Jari has over 25 years of commercial and leadership experience within the capacitor films business and has been CEO of Terichem Tervakoski, a.s. since August 2023 where, alongside his senior management team and in close collaboration with customers, he continues to guide the Group’s journey towards sustainable growth and innovation. Here he speaks to ORIENTATE about the major growth drivers and developments within capacitor film markets and the Group’s future growth strategy as it positions itself for significant and sustainable long-term growth.

OR: Tervakoski Films Group is one of the world’s leading manufacturers of polypropylene films for capacitors. For those of our readers who are less familiar with Tervakoski, can you give a brief overview of the Group and its journey so far?

JPN: Our history dates back over 100 years to Finland, where we became one of the first companies in the world to start producing dielectric materials for capacitors. With operations in Slovakia and Ukraine, our growth over the years has led to our established position as a market leader in certain segments, a trusted partner and a one-stop-shop for capacitor polypropylene films.

OR: Jari, you had been with the Group for 23 years before your appointment as CEO in August 2023. How do you think your career prepared you for this role?

JPN: I started with the company on 14th of August 2000, so a long time ago now. My background is commercial so I have dealt with the customers and brought the market point of view to the company, and in most cases, the proposals and ideas came from us, from what I saw and what I felt from the market. I have also spent almost 20 years as a member of the Board, which gave me a whole view of the company. It's been quite a natural step after all those years and having grown within the company, so for me it was quite an easy change. The last two years have flown by very fast, and I have been enjoying almost every day.

OR: The capacitor film industry is notoriously competitive. How would you say Tervakoski Film stands out from other brands? What is the company’s USP?

JPN: When we think about our Group, one thing that is very different to many competitors is that we control the whole supply chain, from the raw materials to the film production and metallising of our own films. We have plenty of competitors who make the film or who perform the metallisation, but they don't have the full chain. In these cases there can be questions over who is responsible for what. In our case, all of our partners know that we are responsible for the products we send out. There are never questions over whether it is a base film problem or a metallisation problem. We look after the quality for the whole chain and this is, I would say, a huge benefit for those heavy duty application areas where we have our main customers. This is one of the things that makes us stand out from our main competitors. Another thing - when it comes to PP dielectric films - is that customers can get all they need from us. Whether they need base films, metallised films, hazy films for the high voltage capacitors or overwrapping films for the elements. Whatever kind of capacitor polypropylene films they need, it is possible to get everything from the one address.

Over time, a company creates its own image on the market and our image is exactly what we want it to be. We would never be the cheapest. We only offer the top quality and we don't compromise on this. A long time ago, when we decided that we were going to stay in Europe, we also decided to target those heavy duty application areas, meaning that we needed to be able to reliably offer the highest quality products. But we are not just talking about the quality of the product, we are also talking about service. Our main partners have been with us for years, meaning that we have been a reliable partner during the good days and the bad days. Just like in a marriage, you have good moments and not so good moments, but you need to get through those times together and we have definitely been successful in that way.

OR: What have the past five years been like for you and other capacitor film manufacturers? What have been the major challenges and opportunities you have faced?

JPN: Back in 2020 when COVID came into the picture, nobody knew what was coming. I remember in the Spring of 2020 we also hit rock bottom in terms of volumes but luckily it was only for three months. Then in the second-half of 2020, things really started to pick up and we started growing dramatically. And since then, luckily, we have been doing the same. So that was a shock because nobody knew what was coming, and after that the terrible escalation in Ukraine came into the picture in 2022, which was the second hit. But to be honest, in this case, I don't care about the business. I care about the 100 colleagues we have over there. We have been extremely lucky, being able to run our factory while this catastrophe has been happening in our neighbour country and what has surprised me every week is how those people have been able to continue, and to surpass our production figures. And not just those - all the figures coming from Ukraine are the best yet. I believe one of the reasons is that they have so many worries back home, about their families, that when they come to work, they have at least a 12 hour shift to forget - just a little bit - those issues and to concentrate on something different. I can't thank them enough for what they have done and for continuing under those circumstances.

So this time of escalation was terrible, and at the same time it also sped certain things up. All countries, not just those in Europe, needed to concentrate on securing their own electricity supplies. One of our main business areas is HVDC (high voltage direct current) smart grids. The main one is wind power and in these big projects we are the global market leader when it comes to the film supplies. These projects are growing in Europe, in China and will also grow in the US once things calm down. One of our main partners is estimating that the next 10 years will bring reasonable growth in this area. I see staggered growth here and events in the Ukraine have also accelerated our main segment growth. So, the last five years have been a rollercoaster for our emotions and for business, both negative and positive at the end of the day. Of course, business-wise we are very happy but we are also worried about our colleagues in Ukraine.

Click here for information on how to subscribe to ORIENTATE