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Customer Relations Means More Than
Just Sales…Says Jorma Lillbacka

This article contains excerpts from an article on Lillbacka Corporation that appeared in “Terästuulet” magazine, Rautaruukki Steel’s newsletter, February, 2001.

   Lillbacka Corporation is well known in Finland for its sheet metal fabrication equipment and hydraulic swaging/crimping machines. Lillbacka has five manufacturing facilities in Finland and one facility in Italy for automated bending equipment. The raw steel component used at Finn-Power is produced by Rautaruukki, Finland. Regardless of Lillbacka Corporation’s modest beginning as a subcontracting company, the company now has 1,300 employees worldwide and has earned a reputation as an innovator in the sheet metal fabrication industry.
 

Jorma Lillbacka
   “In my hometown of Kauhava, there was a small workshop, where as a machine tool operator, I repaired agriculture equipment and also developed some new products. After graduating from vocational college, I switched to another job, and after a few years of employment, I had an inspiration to set up my own operation. We moved to Härmä, which is my wife’s hometown, and we started a subcontracting company in 1969. One of our first customers was the Wärtsilä in Vaasa, which is today the leading global ship power supplier and operates a Nordic engineering steel company. In 1973, I came up with an idea to develop the brand of my own, the hydraulic hose crimping and hose cutting machines.”

Jorma Lillbacka’s strength is the creativity and the innovation of ideas. Since 1973, he has been a leading innovator in the industry. A few years after introducing swaging/crimping machines, Lillbacka came up with another product idea.
 

   “A person told me that he had seen sheet metal fabrication equipment abroad. Soon we started to design one of our own machines. In 1980, Lillbacka entered the world of sheet metal working technology. In 1983, we introduced our first hydraulic turret punch at the EMO trade show in Paris. Today, our equipment is well known throughout the world.”

   Finn-Power’s sheet metal fabrication equipment and flexible manufacturing cells and systems are now the company’s core product line. Our hose swaging and hose cutting machines – also marketed under the brand name of FINN-POWER – have since evolved to capture 60% of the world market.”

Anu Suutarinen and Helena Pitkäranta clear and move the palettes in Lillbacka’s Härmä facility.

MARKETS AROUND THE WORLD
   “It would be much easier to name the industrial countries where we do not yet do business. Our sheet metal fabrication equipment is well known everywhere. Moreover, it also means loyalty and willingness to maintain the relationship. Closing the first sale is like dating. The actual marriage is tied after a few years of business when the practice will determine the value of the relationship. To maintain this relationship, we support our customers by training their employees. In addition, we will help them to get started and will follow up to make sure that everything goes well. Over 90% of Lillbacka’s sales of sheet metal fabrication equipment and hose swaging/cutting machines comes from exports. The largest export areas are the United States and Italy.”

TOMORROW
   Sheet metal working technology, hose swaging, and logistics are the core businesses for Lillbacka. The CEO, Jorma Lillbacka constantly visualizes new things.

   “Certainly we will develop new products and we emphasize for tomorrow. We have listened to our customers over the years and we are continually redesigning and developing new technology to meet the needs of our customers. Currently we are concentrating on full automation. Hunting new ideas and innovation are the best tools for us, also part of what we do as well. What it will bring along? We are not quite sure. But we cannot fall behind…we have to keep moving. I love the town of Härmä and the whole Ostrobothnia region. I have not even thought about moving to Helsinki. I am very happy that I am able to live and work with the people I like and are similar to me. They understand me and I understand them. We do not even need any words to express it. This can be felt and it creates the inspiration.”

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