From reparations locomotives to green transition technology

Today, Saalasti offers products and services for processing and increasing the value of biomass, processing ­recyclable material flows and rail transport.

One of the Group companies, Saalasti Biomass, manufactures machines that convert logs, trunks, bark and other biomass into high-quality fuel or raw material that can replace fossil fuels.

“We are developing technologies that accelerate the phase-out of fossil fuels. We feel that it is important to do the right thing. Being involved in the green transition is a value choice, but it is also profitable for business,” says Tomi Saalasti, CEO of Saalasti Oy.

In 2021, Saalasti ­acquired Cross Wrap, which operates in the circular economy. “We wanted to be more strongly involved in the circular economy megatrend and we also wanted a third business area for our company that is not tied to biomass and rail traffic,” explains Tomi Saalasti, who joined the family business at the time.

Climate change has propelled Saalasti’s success, but the company has developed environmentally friendly technology before climate change was mentioned: the bark press that was launched in 1980 and converts wet wood bark into fuel is still one of Saalasti’s leading products.

“Wet bark is waste that the pulp mill cannot use, but when water is squeezed out of it, it turns into a renewable energy source that can replace fossil fuels,” Saalasti describes.

_{The bark press dries wet wood bark and converts it into renew­able fuel that can be used by pulp mills.}

From father to son

Saalasti Group aims to double its net sales of EUR 40 million over the next five years. The high aims force the company to rethink its operations.

“Without renewal, we cannot expect our net sales to double, so we need to develop. There are still huge opportunities, in particular, in the utilisation of biomass. Recycling and the circular economy are also strongly growing industries,” Saalasti says.

Saalasti has doubled its net sales also before, in 2018–2023, when the biomass business saw a strong upturn. In addition, it acquired the circular company Cross Wrap, which was a good fit for the Group's green transition business.

At the same time, Tomi Saalasti became the Group’s CEO. Before that, the family business was led by his father Timo Saalasti, who is still Chairman of the Board of Directors of Saalasti Oy, but has not been involved in the operations for a long time.

It was clear to Tomi Saalasti that he would continue to lead the family business. Before that, he gained experience outside the company at a technology start-up.

“Being able to continue the family company's story has always been an honour and a goal for me. I have been involved in the company’s operations since upper secondary school when I did my internship here,” he says.

_{Warehouse manager Petri Hannonen is responsible for ensuring that customers receive their spare parts on time.}

The fourth generation is at toddler age

Saalasti was founded in 1945 by Tomi Saalasti’s grandfather, who began buying war reparation locomotives in the 1950s, converting them to the Finnish conditions and selling them to industry.

“My grandfather Tapio Saalasti was a creative person and an inventor. Saalasti Oy was born out of his passion for developing and inventing things. Saalasti Rails continues to manufacture products for the needs of rail traffic.”

Tomi Saalasti is only 35 years old, but hopes that his own children will continue Saalasti’s story in the future. The potential fourth generation of Saalasti managers is still at toddler age.

“I take my children with me to the office, factories and events from a young age, but they have to find their own motivations,” he says.

Country companies close to the customer

Saalasti’s story began with locomotives and continued with biomass, but without the courage to enter the international market, the company could not have grown to its current size. Saalasti operates in narrow specialist sectors, whose markets are very limited in Finland.

“Our technology meets challenges that are pretty similar all over the world, so we have a lot of customers abroad,” explains Tomi Saalasti.

Saalasti has established its own subsidiaries in the most important market areas. It has subsidiaries in Sweden, Canada, Chile and Spain.

“We need to be close to our customers, speak their own language and respect local culture in order to serve them best.”

Nowadays, Saalasti is a medium-­sized company, but it was still small when its international story began in the 1980s with the export of bark presses to North America, Russia and Sweden by Timo Saalasti.

“Even more important than the size of the company is the excellent, even superior, mastery of an important technology. When planning international operations, the focus should be clear, and you should not try to sell everything everywhere, but instead, concentrate your resources wisely,” Saalasti advises.

_{Saalasti’s products are used to process various biomasses that can replace fossil raw materials.}

Face-to-face meetings are important

International operations also involve challenges, such as clear and unambiguous communication. Finnish culture differs quite a lot from Southern European or South American culture, for instance, and things are not always understood in the same way.

Although the country company is managed locally, Tomi Saalasti visits each location at least once a year to meet local managers and employees face-to-face.

“Remote meetings are not enough; people should definitely meet face-to-face,” he explains.

According to him, the advantage of a family business is that the owner has a face, which is also appreciated by employees and international customers. In many cultures, it is important that the owner is present in the operations. Saalasti likes that. He wants to be genuinely present for his employees and customers.

“In Spain and Chile, for example, the Finnish management and work culture is an asset for our company, as we care about the employees and have less hierarchy.” 

Milestones in the family business

1945 Tapio Saalasti founded the company

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1950slocomotives as the main ­product

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1980s Timo Saalasti becomes CEO, operations expand to biomass processing

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1981 exports to Canada begin

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2013 subsidiary in Sweden

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2015 subsidiary in Canada

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2016 subsidiary in Chile

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2019 subsidiary in Spain

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2021 Acquisition of Cross Wrap, expansion to circular material flows

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Tomi Saalasti becomes CEO

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