BVB Substrates has been producing substrates of the highest quality for a century. To serve customers even better with sustainable solutions, BVB Substrates is joining forces with Kekkilä, a subsidiary of the Finnish company Vapo Oy. Peter Jan Kuiper, CEO BVB: ‘An excellent combination that matches our ambition.’
The Finnish Vapo Oy and the Dutch BVB Substrates are merging to become the most prominent and versatile European substrate producer in the professional and consumer market. The new company combines centuries of experience in potting composts and substrates. The official merger of BVB Substrates and Kekkilä takes place on 1 January 2019. The name of the new holding company will be Kekkilä-BVB.
Peter Jan Kuiper is delighted with the merger: ‘Stable, sufficient reserves of raw materials… Vapo Oy is a dream partner with whom we can realise our ambition: developing sustainable solutions for our customers.’ An ambition that is easier to achieve for a larger player, Kuiper emphasises. ‘Globalisation and the dynamic global economy call for players of a certain stature. World players who are able to respond to the demands of the future, the increase in scale and new demands from customers. The merger gives us the production capacity required to continue to serve global markets.’
The merger creates a single strong company that possesses the raw materials, knowledge and resources for a smooth integration process – from raw materials to end product. BVB and Vapo Oy are already quite familiar with each other: the working relationship between the raw material manufacturer and substrate developer dates back 50 years. Together, BVB and Kekkilä, a subsidiary of Vapo Oy, are already developing innovative technologies and products. Kuiper: ‘By making use of each other’s expertise and research facilities, we can elevate our R&D to an even higher level.’
Strong competitive position
The combined Kekkilä-BVB immediately creates a world leader in two fields: organic growing media for professional growers and the home gardening market. The merger ensures a strong competitive position and job security for the employees of both BVB Substrates and Kekkilä. Because organisational units complement and reinforce each other, there is no need to reduce personnel as a result of the merger. In their daily activities, employees will hardly notice the merger; the locations, management boards and company names will remain the same. The Kekkilä and BVB brands will also continue to exist.
The strategic focus of Kekkilä-BVB will be on developing sustainable innovative solutions for the ‘pressing issues of today’. Kuiper: ‘Examples might include solutions that support sustainable development and saving water. This will enable us to meet the growing global demand for clean, locally produced food and attractive and pleasant living environments. The merger is a wonderful opportunity for the new organisation to provide solutions to these sustainable issues and to excel. To be truly meaningful.’