Finnish AGV expertise attracts investment from Japan
Japanese logistics giant Mitsubishi Logisnext continues to invest in more than 40 years of Finnish AGV expertise developed under the Rocla brand. Finland’s strong engineering culture and supportive R&D networks are also part of the draw.
Case study 15.11.2024
The industry for designing and manufacturing lifting equipment has long been an important part of Finland’s economy. Multiple Finnish companies have grown to be leaders in the field, with their machinery used around the world for logistics operations and material handling.
One of these companies is Mitsubishi Logisnext Europe. Born under the name Rocla in 1942, the former family business is now the Finnish subsidiary of Japanese conglomerate Mitsubishi Logisnext. It makes some of the world’s most advanced all-electric Automated Guided Vehicles (AGVs) and related systems, used in logistics centers, warehouses and factories across a range of industries.
Mitsubishi Logisnext first became interested in Rocla’s automation expertise more than two decades ago. A series of investments and increasing ownership stakes led to the Japanese company fully incorporating and renaming Rocla by 2008.
Mitsubishi Logisnext Europe spearheading its parent company’s efforts in this advanced branch of logistics equipment. The Finnish unit is also responsible for designing and producing Mitsubishi Logisnext’s electric forklift trucks.
The Rocla brand lives on today for AGV solutions, with Mitsubishi Logisnext Europe spearheading its parent company’s efforts in this advanced branch of logistics equipment. The Finnish unit is also responsible for designing and producing Mitsubishi Logisnext’s electric forklift trucks.
“We have been working with automation for more than 40 years, having delivered our first AGV in 1983. Mitsubishi Logisnext recognized how this expertise would be beneficial amid increasing demand for automation in warehousing logistics,” explains Jani Mähönen, Vice President Offering Development at Mitsubishi Logisnext Europe.
“The broader industry is also shifting its focus towards electrification, which is another area where we are strong. Our AGVs are 100% powered by electric drives,” says Mähönen, who is responsible for AGV operating software and onboard technology.
Tapping into Finland’s engineering culture
To further develop its AGV expertise, Mitsubishi Logisnext Europe has received a series of investments from its parent company along with multiple rounds of direct funding from Business Finland. One of the earlier initiatives emerging from this joint financial support was the creation of a modular AGV platform to enable mass customization.
Mitsubishi Logisnext saw that the AGV business was poised for significant growth, due to advancements in robotics and an impending labor shortage in warehouses. Instead of customizing each order that the company receives, the aim was to develop a modular structure of ready-made components that could be combined according to the customer’s wishes.
“Our parent company recognized the lean and agile development culture we have in Finland. They came to see the country as a place to nurture technical competence,” explains Mähönen. “We have a lot of experienced engineers in Finland who are very passionate about their work. The cost to quality ratio of engineering here is also very good compared to many other countries.”
"The parent company recognized the lean and agile development culture we have in Finland. They came to see the country as a place to nurture technical competence."
Another important investment round took place between 2019 and 2023. Mitsubishi Logisnext, Mitsubishi Logisnext Europe and Business Finland each contributed to EUR 16 million in funding for developing the AGV technology platform and scaling up the business.
This meant improving system-level algorithms and controls, as well as related AGV vehicle hardware. The end result is a completely new platform for orchestrating fleets of AGVs, enabling operators to optimize routing for order allocation and material flows.
Project Manager at Mitsubishi Logisnext Europe, Anna-Kaisa Repo, has been responsible for coordinating the funding and steering it where needed.
“In this industry software development is growing in importance all the time. It’s not just about improving equipment handling, but also about minimizing maintenance and optimizing the service lifecycles. We’ve invested in all of these areas,” explains Repo.
“The team has also done a lot of work on studying customer needs and developing future business models. We’ve also created new tools that help our salespeople to make tailored offers,” she adds.
National cooperation drives global innovation
Mitsubishi Logisnext Europe’s commitment to innovation can be seen in its diverse range of AGVs, including the Automated Compact Truck (ACT), the Automated Reach Truck (ART) and Very Narrow Aisle (VNA) trucks. Each type is made for operation in a specific environment.
R&D, design, testing and more take place at the company’s facility near Helsinki. Other Finnish manufacturers of lifting equipment have sites in the same broader region.
“Finland has a well-established network of companies in this field. Many have a great track record and there is a lot of technology development going on. We are not typically direct competitors, so we have open dialog around future material handling ideas and co-development. Customers in Finland typically have quite advanced thinking about technology and are willing to try out new concepts,” explains Repo.
Finland has a well-established network of companies in this field. Many have a great track record and there is a lot of technology development going on.
The subsidiary is an active member of the Forum for Intelligent Machines (FIMA), where OEMs drive R&D in the field according to industry need. Mitsubishi Logisnext Europe also cooperates with Finland’s leading R&D organization VTT, as well as with several local universities. These include Aalto University, Tampere University and Metropolia University of Applied Sciences. Business Finland’s innovation fudning for leading companies provides support for cooperation too.
“Many of our AGVs are already among the most energy efficient in the world. This is an area we want to develop further, so we have recently received public funding for working on a sustainable refurbishment and reuse initiative,” says Mähönen.
“We have a future vision of the perfect collaboration of people and machines. Whatever task you are doing, machines will be moving around seamlessly helping you to get it done quickly and ergonomically.”
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Communications and Mobility, Electronics and Electrics, Metal and Machinery, Software and Data