LapWall is the largest manufacturer of wooden elements in Europe, best known for developing the innovative LAPWALL LEKO® element system. Despite the construction industry's significant transformation in recent years, LapWall has successfully expanded its operations and invested heavily in its future. At the beginning of 2022, the company went public to raise capital to support its expansion. Following the IPO, the importance of a robust IP strategy and comprehensive protection has become even more pronounced.
LapWall operates factories in Pyhäntä, Pälkäne, and Veteli, and their product range covers approximately 50 configurable standard products for various construction companies. CEO Jarmo Pekkarinen, with a long career in the industry and construction, has been involved in LapWall's journey since the beginning.
CEO of LapWall Oyj, Jarmo Pekkarinen. Photo: Vesa Ranta.
LapWall’s innovation, the LAPWALL LEKO® element system, enables both large and small buildings to be efficiently constructed using prefabricated elements. The solution's core idea is to streamline construction by utilizing ready-made modular components. In addition to the elements themselves, the service package includes structural and element design as well as installation services.
– Our main product group is roof elements. We produce insulated roof elements for industrial buildings, which account for about 70% of our revenue. Additionally, we manufacture roof element systems for residential buildings and public facilities, contributing about 10% of our revenue. The remaining 20% comes from wall elements, summarizes Pekkarinen.
– Our clients include all the largest construction companies in Finland, such as YIT, Skanska, Peab, Lapti, and Hartela. Our annual revenue is currently around 50 million euros. We employ approximately 130 in-house staff and about 70 temporary workers. In this scale, we are by far the largest operator in Finland and Europe, Pekkarinen explains.
LapWall began its collaboration with Berggren early in its operations, initially focusing on trademark protection. Later, the scope expanded to cover various IP and patent-related matters. Today, LapWall utilizes a wide range of Berggren's services comprehensively.
– They’ve been excellent advisors in determining how to protect our intellectual property holistically. We’ve protected LapWall’s trademarks in Finland and other European countries and patented several products. Berggren has extensive expertise in the patenting process, Pekkarinen describes.
– IP matters are crucial for us and will play an even more significant role in the future. In companies like ours, these issues might sometimes be neglected. We’re not yet at an ideal level, but we’ve identified the gaps and made progress. When IP matters are well-managed, they contribute to the company's value creation, good governance, and management, Pekkarinen emphasizes.
In early 2022, LapWall went public. The IPO aimed to raise capital to support the company's growth, expand its operations, improve efficiency, and reduce CO2 emissions. During the IPO process, the company thoroughly reviewed its handling of IP and protection matters.
– Comprehensive protection and a well-planned IP strategy have a significant impact on our competitiveness and appeal to investors. By protecting our methods and products, we make it harder for others to copy them, which allows us to achieve better results and become a more attractive investee. Investors, of course, seek stock value growth but also a strong dividend-paying capability, Pekkarinen notes.
– As a listed company, we will also be required to provide the statutory CSRD sustainability report from 2025 onwards. In the future, securing funding will require solid sustainability measures. Berggren contributes to our responsibility by ensuring our protections are in order. This is part of our corporate responsibility and our accountability to investors and partners, Pekkarinen adds.
Despite the challenges facing the construction industry, LapWall remains committed to investing in its future. A new factory project in Pyhäntä is under way, aiming to increase the company’s revenue to around 110–130 million euros. The project is scheduled for completion in 2025.
– The investment in Pyhäntä is significant, the largest in LapWall’s history. People have asked whether it’s crazy to invest during these times or if the risks are too high. I believe the opposite is true. Now is an excellent time to invest as costs for machinery, equipment, and construction are tens of percent lower than before. We are preparing for the next growth cycle and ensuring we remain highly competitive, Pekkarinen says.
What has allowed LapWall to thrive during challenging times in the construction industry? Pekkarinen highlights systematic scenario planning as a key factor.
– We actively monitor domestic and global developments and assess their implications for LapWall's business. We’ve explored different scenarios and prepared for them. This hard work builds a future for the company and ensures that we can operate profitably in various market conditions, Pekkarinen explains.
– While residential construction has plummeted to historic lows, LapWall’s broad product range ensures we are involved in all types of construction. We’ve systematically developed our operations to become a preferred partner, Pekkarinen concludes.
According to Pekkarinen, the collaboration with Berggren has been smooth and efficient. For LapWall, the most important aspect has been having a partner they can fully trust. With Berggren, they haven’t had to worry about missing or mishandling critical IP issues.
– Berggren is the leading company in the field in Finland. Our expectations were that they would have the expertise and methods to handle IP comprehensively. These expectations have been met. We do not need to worry and make unnecessary inquiries but they take care of everything and report back to us. Their work is extremely efficient and professional, Pekkarinen praises.
– Berggren possesses immense knowledge in trademark protection, patenting, and IP. Their extensive product and service offering covers all needs. I can wholeheartedly recommend them as a partner with the competence and capability to handle matters effectively. Their expertise is top-notch, Pekkarinen concludes.
Our client experience story has been independently produced by Kokemuksia.fi. Each story has been approved by the interviewed client, and the company featured has had no opportunity to influence the content of the story.