Succeeding success of LPM Group

Notification of Contract Awards for heat substations rehabilitation project (KIBA/SI-05/03) in Kiev, financed by World Bank, are now sent to winners. It is the second competition (excluding pilot competition for 30 substation in year 2000) under the Kiev District Heating Improvement Project Loan and the second time when LPM Poland is nominated as one of the winners.

Succeeding success of LPM Group

Notification of Contract Awards for heat substations rehabilitation project (KIBA/SI-05/03) in Kiev, financed by World Bank, are now sent to winners. It is the second competition (excluding pilot competition for 30 substation in year 2000) under the Kiev District Heating Improvement Project Loan and the second time when LPM Poland is nominated as one of the winners.

Last year LPM Poland has been notified as a winner of LOT #3 for project KIBA/SI-02/02 to supply 115 substations amounting over 900.000€, this year LPM Poland has been chosen as a supplier of 125 substations for the total amount over 700.000€.

Project loan was signed on October 15, 1998 by His Execellency Yuriy Scherbak, on behalf of the Government of Ukraine, and Mr. Paul Siegelbaum, Country Director for Ukraine, on behalf of the World Bank. The US$200 million project loan, approved in May 1998, is to replace and increase heat production capacity in Kiev, to meet existing and expected future demands of district heating (DH), to introduce modern technologies and materials to extend the life of the Kiev district heating system and to promote sound cost recovery policies and practices.
Total project cost, including contingencies, is US$308.9 million, of which the World Bank is contributing US$200 million. The European Bank for Reconstruction and Development will contribute US$40 million, Kievenergo will contribute US$54.2 million, and the Kiev Municipal DH Company will provide US$14.7 million. The project consists of: heat production capacity improvement, DH rehabilitation and institutional support.

Mr. Valery Deineko (Director of Project Implementation Unit for the Kyiv Public Building Energy Efficiency Project - Kyiv City State Administration) says it has been hard work, both to fulfil all the paper" requirements of World Bank and to prepare the technical information and documentation for the bids. Finally, at the beginning of year 2002 for the first time tenderers were invited for submitting their bids. The second invitation was at the end of the same year. So far, almost a 700 of substations (mostly in schools, kindergartens and hospitals) were selected to be replaced.

When in year 2002 LPM Poland has been preparing to participate for the first time in Kiev DH Rehabilitation Project, only two advices were given by Mr. Pertti Ruotsalainen (President of LPM Poland) -- to follow the bid technical requirements and to follow the LPM Group standards. Combination of these two advices, Know How" and hard work of technical and purchase departments of LPM Poland -- turned out to be a key to success. Of course co-operation with Ukrainian partner (CTC ENERGO) providing local technical back-ground area was also of great importance.

Both Mr. Timo Hulkkonen (main owner of LPM Group, Chairman of the Board) and Mr. Sami Lempinen (President, CEO of LPM Group) agree the high standard combined with Know How" and regional standardization of heat substations is the LPM Group key to success. LPM Group Ltd has the only test and measurement laboratory meant for testing district heating substations and its parts in Finland. The laboratory team participates in products testing, product development and in the research work for LPM Group Ltd.

LPM Group is not only the producer of heat exchangers -- is also co-operating in motor and other sports. In Finland LPM is sponsoring various sporting events and teams. With it's sponsoring work LPM strengthens the ties between the company, it's partners and local interest groups. The company is also supporting other, traditional associations. Additionally LPM Group has interest in supporting students in technical colleges and in advancing the technical education and professional skills of it's students.

LPM Poland is operating on Polish market since 1993. At the end of year 2000, the company moved to its own, newly built office and production facilities in Tuchom, close to Gdansk. LPM Poland turnover for year 2003 is estimated for 7 million euros with 60 personnel.
Kiev District Heating - Description
The Kiev DH system is the third largest in the FSU countries, after the Moscow and St. Petersburg systems, and is thought to be the third largest in the world. In Kiev, the DH system provides most of the heat and hot water for urban dwellers as well as steam for industry. Since independence, maintenance of the Kiev DH system has been underfunded, resulting in serious corrosion of present assets, especially pipelines, due to the deteriorating water quality. To compound the problem, heat and water losses in the transmission and distribution systems are high, estimated at 20%, whereas these losses could be reduced to 6-8% through the sealing of leaks. The lack of automation and heat metering at consumer connections in substations and at boiler plants results in additional waste of heat energy in the Kiev DH system. Use of a variable flow regime through automated substations, with consumption metered and controlled by consumers, could reduce heat energy consumption by up to 25% for the same service. This project will rehabilitate the Kiev DH system and expand heat production capacity to improve the currently poor service and to provide for the growing population in the area.

Three decades of LPM research and development
LPM comes from the words of "Leppävirran Putki ja Metalli". In the history of LPM Group three companies have merged during three decades into LPM group. During the decades there have been subsidiaries established in Sweden, Poland and Estonia. Merging the business activities of several companies into the same branch of industry.
Due to internationalisation the company has grown steadily. New markets have been entered with co-operative partners or with own representatives.
LPM has a history of innovation through human determination and in developing from a garage company into an international group of companies, keeping at the forefront of the industry. LPM's products are used in more than 20 countries around the world.
High quality and experience are a winning combination; market share of 50% in Finland and the 56 000 substations that LPM has delivered all over the world are good evidence of this.