Norcar has entered into a strategic partnership with the global company CNH Construction. Norcar is a Finnish, Nykarleby-based company experiencing rapid growth; sales are increasing sharply, and the company is planning an extension of its factory.
Norcar and CNH Construction have entered into an extensive strategic partnership. From next year, the Nykarleby-based company will produce compact loaders also under the CNH brands CASE and New Holland Construction.
”This is an exciting and important milestone for us in our long-term growth strategy,” says Lotta Lindén-Svarvar, CEO of Norcar.
The partnership offers benefits to both companies. When it comes to machines in the weight class above four tons, CNH Construction’s machines will complement Norcar’s current product range.
Norcar continues to develop its own brand
The collaboration does not mean that Norcar will stop investing in its own products. On the contrary, the company will continue to develop, manufacture and sell compact loaders under its own brand.
Norcar has invested heavily in product development for a long time to meet customer needs, and these efforts will also continue.
The company has already established an extensive international dealer network, which is now becoming even stronger through its collaboration with CNH Construction. In Finland, the dealer Hankkija will continue to represent Norcar.
Strong growth
Norcar is already growing at a good pace. Last year was characterized by growth, and by the end of August this year, turnover had increased by around 40 percent compared to the corresponding period last year.
Further growth is expected as a result of the new production volumes. In the long term, Norcar expects to need to hire more designers and fitters. Currently, the company employs about 55 people in Finland and just under 40 in Estonia.
The factory will be extended
To enable growth, Norcar is planning to expand its factory at Fabriksgatan 7–9 in Nykarleby. There is space on the site and trees have already been felled to allow for the future extension.
The exact design and size of the extension has not yet been decided. The company is currently working on the factory layout while also considering the stages in which the expansion should be carried out.
”Soon it will be time to apply for a building permit. We want to build the extension next year and have it ready by autumn at the latest,” says Lindén-Svarvar.
Sights set on the world
Traditionally, Norcar has been strongest in the Nordic markets and Central Europe. Now the company is setting its sights on the global market. In October, the company will participate for the first time with its own brands at a trade fair in the United States.
In the long term, the collaboration with CNH Construction could also open the door to a significantly larger international dealer network. The CNH Group is a global player with around 35,000 employees and sales in numerous markets.
New ways of working
The collaboration gives Norcar access to CNH’s purchasing channels. In the long run, this could also provide better purchasing conditions through lower pricing and more favourable supplier agreements.
However, a large company does not operate in the same way as a smaller one, and cooperation with an international industrial group also entails changes in Norcar’s working methods.
”Among other things, it places higher demands on technical specifications and the documentation of various processes,” says Lindén-Svarvar.
Norcar is also currently working intensively to digitize and automate its systems and processes.
Norcar manufactures compact loaders and various types of attachments. The company’s award-winning machines are used, for example, in agriculture, construction and material handling, green space maintenance, property maintenance and municipal operations.
| This article is part of a series about companies undertaking world-class product development in Ostrobothnia. Partners: |
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