Rääkkylä-based Koistinen Kantele, Finland's largest kantele manufacturer, has filed for bankruptcy, as announced on December 23, 2024. The company, which has been operating since 1957, has employed four full-time and two part-time workers, specializing in both traditional single-player instruments and ensemble kanteles for professional and amateur use.
CEO Hannu Koistinen attributed the bankruptcy to several factors, including high interest rates and economic uncertainty affecting customers' willingness to invest. He stated, "High interest rates and uncertain times affect customers' willingness to invest," also adding how these issues have hampered the company's financial stability.
Despite surviving corporate restructuring from 2019 to 2024 and maintaining profitability until recently, Koistinen revealed the stark reality of declining orders. "We survived corporate restructuring from 2019-2024, and were profitable right up to the end. This fall, orders for new kanteles completely dried up," he elaborated. The company had seen significant expansion during the 2000s, reaching export markets but faced recent challenges stemming from changing market conditions and cultural budget cuts.
The kantele has been part of Finnish culture for over a millennium, recognized not only for its musical contributions but as the Finnish national instrument, featured prominently in Kalevala, the epic poem of Finnish folklore. This bankruptcy raises concerns for kantele enthusiasts and musicians alike, who have relied on Koistinen Kantele's instruments. The importance of kantele manufacturing goes beyond just music; it is tied deeply to the cultural identity of the region.
This period has been harsh for many industries, according to Koistinen. He notes, "This era has been tough for many industries." The financial tension has made it difficult for many cultural enterprises to sustain operations, and this transformation has put many at risk. Koistinen reflects, "There has been no choice but to undergo cultural transformation at the risk of entrepreneurship." This outlook mirrors broader struggles faced by small manufacturers across Finland and beyond.
The immediate aftermath of Koistinen Kantele's bankruptcy leaves the future of kantele production uncertain. While Lovikka Kantele, another producer founded in 1983, will continue to supply the market, they cannot fill the void left by Koistinen's exit. The industry may need to look at innovative ways to continue producing and promoting traditional instruments, as well as attract new generations to this ancient art.
With financial challenges mounting and cultural significance on the line, this story serves as both a cautionary tale and a rallying call for support of cultural industries. The resonance of the kantele, beloved for its unique sound, will hopefully steer communities to rally around preserving this cherished element of Finnish culture.
Moving forward, stakeholders must explore new funding avenues and investment strategies to keep the craft alive. For communities and enthusiasts who cherish their kantele's sound, the industry will require fresh ideas and persistent advocacy to thrive amid these turbulent times.
