DO YOU KNOW YOUR BUSINESS OPPORTUNITIES IN FINLAND?

Transcription

1 DO YOU KNOW YOUR BUSINESS OPPORTUNITIES IN FINLAND? SEMINAR ON BIOGAS AND LANDFILL GAS IN MALMÖ

2 WE MAKE SWEDEN MORE ATTRACTIVE TO DO BUSINESS WITH OUR OWNERSHIP Jointly owned by the Swedish government and business sector, we offer the best of both worlds. EXPORTS We support Swedish companies in reaching export markets, growing in existing markets, and identify business opportunities to grow internationally. In addition to our network of regional advisers and foreign offices, we work with Swedish embassies, consulates and other partners around the world, which gives us a strong position to assist you with your global ambitions. INVESTMENTS Based on Sweden s areas of strength, Business Sweden identifies and promotes investment opportunities to relevant international companies in order to attract high-quality investments. Investments include new establishments, strategic partnerships, R&D collaborations, capital investments, and the expansion of existing business in Sweden. This contributes to economic growth and increased exports. BUSINESS SWEDEN 2

3 AGENDA INTRODUCTION TO FINLAND GOVERNMENTAL BIOECONOMY AMBITIONS BIOGAS IN FINLAND TODAY BUSINESS OPPORTUNITIES WHAT TO CONSIDER WHEN ENTERING THE MARKET

4 WELCOME TO FINLAND! INNOVATION NATURE HONESTY LANGUAGE You might say that Angry Birds, brought disruptive thinking to the masses (we have over 250 gaming startups in Finland today). Within the industry hackathons have become increasingly popular. Last year Gasum organised a Hack the Gas hackathon. 73 % of the surface in Finland is covered by forests, that s an area larger than Great-Britain or Italy. Additionally we have lakes. You can trust a Finn: in a Readers Digest test twelve wallets were placed on the streets of Helsinki. Eleven of them where returned. Any Finnish noun can have over different endings. From our experience, however, English is largely used and accepted in business. BUSINESS SWEDEN 4

5 YOUR YOUNGER BROTHER TO THE EAST A STABLE EXPORT MARKET FINLAND TODAY The population in Finland is approx. 5.5 million, of which 90 % speak Finnish, 5 % Swedish and 5 % other languages. GDP per capita EUR (2015) which is a increase by 0,5 % from the year before. The Finnish Government is a majority government that consists of three parties; the Center Party, the Finns Party and the National Coalition Party. Juha Sipilä (C) Prime Minister DID YOU KNOW? It is cheaper to set up a Ltd. in Finland, you only need EUR in share capital. Finland has one of the best primary school systems in the world. We compete with countries like South Korea, Japan and Canada. Every 100 th coffee bean that is produced in the world is imported to Finland. Timo Soini (SANNF) Minister of Foreign Affairs Alexander Stubb (SAML) Minister of Finance BUSINESS SWEDEN 5

7 FINLAND HAS AN AMBITIOUS NATIONAL CLIMATE AND ENERGY TARGET A carbon neutral society requires actions within: Energy A CARBON NEUTRAL SOCIETY BY 2050 Increase the use of renewable energy by e.g. using biofuels in transportation Agriculture Utilize agricultural biomass and waste in energy production Waste Preventing the production of waste Recycling waste and utilizing waste as energy BY 2050, FINLAND TARGETS A % REDUCTION IN GREENHOUSE GAS EMISSIONS FROM THE LEVEL OF 1990 BUSINESS SWEDEN 7

8 LARGE EMPHASIS ON BIOFUELS WE WANT TO BE BEST IN CLASS The government has an ambition to increase the use of renewable traffic fuels to 40 % of total consumption by 2030 and decrease the imports of oil by 40 %. The desire is that 55 % of the total need for renewable fuels will be produced in Finland. World-leading in biofuels Large focus on increasing the production of liquid biofuels and biogas by utilizing the Finnish forests. The government has large investment support for bioeconomy projects (totally 300 MEUR between ) where 100 MEUR is especially intended for the energy sector. BUSINESS SWEDEN 8

10 ENERGY UTILIZED FROM BIOGAS HAS INCREASED Heat 454,7 GWh 61,5 mio. m² Energy utilized in 2014: 613,3 GWh Electricity 158,6 GWh 94,0 mio. m² (0,5 % of total renewable energy production in Finland) Burning off 101,0 GWh BUSINESS SWEDEN 10

11 BIOGAS PLANTS CONCENTRATED TO SOUTHERN AND CENTRAL PARTS OF FINLAND There is a challenge in Finland that we are still quite unexperienced when it comes to using biogas as vehicle fuel. Short modern history related to biogas as vehicle fuel Relatively small distribution network for biogas Uusikaarlepyy Oulu Liminka Vaasa Kuopio No excise tax on biogas. No quota obligation to deliver biogas as vehicle fuel. Biogas an unknown source for private consumers Pori Honkajoki Huittinen Riihimäki Forssa Vehmaa Turku Espoo Äänekoski Laukaa Lahti Mäntsälä Joutsa Kouvola Hamina Kitee BUSINESS SWEDEN 11

12 IN 2014 ANNUAL PRODUCTION CAPACITY OF BIOGAS FOR VEHICLE FUEL WAS 130 GWH (+150 % FROM 2013) IF NOT SOLD AS FUEL, EXPENSIVE PROCESSED BIOGAS HAS BEEN EXPORTED AND STORED FOR LATER USE BUSINESS SWEDEN 12

13 THE INDUSTRY IS HOPEFUL FOR THE FUTURE Similar taxation encouragement as for electricity-driven vehicles with zero taxation would of course be positive or the miljö-bil concept as in Sweden. At a bigger national and political level however there has not been presented concrete incentives that would have a positive impact on the demand of biogas fuel Erkki Rautio, Finnish Biogas Association For companies outside the natural gas grid the distribution is critical so I hope fluid biogas will be an profitable option for the future Leif Åkers, Stormossen We wanted to use our biogas right now, we did not have the time to wait for decades Jukka Salmela, HSY BUSINESS SWEDEN 13

15 FINLAND OFFERS OPPORTUNITIES IN MANY GEOGRAPHICAL AREAS Vaasa is the Nordic leader in energy technology and among the fastest growing cities in Finland. The city stands for 30 % of Finland s total export in energy technology. Rovaniemi, the growth center of Lapland, is an international hub of arctic research, knowledge, services and products. Over the last years the city has also become a logistic center in the region. Tampere, the most populated inland city of the Nordic countries, has a strong ICT, manufacturing, nanotechnology, and intelligent machines cluster. Oulu is strong not only in heavy industries such as the paper-, wood-, and steel industry, but also in telecommunications, electronics, software, medicine, wind power R&D and biotech. The triangle stands for two-thirds of Finland s economic activity. Turku has a vision of becoming Europe's top ship- and offshore center. In Southwest Finland there are 330 companies operating in the industry. Greater Helsinki, Finland's financial, political, educational and cultural center. Accounts for approximately one third of Finland s GDP. BUSINESS SWEDEN 15

16 BIO PRODUCT MILLS THE NEW BIOECONOMY TREND THERE ARE SEVERAL LARGE SCALE UPCOMING AND ONGOING PROJECTS The paper industry might have stagnated, but the corporates within the industry have definitely not. The companies are focusing more and more on cellulose, cardboard, tissues and energy. The transformation and the capacity to adapt has been highly successful for companies like UPM-Kymmene, Stora Enso and Metsä Group. The forest industry stands for approximately 20 % of Finland s export revenue. To stay competitive the industry invests more than EUR 100 million/year in R&D. Pulp mill Finnpulp is planning to invest EUR 1.4 billion in a new pulp mill in Kuopio. It is the largest investment in history in the Finnish forest industry. Bio product mill In April 2015 Metsä Group announced that they are going to build a bioproduct mill in Äänekoski. The total investment amounts to EUR 1.2 billion. BUSINESS SWEDEN 16

17 NEW REGULATIONS TO OPEN THE MARKET FOR BIOGAS Generation of waste should be avoided Prepared for reuse Recycling Energy or other utilization The new stricter waste management legislation forbids to place biodegradable waste on landfills. Effective from January 1 st The Natural Gas Market Act will be renewed, effective from January 1 st One of the goals is to open up the market and make it easier for among other biogas. Other ways to enhance the market: Feed-in tariffs for electricity from biogas Investment and energy support from the state Taxation (no excise tax on biogas as vehicle fuel) 5 Waste may be placed in landfills only if its recovery isn t possible BUSINESS SWEDEN 17

18 NEW LEGISLATION BRINGS BUSINESS OPPORTUNITIES Gasum Biotehdas Oy is one of the largest biogas producers in Finland with a calculated production capacity of 210 GWh and uses tonnes of biodegradable waste. Biogas is becoming increasingly interesting due to the new legislation that forbids biodegradables to be placed on landfills. Small scale biogas power plants (~10 MEUR investments) are built in an increasingly fast pace. The two largest biogas power plants are found in Lahti and Vaasa. Kymijärvi II in Lahti uses tonnes of recycled fuel and the Vaasa plant, that uses wood based fuel has an effect of 140 MWh. Many municipalities (Helsinki, Vaasa, Forssa, Oulu ) are promoting themselves as biogas frontrunners. Within the transport and shipping business biogas is more and more interesting from an environmental angle. BUSINESS SWEDEN 18

19 LIST OF COMPANIES THAT HAS APPLIED FOR INVESTMENT SUPPORT BUSINESS SWEDEN 19

21 THE BUSINESS CULTURE IN FINLAND IS MORE FORMAL WE BALANCE EACH OTHER STRENGTHS AND WEAKNESSES QUITE WELL Hierarchical, the boss decides. Larger emphasis on titles. Quicker decision making. Less willing to call someone by their first name. Less small talk. Restricted body language. Not afraid of silence. Less hierarchical. Important to establish consensus with everyone in the organisation. Swedes discuss a lot. Might be perceived by a Finn as you don t take decision. Avoid conflicts. Preparation and planning is important. More international mind-set. BUSINESS SWEDEN 21

22 A FEW ASPECTS TO REMEMBER WHEN DOING BUSINESS IN FINLAND NEEDS BASED BRING THE PLAN TO THE TABLE We are needs based people who want to know why something can help us. We are not too keen on just meeting for a fika. A good reason for not taking a meeting can simply be I do not want to waste their precious time, nor mine. ENGINEERING MENTALITY BRING OUT THE MAGNIFING GLASSES Samples are ripped from your hands. Finns want to see a product, try it and test it by themselves before they are ready to buy it. This is far more important than your company s vision or mission. PRAGMATIC HOW DO WE PROCEED? You should be well prepared for a meeting. Many times the first meeting has lead to the second, third and firth and it is not impossible to sell directly on the first meeting. This is the outcome of our needs based thinking. When we believe in something we make fast decisions. BUSINESS SWEDEN 22

23 HOW DO YOU REACH YOUR FULL POTENTIAL IN FINLAND? Though economic times might also mean business opportunities! Recruitment of personnel is easier and to a reasonable price. Business locations are more accessible and easy to find. Available acquisition prospects. Have reasonable goals for your business in Finland! Stable market (the same values, stable and long-term regulations and transparent). Finland is not a huge market but a very good entry point for exports. Utilize the right things in being Swedish! Swedishness for Finns means good and high quality products and services. Remember to play on the technical values and functionalism instead of feelings and abstract ideas. Remember to obtain knowledge of Finland and adapt you business model for the Finnish market! EVALUATE OPPORTUNITIES CHOOSE STRATEGY ESTABLISH PRESENCE INCREASE BUSINESS BUSINESS SWEDEN 23

24 BUSINESS SWEDEN IS HERE FOR YOU USE US FOR EVERY STEP ALONG THE WAY! EVALUATE OPPORTUNITIES CHOOSE STRATEGY ESTABLISH PRESENCE INCREASE BUSINESS Market selection analysis Establishment strategy Formation of company Lead generation Market analysis Partner search Recruitments Meeting programs Export and trade rules Customer search Find business location Exhibitions and fairs Small business programmes Acquisition support Marketing channels Other need-based activities BUSINESS SWEDEN 24

25 CALL ME IF YOU WANT TO DISCUSS FINLAND! JOHANNA HANNUS Phone: johanna.hannus@business-sweden.se