SpinDrive Oy, an international spin-off company born from the research work of LUT University, is headquartered in Lappeenranta, Finland. It also has an office in Helsinki, but all manufacturing is outsourced.

According to Janne Heikkinen , CEO of SpinDrive Oy, their company's mission is to fight climate change with magnetic bearings. An innovative product and an ambitious energy and resource saving strategy can both be encapsulated in a short sentence.

- Efficient magnetic bearings can be used to extend equipment maintenance intervals and improve the energy efficiency of processes such as turbo-compressor and turbo-blower motors,  says Heikkinen.

- Whenever less energy can be used to produce the same functionality, we are on the way to a more carbon-neutral future. Digital bearings developed by SpinDrive can increase the rotational speed of electric motors, enabling the same functionality to be achieved with less electricity consumption. Bearings are typically used in process equipment that blows or compresses gas, such as air. Another advantage of this innovation is that bearings with an electronic controller levitate the rotating shaft, allowing the operating environment to be completely oil-free. This makes the product even more environmentally friendly and suitable for processes where an oil-free environment is an absolute requirement. The company is also constantly assessing the carbon footprint of its own operations.

- We continuously collect data on the company's direct and indirect environmental impacts, for which we have also set measurable targets. Although the company makes solutions for the process industry, the work itself is mostly programming and design. Products are subcontracted to an extensive domestic and European network of contract manufacturers.

From a university company to a major player

SpinDrive was founded in 2015 when four high-speed technology graduates from LUT University joined forces. Around the same time, Heikkinen was working on his doctoral thesis at the university and running a from-research-to-business project funded by Tekes (now Business Finland).

- That project was the starting point for SpinDrive, recalls Heikkinen.

- We got so much information from the project that we dared to join the company. We carried out a market study within the framework of the project, the results of which were in favour of commercialising the product. There was a clear need for it.

One of the four founding members became a full-time employee in early 2017 with the aim of raising external funding. Funding was needed to hire other co-owners. The full-time contribution of all founders made possible by the funding kick-started the commercial activities, even though SpinDrive was already making a small turnover since its inception. All four LUT founders have stayed with the company for the past eight years and no less than three of them still live in Lappeenranta. One has moved to the Helsinki office, where about half of the company's 15 employees currently reside. Janne Heikkinen is one of those who has remained in Lappeenranta.

- I come from North Karelia, so moving to Lappeenranta in South Karelia was not a big leap when I started my studies, he says.

- Over the years, I have built a life here. The peace, high-quality services and relatively low cost of living in Lappeenranta have convinced Heikkinen. There is no urge to move elsewhere for the company either, as the good cooperation with LUT University keeps the talented people and research and related development projects in place.

- We use English as our working language, as five different nationalities are currently represented. Fluency in English is an absolute requirement for employees, fluency in another language is a plus, but it does not have to be Finnish. All the people working in Lappeenranta are LUT alumni," says Heikkinen.

- Our office is located on the IVH Campus,- very close to the LUT University campus, and as there are other international technology companies here, we have found an environment that suits us in every respect.

Towards a bigger market

In addition to Lappeenranta, work is done in the Helsinki office. SpinDrive has also set up a subsidiary in Germany and hired one person there on a permanent basis. Germany is clearly the main market geographically, with small and medium sized family businesses having a huge potential to benefit from SpinDrive's bearings. For the time being, commercial activities are mainly focused on Finland and Europe.

- We also have various levels of exploration in the US and Asia. The idea is to scratch the surface a bit and explore the market before making any big moves," says Heikkinen.

- Our company is still so small that we simply cannot free up the necessary resources for another big conquest. The risks increase with distance. But there is a demand for bearings, as the industries that use them are all over the world.

- Our product is suitable for use in a wide range of industries in small and large applications," Heikkinen says. "We see great opportunities ahead, but we are keeping a cool head and thinking carefully about the business and financing. So far, we have enough faith in SpinDrive's products and investors have shown commendable interest in the company.

- We recently received €3.8 million in funding from private investors in exchange for shares in the company. Most of the funding came from abroad.

- Foreign funding is a two-way street. In the short term, foreign money supports Finland's economic growth, which makes me extremely happy and proud. But in the long run, any potential fruits of success will partly escape beyond our borders," concludes Heikkinen.

For more information, please contact SpinDrive Oy.
Janne Heikkinen,
CEO
p. 0400 464 823