Norwegian business development in the Baltics in 2012 Tallinn, Riga, Vilnius
The overview includes Norwegian companies new transactions and Innovation Norway business development activities in the Baltics in 2012. The overview is based on publicly available information. Main sources are News2Biz, Baltic Business News, Äripäev, E24, Dienas Bizness, Verslo Zinios and Innovation Norway. The overview is grouped by Innovation Norway priority business sectors: energy & environment, maritime, information communication technology, other and by the region and individual countries. Norwegian business development in the Baltics in 2012 1
ENERGY AND ENVIRONMENT GREEN BUSINESS AT GROWTH The Baltics: Canadians take over Statoil Fuel & Retail The Canadian convenience store operator Alimentation Couche-Tard Inc. has taken over the Statoil Fuel & Retail by acquiring more than 90% of its shares. Energy & environment companies show interest Innovation Norway delivered market researches and partner researches to renewable energy, energy systems, energy efficiency, water, waste, packaging and recycling companies in the Baltics in 2012. New Green Industry Innovation program opening Norway Grants Green Industry Innovation program will grant EUR 25 million for Baltic companies to develop new green business projects in cooperation with Norwegian partners. Innovation Norway organised a program information day in Oslo in April, which attracted 200 participants. The program was also presented at The Confederation of Norwegian Enterprise Trøndelag Europakonferanse with 75 participants in Trondheim in November. Estonia: Wind firms merge under Nelja Energia brand The wind park operator Nelja Energia and the investors Freenergy and Vardar Eurus merge under the Nelja Energia name. The merger includes 17 wind parks in Estonia, Latvia and Lithuania that will be joined in an organization that covers both investments and management. In Estonia, Nelja Energia is planning to finish the construction of the onshore wind parks in Aseri, Kunda (northern coast), Hanila (western coast) and Paldiski (northwestern coast). Nelja Energia launches biogas developments Nelja Energia is ready to launch two biogas-powered electricity and heat co-generation plants. The construction of the first 1.2 MW plant was started in Oisu, Järvamaa in spring. In summer began the construction of another plant with the production capacity of 1.3 MW, located in Vinni, Lääne-Virumaa. Nordic Council of Ministers green conferences Nordic Council of Ministers organised Green Growth Smart Energy Solutions conference in Tartu in October, where Norwegian University of Science and Technology, Research Center on Zero Emissions Building presented. A Nordic-Baltic conference on Policy Challenges on Energy Efficiency and Renewable Energy was held together Norwegian Ministry of Petroleum and Energy in Tallinn in October. Green innovation promoted Royal Norwegian Embassy organised Delfi/Päevaleht press trip to Norway. Estonian Ministry of Economic Affairs and Communications issued articles on Green Industry Innovation in Inseneeria. Norwegian business development in the Baltics in 2012 2
Latvia: New green program and Norway s green competence presented Innovation Norway, Royal Norwegian Embassy and Ministry of Economy of Latvia organised Green Industry Innovation program seminar with 100 participants in Riga in October. Amongst others Green Business Norway, SIVA, Proneo, Norwegian University of Life Sicences, Haddal, Aiwell and Innovation Norway presented Norway s green competence. Lithuania: Nelja Energia launches another windfarm, plan more In June, Nelja Energia launched its third wind farm in Lithuania, a 13.8 MW park near western Silale, a town 60 km east of the Baltic Sea shoreline. This brings the total wind farm capacity owned by the firm in Lithuania to almost 40 MW. Statoil buys station in Vilnius Lietuva Statoil, with the second position on the Lithuanian market acquires a full-service filling station in Vilnius from Rasmitas, an Opel and Chevrolet dealer. The deal will bring Statoil's total filling station count to 75. Statoil to exit from biodiesel plant Due to strategic changes, Statoil is pulling out of the biggest Baltic biodiesel plant, Lithuanian Mestilla, but will stay with the company as its sole export partner. Statoil owns 49% of the Klaipeda-based company after buying into the newly-built plant back in 2007. The Statoil stake is sold to Danish-based Akola that is seeking regulatory permission to acquire up to 100% of Mestilla's shares. Statoil may supply LNG Lithuania's energy ministry has started talks with 16 foreign suppliers for LNG to supply liquefied natural gas to the would-be LNG terminal in Klaipeda. Statoil is amongst them. Winner will be announced in 2013. Nord Pool Spot takes over administration of power exchange The administration of Lithuanian power exchange was transfered to Nord Pool Spot AS, the power exchange operator for Nordic and Baltic countries in June. Lithuanian and Norwegian energy ministers meet Energy Minister of Lithuania Arvydas Sekmokas met Norwegian Minister Borten Moe on LNG and interconnections in April. Scandinavian Waste Management visit Scandinavia Waste Management network visited Lithuania. Green Industry Innovation events well-attended Ministry of Economy of Lithuania and Innovation Norway organised Green Industry Innovation launch event with 125 participants in Vilnius in July, and seminars and matchmaking events with 100 participants in Vilnius, Kaunas and Panevezys in November. Norwegian business development in the Baltics in 2012 3
MARITIME OIL & GAS SUPPLIERS ACTIVE, LNG COMING UP The Baltics: Oil & gas suppliers establish Innovation Norway assisted oil & gas suppliers finding partners and establishing companies in the Baltics in 2012. Norway s top competence in LNG (liquefied natural gas) introduced Innovation Norway together with Royal Norwegian Embassies, Det Norske Veritas and Ministries of Economy in Estonia and Latvia and Ministry of Energy in Lithuania organised LNG seminars in Tallinn, Riga, Klaipeda in October. Major Norwegian LNG players Nord Pool Gas, Gasnor, Nox fund, Marintek, Borg Havn, Det Norske Veritas, Fiskerstrand BLRT, Torgy Mekaniske, Norled, Statoil - and over 300 local industry players were in attendance. Estonia: Nexans launches laying of Estlink-2 cable Nexans Norway, the Norwegian subsidiary of the Euronext-listed cable company Nexans, has launched the laying of the 75-km-long submarine power cable Estlink-2 between Estonia and Finland. Lithuania: Höegh LNG wins regasification ship tender Höegh LNG and government-controlled Klaipedos Nafta have signed a tenyear deal for one of Höegh's floating storage and regasification units (FSRUs) to be used as an LNG import terminal in Lithuania. The deal comes after a successful bid for the project from Höegh in January 2012, when it scored the winning bid for a USD 500 million contract over rival bidders Golar LNG and Excelerate Energy. Banks lend USD 250 million for Klaipeda-bound FSRU Four biggest Norwegian banks have agreed to lend Höegh LNG USD 250 million to finance the construction of a floating LNG storage and regasification unit for Lithuania. Fiskerstrand BLRT wins order for three ferries 50:50 joint venture between Lithuanian Vakaru Laivu Gamykla and Fiskerstrand Verft, both shipbuilding companies, has landed an order for three ferries from Boreal Transport Nord, a ferry operator active in northern Norway's Nordland region. INFORMATION COMMUNICATION TECHNOLOGY (ICT) ATTRACTS INTEREST The Baltics: ICT companies are eager Innovation Norway supported several ICT companies with market researches, partner searches and company establishment in the Baltics in 2012. Norwegian business development in the Baltics in 2012 4
Estonia: Atea takes over NG Infra Atea, a leading IT infrastructure supplier in the Nordics and Baltics, has significantly strengthened its Estonian presence by taking over NG Infra from Estonia's Netgroup. Logica recruits Estonian IT students for oil projects In Logica Estonian offices in Tallinn and Tartu work nearly one hundred employees, who provide IT services to customers in Estonia and elsewhere in Europe. The company now recruits Estonian IT students for oil industry s projects. Latvia: HospitalOrganiser sets up a subsidiary HospitalOrganiser has set up an IT development subsidiary in Latvia because of local competent IT developers and willingness to innovate in the healthcare sector. Lithuania: Omega turns to local customers Omega Technology in Klaipeda, a software development company, has secured its biggest local contract since the office was set up five years ago. The deal could signal a change of its focus from an export-based business to one with a greater balance between export and local sales. The contract is with Klaipeda's Regional Waste Management Centre that is overseeing waste collection from the region's hundreds of thousands residents and businesses. Omega Technology's task will be to first deliver a billing system to the customer, then to complement it with several modules including accounting, analysis, personnel, salaries and document control. Schibsted takes over portals Vilnius-listed Teo LT triple-play telecom has sold its zebra.lt entertainment news portal to Lithuanian 15min, a news portal and free paper publisher owned by Schibsted group. JSC Zurnalu leidybos grupe owned by Schibsted media group acquired TV programme portal tv.lt. Byggleverandørene invests into mobile business Byggleverandørene acquired 50% of UAB Mokus, developer of the mobile task management platform. Atea eyes printing business acquisition and is moving Nordic service desk jobs to Lithuania Atea is expanding by applying for regulatory approval to acquire local Biznio masinu kompanija (BMK). The company is also setting up new jobs in Vilnius as it is taking over client service functions from Atea's more costly locations in Scandinavia. Norwegian business development in the Baltics in 2012 5
OTHER BUSINESS SERVICES AND CONSTRUCTION GOING STRONG The Baltics: Reitan makes clean sweep of Baltic convenience stores After taking over the remaining 50% of the Latvian kiosk chain Narvesen Baltija from Finnish Sanoma in late 2011, Reitan Servicehandel cleaned out Sanoma in the kiosk department. For approximately NOK 1 billion the Norwegians have taken over 2.500 R-kioski, R-Kiosk and Lietuvos Spauda kiosk chains in Finland, Estonia and Lithuania. By doing so, Reitan Servicehandel is now the second player in convenience stores in Europe, following France's Lagardere. MøllerGruppen takes up Møller brand in the Baltics The MøllerGruppen, a distributor and retailer of Volkswagen, Audi and Skoda cars in the Nordics and Baltics, is collecting all of its Baltic dealerships under the Møller Auto brand. DNB first Baltic forum DNB organised its first Baltic forum in cooperation with Innovation Norway, Norwegian Chambers of Commerce in the Baltics and Baltic embassies in Norway, gathering 150 participants in Oslo in March. Several Baltic events in Norway Innovation Norway organised meeting programmes with companies in Oslo, Akershus, Østfold, Sør- and Nord-Trøndelag counties, presented Baltic opportunities at Mulighetskonferanse with 60 participants in Sarpsborg and contributed to articles in Dagens Næringsliv, Sunnbedrift.no, SPORT magazine and News2biz. Decent Work fund opened Norway Grants Fund for Decent Work and Tripartite Dialogue was opened in 2012 for the social partners in the Baltic States to apply for project grants to contribute to a more sustainable economic and social development. The program operator is Innovation Norway. Innovation Norway gives extra service to high growth companies Innovation Norway started mobilising companies having the highest growth potential in Norway - 3% of Norwegian companies generate 60% of the value added. The high growth companies will be mapped, contacted and get an extra service from Innovation Norway. Seed Forum grows Seed Forum, that organises biannual forums for start-up companies to find investors in numerous international locations, reports on the growth of activities in the Baltics. Business services and construction companies going strong Innovation Norway supported business service companies to establish companies and recruit people in the Baltics in 2012. Many partner searches were delivered to find suppliers for construction, textile and other industries. Norwegian business development in the Baltics in 2012 6
Estonia: Selvaag invests in Tallinn offices Selvaag Eiendom has signed an EUR 4.3 million construction contract with the Tallinn-listed builder Nordecon for a 4.680 m2 property in Tallinn. The property, located on Kentmanni and Sakala streets in central Tallinn, has its earthworks done and expected to be completed in 2013. Kawe Group acquires Baltika quarter and builds a new logistics centre Property investment company Kawe Group has acquired Baltika Kvartal, a business property block in central Tallinn, from the stock exchange listed clothes retailer Baltika for EUR 13.6 million. In April Kawe Group begun construction of a new logistics centre, Kõrtsi Logistics with total area of 9.300 m2, located approx. 10 km from Tallinn. The building was completed in the autumn. The tenants of the building are Dunkri Kaubanduse AS, a leading importer and distributer of alcoholic beverages in Estonia, and AS Smarten Logistics, the largest third party logistics provider in Estonia. Linstow makes Ülemiste largest mall in Tallinn Linstow is ready to spend approximately EUR 30 million on an expansion of the Ülemiste shopping centre near Tallinn's airport. The mall will expand its net area from 40.000 m2 to 60.000 m2 and thus become the largest in Tallinn. DNB advances from branch to bank in Estonia DNB reorganised its Estonian branch to an independent business entity, injecting EUR 90 million into its share capital. In return, the bank's headquarters in Oslo wants to see the Estonian subsidiary grow in the following years. Solhjell to up national costume making in Estonia Solhjell, a Molde-based maker of men's national costumes, expanded its activities in Tallinn and took the strategic step to start making women's costumes as well as men's. Before expanding the staff of 26 in Tallinn made 30 different male national costumes and now they started making 8 traditional costumes for ladies as well. Funding seminar Norwegian Estonian Chamber of Commerce organised a seminar on funding opportunities for new project development. Many Norway and Nordic promotion events in Estonia: Royal Norwegian Embassy, Nordic Council of Ministers together with local key partners organised several Norway and Nordic promotion events: Launch of EEA Grants, including a workshop on green innovation and research grants; a conference on employment, Nordic food, health, life quality to mark Norwegian chairmanship in Nordic Council of Ministers; Nordic Look - Living City. Dream City conference and Northern Areas seminar. Norwegian business development in the Baltics in 2012 7
Norwegians at visits Deko/Norsk Industri annual general meeting was held in Estonia. Rogaland county council, Follo Nettverk, BI Norwegian Business School visited Tallinn. Latvia: Husvik to offer residential homes to Latvians The pre-fab housing manufacturer Husvik has been working in Latvia since 2006, exporting most of its output to Norway. Now it is planning to expand in Latvia: not only does it plan to add more space to its production plant in Sigulda 50 km from Riga, but it also plans selling its houses to Latvians. Norwegian architects win airport competition in Riga A team made up of two Norwegian architect firms, three British and one Danish, has won the competition for AirBaltics's new airport terminal. The Norwegian architects are Narud Stokke Wiig, one of Norway's leading architects, and Griff Arkitektur, which has quite a long experience in Latvia. Narud Stokke Wiig has designed a number of large airports and terminals during the last ten years, partnering up with London-based Haptic Architects, another participant in the Riga consortium. Hotel Valdemars increases Nordic Choice integration Choice Hotels Baltics, a joint venture between Norway's Nordic Choice and the Swedish-Latvian Cakste family, has taken over 50% of Hotel Valdemars, previously 100% owned by the Cakste family. Successful Norwegian days in Latvia Royal Norwegian Embassy, Norwegian Chamber of Commerce in Latvia and Innovation Norway organised Norwegian Days in Latvia filled with cultural and business events, including conference Norway today - Leadership, business culture, new markets in October. Visits from Norway Confederation of Norwegian Enterprise Rogaland, Bergen Høgskolen and Senja Næringshage visited Riga. Lithuania: Schage biggest ever single office space development in Vilnius In late February, real estate developer Schage Eiendom (formerly known as Sektor Real Estate) moved from drawing boards onto the construction site of what will be the biggest ever single office space development in Vilnius. Known as Quadrum, the project will offer a total of around 43.000 m2 of class A office space in four buildings (70.000 m2 including underground parking for 700 cars). The architects behind the complex are the team of Norwegian Lund og Slaatto Arkitekter and Danish Schmidt Hammer Lassen that in an open tender beat a bunch of Lithuanian firms and Norwegian/Danish C. F. Møller. DNB takes first repossessed property to market Intractus, the repossessed real estate property management company of DNB bank, has added a small B+ class office building to the Vilnius office Norwegian business development in the Baltics in 2012 8
market. The Trapecija centre with 4.100 m2 gross and 2.500 m2 leasable area is located in one of Vilnius' residential districts. Selvaag develops first major residential project Selvaag LT is developing its first major local residential project. For LTL 50 million the firm is developing a residential/commercial area complex with 18.000 m2 of area. The residential development is located in Naujamiestis, a walking distance from Vilnius Old Town, and will form one complex with the Comfort Hotel opened in 2012. Nordic Choice opens a new hotel in Vilnius Nordic Choice Hotels, the biggest hotel chain in Scandinavia, has launched its first hotel in Vilnius, the 200-room Comfort Hotel LT. The noted Norwegian billionaire Petter Stordalen has more ambitions in the Baltics. Devold AMT takes over Scandpark industrial park The composite materials maker Devold AMT has acquired full control of the 19,000 m2 Scandpark industrial park in Kursenai near Siauliai. Autolink expands to Lithuania The Paldiski, Estonia headquartered Autolink Baltics, the 50:50 joint venture of the Norwegian Autolink Group and Estonian Baltic Maritime Logistics Group, established its subsidiary in Lithuania in the beginning of the year, aiming to claim at least 40% of the car logistics market in the Lithuania. Norne takes over Terra analysis unit in Vilnius The expertise of the former Lithuanian analysis production office of Norwegian Terra Securities brokerage did not go to waste following its parent Terra-Gruppen's decision to close the brokerage. The Vilnius unit was reborn as a branch office of Norne Securities. Consolvo sets up support office Consolvo has opened an office in Lithuania where it plans to pursue three business lines. First is to build a support office for operations in Norway and Sweden, then they plan to offer services for the local market. Third, they want to source wooden house elements from Lithuania. Devold new plant in Panevezys Devold textiles together with two Lithuanian food co-operatives will become the first investors in the Panevezys industrial park in central Lithuania. The three companies plan to invest a total of LTL 60 million and create 470 jobs on three land plots totaling 11,5 hectares a fourth of the park's total business area. Devold's project is the biggest: with an investment budget of LTL 34 million, the knitwear producer intends to construct a new plant on a 6,5 hectare land lot to which it will relocate existing 260 jobs and during the next three years create another 100 jobs. Safa moves to Kaunas Safa sock maker, based in Hordaland, is ending its longtime manufacturing activities and will transfer the remaining capacities to its Lithuanian partner Skinija in Kaunas, in which it is also an important coowner. Norwegian business development in the Baltics in 2012 9
Hjellegjerde's owner moves all production to Lithuania Hjellegjerde, a sofa and recliner maker, is starting production on its second location in Lithuania as the company has decided to concentrate all its manufacturing activities in the country based on the previous success. Steel/sandwich buildings for Norway Hugaas Group launched production of steel sandwich pre-fab elements in Lithuania that will later be shipped and assembled onsite in Norway. Kitron to build group distribution centre Kitron, electronics manufacturing services contractor, is moving on with its expansion plan in Kaunas. The company plans to invest LTL 20 million to increase its manufacturing capacities and also the product range. Apart from raising the production floor area, Kitron will also launch an engineering unit where products will be tested before commercial production, as well as construct a distribution centre for group needs. - Norwegian business development in the Baltics in 2012 10