Mitsubishi Electric found the perfect technology partnership in Finland

Did you know that there is Finnish technology inside London underground trains?

In 2020, Japan's Mitsubishi Electric began a wide-ranging strategic partnership with EKE-Electronics, a leading Finnish developer of Train Control and Management Systems. The solutions of the Espoo-based company have been applied in trains around the world — for example, in the London underground since 1990.

But why did the Japanese electrics giant get interested in a relatively small Finnish company located in Espoo?

Access to new markets and innovations 

Firstly, the markets of EKE-Electronics and Mitsubishi Electric complement each other. Ken Shibata, the Director of Strategic Partnership between EKE-Electronics and Mitsubishi Electric, explains that Mitsubishi Electric is mainly active in railway technology in Japan, Asia, and the United States. Together, the cooperation will enable Mitsubishi Electric to package the technologies into new solutions that they can offer together to a global client base. 

"EKE-Electronics has traditionally been a strong player in Europe, Australia and China," Shibata says. 

"[It] is one of the leading companies in Europe for railway systems."

Shibata adds that Europe is the leading market in railway technology. A lot of technical standards are developed in Europe. The collaboration with EKE-Electronics gives Mitsubishi Electric better access to new technologies in the field.  

At the same time, EKE-Electronics can reach new markets and learn from the Japanese company with a history that goes back to the 1920s. [The article continues after the item below.]

A unique location for top tech talent

EKE-Electronics develops Train Control and Management Systems, also referred to as TCMS. A TCMS is an automated system that collects and shares information between different systems on a train and controls systems like heating, cooling, and lighting.

"And then there are safety-critical functions, like opening the doors. You've got to make sure they can open at the right time, but also at the right place," says Bernadette Culkin, Marketing Manager at EKE-Electronics.

Developing these systems is complex and requires very specific knowledge. Luckily for EKE-Electronics, it is located close to Aalto University, one of Finland's top universities. 

"We have that technical expertise on our doorstep. And when we're looking for new employees, this is a great place to get them from," Culkin continues.

"You have to have that problem-solving mindset, which the education provides here in Espoo. That's why being here is of great value to us."

Not only is Espoo a university city, but it is also a hotspot of deep tech innovation and startup activity. Situated right next to Helsinki, Espoo is ranked the 6th city in Europe in the number of submitted patent applications.