Adara Corrugated Board Plant

Targeted savings EUR 2,3 million / Volume 75 000 m3

Actions

Modernisation of building automation, ventilation units and lighting

Performance

Measurements are being made.

“We were able to cut back the property’s energy costs with immediate effect, without tying our own capital to the investments.”

Jere Alaruka, Financial Director

Adara Pakkaus Oy

LeaseGreen modernised the building technology of a large industrial plant in Valkeakoski, southern Finland. The extensive project carried out by LeaseGreen at the Adara corrugated board plant involved upgrading the building automation, ventilation units and lighting. The agreement was made using a service fee model tailored for industrial properties, which includes the modernisation of the building technology, financing of the investment, and remote control of the new system.

“This is a good model for us, because it significantly lowered the threshold for making the investment,” explains Jere Alaruka, Financial Director of Adara Pakkaus Oy. “No financing negotiations were needed and we could save our collateral for other purposes. We can channel our capital assets towards our core business: production efficiency and machinery.”

According to LeaseGreen’s estimate, the energy renovation at Adara’s production plant will reduce the company’s energy bill by around 12 per cent, making the investments’ life cycle savings as high as 2.3 million euros (depending on future energy prices). CO2 emissions will also be significantly reduced.

The project will not have an impact on Adara’s balance sheet, because the new systems and equipment were delivered on a monthly service fee basis. This reduced the property’s repair debt, improved its indoor conditions and raised its value. Adara can later choose to buy the equipment.

According to Alaruka, the savings made from energy bills can be used to pay for a large part of the company’s maintenance investments.