Kiilto Oy, a Finnish company that specializes in adhesives, considers the growing market in Russia to be extremely interesting. Instead of quick profits, Kiilto is constructing operations purposefully and with the long term in mind. The family company's ability to make quick decisions is a particular advantage.

Lying at the centre of the business operations of Kiilto, which was established in 1919, is its expertise in adhesives and the solving of customers' bonding problems across the board. The expertise is based on the company's own research and development, in which the company has invested heavily throughout its entire history. All the products are the result of its own product development.

The product selection includes adhesives for industrial manufacturing, construction, renovation and household use, varnishes for parquet flooring, floor-levelling compounds and wall plasters, waterproofing membranes, ceramic tiling adhesives, grouts, thinners and casting resins.

Important growth market

Kiilto operates in Russia through two subsidiaries that sell Kiilto's products and train customers. The best-sellers in Russia are adhesives, waterproofing membranes, floor-leveling compounds and wall plasters, and industrial adhesives.

"There is considerable growth potential in Russia; we sell all over Russia. The growth is satisfactory," states Arto Kasanen, the export manager for Russia.

Kasanen lists Kiilto's strengths as top-quality products and training, good technical support for customers, highly-skilled local staff and the family company's quick decision-taking culture.

Fierce competition

There is big potential in a big market area. As the economy develops, the market will diversify and the importance of local production will increase.

"The Russian market is extremely interesting for all our European competitors at this moment. Competition is fierce and they are ready to invest in Russia," says Jouni Paasirova, who heads a company in Russia.

In addition to foreign competitors, the Russian adhesive and building materials industries have made their presence strongly felt in recent years. Kiilto's global competitors have transferred or are transferring a large part of their production to Russia.

Paasirova says, however, that companies seeking quick profits on the Russian market will not last very long there. The only way is to develop operations purposefully and with the long term in mind.

Growing demand

"Europe's largest and third-largest metropolises are situated in Russia and also some dozen cities with a million inhabitants. As the standard of living rises, consumers in the big cities in particular will be ready to spend an increasing amount of money," Paasirova explains.

"There will be increasing demand for Kiilto's products in the future. For example, better adhesives will be needed for assembling furniture and for food-industry packaging, better waterproofing membranes for a new home and better-quality substances for maintaining surfaces in the home."

"Russian consumers are very quality- and brand-aware. They want to show off their success to relatives, friends and neighbours, so they want to spend money on what they wear, what they drive and where they live, whether at home or in a summer cottage."

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Kiilto Oy operates in Russia through two subsidiaries. In the picture are sales director Dmitri Vokolyuk (left) and sales manager Mihail Babayan from the company's St. Petersburg unit, sales manager Emil Yafyasof from the Moscow unit and sales secretary and translator Satu Hyökki-Siltanen from Kiilto Oy.