EPCM and EPC in clean transition projects 11.4.2024 Sami Nissinen, Jorma Paananen and Tero Siintoharju. Projects in the clean transition often involve actors who lack experience in managing large and demanding construction projects. However, these projects need to be completed cost-effectively, within budget, and without surprises. EPCM (Engineering, Procurement, Construction, Management) model offers a tested solution for industrial investment projects of varying sizes. In this model, the client employs an EPCM Consultant to assist in all phases of the project. At Fimpec, we are familiar with this type of operation from various projects. The division of labor between the client and the EPCM Consultant can vary depending on the project and the client’s needs, but a typical division is as follows: Client Sets the project timeline and content requirements. Reviews and approves plans in a controlled manner. Participates in procurement negotiations, sets procurement frameworks, and signs procurement contracts. Monitors the project. Fimpec’s EPCM Consultant Develops and maintains the overall project schedule, leads the project. Oversees the creation of implementation engineering documents. Prepares technical and commercial inquiries for procurements, sends out inquiries, receives bids, and provides procurement recommendations to the client. Oversees project equipment and facility deliveries. Maintains project engineering documents. Supervises construction and the construction site. Oversees installation and commissioning. Supervises training. Compiles the final engineering documentation. Expertise and experience at the client’s disposal The role of an EPCM Consultant can be summarized as helping the client in every aspect of the project so that decisions are based on adequate understanding and expertise. This means the consultant must convey what the client does not know and where potential project risks lie. To achieve this, the EPCM Consultant needs expertise in engineering and its subcontracting, scheduling, procurement, as well as construction management and related supervision. At Fimpec, we solve this by utilizing the expertise of our specialists in various areas. This way, we can see things on behalf of the client and ensure that the project progresses according to the plan we have developed together. The importance of procurement expertise cannot be overstated. In industrial projects, the significance of timely and on-schedule procurements is crucial for the project to proceed on schedule. This requires deep experience in both procurement and the industry, not to mention an understanding of cultural differences between procurement countries. What alternative does EPC offer? Especially in wind and solar power projects, EPC (Engineering, Procurement, Construction) model also emerges as a delivery option. Here, the client makes a contract with an EPC Contractor, who takes responsibility for the entirety: engineering, procurement, and construction, and makes their own contracts with subcontractors and equipment suppliers. Thus, the client is in a contractual relationship only with the EPC Contractor, who delivers the facility on a turnkey basis. In contrast, in an EPCM project, the client makes contracts with equipment suppliers and contractors with the help and support of an EPCM Consultant. From the owner’s perspective, an EPCM project is often more clearly defined and therefore more cost-effective solution. However, it’s important to note that the risk of success lies more heavily with the client compared to the EPC model, where risks are generally lower but the price higher due to the contractor’s total risk reservation. EPC projects are also familiar to us at Fimpec, and we are currently involved in the solar park project being built by investment company Exilion in Simo, which is being implemented with this procurement method. We have been involved in the project from the preparatory phase and now act in the implementation phase in an Owner’s Engineering role supervising the EPC Contractor. Practically, we take care of the client’s interests on their behalf. The right implementation model should always be considered case by case Projects vary, and it’s important to note that no specific implementation method is an intrinsic value in construction projects. The starting point for selection should be the objectives set for the project and examine which implementation model best helps achieve those objectives. Thus, it’s not advisable to stick to the first procurement form that comes up but to thoroughly consider the pros and cons of different options for that specific project with its unique characteristics. This is also how we operate in projects where we are involved from an early stage. We offer our experience to the client and together seek the most suitable implementation method for the project to maximize benefits with minimal input. Case-specific consideration is a good starting point for all construction projects, but as construction projects related to clean transition increase, it’s interesting to ponder how the project models presented above function in them. A decisive factor in the choice of delivery options is the complexity of the project and its level of technological novelty. As projects become more complex, the pool of actors and suppliers willing and able to take responsibility for the entirety under the EPC model decreases, or at least the bid price increases to such an extent that the solution may not necessarily be the best from a business perspective. Simplistically, projects that apply established technology, such as solar park projects, are in many cases suitable for EPC deliveries. In these, the construction project’s entirety mainly consists of the solar power system and infrastructure construction and is often so straightforward that an EPC Contractor can be found at a reasonable price. Renewable energy projects at the other extreme, such as hydrogen economy projects, contain very different areas, many of which require both specific expertise and concurrent technological development. For such projects, EPCM is generally a better option as the risk is shared between the client and the supplier. Wind power projects and the emerging hybrid power plant projects fall between these extremes. Based on our experience, they are often so diverse that EPC delivery is not possible at the desired price, while EPCM often provides a viable option for their implementation. Would you like to discuss your construction project and how we can assist in its completion?, Contact us: Sami Nissinen, Business Unit Director, Fimpec Energy Services Phone: +358 40 348 5401 Email: sami.nissinen(at)fimpec.com Jorma Paananen, Business Unit Director, Fimpec Project Management Services Phone: +358 400 347 373 Email: jorma.paananen(at)fimpec.com
Fimpec sells its Subsidiary, SystemTest OÜ, in Estonia 13.9.2023 The sale of the entire share capital of SystemTest OÜ was executed, with Eimer Automaatika OÜ as the buyer, which has demonstrated strong interest in continuing the company’s operations into the future. “SystemTest, in collaboration with Eimer Automaatika, has the capability to sustain and develop its own business. We believe that this strategic decision will create new growth prospects for both companies and enable a strategic focus on our respective areas of expertise,” stated Frans Jokinen, Development Director of Fimpec. Fimpec will continue its determined expansion in the fields of consulting, technical design, and project management. The strategic decision to divest from total automation system deliveries allows Fimpec to direct its core competencies towards advancing the green transition and strengthening its position in the industry. For more information: Frans Jokinen, Development Director, Fimpec Group +358 45 359 4828, frans.jokinen@fimpec.com
Column: Sweden should do like Finland – a new model for faster permits 16.6.2023 Sweden’s energy supply has lost many years of development and is largely stuck in a structure from the eighties. This applies to the power plants, regardless of the technology used, and the distribution network mainly for electricity. Now the state of affairs and the strong need for modernization have come to attention in recent years as the negative effects of an outdated power distribution structure have become increasingly apparent. Lately, however, we have seen many positive initiatives to reduce Sweden’s vulnerable situation. But the process is slow, not least the authority processes with all the necessary permits take time and can easily be delayed. It often takes many years before the first sod is taken. The permit processes follow one another in a variety of steps, where everything can be canceled or be put on hold due to defects in form, because some body puts obstacles in the way or because someone is dissatisfied with the location of buildings, switchgear, power lines and the like. Absolutely reasonable demands to have their views heard and weighed take time. Overall, any changes cost time, cause delays and mean that the calculations don’t hold. Objections for environmental reasons in particular take a lot of time. At the same time, it is greater environmental concerns that drive the demands for changed energy extraction and distribution. The questions are not simple. Being told about something five years later where the conditions may have fundamentally changed as well as the cost of keeping everyone up to date in the process may well seem discouraging. Finland is in the process of introducing a system where the main idea is that it is possible to apply to all authorities in parallel whose approval permit is required. In the past, in Finland as well as in Sweden, it has been required that permission be given by all authorities in turn. Something that has caused there to be many links in the permit chain where potential delays could occur at all levels. The new model means that everyone who is to speak on an issue can do so at the same time and that all objections can be assessed at the same time. Not that the various reasons have to be assessed one after the other in a long line. In Finland, it is also intended that an authority should have the main responsibility for piloting the application through the process, which is also intended to streamline and make everything run both smoother and faster. Then the applicants would be able to decide at an early stage whether it is worth continuing the process to build something and whether one should invest instead in some alternative solution or completely abandon the efforts to get something done. In Finland, the hope is that most things can be managed via a contact in the world of authorities. Should authority processes take one or five years? Let’s embrace Finland’s initiative – for the sake of the environment. Anders Hallgren CEO of Fimpec Sweden The article was originally published on the NyTeknik website in Swedish. » Read more
Fimpec grew strongly in 2022, driven by industry and energy sectors 6.4.2023 During the financial year, demand was exceptionally strong and thus the volume of operations and the Group’s headcount grew significantly, both organically and through M&As. The personnel grew by 45 per cent, from 268 people to 389. Fimpec Group’s EBITDA rose to EUR 3.0 million (EUR 2.0 mill. in 2021). The relative EBITDA margin was 7.4 per cent, which was below the normal level for the sector. Reasons for this were the investments related to the business growth and the proactive recruitment process. During 2022, we completed the purchase of Byggnadsekonomi Oy and Byggnadsekonomi Ab stocks and the acquisition of Chemitec Consulting Oy’s business. Fimpec also expanded its operations in Sweden. In 2023, the turnover is expected to rise clearly to more than EUR 50 million, and profitability is expected to improve considerably. In March 2023, as many as 420 people worked in the Group. For more information, please contact: Jukka Nieminen, CEO, Fimpec Group Oy tel. +358 40 557 4547 or jukka.nieminen(at)fimpec.com
Fimpec partners in the development of Carbonaide, a technology for producing carbon-negative concrete 23.3.2023 Concrete production accounts for some eight percent of global carbon dioxide emissions, and there is increasing interest among companies in the industry to decrease emissions. That is why Carbonaide, a technology for producing carbon-negative concrete developed by VTT, has attracted major interest. The solution is based on an effective carbonation method that allows carbon dioxide to be bound into concrete blocks using an automated system at atmospheric pressure. “The method is compatible with the current concrete manufacturing processes. It can be used for manufacturing all precast concrete elements and products,” says Tapio Vehmas, leader of the Carbonaide team at VTT and currently a staff member at the start-up company. “Emissions can be reduced while using cement as a binder, which is the standard practice, but the method also enables replacing cement with material from industrial side streams, such as blast furnace slag, green liquor dregs and bio-ash. Using these new material streams results in a product with a negative carbon footprint.” Fimpec’s contribution visible in the pilot plant The Carbonaide method was tested in 2022 in Rakennusbetoni ja Elementti Oy’s production in Hollola using a pilot plant built in two industrial containers. According to Vehmas, Fimpec had a major role in the engineering and commissioning of the pilot plant. “When the project proceeded to the pilot stage, I sent requests to engineering companies concerning the implementation of the plant. Fimpec contacted us, we started co-operating and set out to jointly work out how to realise the pilot plant, starting from my initial sketches. Later on, Fimpec arranged a competitive tender with subcontractors and helped us budget and actually build the pilot plant,” Vehmas says. “From our point of view, this was a very interesting project and we genuinely wanted to be a part of it. It is really exciting to be part of developing a new technology that can help globally decrease carbon dioxide emissions and mitigate climate change,” says Tomi Vainio, Head of Operations at Fimpec. Carbonaide progressing towards commercialisation Since the pilot testing in 2022, development of the Carbonaide method has continued based on the lessons learned. A start-up company now continues the work to commercialise the technology, with support from the VTT LaunchPad business incubator. “The technology has been proven effective and economically viable. The goal is to sell carbon-binding concrete at the same or even a lower price than existing concrete products. The details have been fine-tuned, and we have shifted the focus of the technology away from the materials and developed the process from a commercial angle. Thanks to these changes, the method is now more scalable,” Vehmas says. In addition to concrete products, the solution has potential markets in CO2 emissions trade. The emerging company’s business idea also includes receiving CO2 from emissions trading platforms and using it for the benefit of the technology. The binding of CO2 therefore also opens up an additional market for the company. The positive future outlook is validated by several contacts from across the globe. Carbonaide also won first prize in the European Association of Research and Technology Organisations’ (EARTO) Innovation Award in the Impact Expected category in October 2022. “The farthest contacts have come from New Zealand. What surprised us is that some of the concrete producers who have contacted us were aware of the possibilities of carbonation in binding CO2, but there has been no working technology available,” Vehmas reveals. He says Fimpec continues to work with Carbonaide to develop the technology: “They have become our trusted partner.” (In the photo above pilot plant during commissioning) For more information, please contact: Tomi Vainio, Head of Operations, Jyväskylä Engineering, Fimpec Energy Services Tel. +358 40 7027 777 or email tomi.vainio@fimpec.com Tapio Vehmas, CEO, Carbonaide Ltd Tel. +358 40 591 1589 or email tapio.vehmas@carbonaide.com
Fimpec Group has grown as a partner to its customers into a workplace that attracts top talents 14.3.2023 “Fimpec’s role in its customers’ incredibly interesting projects is sparking interest among specialists and job seekers in the industry. Our projects reflect the importance of the latest developments in technology, the green transition and sustainable growth,” says HR Director Erica Kraufvelin-Lämsä of Fimpec Group. In 2022, Fimpec Group’s personnel grew by approximately 140 people. Most of them, about 100 people chose Fimpec as their new employer, and the others joined the company through M&As.. “Demand for our services has grown and diversified in recent years. Building on that trust, we want to renew our services and grow into new areas of expertise. Expanding and deepening our expertise and successfully recruiting specialists in different fields are the key drivers of Fimpec’s growth,” stresses Kraufvelin-Lämsä. Seeking experience and a burning desire to think outside the box Fimpec has been part of industrial projects in various sectors for more than five decades now. In our teams, we value both in-depth experience of technically and qualitatively demanding projects and new competence. “Even now, our engineers are working on a process conversion at a paper mill in Oulu, and we were part of the conversion engineering for that mill already back in the 1990s and again around two years ago,” recounts Jukka Nieminen, CEO of Fimpec Group. In industry, new solutions are being sought from the perspective of economy, climate impacts and energy efficiency. Fimpec’s versatile know-how and services ensure the development of new solutions. “We engineer and execute solutions that bring together the aforementioned perspectives. We therefore believe that we are helping to build a structure between a sustainable economy and a living environment together with our customers,” adds Nieminen. The energy transformation is moving at an increasingly fast pace Fimpec’s customers operate across industrial sectors and in energy and related sectors. One thing they all have in common is that they are operating within the energy transformation. “Our customers are trying to predict and find new solutions while implementing their current projects related to the green transition. At this pace, they need even more support to find the right direction and to make, plan and carry out their investment decisions. We are responding to this demand company-wide, through all our services, but the most recent developments relate to our Fimpec Energy Services and Fimpec Consulting Oy services,” explains Nieminen. Expansion to international markets continues Fimpec’s service offering and competence development have always gone hand in hand with working with customers in international projects. “Nowadays we are building our global reach in many ways: we continue to be closely involved in our customers’ projects. In addition, Fimpec Node Oy is building its international network in Finland and abroad. We have a presence in Sweden and Estonia through our subsidiaries. We are a true international growth company,” says Kraufvelin-Lämsä. Diversity promotes development that propels us forward Offering consultation, engineering and project management services to various industrial and energy-sector operators in Finland and abroad, Fimpec also has a diverse corporate culture. “With so many fields of expertise, it means we have a lot of different people with diverse perspectives and opinions. This came to light in a survey of our corporate culture in autumn 2022. We are a diverse, developing company whose employees value an exchange of opinions and learning,” says Kraufvelin-Lämsä. She believes that diversity promotes development, which also attracts new experts to Fimpec: “In just the first two months of this year, we have already recruited 26 new specialists to our teams. Read more about our roles, services and customers at fimpec.com. But most importantly, get in touch with us – we are more than happy to discuss your future work at Fimpec with you,” says Kraufvelin-Lämsä. ( In the photo above Mila Viksilä, who is already the 400th Fimpec employee! She started in early 2023 as a BIM and cost accounting specialist. » Check out our current vacancies here and see to contact accordingly!
Fimpec Energy Services – a response to strong demand driven by the energy transition 12.1.2023 Fimpec’s customers represent a wide array of players in the energy sector, from electricity distribution companies that invest in networks as a response to a significant increase in renewable energy generation to startup companies that develop and implement new energy generation and storage solutions. “In between these, there are a number of active industrial, infrastructure and real estate players engaging in the various stages of the energy transition, aiming to switch over to new, cleaner solutions in their production,” says Sami Nissinen, Head of Operations of Fimpec Energy Services as of 3 January 2023. In addition to ambitious targets, the energy transition is accelerated by the rapid development and adoption of new technologies A crucial aspect of the energy transition is electrification, i.e. the shift from fossil energy to electricity generated from renewable sources. The electrification of heat production calls for new technologies. Combustion-based heating methods are giving way, for example, to electric boilers, heat pumps and geothermal energy. “Our customers have introduced new solutions and technologies in their new and existing plants at an increasing pace. In these projects, we provide our customers with comprehensive assistance, from feasibility studies all the way to implementation, depending on their needs,” says Nissinen. Finland is on the cutting edge of developing the hydrogen economy – Fimpec is involved in the first projects Hydrogen produced with renewable energy, i.e. ‘green hydrogen’, makes it possible to reduce emissions also where direct electrification is not possible. Hydrogen also offers the possibility of storing surplus electricity, for instance, as synthetic fuel that can be used to balance variations in electricity and heat consumption and production. “Our expertise in the field of hydrogen economy is compelling, but we are proud to say that the projects are so recent and new that we are constantly learning new things. This comes from being on the cutting edge together with our customers,” Nissinen says. Demand for energy services is exceptionally high Energy issues cannot be construed as a distinct area because they strongly brand the decisions of industry, construction and infrastructure customers alike. “The need for energy expertise concerns us all. By deepening and expanding our knowledge we can both find solutions to specific issues and offer our strong energy expertise to all our customers through the entire Fimpec organisation,” Nissinen says. Dedicated expertise in keeping with the energy industry’s pace Susanna Vähäsarja, Engineering Manager, Energy Engineering for the energy unit, develops the energy business together with Nissinen. According to her, the new unit’s personnel have an in-depth understanding of the energy sector. “Assignments related to the energy transition are already keeping dozens of people busy at Fimpec. We constantly have several vacancies in the field of energy engineering. It is my job to offer the best talents in energy engineering excellent working conditions and the most interesting projects”. Fimpec Energy Services responds to the needs of energy sector customers “While public debate revolves around the themes of green transition and hydrogen economy, our customers are facing great pressure to implement projects related to the energy sector transition. We want to support this transformation with Fimpec Energy Services. Our goal is to grow organically into a unit with a staff of more than 100 over the next two years, with possible acquisitions speeding things up,” says Fimpec Group’s CEO, Jukka Nieminen. For more information, please contact: Jukka Nieminen, CEO, Fimpec Group tel. +358 40 557 4547 or jukka.nieminen(@)fimpec.com Sami Nissinen, Head of Operations, Fimpec Energy Services tel. +358 40 348 5401 or sami.nissinen(@)fimpec.com Susanna Vähäsarja, Engineering Manager, Fimpec Energy Services tel. + 358 40 348 5664 or susanna.vahasarja(@)fimpec.com Fimpec is a leading specialist in project management and engineering. We act as project consultants in major investment projects in the industrial and energy sectors, and as experts in the real estate and infrastructure sectors. Our turnover in 2021 was €30.3 million, and we employ more than 350 top experts in Finland and abroad.
Fimpec to carry out implementation engineering for Stora Enso’s billion-euro investment to convert a paper machine into a consumer board production line in Oulu 20.12.2022 In October, Stora Enso announced a decision to invest approximately EUR 1 billion to convert the idle paper machine at the Group’s Oulu site into a high-capacity consumer board production line. Stora Enso and Fimpec have now agreed on the implementation engineering concerning the project. The commission includes process and plant engineering, pipeline engineering, process electrical engineering, building electrical engineering, and instrumentation and HVAC engineering. “For us, this is a major transaction, one of the biggest ever. It will provide work especially for our Kouvola location’s personnel over the next year and a half,” says Harri Soininen, Fimpec’s Director of Engineering Services. Fimpec is well positioned to carry out the commission. Fimpec carried out pre-engineering prior to the investment decision, which means that the company is familiar with the project and the environment. Furthermore, Fimpec has a long history of co-operation with both Stora Enso and the Oulu site. “We were in charge of implementation engineering and construction services when Oulu Mill’s other paper machine (PM7) was converted into a kraftliner production line in an investment completed in 2021. We also have previous experience with the mill and its machines, since in the early 1990s, we were involved in the engineering project of the paper machine now being converted and, at the end of the 1990s, also for another paper machine that was converted earlier,” Soininen explains. 750,000 tonnes of consumer board per year The ongoing investment supports Stora Enso’s growth strategy in renewable packaging by providing new volume for growing packaging segments. The line will be used for producing folding boxboard (FBB) and coated unbleached kraft (CUK). The total annual capacity will be 750,000 tonnes. The boards’ end-use segments are food and beverage packaging, especially frozen and chilled, and dry and fast food. The investment will create approximately 300 new jobs at the Oulu site, including support functions, as well as an additional 1,500 indirect employment opportunities. The new line will consume approximately one million cubic metres of pulp wood per year. Production on the converted machine is estimated to start in early 2025. (Photo: Stora Enso) More information on Fimpec’s participation in the project and our services Harri Soininen, Director, Engineering Services, Fimpec Tel. +358 40 552 5814, harri.soininen@fimpec.com Information on the project on Stora Enso’s website » Stora Enso invests in conversion to accelerate growth in renewable packaging Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, wooden construction and paper, and one of the largest private forest owners in the world We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has approximately 22,000 employees and our sales in 2021 were EUR 10.2 billion. Fimpec is a leading specialist in project management and engineering. We act as project consultants in major investment projects in the industrial and energy sectors, and as experts in the real estate and infrastructure sectors. Our turnover in 2021 was €30.3 million, and we employ more than 350 top experts in Finland and abroad.
Fimpec expands into minerals and battery chemicals by acquiring Chemitec Consulting Oy’s business 5.12.2022 Founded in 1986, Chemitec Consulting Oy is an engineering firm that provides consulting and engineering services and is specialised in chemical engineering, process design, energy industry, environmental technology and minerals processing. The company has seven employees, representing five nationalities. “With this acquisition we reinforce Fimpec’s internationalisation. Chemitec is already a very international company, and the acquisition of its business is well-suited to our internationalisation strategy,” says Fimpec Group’s CEO, Jukka Nieminen. “This is a highly skilled company that will also expand our operations into new areas. The acquisition brings us entirely new expertise and a foothold in minerals processing and chemical engineering, not to mention reinforces our already growing energy industry operations,” adds Fimpec’s Director of Development, Frans Jokinen. All of Chemitec’s current customer commissions and contracts will continue as normal after the transaction is concluded. At the same time, Fimpec’s project management and engineering services will be available to Chemitec’s customers. As part of the business acquisition, six employees will transfer to Fimpec Node. Chemitec’s CEO Luis Rudolphy will be appointed to an executive position within Fimpec Group’s global sales. “For us, this was about taking the next step. In joining Fimpec, we become part of a larger group, which opens the door to being involved in larger commissions where we can apply our expertise. This transaction offers a clear backing for international growth,” says Rudolphy. (In the photo above from left: Frans Jokinen and Ana Reinbold of Fimpec, Luis Rudolphy, Erlin Sapei, Pelin Altinkaya and Michael Haas of Chemitec, and Carolina Blanco and Saurabh Dwivedi of Fimpec.) For more information, please contact: Frans Jokinen, Director of Development, Fimpec Group tel. +358 45 359 4828, frans.jokinen@fimpec.com Luis Rudolphy, CEO, Chemitec Consulting Oy tel. +358 40 197 2323, luis.rudolphy(at)chemitec.fi Chemitec Consulting Oy is an engineering company specialised in chemical engineering, process design, energy industry and environmental technology. We offer consultant and engineering design services in projects of all scales. The company had net sales of EUR 1.5 million in 2021, and has an international team of seven employees. Fimpec is a leading specialist in project management and engineering. We act as project consultants in major investment projects in the industrial and energy sectors, and as experts in the real estate and infrastructure sectors. Our turnover in 2021 was €30.3 million, and we employ more than 350 top experts in Finland and abroad.