A huge transport service center was built on the parade ground next to Nerosti – now the company is millions in debt

A few years ago, a large and impressive-looking service centre was built on the parade ground next to Nerosti to handle the heavy traffic.

Now located in Hirvaskanka in Änekoski Heavy Center Hirvaskangas The company encountered serious payment difficulties. Finnvera charged the company more than 1 million euros in accounts receivable. Heavy transport aircraft Accounts receivable amounted to EUR 300,000.

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Hirvaskanka Heavy Center provides maintenance and repair of motor vehicles. The company itself focuses on heavy equipment, but also operates as a tire seller, inspection company and car repair company.

Owner and CEO Tommy Saroo With a long career in the transportation industry, he began planning the heavy transportation service center in 2014. The business plan was practical and the partners were good. Downtown Erie and the City of Ianekoski gave the green light.

As a result, the construction of the heavy center began in 2019. The contract was not agreed upon, but Salo issued its own tender at a unit price.

“The market was good at the time and cost levels were low. It was good to build,” Salo said.

Light before your eyes

However, in 2020, the price of building materials rose sharply. The funds reserved for the establishment of the company were not enough. Additional funds came, but the difficulties began before the business started. The working capital reserved for it has melted.

“There was no time to build the planned bumper,” Salo said.

The operation started in January 2021. Salo said the concept went according to plan, but the reduction in the bumper created a snowball effect. Debt increased. In addition, the war in Ukraine that began in 2022 was particularly harsh on the discipline of heavy equipment companies.

“For example, when fuel prices spike, transport companies’ willingness to pay decreases. This is also evident in our actions.”

However, the future of the Hirvaskankaa Heavy Center looks bright now that Salo has found a buyer for the property and the business. Creditors have approved the deal.

“Now we are putting the final things in place. Details of the transaction will be announced in the fall,” Salo said.

The company’s latest financial statements are from 2022, when it posted a turnover of €1,070,000. The loss for the accounting period was €129,000.