This article is part of the “100 Stories of Growth” series, launched by the Growth and Internationalization Committee of the Central Finland Chamber of Commerce. In this series, they feature inspiring growth stories from local companies, showcasing their strategies, successes, and lessons learned. In this installment, they explore Tana Oy’s innovative approach to sustainable waste management and how its unique network-based business model has fueled impressive global growth. Article originally published on kskauppakamari.fi 

Tana Oy is a Finnish environmental technology company founded in 1971, which promotes sustainable development by providing smart machines and solutions for solid waste management, particularly for pre-treatment plants and waste yards. Tana’s business model is based on a modern network concept, enabling a focus on customer needs and rapid growth. Tana is a machine workshop without a workshop, and all TANA machines are manufactured with strategic partners in Finland. A key cornerstone of success is a competent and reliable global network of over 30 dealers, serving as the company’s business card worldwide. TANA machines are already sold in more than 50 countries.

Tana manages its production and sales network from Finland and, in addition to its headquarters in Jyväskylä, has offices in Tampere and Germany. Tana’s main products are TANA shredders and screens for solid waste management, as well as TANA landfill compactors. The machines are equipped with modern remote management systems. “We also offer comprehensive lifecycle services and machine rebuild services that support sustainable development,” says Tana’s CEO, Kalle Saarimaa.

Tana is a strong growth company. In its most recent financial year, the company’s turnover was €63 million. The number of employees has also grown in recent years. In June 2022, Tana Group employed 37 people; now, there are already over 60 professionals. Tana aims to focus on its core expertise, which is also reflected in the increase in the number of subcontractors. A skilled and professional partner network, along with a unique operating model, are key enablers of growth.

Several megatrends, such as climate change, resource scarcity, and biodiversity loss, support the growth of Tana’s business. On the other hand, the industry’s technical solutions are also developing rapidly. “To remain relevant to our customers, we must grow at least in line with the industry. However, through our ambitious entrepreneurship, we have aimed to grow even faster than the market, which is why we brought in a private equity investor to support our growth. Through this arrangement, we gained the capital and expertise needed for growth,” Saarimaa explains. Growth is not always easy. Sometimes, new growth initiatives have worked well, such as entering new markets and increasing machine digitization. At other times, growth initiatives have not brought the desired results, such as technology licensing and new product launches.

“We’ve learned valuable lessons from these experiences, and one key observation is that companies must dare to take risks—no one can guarantee in advance whether a business concept will work or not. It’s crucial to stop non-functional initiatives quickly enough and, on the other hand, invest sufficiently in those that do work. In Finland, we often do the opposite—keeping non-functional ideas alive for too long and not daring to invest enough in initiatives with potential,” Saarimaa reflects. There are a few key reasons for Tana’s success. Product leadership, as Tana’s machines are recognized as among the best in the industry, in some cases even the best outright. This is the result of long-term product development, where machines have been refined series by series to a diamond-level finish, including digital solutions.

The company’s unique network-based operating model is highly scalable, with low fixed costs and minimal committed capital, enabling genuine global growth with moderate risk. “Perhaps the best example of this is the U.S. market, where we’ve achieved a 25% market share without ever having our own employees or legal entity there. At Tana Oy, we’ve always dared to do things differently and adhere to clear business principles that our network has also learned. This has streamlined and accelerated decision-making,” Saarimaa describes.

ESG in business

E = Tana’s machines themselves improve environmental conditions, so this happens partly automatically. However, we are constantly developing our operations to be more sustainable, exemplified by our rebuild business model, where we take back used machines and refurbish them. Additionally, we are developing machines powered by electricity and focusing on energy efficiency. Our advanced solutions promote profitable circular economy practices, environmental health, and the conservation of natural resources.

S = We occasionally make donations to local organizations and pay our taxes properly in Finland. We regularly measure employee satisfaction and invest in leadership quality and development. We are committed to building and maintaining an equal, cooperative, and productive work community, where equality and fairness are part of the company’s operating culture.

G = We operate according to good governance principles. The company has a professional board, and we have implemented clear management systems and processes relative to the company’s size.

Tana’s growth has always been strongly based on a networked operating model. The key partners for growth have been global dealers, assembly partners in Finland, and critical component suppliers with whom Tana has jointly improved the machines.