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Finnish co sets up facility in Chennai

The Times of India:  September 21, 2011

Chennai: Finnish group Stera, which specializes in production of mechanical and electronic assemblies, inaugurated its factory in Chennai on Tuesday. The factory, set up at a cost of 3 million euros (around $4 million), is its first in India.

"We looked at many locations in India but Chennai emerged as the frontrunner due to its talent pool and also because many of our clients are present nearby," said Heikki Ajanko, president and CEO of Stera Technologies.

The Chennai facility is the company's eighth worldwide. Stera has six factories in Finland and one in Estonia. It also has presence in China through a co-operator. Stera has an annual turnover of $100 million. The company makes products like enclosures and cabinets for telcos, x-ray machines for healthcare companies and passenger boarding bridges for airports, among other products.

The Chennai factory uses only 30% of the total floorspace of about 50,000 square feet at present. The unit employs 60 people, which it plans to double in the next 6 months. Within the next 12-18 months, the company hopes to have 200 employees in the facility. The company will be launching two new product groups in the last quarter of 2011 and hopes to break even within the next 6 months. "Our target is to reach $10 million in annual sales by 2015," said Jyri Kontio, managing director of Stera Engineering (India) Pvt Ltd.

Stera is trying to service clients such as Nokia-Siemens, ABB and KONE and is moving closer to customer locations since exporting from Europe is no longer viable. It will be servicing domestic clients beginning next year. Now, it is servicing clients in Finland.

Stera makes products like enclosures, cabinets for telcos, x-ray machines for healthcare firms and passenger boarding bridges for airports.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.