Business relations built on solid foundation
Terrafame's strong business relationships were further developed in 2016. Our customer base was expanded successfully and our network of business partners was strengthened to meet and sustain growth.
2016 was also Terrafame's year for ramping up commercial operations. During the operational period, our customer base was extended and our business partner network was strengthened as planned. Our aim has been to ensure a business foundation on which long-term development can be continued.
During the year, Terrafame opened direct contacts with major nickel and zinc refineries and built a market intelligence system for its main products. Commercial deliveries, which started in the end of 2015, were continued in the beginning of 2016, and delivery volumes grew throughout the year, following an increase in nickel-cobalt and zinc production volumes. The company also participated in conferences and events, especially in Europe and Asia.
Net sales of more than EUR 100 million
After the first full year of operations, Terrafame is a major export company on a Finnish scale, and its significance is growing. The company's annual export is estimated to exceed EUR 450 million for the period 2019 to 2023, in accordance with its strategy at full capacity.
In managing supply chain and logistics, Terrafame relies on domestic infrastructure, such as an electrified railway network and modern port facilities. An efficiently functioning infrastructure provides a clear competitive advantage over a number of competitors globally.
During the year 2016, Terrafame's net sales exceeded EUR 100 million. The prices of the main products, nickel and zinc, developed positively, and the US dollar strengthened against the euro during the last quarter of the year, which had a positive impact on the company's results.
Category teams support procurement
Alongside the management of customer relationships, Terrafame devoted itself to the assessment of potential business partners and the development of cooperation. Our aim is to maintain a network of partners that will be able to meet and sustain business growth in the long term.
In the procurement, Terrafame introduced category teams made up of experts assembled from various operations. The task of these teams is to plan and manage the company's procurement as efficiently as possible. Operational costs can still be reduced, particularly in wear parts and chemicals.
Price development of nickel 1 January 2016 - 12 January 2017, USD/t
Price development of nickel in 2016. (USD/t)
Price development of zinc 1 January 2016 - 12 January 2017, USD/t
Price development of zinc in 2016. (USD/t)