wilhelm Schauman's first industrial installation was a small chicory factory, which he founded in 1883...
), and in 1939 they took a significant stake in the Vasa Rederi Ab shipping company, later buying up the entire stock. Their holding in Jakobstads Cellulosa Ab also increased, and in the 1960s Wiik & Höglund and Keppo jointly held 15% of Oy Wilh. Schauman Ab, making them the biggest private shareholder.
During the war years, Wiik & Höglund exports were virtually halted, and other products were produced to compensate for the loss of exports. Firewood and woodchips now became the most important products, and were mainly purchased by the German
Wehrmacht
The Wehrmacht – from , to defend and , the might/power) were the unified armed forces of Nazi Germany from 1935 to 1945. It consisted of the Heer , the Kriegsmarine and the Luftwaffe .-Origin and use of the term:...
and Finnish
Finnish Army
The Finnish Army is the land forces branch of the Finnish Defence Forces.Today's Army is divided into six branches: the infantry , field artillery, anti-aircraft artillery, engineers, signals, and materiel troops.-History of the Finnish Army:Between 1809 and 1917 Finland was an autonomous part of...
armies, as well as Finnish State authorities.
After the war, exports of round timber started up again and the company’s previous customers in West Germany
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
and Holland again became the biggest trading partners. Profitability was good and profits were re-invested into fixed assets, mainly forest. The most important investment came in autumn 1951, when the plastics company Holmsund AB in Umeå
Umeå
- Transport :The road infrastructure in Umeå is well-developed, with two European highways passing through the city. About 4 km from the city centre is the Umeå City Airport...
, Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
, (one of Wiik & Höglund's customers), offered them the sole manufacturing rights in Finland. The production started in Vaasa
Vaasa
Vaasa is a city on the west coast of Finland. It received its charter in 1606, during the reign of Charles IX of Sweden and is named after the Royal House of Vasa...
in 1951, and moved to new premises in 1952, where KWH Group’s plastic pipe plant (KWH Pipe) is still located today.
Wiik & Höglund made major investments and acquisitions to expand their plastics business. In 1954, the Vaasa firm Lars Berts was purchased, and in 1955 the first plastic pipes were produced. Wiik & Höglund was also the first company in Finland to make expanded polystyrene sheets, which were marketed under the brand name Styrox, a name that is synonymous today in Finland with all products made of this raw material.
Other companies that were acquired were Forss & Govenius and Nars
Nars
NARS Cosmetics is a Shiseido-owned cosmetics and skin care company founded by François Nars, make-up artist and photographer.The cosmetics line began with twelve lipsticks sold at Barneys New York. Since then, NARS have created various multi-use beauty products...
, both from Jakobstad
Jakobstad
Jakobstad is a town and municipality in Ostrobothnia, Finland. The town has a population of and covers a land area of . The population density is .- History :...
, which have developed into today's KWH Plast. In 1969, Wiik & Höglund and Oy Finlayson Ab jointly purchased a rival polyethylene pipe company Muovitehdas Oy in Ulvila, becoming a Wiik & Höglund subsidiary in 1986 during a restructuring of the pipe business.
In the 1970s, Wiik & Höglund embarked on several large international projects, later to be formed into the WH Pipe International division. Pipe projects in
Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
and Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
increased the company’s familiarity with these markets. Restructuring and concentration on certain products continued in the 1980s, while the company continued to expand abroad. Factories making polyethylene pipes were set up in Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, and in 1990 in Malaysia and Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
. Industrial piping was added to the production programme when Oy Muotekno Ab, Oy Sul-Mu Ab, Laurolon Oy, Plastilon Oy and the French company Sipap Pipe Systems S.A. joined the Group. As a result of restructuring in the Group, the complete pipe manufacturing was transferred to KWH Pipe, which today accounts for around half of consolidated turnover of the KWH Group.
Keppo
The site of the Keppo mansionMansion
A mansion is a very large dwelling house. U.S. real estate brokers define a mansion as a dwelling of over . A traditional European mansion was defined as a house which contained a ballroom and tens of bedrooms...
has been characterized by small-scale industrial activities for several centuries. With the Keppo rapid
Rapid
A rapid is a section of a river where the river bed has a relatively steep gradient causing an increase in water velocity and turbulence. A rapid is a hydrological feature between a run and a cascade. A rapid is characterised by the river becoming shallower and having some rocks exposed above the...
s providing access to water power, and in combination with the close proximity to the shipping port
Port
A port is a location on a coast or shore containing one or more harbors where ships can dock and transfer people or cargo to or from land....
in Nykarleby
Nykarleby
Nykarleby is a town and municipality of Finland. It is located in the province of Western Finland and is part of the Ostrobothnia region. The municipality is bilingual, with the majority speaking Swedish and the minority Finnish ....
, alderman
Alderman
An alderman is a member of a municipal assembly or council in many jurisdictions founded upon English law. The term may be titular, denoting a high-ranking member of a borough or county council, a council member chosen by the elected members themselves rather than by popular vote, or a council...
Samuel Lithovius recognized a business opportunity for processing timber from the surrounding forests, and setup up a water powered saw mill at the site in about 1740. Subsequent owners developed the site further with a tobacco plantation, spinning mill, pitch works and a linen-, cotton- and textile-mill until 1829 when Keppo was acquired by Carl Otto von Essen.
During the time of Otto von Essen, the sawmill experienced a boom in business. Peter Malm
Peter Malm
Peter Malm was a major ship owner and merchant in Finland in the 19th century, and the father of Otto A. Malm.-Life:...
from Jakobstad, a well-known shipowner and industrialist, became a corporate member at the sawmill in 1840. He financed the sawmill and sold the finished products, while von Essen worked as saw inspector and timber purchaser. In the 1860s, the annual production exceeded ten thousand logs. A fire in 1893 destroyed the sawmill, and no saw mill has been operational at the Keppo rapids since. The von Essen family owned the Keppo mansion until 1899 when Hugo Grönlund acquired it, who then sold it to the Wilhelm Schauman Ab
Wilhelm Schauman
Berndt Wilhelm Schauman was a Finnish industrialist, the most important in Jakobstad at the beginning of the 20th century. He was the older brother of Ossian Schauman. Wilhelm Schauman's first industrial installation was a small chicory factory, which he founded in 1883...
company in Jakobstad
Jakobstad
Jakobstad is a town and municipality in Ostrobothnia, Finland. The town has a population of and covers a land area of . The population density is .- History :...
in 1906.
Viktor Schauman
Viktor Schauman
Viktor Schauman was a pharmacist and notable business person and politician from Jakobstad, Finland. He was married to Elise Wilhelmina Schauman and was the father of the industrialist Wilhelm Schauman and Ossian Schauman, who later created the health organization Folkhälsan.In 1845 he bought the...
(the son of Wilhelm Schauman
Wilhelm Schauman
Berndt Wilhelm Schauman was a Finnish industrialist, the most important in Jakobstad at the beginning of the 20th century. He was the older brother of Ossian Schauman. Wilhelm Schauman's first industrial installation was a small chicory factory, which he founded in 1883...
) bought the Keppo Mansion in 1918, and after a renovation, lived at the mansion with his wife until 1930, when the mansion was again sold. The main building then became an evangelical High School, and was owned by the guarantee association during 1930-1942. After a period as army accommodation during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the house was again bought and restored by the Viktor Schauman
Viktor Schauman
Viktor Schauman was a pharmacist and notable business person and politician from Jakobstad, Finland. He was married to Elise Wilhelmina Schauman and was the father of the industrialist Wilhelm Schauman and Ossian Schauman, who later created the health organization Folkhälsan.In 1845 he bought the...
family, who lived at the mansion until 1954.
In parallel with his activities within the Wiik & Höglund company (see section above), Emil Höglund had been active in mink
Mink
There are two living species referred to as "mink": the European Mink and the American Mink. The extinct Sea Mink is related to the American Mink, but was much larger. All three species are dark-colored, semi-aquatic, carnivorous mammals of the family Mustelidae, which also includes the weasels and...
farming already since 1937, first together with Karl Johan Stuns from Vörå
Vörå
Vörå is a municipality of Finland. In 2011, it was created from the municipalities of Vörå-Maxmo and Oravais. Vörå-Maxmo was created in 2007 from the municipalities of Vörå and Maxmo...
until 1944, and later with Karl-Johan Tidström. Their farming activities expanded rapidly over the following decades and in 1953, the systematic breeding programmes had resulted in a unique mutation, the Finlandia Topaz, which gained world-wide recognition. In 1954, Emil Höglund and Karl-Johan Tidström bought the Keppo mansion with the accompanying 37 hectares of cultivated land and 418 hectares of forest, establishing the company Keppo Ltd. All their mink farming activities were now owned by Keppo Ltd, and a new mink farm was established next to the old mansion. This farm also experienced rapid growth and became the biggest mink farm in the world by 1962. Peak production was reached in the 1970s, when approximately 130,000 skins were produced at the Keppo farm, while the production of all of the Keppo owned farms together were approximately 480,000 mink- and 150,000 fox-skins.
Keppo Ltd (since 1985 KWH Group Ltd) divested its farming activities in 1992, and the mink farm standing close to the Keppo mansion is now leased and is run by an outside proprietor. The Keppo mansion is still used for KWH Group board meetings. Due to its runaway success in mink farming, Keppo also had available cash flow for making investments outside the farming business. Almost by chance, Keppo found itself as a shareholder in Mirka (now KWH Mirka), which is now one of the mainstays inside the KWH Group. Kimo Bruk (founded in 1703), was taken over by Keppo in 1962, and in 1965, Keppo invested in a refrigeration ship to safeguard its supply of animal feed.
In 1966, Oravais
Oravais
Oravais is a former municipality of Finland. It is located in the province of Western Finland and is part of the Ostrobothnia region. The municipality had a population of 2,189 and covered a land area of . The population density was...
Klädesfabrik Ab (founded in 1885) was offered to Emil Höglund. Though the textile business was in decline, the deal went through, owing to the attraction of its assets of some 700 hectares of forest (in an area in which Keppo and Kimo already owned some 2,000 hectares). In 1979 Keppo acquired a majority holding in the Vaasa printing company Oy Litoset Ab.
By the 1970s Keppo had become a company which relied on industry for about half its turnover. The company had appreciable assets in forest,as well as a large holding in Oy Wilh. Schauman Ab
Wilhelm Schauman
Berndt Wilhelm Schauman was a Finnish industrialist, the most important in Jakobstad at the beginning of the 20th century. He was the older brother of Ossian Schauman. Wilhelm Schauman's first industrial installation was a small chicory factory, which he founded in 1883...
. Emil Höglund died in 1973, and when Karl-Johan Tidström died in 1975, the company had lost both its founders. The second generation assumed the mantle of management, and Henrik Höglund was appointed as Managing Director of the Keppo Group in 1975.
KWH Group
The Group proper was formed in 1984, when Oy Keppo Ab purchased the remaining half of Oy Wiik & Höglund Ab’s shares that it did not already own, from the Wiikfamily. Oy Keppo Ab had already purchased half of the company from the Höglund family in 1981. A key driver was the need to shape a new corporate culture for the KWH Group, and to formulate coherent strategies, goals, operating principles and ‘rules of play’.
The conglomerate was restructured in the late 1980s and early 1990s, and several divestitures were made, most notable the selling of approximately 13,000 hectares of forest and the share holdings in Oy Wilh. Schauman Ab
Wilhelm Schauman
Berndt Wilhelm Schauman was a Finnish industrialist, the most important in Jakobstad at the beginning of the 20th century. He was the older brother of Ossian Schauman. Wilhelm Schauman's first industrial installation was a small chicory factory, which he founded in 1883...
, as well as the gradual selling of all activities related to the mink and fox farming business.
According to the new strategy, the Group’s resources were to be focused on developing its core operations, which were defined as KWH Pipe, KWH Plast and KWH Mirka. All other aspects of the operations were gathered together within KWH Invest. In the beginning, KWH Pipe received the lion's share of new investments. A new production facility was opened in 1990 in Portugal, output in Canada was doubled and new and expanded production facilities were opened in Malaysia and Thailand, while operations in India began in 1992 in the form of a joint venture. Additional investments were made in Sweden, Poland and Germany. However, due to changing market conditions, the operations in China, Germany, the US and India have since closed.
A second area of investmen was KWH Mirka, which from modest beginnings now have achieved a leading position, especially in automotive refinishing (ART). In volume terms, KWH Mirka is one of the five biggest operators globally in the coated abrasives sector.
In 1999, Prevex became a subsidiary of the KWH Group following the purchase of additional shares, and in 2003, Prevex became a fully owned subsidiary. In 2003, Oy Prevex Ab was the most important part of the KWH Invest division.
KWH Pipe
KWH Pipe develops, manufactures and markets plastic pipes and pipe systems for industrial, infrastructure and building applications, environmental products, pre-insulated pipe systems and special machinery and production technology. KWH Pipe is an international plastic pipe specialist operating in Europe, Asia and North America, with 10 production units and 5 sales offices.The division specialises in plastic pipe systems for industrial, municipal and building construction application, such as HPAC, sewage and waste water treatment, gas transportation, district heating distribution and cable conduits, as well as domestic waste water treatment plants.
It also develops and markets production technology and equipment, and designs and supplies production solutions tailored to a specific customer.
KWH Mirka
KWH Mirka manufactures coated and non-woven abrasives and electric sanding machines in its locations in JeppoJeppo (village)
Jeppo is a former municipality of Finland, now a village of Nykarleby. The population is about 1,100; 82% of whom are Swedish-speaking.KWH Mirka has a factory here that produces coated and non-woven abrasives....
, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
, Oravais
Oravais
Oravais is a former municipality of Finland. It is located in the province of Western Finland and is part of the Ostrobothnia region. The municipality had a population of 2,189 and covered a land area of . The population density was...
, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
and Karjaa, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
. The core business segments are automotive refinishing and industrial finishing. KWH Mirka exports about 95% of the production mainly to Europe, the USA and Far East.
The product range includes abrasive materials, polishing compounds and sanding machines for different types of abrasive processess in automotive refinishing and production (OEM), the manufacture of composite parts, furniture production, metal processing and for sales via the hardware, paint and machinery trades. Sales are increasingly in the form of systems sales, for which reason the product programme has been augmented by products such as sanding discs, backing pads, sanding and polishing machines, vacuum cleaners and other accessories.
KWH Mirka is one of the global market leaders in its largest business segment, Surface Finishing (including automotive refinish (ART)), automobile manufacturing (OEM) including subcontractors), marine and composite. In the Wood market segment, focus had been on small and medium-sized users. The Power Tools business unit is formed for the manufacture and developing of sanding machines and accessories. The development unit Engineered Surface Finishing develops microproducts for the OEM sector and searches for new attractive market areas.
KWH Logistics
KWH Logistics operates international transports (Freight Forwarding, Backman-Trummer), and is also undertaking port operations and shipping services (Port & Sea, Backman-Trummer Group). Part of the division specializes in cold storage (KWH Freeze).KWH Invest
KWH Plast manufactures films for the food industry as well as films for labels and synthetic paper.Prevex develops, produces and markets complete ranges of drain traps for dish-washing tables and bathroom fittings. Prevex produces the most functional and space-saving drain trap in the world today and is the market leader in Scandinavia and Poland.
Prevex also collaborates with a variety of partners regarding customer-specific product solutions, such as centerings and centering belts to district heating producers in Scandinavia.