3.6 savings, million euro
“We were able to reduce the energy costs of the property instantly without tying our own capital to the investments. We can focus our capital resources on our core business: production efficiency and machinery.”
CFO Jere Alaruka, Adara Packaging Ltd
- 3.6 Lifecycle savings, million euro
- 11 000 Area, m2
- 33% Energy savings
Located in Valkeakoski, Adara is one of Finland’s largest producers of corrugated cardboard. LeaseGreen renewed the building automation, ventilation machines and lighting at the production facility. The investments were planned and implemented with a tailored service contract model that includes modernisation of building services technology, investment financing as well as smart control of the renewed system.
“This is a good model for us because the investment threshold was quickly lowered,” explains CFO of Adara Packaging, Jere Alaruka. “Financial negotiations were not necessary and collateral security was used elsewhere.”
According to LeaseGreen estimates, the energy overhaul at the Adara facility reduced the energy bill by about 12 percent and the lifecycle savings will be 2.3 million euros, depending on how energy prices develop. The CO2-emissions were also dramatically reduced.
The project does not affect the Adara balance sheet because the new systems and equipment were delivered as part of a service contract and on a monthly payment basis. Our repair debt was reduced, conditions improved and the value of the property increased.
Adara can redeem the equipment later if it wishes. According to CFO Alaruka, the savings made on energy bills can be used to finance a substantial part of the company’s maintenance investments.
“It’s a great achievement in a very competitive industry. We want to be the packaging industry’s most efficient and flexible company, and a forerunner in the circular economy. Energy economy, environmental friendliness and sustainability are values by which we will be measured as forerunners.”
Adara has 150 employees and its turnover was 41 million in 2016. The corrugated cardboard plant covers an area of 11 000 m2 and has a volume of 75 000 m3.
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