Norwegian business development in the Baltics in 2013 Tallinn, Riga, Vilnius
The overview includes Innovation Norway and our key partners business development activities and Norwegian companies new business transactions in the Baltics in 2013. The overview is based on public information. Main sources are Innovation Norway, Baltic Business News, Äripäev, E24, Dienas Bizness, Verslo Zinios. The overview is grouped by Innovation Norway priority business sectors: energy & environment, maritime & oil & gas, information communication technology, other and by the region and countries. Norwegian business development in the Baltics in 2013 1
ENERGY AND ENVIRONMENT GREEN BUSINESS AT GROWTH, NORWAY GRANTS VISIBLE The Baltics: Innovation Norway works with green growth companies Innovation Norway delivered market researches and partner searches to 10 renewable energy, water, waste, packaging, recycling, green production and green IT companies in the Baltics in 2013. There are 7 high growth companies amongst them. Innovation Norway maps green building sector Innovation Norway mapped market and development possibilities within green building in the Baltics, Poland, United Kingdom and Germany. Green building sector is expected to grow due to the upcoming EU regulations in Europe. There are many business connections within building sector between Norway and the Baltics already. Estonia: 4energia and Eesti Energia open a new windmill park Norwegian-Estonian joint venture 4energia and state owned Eesti Energia opened a new windmill park in Pakri peninsula in Northern Estonia. Out of 18 windmills 9 belongs to 4energia and 9 to Eesti Energia. Einer Agrobiofuels wants to buy Biodiesel Paldiski Einer Agrobiofuels, Estonian subsidiary of Norwegian energy group Einer Energy Holding, has made an offer of EUR 4.5m for the assets of the bankrupt Estonian company Biodiesel Paldiski. Katalysator takes over Norfolier Plastic bags maker Norfolier business has been taken over by Katalysator AS to be operated under the name Norfolier Green Tech, which refers to one of Norfolier's new environment friendly products. The owners behind Katalysator are owners of Møller Gruppen AS, distributors and retailers of VW and other car brands in the Nordics and Baltics. Nordic Council of Ministers introduces ecofriendly planning Nordic Council of Ministers organised Green Growth Ecofriendly planning conference, where amongst others Nordic Innovation spoke on green cities. Norwegian-Estonian green IT program popular Norway Grants Green Industry Innovation program focus is green information communication technology in Estonia, more specifically IT for energy management, transport and logistics, production and trade, e- health The green IT areas with a high international growth potential. Innovation Norway assists the program operator Enterprise Estonia with organising events, publicity and finding Norwegian partners for Estonian companies. The program events were successful: 110 participants at the launch event in Tallinn, in addition 209 participants in live stream in internet. 29 Estonian IT companies and 27 Norwegian IT companies and organisations (e.g NCE Smart Energy Markets, ITS Norge, IKT Norge, MedITNor) participated at study tours and contact events in Trondheim and in Oslo. Norwegian business development in the Baltics in 2013 2
Small grant scheme had 64 applications, out of it 42 got funding. The first call for main projects got 13 applications. 7 applications got funding, out of them 4 with Norwegian partners. Most popular areas were energy IT and e-health, but also the other focus areas were applied for. There is a very good interest for the program and a good competition is expected for the second call with a deadline in February 2014. Latvia: Norway Grants Green Industry Innovation program to be opened Norway Grants Green Industry Innovation program focus in Latvia is development of new products and technologies within: production of renewable energy; production of green products and materials for buildings; clean transportation; water management; waste management; eco design or any other improvements in products, technologies or processes contributing to energy efficiency, lower emissions or lesser consumption of resources. Innovation Norway assists the program operator Latvian Investment and Development Agency with organising events, publicity and finding Norwegian partners for Latvian companies. 70 participants attended the program information event in Riga. 27 Latvian green companies and 41 Norwegian green companies and organizations (e.g Green Business Norway, Sintef, Proneo), participated in two seminars and matchmaking events in Oslo. The main grants submission deadline is March 2014. Supported by the grants there will be also a green industry innovation centre established in Riga, Latvia in partnership with University of Latvia, Riga Technical University and SIVA in 2014. There is a good interest for the incubator already. Lithuania: Byggleverandørene new wood pellets plant Byggleverandørene that specialises in Lithuanian investments, has added a wood pellets plant to its portfolio. A new plant was built from scratch in Mazeikiai in Northern Lithuania. The capacity is 20,000 tons per year. 4energia may build 600 MW offshore wind farm in Lithuania Lithuanian 4energia, which is owned by Norwegian-Estonian renewable energy venture 4Energia, is considering building an offshore wind farm with a capacity of about 600 MW. Statoil among bidders for LNG supply tender Statoil is among the participants in a tender held by Klaipedos Nafta, Lithuania s state-owned oil company, for choosing suppliers of gas for the future liquefied natural gas (LNG) terminal. Norwegian CO2 capture technology company mulls EUR 200m project in Lithuania Sargas, a CO2 capture technology specialist, and Danish-Lithuanian Minijos nafta oil producer, plan to import CO2 from Norway in big quantities and bury in an old oil field near Klaipeda. Norwegian business development in the Baltics in 2013 3
Green Industry Innovation program events well-attended, but lack of quality projects Norway Grants Green Industry Innovation program focus in Lithuania is development of new, innovative environmental technologies or the improvement of existing technological processes, their installation and their introduction to the market. Innovation Norway assists program operator Ministry of Economy of Lithuania with organising events, publicity and finding Norwegian partners for Lithuanian companies. Four program events in Vilnius, Kaunas and Klaipeda gathered 160 participants. In addition 12 Lithuanian enterprises attended the conference Bioenergy 2013 organized by Norwegian Bioenergy Association in Oslo. Small grant scheme had 6 applications, out of it 2 got funding. The first call for partnership scheme got 13 applications, out of it 1 got funding. Most interest was from recycling and packaging. Mandatory Norwegian partnership was a challenge. Due to a lack of quality projects there will be an additional call with a deadline in June 2014. MARITIME OIL & GAS SUPPLIERS SHOW AN INTEREST, LNG COMING UP The Baltics: Innovation Norway supports maritime, oil & gas suppliers Innovation Norway supported 3 suppliers and service providers to maritime, oil & gas sector with market information and finding partners in the Baltics in 2013. Innovation Norway LNG (liquefied natural gas) workshops Innovation Norway together Norwegian Embassies in the Baltic States organised workshops for key LNG players in Norway and in the Baltic States in Tallinn, Riga and Klaipeda. Baltic LNG delegation to Norway A group of 70 maritime industry persons from the Baltic Sea region headed by Klaipeda Science and Technology Park supported by Innovation Norway visited Norway to learn on Norway's experience in fuel efficient and environmental friendly shipping using LNG. The group had meetings throughout the LNG value chain Shipping, harbours, bunkering, terminals, as well on LNG safety and -business possibilities. Estonia: Ocea ordered the world's largest steel barge Ocea AS ordered the world's largest steel barge for fish farming from BLRT Group Marketex Marine. Estonian-Norwegian seminar at Offshore Technology Days Enterprise Estonia organised with assistance from Greater Stavanger, Estonian Embassy in Oslo, Det Norske Veritas, Enterprise Europe Network and Innovation Norway a seminar where Norwegian engineering companies presented their cooperation experiences with Estonia at Norwegian business development in the Baltics in 2013 4
Offshore Technology Days in Stavanger. A delegation of Estonian engineering companies attended the fair. Latvia: Latvian delegation first time at Offshore Technology Days. Latvian Investment and Development Agency organised a delegation of Latvian engineering companies to attend Offshore Technology Days. Jets expands in Sandes Industry Park Jets, a vacuum toilet system producer, expanded its operations in Latvia by opening a new production facility to cover the growing demand globally. Sandes Industry Park is a home to several Norwegian maritime sector suppliers. Lithuania: EIB throws lifeline to Lithuania's LNG terminal project The European Investment Bank (EIB) threw a lifeline to Lithuania for its plan to build an LNG import terminal by signing an EUR 87m loan after the project failed to raise funds from commercial banks. Klaipedos Nafta has already signed an agreement to lease a floating storage and regasification unit, which will serve as an import terminal, for 10 years from Höegh LNG. INFORMATION COMMUNICATION TECHNOLOGY (ICT) AND SERVICES SECTOR GROW The Baltics: Innovation Norway assists ICT and service sector companies Innovation Norway assisted 7 ICT and service sector companies with market researches, partner searches, service agreements in the Baltics in 2013. Estonia: Orkla establishes a group accounting unit to Estonia Orkla that owns Estonian historical confectionery maker Kalev and food industry Põltsamaa Felix establishes its group s shared accounting unit in Estonia. The support centre will be set up on the basis of the existing accounting centre of Rieber & Søn that has been operating in Tallinn before Orkla acquired the company last year. Toten Transport integrating Nordcarrier after takeover Road transport company Toten Transport is in the process of integrating Nordcarrier after taking over the company. Schibsted pulls out of the Baltics Media group Schibsted has sold Eesti Meedia, its Baltic media company, to a company set up by the managers of Eesti Meedia and the Estonian investor Margus Linnamäe. The transaction involved all Schibsted s companies in Estonia, Latvia and Lithuania and valued Eesti Meedia, the largest media group in the Baltic countries, at approximately EUR 30m. Norwegian business development in the Baltics in 2013 5
Norwegian Minister of Government Administration visited Estonia on e-government Minister of Government Administration, Reform and Church Affairs Rigmor Aasrud visited Estonia on e-government. Latvia: B2Holding takes over consumer loan portfolio B2 Holding, a debt management business, has taken over an EUR 12.48m consumer loan portfolio from bankrupted Latvijas Krajbanka's estate. The portfolio includes 12,000 debtors. B2Holding buys Latvian debt collector Continuing its expansion to the Scandinavian and Baltic markets, B2Holding has become the key shareholder in Creditreform Latvia, a loan management and debt collecting firm. Evry expands its operations to Latvia EVRY, the largest IT company in Norway and the second largest IT services company in the Nordic region has established a daughter company in Latvia to support its Nordic operations and growth. Atea expands in Latvia IT services provider Atea ASA has embarked an expansion initiative in Latvia, adding 600 staff to its present 230 until 2015. Lithuania: ATEA Baltic acquired a new company in Lithuania ATEA Baltic (IT solutions and services) acquired UAB Prezentaciju spektras (audio-video technologies). By this acquisition the company will strengthen its positions in the sector of audio-video solutions in Lithuania and Baltic countries. Visma expands in Lithuania Visma Lietuva is planning to recruit 300-500 IT programming specialists during 2 years period for their shared service centre. Storebrand setting up IT unit in Vilnius Storebrand, a leading player in the Nordic markets for pensions, life and health insurance, banking and asset management, is setting up an IT unit in Vilnius. Storebrand builds four software developments teams, which would include approximately 70 programmers. A new background screening company started activity in Lithuania Meditor Search started activity in Lithuania. It is a service company offering CV and other documents screening of potential employees. Target clients will be companies looking for reliable employees to work in the local and Scandinavian market. Jotron to invest in a new factory in Kaunas Jotron, which manufactures communication systems for airports and shipping companies, is expanding its business in Lithuania with plans to move its Kaunas production unit to a new factory. Jotron is planning to invest around EUR 2.7m and create 35 new jobs over three years. Norwegian business development in the Baltics in 2013 6
ISM University of management a change in ownership Innovation Norway has sold its shares of ISM University of management and economics and major investor became Lithuanian company ARVI. Lithuanian ICT association first visit to Norway InfoBalt delegation consisting of leading Lithuanian ICT firms organised together Lithuanian Embassy in Oslo a networking event in Oslo, where Innovation Norway presented ICT sector in Norway. Digital Agenda Europe 2013 in Vilnius The daily life of Europe residents will get more efficient and convenient by access to more public services online. The ICT2013 event of European Commission with 5000 participants took place in Vilnius, including 50 from Norway. Innovation Norway briefed Norwegian participants on green grants and business possibilities. OTHER PRODUCTION POPULAR The Baltics: Innovation Norway contributes to business development Innovation Norway delivered market and partner searches and worked at service agreements with 12 construction, metal, plastic and textile companies in the Baltics in 2013. Second DNB Baltic forum DNB organised its second Baltic forum together Innovation Norway and Norwegian Chambers of Commerces in the Baltics with over 100 participants in Oslo. Innovation Norway Europe seminar Innovation Norway organized an Europe seminar during Oslo Innovation Week, where amongst other markets the business opportunities in the Baltics were presented. Innovation Norway chose partners in the Baltics Innovation Norway announced the winners of tenders for associated consultant contracts who will work developing new Norwegian business in the Baltics in close cooperation with Innovation Norway Tallinn office during two plus two years period. It is not everywhere that Innovation Norway uses services of locally based associated consultants, but such a networking set-up is efficient as it helps to mobilise resources when they are needed. The winners of Innovation Norway associated consultants contracts are MatchBusiness and Civilistra in Estonia, GatewayBaltic in Latvia and Business Strategy Advice Services in Lithuania. Estonia: Kawe to build a new office complex in Tallinn Norwegian-owned development company Kawe Group that focuses on long-term investments in commercial real estate, plans to start building a EUR 9m office complex in the Baltika quarter in Tallinn in spring 2014. Estonian-Norwegian woodhouses development seminar Norway was awarded Friend of Estonian Woodhouse title. Estonian Woodhouses Cluster organized in connection with Estonian Woodhouse Norwegian business development in the Baltics in 2013 7
Association, Estonian Forest and Wood Industries Association, Enterprise Estonia, Norwegian Embassy in Estonia and Innovation Norway a seminar on creating value added in wooden buildings. Amongst others the Norwegian Association of Architects and Norwegian wooden houses companies presented the cooperation possibilities. Business development meeting Norwegian-Estonian Chamber of Commerce organised a meeting for its members with Innovation Norway and Enterprise Estonia representatives. Norwegian-Estonian business culture seminar fully booked Norwegian-Estonian business culture seminar with a culture expert Pellegrino Riccardi was fully booked during the first day. The event organised by Team Norway consisting of Norwegian Embassy, Norwegian Estonian Chamber of Commerce, Innovation Norway, and Enterprise Estonia attracted an audience of 200. Latvia: Narvesen to acquire Preses apvieniba Narvesen Baltija is going to acquire Preses apvienība and take over all their debts until April 2014. Company is going to keep the current name, while will merge in all Preses apvieniba structures. Klaveness Marine Real Estate invests to Latvia Klaveness Marine Real Estate invests to office, logistics, residential and retail markets in Northern Europe. The company has made a decision to enter the real estate market in Latvia by establishing a local company as a long term investor in the region. A new joint venture Heimdal Skonto Latvia A new company Heimdal Skonto Latvia has opened in Ventspils, which is a joint venture of the Norwegian Heimdal Group and Skonto Būve in Latvia. The production unit will supply house modules and prefabricated houses to the Nordic market. The most recent and up-to-date technologies are used in the production. Husvik bags a contract for a hospital in Norway Pre-fab housing manufacturer Husvik has signed a EUR 5m contract for building a new state-owned hospital in Østfold, Norway. Kavli sources making classic biscuit to NP Foods O. Kavli AS transfers the production of the classic Norwegian Korni bread biscuit to Latvian NP Foods-owned Staburadze. Livonia prints most beautiful books in Norway Livonia Print is the largest printing company in Baltics specializing in printing of books. A large part of its production is exported to Nordic and EU markets. 14 out of 41 Norway s most beautiful books in 2013 were printed by Livonia Print. Norwegian-Latvian business culture seminar Norwegian Chamber of Commerce in Latvia organised a seminar on how to build a successful business culture, where Norwegian companies in Latvia and Innovation Norway presented their experiences. Norwegian business development in the Baltics in 2013 8
A study on Norwegian companies in Latvia A study of Norwegian business presence in Latvia ordered by the Norwegian Embassy in Latvia showed that the total number of companies with Norwegian capital has increased by 22% since 2007 and in 2012 reached 329 enterprises with total turnover of 1055 billion EUR. Although GDP growth of Latvia was 4,5% in 2012, Norwegian capital companies revenues grew by 26%, showing their strong competitiveness. In addition, research showed that Norwegian capital companies together employ around 5794 people, and majority of them are employed within service sector. Nordic Baltic Prime Ministers met in Riga Nordic Baltic Prime Ministers Summit gathered Prime Ministers and government representatives from eight countries in Riga. The topics discussed included green economy and digital society. Lithuania: Møller opens a new automobiles centre Møller Auto is planning to open a new automobile centre in Vilnius. Premises will be 10,000 sq. m. There will be a 1,000 sq. m display area with ability to show up to 30 automobiles. There will also be a 1,300 sq. m. area for technical care service Norwegians seek partners for 38,000 sq.m project Norwegian property investors had the detailed plan approved on a mixeduse 38,000 sq.m real estate property project in central Vilnius, Aludariu Development, and put the project for sale. Lack of space for skiing poles Swix Sport Baltic is planning to expand and move into 5,000 sq. m. premises in Ukmergė. The building is under construction by Norwegian owned company Ukmerges Pramones Parkas. Scan Sorlie establishes in Lithuania Scan Sorlie has decided to establish the manufacturing process in Lithuania. Lithuanian-Norwegian business day The International School of Management (ISM) hosted together Norwegian Embassy in Lithuania and Norwegian-Lithuanian Chamber of Commerce a Norwegian-Lithuanian career day for students and a business day during Norwegian days. Norwegian-Lithuanian business culture seminar Norwegian and Lithuanian business cultures were discussed by Oddvar Johnsen and Innovation Norway at a Norwegian-Lithuanian Chamber of Commerce seminar. Nordic CSR events Nordic Chambers of Commerces and -Embassies organized events to promote CSR (Corporate Social Responsibility). Norwegian Prime Minister visited Lithuania Prime Minister Jens Stoltenberg visited Lithuania to discuss bilateral relations and economic cooperation, especially in the energy sector. Norwegian business development in the Baltics in 2013 9
KEY TRENDS Key trends in the Norwegian business development in the Baltics: Energy & environment Green business at growth, Norway Grants visible. Maritime Oil & gas suppliers show an interest, LNG coming up. Information communication technologies and services sector grow. Other Production popular. Norwegian business development in the Baltics in 2013 10