KESKO CORPORATION PRESS RELEASE 3.11.2006 AT 11.00 1(1)
Rautakesko has established a purchasing office in Shanghai, China jointly with Telko Group. The office started operating in September. The purpose of the office is to find new suppliers and to take care of operations relating to product quality assurance and delivery control. An office of Rautakesko's own will enable the company to capitalise on its increased purchasing power and to gain logistics benefits as well as to make Rautakesko known in the Far East sourcing market which is growing fast.
The Far East countries already hold an important position as purchasing sources of tools and yard and garden products. The role of those countries in the production of other hardware and builders' supplies, especially interior decoration products, is increasingly important, too. Rautakesko aims to use the purchasing office for improving its strategic core competence in purchasing by increasing direct contacts with Far East manufacturers and to make full use of their purchasing power which has grown through internationalisation. Rautakesko's supply chain management and cost-efficiency will also improve and it will be able to promote the principles of responsible purchasing. The plan is to triple direct purchases in the area within the next three or four years.
Telko Group was chosen as partner because it has long experience in operating in the Far East and a ready-to-use operating system. In addition to Shanghai, the company also has an office in Beijing, Hong Kong and HoChiMinh City in Vietnam. Rautakesko will be able to develop the purchasing office operations to meet its needs on a short schedule. For Telko Group, it is important that intra-Group cooperation is developed and synergy benefits are achieved.
In Rautakesko's organisation, the purchasing office is under the Commerce department and has close cooperation with the purchasing organisation in all countries in which Rautakesko operates.
The Shanghai office has currently two people working for Rautakesko, but their number will multiply as the operations evolve. In addition, all other Telko Group people in the Far East offices will be available to support the new purchasing office.
Further information:
Rautakesko Ltd: Vice President Sakari Malka, tel. +358 50 432 7341, Project Manager Jorma Häkkä, tel. +358 50 502 3452
Telko Group / Kauko-Telko Oy: Senior Vice President Jari-Pekka Lehmuskoski, tel. +358 50 556 5000, SBU Manager Merja Räsänen, tel. +358 40 560 5355
Telko Group / Kauko-Telko Oy: Senior Vice President Jari-Pekka Lehmuskoski, tel. +358 50 556 5000, SBU Manager Merja Räsänen, tel. +358 40 560 5355