From Summer Job to CEO

“I had great respect for Oddvar, an incredibly capable man. I decided early on to study engineering, and I listened to him when I chose my field of study. I’ve added further education in both economics and management, but I’ve always felt that my professional foundation is as an MSc in electric power engineering,” says Møre Trafo’s new CEO, Runar Tandstad (57).

Summer Job

Both Runar’s father and father-in-law have worked at Møre Trafo, and several of his brothers have had summer jobs at Scandinavia’s largest producer of transformers and substations. Runar himself worked as a summer temp at Møre Trafo when he was younger. That’s when he first got interested in engineering.

“I’m the youngest of seven siblings. My two older brothers, Kjetil and Bent, both became journalists, but it never tempted me even though I like to write,” says Runar.

Trondheim and Germany

After upper secondary school he studied electrical engineering in Ålesund and then completed a master’s in engineering in Trondheim. He did the final part of his studies in Germany, where he also wrote his thesis in German. His first job after graduating was as a teacher at the engineering college in Ålesund.

Nephews and Owners

The majority owners of Møre Trafo, Jo, Tor and Dag Rieve Kristiansen, are Runar’s cousins. For several years, Tor was also CEO of Møre Trafo. But just to be clear: Runar was in no way crowned as the new top boss at some random family dinner.

Just Had To

“At Mørenett I was head of the Grid Management division. I really enjoyed it. Changing jobs felt very remote. Until Møre Trafo needed a new manager. I knew I would have regretted it if I didn’t go for this job. Ever since I was a kid I’ve had a very special and very good relationship with Møre Trafo,” says Runar, who has even played football for Møre Trafo’s company team without being employed by the company.

Increase Capacity

– What are the biggest challenges for Møre Trafo going forward?

– With the market as it is right now, the biggest challenge is to increase our production capacity. That’s why we focus heavily on investing in new and more efficient machines and new buildings. In the slightly longer term, I expect growing pressure on the prices of our products. Then it’s crucial that our work processes are well thought out and solid. We have to acknowledge that Norway is a high-cost country. If we are to stay competitive, we need a high degree of automation, and we need to digitalize as much as possible of today’s information handling.

Two Construction Projects

– What concrete plans do you have?

– We are planning two new construction projects. An extension of about 900 square meters to expand today’s transformer production hall, and a new building of about 1,800 square meters prepared for substation production. Part of the space requirement comes from our customers asking for larger transformers and larger substations. That means we have to upgrade and expand our machinery. It is not yet clear what this will mean for staffing. The number of employees at Møre Trafo AS has increased by more than 30 people in just the last year. Growth going forward will probably not be as strong, but it is likely that staffing will continue to increase somewhat.

Two Tough Years

In recent years, Møre Trafo has been associated with strong revenue growth and solid figures for the business. But 2021 and 2022 were in many ways demanding years for Møre Trafo, especially for the transformer factory. The reason is twofold. New requirements for lower heat loss in the transformers meant they had to be designed in a different way. The core and windings had to be changed, and this affected parts such as lids and tanks.

Back up and buzzing

“It took longer than expected before the new production was as efficient as before. So we didn’t get the volume we wanted. The other reason was rising raw material prices,” says Runar.

Core steel is the most expensive raw material Møre Trafo uses. The price shot up by an incredible 160 percent from spring 2021 to autumn 2022. With a lag in the ability to adjust prices for customers where prices were already agreed, the numbers – and the work – got tough.

“From the fourth quarter of 2022, conditions improved. Production was back where it should be, and prices could be adjusted and aligned with changes in the raw materials markets,” says Runar.

Skilled Employees

He believes there is every reason to give a lot of praise to skilled employees at every level. The designers changed and adapted the products, and production adapted both machine-based and manual operations to the new requirements and needs.

“The Sales team has also worked hard to create understanding for both long delivery times and the need for price adjustments, and they have ensured a steady and solid order intake,” says Runar.

Record Revenue

On top of all this, Møre Trafo was certified according to ISO 90001 and ISO 14001. Møre Trafo received formal approval on March 14, but the groundwork was laid through 2022 and the start of 2023. The ISO certification has involved every part of the company and, according to the new CEO, has been carried out in a good way. Now Møre Trafo is back on a winning track. This March, the company set a new sales record with NOK 89 million and a record-high order intake.

Football and Mountain Hikes

The energetic CEO now looks forward to helping drive further growth for Møre Trafo. Mountain hikes, both in winter and summer, have become a must for the 58-year-old, who is still active in old-boys football. He still supports AaFK, even though that devotion right now is 90 percent suffering and 10 percent excitement.

“As a kid I became a die-hard Liverpool supporter, plain and simple because it was the first football shirt I got. After a few years in hibernation, my passion for The Reds has come back to life,” says Runar Tandstad.

Partner and grandchildren

At home in Sykkylven, the football enthusiast lives with his partner, Ingebjørg Hjelseth. Through their daughter Maria, they have recently been blessed with two wonderful grandchildren – Hanna (6) and Håkon (4).