The production facility is now operating exceptionally well, and Norrhdyro’s operational capabilities were outstanding at the end of the first half of 2025. The company achieved a 100% OTD (On–On-Time-Delivery),  and both product quality and performance, as well as occupational safety, remained at excellent levels. The high standard of operations is further supported by the strong delivery reliability of our suppliers and the flexibility of our supply chain — our supplier network has been able to effectively respond to increased demand.

Growth in the cylinder market is concentrated in a few specific sectors, such as mining, material handling,  and industries related to the defence sector. In contrast, demand in construction-related industries has not yet shown any significant recovery and remains at a very low level.

The forecasts of our customers indicate overall growth for autumn 2025, compared to the second half of 2024. Accordingly, our guidance for revenue growth in 2025 compared to the previous year remains in line with our expectations. At the same time, profitability is also expected to improve, driven by increased volume. 

However, geopolitical uncertainties and trade tensions may impact growth figures for autumn 2025. The latest TeknoBaro report published by the Federation of Finnish Technology Industries in June noted that the growth which began in the spring has already stalled. At this stage, it remains difficult to predict how these changes will affect different sectors and customers later this year. 

NorrDigi® MCC and EMA
During the beginning of 2025, the development efforts for the multichamber cylinder system NorrDigi (MCC) have focused on fine-tuning the control of the Volvo CE excavator project and improving the mechanical durability of the MCC system. Field tests conducted by customers have produced excellent results, particularly in terms of machine controllability and power distribution. The customer tests are ongoing, with the goal of securing the first orders for the production version of Volvo’s MCC hybrid machine by the end of 2025.

In autumn 2024, Norrhydro took full responsibility for the control of the MCC excavator—managing boom movements, driving, and rotation. This enables us to ensure optimal energy efficiency across the entire hydraulic system and to optimally distribute available power between the machine's various functions. As a result, based on user experiences, the machine delivers faster movements and more force compared to traditional excavators of a similar size class. At the same time, fuel consumption has remained relatively moderate even during heavy loading operations (approximately 10–12 l/h), representing a reduction of approximately 40–50% compared to a standard machine. The data collected from customer tests enables an accurate comparison between the MCC excavator and the standard machine in the future.

The recovery of the construction machinery market in the EU area continues to be slow and remains dependent on the future trends in the construction industry. In the public sector, infrastructure construction has maintained a solid pace, yet the market remains intensely competitive, and operators are facing continued pressure on profitability. It is expected that machinery investments will remain at a low level for some time to come.

The electrification of construction equipment has progressed more slowly than expected, mainly due to the significant cost increase associated with the electrification. Mobile charging solutions incur remarkable additional costs, and due to limited operating time, expensive additional batteries are required for the machines. The prices of fully electric models are relatively high compared to traditional machines, so it is expected that hybrid solutions, such as the NorrDigi MCC, will gain a foothold in heavy-duty machinery in the future. The more widespread use of biodiesel in urban infrastructure projects will further accelerate the renewal of the old machinery toward energy-efficient solutions.

The use of NorrDigi electromechanical actuators (EMAs) is rapidly becoming more common
The electric mechanical actuators (EMA) presented at the “bauma” trade fair in April are based on a simple structure. Their rapid deployment creates excellent conditions for broader adoption as a replacement for traditional hydraulics. The demand for oil-free hydraulic systems is growing across many industrial sectors. For instance, the electrification of industrial processes is advancing rapidly, as customers seek more reliable and simplified solutions for both linear and rotary motion. A similar trend can be observed in deck equipment for ships, where traditional oil-based hydraulic systems are being phased out. In early 2025, our EMA product portfolio has expanded with several new customer projects involving EMAs — including applications in presses, shipbuilding, and machinery manufacturing.

CEO Yrjö Trög,
Rovaniemi 15. August 2025