In the last 30 years, Telko has expanded to a truly international company, serving some 7 000 customers in over 30 countries. What’s more, the company has feet on the ground, with a service infrastructure in place, already in 18 countries.
The latest additions have been the acquisitions of Swed Handling in Sweden and Polyma Kunststoffe in Germany as well as establishing a presence in India for the development, marketing, distribution and technical services, starting with plastic applications. Telko has also extended its lubricants business to The Netherlands, Belgium and France by acquiring Optimol.
Petteri Martikainen, Vice President of Plastics at Telko, sees that Telko’s international network provides concrete, everyday benefits for customers.
”First of all, reliability – in a distant market there is already a partner the customer knows and has a confidential business relationship with. This helps avoid pitfalls, for example, with compliance issues and code of conduct matters. Telko can also help with raw material flows and procurement in new markets if the customer needs to expand or diversify their own operations.”
Another clear advantage of Telko’s international reach is pure convenience.
”When a customer can work with the same partner in several market areas, they don’t need to find a new one. They can negotiate issues covering several countries at once and make a broader agreement with the partner. This reduces the customer’s workload and makes their business easier.”
When entering a new market, a customer's first steps are often cautious and small. At this pivotal stage, a strong partner demonstrates genuine interest in the customer’s new business area or country
”Our customer receives the service level of a major customer right from the start in that new market – because the relationship is managed as a whole. Other benefits include speed and flexibility. Telko already has expertise in logistics, compliance and regulations, so if production needs to be moved to a new country, it is easier and faster when the partner already has the infrastructure in place.”
The reliable availability and delivery of materials in several countries enables Telko to serve large, international companies. Sometimes a wide network can be the decisive factor in solving a customer’s challenge.
”During Covid and even after, international logistics chains experienced major disruptions, which caused global shortages of several supplies. When a partner can operate in several markets, volumes can be shared, the overall picture monitored and management agreed more easily. If raw material shortages force allocation of volumes, it is possible to consider where they can be sourced and in which production facility they are optimally used.”
The R&D efforts of Telko’s large customers are often concentrated in the Nordic countries or Germany. However, Telko also operates in more production-oriented countries.
”In many countries, such as Denmark, we can be involved in product development from start to finish – from the idea stage together with their R&D unit to material deliveries. Customers don’t need to worry about how deliveries will work in, say, China, because we can handle it all the way. This is a very important part of our business logic: being able to collaborate efficiently across continents.”
While international reach is essential, solving problems with local resources is equally critical. A strong local presence brings the insight and expertise needed to operate effectively on the ground.
”For example, in China it is certainly very important to operate in the local language. Otherwise it would not be possible to manage delivery times and logistics issues. But it’s not only about language – practices, procedures and legislation differ between countries. We must understand the local way of doing business in order to operate in the country.”
Another major advantage for customers or principals is that they don’t need to build their own presence. For them, it is cost-effective to use the resources Telko already has in place.
”For example, if a plastics customer in China has technical issues with injection molding, Telko’s representative can go on site or bring in the principal. This way we can solve problems locally without the customer’s technical expert having to fly in from Europe. Many companies have reduced their own presence and operations especially in distant markets, as maintaining local staff is expensive. A reliable partner can serve as the support.”
How will the plastics segment develop? Petteri Martikainen sees some very recognizable market trends.
”Sustainability is certainly one of the trends. There is a need for discussions between customers and suppliers, and a company such as Telko can provide customers with knowledge and a broad range of solutions as well as support their implementation. This will likely require work for years, perhaps even decades.”
The development of new materials is guided by the customers’ objectives, among them the need to reach sustainability goals.
”Telko is fortunate to have strong principals with the resources and expertise to develop new product solutions to meet customer needs. Our role is to present these solutions and help with their implementation, because they may involve technical or regulatory challenges.”
Another notable tendency is the continuous growth of distributors’ share of the total market volume.
”This means that producers – chemical plants and manufacturers – are relying more strongly on the market and technical expertise of distributors. For distributors, this brings certain resource and competence requirements that must be addressed. On the other hand, it grows our overall market.”
In Engineering Plastics, changes in the global supply chain play a significant role.
”In today’s world, reactivity and flexibility in operations are needed to respond to the constantly changing global market and to continue operating successfully. We at Telko believe that strategic partnerships are the solution to many challenges in an environment that has changed very strongly in recent years and is likely to see further volatility.”
Telko intends to continue expanding internationally in Europe but not excluding establishing a presence in the United States or new Southeast Asian markets.
”We are constantly exploring opportunities, but expanding the geographical network is not a goal in itself. There must be a business logic to expansion, and we want to listen closely to our customers’ and principals’ needs.”