May 30, 2007

Ensto and Onninen sign a significant cooperation agreement

Ensto Building Technology and Onninen have signed a very significant cooperation agreement in order to deepen their collaboration. The agreement contains a cooperation model for the operations between Ensto and Onninen in the retailer customer segment in the joint main markets.

In the agreement, the sales, marketing, sales promotion and distribution of Ensto's retail products are agreed upon. The aim is to increase sales and make operations more effective. With regard to the future, the agreement forms a basis for cooperation and speficies the tasks and responsibilities of both parties. The joint main markets that the agreement comprises are Finland, Sweden, Norway, Russia, Latvia and Lithuania. The cooperation will commence in phases in different countries.

Localized product ranges

In order to implement the agreement, action plans which include product ranges and actions, are being composed for each country. Onninen and Ensto headquarters in Finland  will direct and coordinate the plans. The store concept, of which implementation the Onninen is responsible for, is an important part of the Ensto retail product strategy. Onninen will take care of the product training in the stores, whilst Ensto will be resposible for the training of the Onninen personnel.

Basis for future growth

"We have been cooperating well with Ensto for a long time already and this agreement is therefore a natural result of this cooperation. Deepening our cooperation will bring us more possibilities and I am eagerly waiting to see what the future brings.The agreement is also a demonstration of the mutually achieved trust", says Marko Harju, a Product Manager of Onninen."It is remarkable that we were immediately able to sign an agreement that concerns almost all of the operating countries of Onninen. The agreement will certainly help the internationalization of the retail sales operations of both Onninen and Ensto", continues Marko Harju, who is clearly very excited about the signed agreement.

"The signed agreement makes it possible to take the DIY concept to the joint main markets. The operations are clearer now and we have made a good model to be able to achieve the joint growth objectives", says Thomas Markusson, a Sales Manager in Ensto. 
"The good and open cooperation in Finland has made a strong joint growth, and the Enstro Brand visibility in the hundreds of stores between Helsinki and Rovaniemi, possible. The basic model is now ready and through the action plans, it gives us a joint advantage with regard to marketing, sales promotion and distribution. The cooperation that is in accordance with concept has been started in Sweden and we will be able to see the results already in the fall", adds Thomas Markusson.

Further information:

Onninen Oy
Marko Harju, Product Manager, tel. +358 (0)204 85 4265
Heikki Pusa, Director,  tel. +358 (0)204 85 5437

Ensto Oy
Thomas Markusson, Sales manager, tel. +358 (0)40 528 4797

Onninen provides comprehensive materials services to contractors, industry, public organisations and technical product retailers. We are a family-owned company and have operated in the industry since 1913. We have 2,984 employees in our Finnish, Swedish, Norwegian, Polish, Russian and Baltic operations. Our net sales for 2006 totalled EUR 1,45 billion

ABOUT Ensto Group
Ensto is an international industrial group and family business specialising in the development, manufacture and marketing of electrical systems and supplies, which are essential both to the distribution of electrical power and everyday electrical applications. They are present in domestic electrical installations, public premises and businesses, lighting solutions and various high-tech control and monitoring systems.
Ensto employs approximately 1,400 staff in 18 countries across Europe and Asia. Its net sales amount to approximately EUR 210 million. Ensto aims at being a reliable professional partner, known as a force for innovation in the field.