Business Finland 1/2011 by Perhemediat Oy

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1/2011

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INVEST IN finland Improving the Economy

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Building on a Tunnel Boom

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Equipment

Commercial Limestone from a Family-Run Business

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EDITOR-IN-CHIEF Jorma Leppäniemi EDITORS Anders Korhonen Anni Jyrinki Juhana Hurula Klaus Susiluoto Miira Ojanen Nita Ukkonen Pentti Vänskä Simo Raittila Sini Pennanen Tiina Rahkonen Kati Knuuttila LANGUAGE EDITOR Nordic International Ltd

DESIGN AND LAYOUT Aivo Blum Matti Summa MARKETING Jorma Leppäniemi Tel. +358 9 42821012 PUBLISHER Kustannusosakeyhtiö Perhemediat Oy Purpuripolku 6, 00420 Helsinki Tel. +358 9 42821000 Fax. +358 9 42821030 Printed in Finland by Art-Print Oy, Helsinki

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Resource-rich Finland Finnish Mining Industry - Strong Years Ahead Invest in Finland – Improving the Economy Finland’s Minerals Strategy Major Metal Mines in Finland Nordkalk – Commercial Limestone from a Family-run Business Golden Opportunities Agnico-Eagle Mines – Gold Production in Finland Magnus Minerals – Digging Deep Normet – Building on a Tunnel Boom Metso At the Head of the Construction and Mining World Polar-Automaatio - 25 Profitable Years of Hi-tech Innovation Solving - The Way to Success is Continuous Development Calcus Teknikum – ’Rubber’ Solutions of the Future Siemens Solutions Increase Energy Efficiency Performance with Experion Incap – An International Contract Manufacturer New Power to Finnish Market YIT Tunnelling Expertise Janla – Challenging the Big Boys People Management - Courier in Globalisation of Management Recruitment Informa - Professional Labelling for the Packaging Industry The Evolution of a Wellbeing Watch Omena Hotels - The No-Frills Concept Expands Overseas Breaking Out of the Frame - Battling with Materials Can Also Give a Light Touch All-weather Style by Pertti Palmroth Aalto Venture Garage – Giving a Boost to Innovative Startups L-Fashion Group – a Strong Finnish Clothing Company Aviapolis – International Innovation Hub Vantaa Innovation Institute – Excellence in Business Innovation Services Railway Boosts Property Development A Large Network for Nordic Business Travellers Hotel GLO Helsinki Airport – Enjoy Additional Sleep Time Scanwings – Almost There Finnish Aviation Museum – Where Time Flies Sokos Hotels – Keeping Up the Chain’s Reputation Avis - Wireless Internet In Your Car Hertz - Cars for Vacation and Business Trips Sixt Finland – Committed to Customer Service Lapponia Lakka Cloudberry Liqueur - Experience the Northern Wilderness

EDITORIAL Deep mining and high flying – with premium service attitude

n this issue descend below the ground and then fly high on northern wings. We publish Finland’s first up-to-date and in-depth mining and aggregates report by introducing existing, newly opened and upcoming mines and quarries. Although it does not number among the biggest mining countries on a global scale, Finland is strong in Europe, with good nickel, cobalt, zinc, limestone, apatite and gold resources. We introduce all the major mines in the country. Finland is also a surprisingly large manufacturer of mining, quarrying and tunnelling-related machines and equipment. Jorma Leppäniemi Metso Corporation is the world leader in many of these areas; Editor-in-Chief for example in manufacturing grinders and mining crushers. We also introduce the manufacturers Normet and Sandvik. What all these companies have in common is the ability to bring reliability and cost savings to their customers through a variety of service concepts. Based on our interviews with mining and mining technology companies, one trend is crystal clear; tunnelling projects in large cities and underground mining will greatly increase in volume in the future. This means that demand for special machinery designed and manufactured by Finnish companies will remain high. In the latter part of the magazine we reach for the sky and take in a bird’s eye view of the surroundings of Helsinki Airport. Here we introduce Aviapolis, one of the most promising Airport City concepts in Europe, which is located in Vantaa in the Helsinki metropolitan region. The area is still being developed, but it already provides 33,000 jobs and there will be more to come. The Ring Rail connection between Helsinki city centre and the airport will be finished in 2014. New office blocks and residential areas will be built, and there are several property developers in the Aviapolis area. Strong growth is expected since Aviapolis is ranked one of the top business locations in Finland. The core of Aviapolis, Helsinki Airport, has skilfully carried out its project of enlarging Terminal Two, thanks to civil aviation association Finavia. However, measures should now be taken to update Terminal One, where Blue1, SAS and many other major airlines operate. So far, enlargements have been slightly in favour of Finnair, the largest airline in Finland. However, Finnair has done a good job of attracting Asian traffic and showing that Finland is far from the peripheries of the aviation world; in fact, Helsinki airport is an excellent hub between Asia and Europe.

Resource-rich

Finland Finland and Sweden form part of Europe’s most promising mining zone. Counsellor Alpo Kuparinen from the Finnish Ministry of Employment and the Economy says that a kind of upward trend in mining is clearly seen in Finland.

Text: Klaus Susiluoto Photos: Anders Korhonen

he availability of mineral raw materials is important for the economy of Europe. Finland is in a rather good position, with varied sources in many metals and industrial minerals. The recent report statistics show that the total value of mining industry in Finland in 2010 was more than 800 million euros. “Without any doubt, we will reach the milestone of one billion in 2011 and it will double in this decade. Catalyst effect on other industries is remarkable, so in fact the impact of the mining industry especially on regional economies in North and East Finland is manifold,” explains Counsellor Kuparinen. The minerals sector can be divided into mining industry, aggregate industry, natural stone industry and technology industry. “So, mining industry is just one part of the larger minerals cluster. Aggregate production is usually a local business. Natural stone industry has some export potential, which has been

Business Finland 1/2011

partly realised in Finland, thanks to good stone material.” Technology industry linked to mining consists of, for example, machinery and equipment that are used for mining operations. “This is a very strong branch of minerals cluster, generating larger export revenues than even actual mining products.” Finland and Sweden are particularly strong in manufacturing underground mining machines. Their global share is almost 80 percent. Finland enjoys a reputation as a global leader in mine systems and mine processing technologies, represented by such companies as Metso Corporation, Normet Oy, Outotec Oyj and Sandvik Mining and Construction Oy. Finland has relatively strong steel and copper refining industry, but most raw materials for them are at the moment imported. In metal ores and concentrates the proportion of domestic supply is less than 10 percent. “However, on the

Finlandâ&#x20AC;&#x2122;s mining industry is based on sustainable approach, which can be an even stronger competitive factor in the future."

Counsellor Alpo Kuparinen from the Finnish Ministry of Employment and the Economy

Business Finland 1/2011

mines & mining technology

The New Mining Act

other hand, Finland has its own mines that produce chrome, nickel and zinc, which can be used in steel production. When the new mines are in full operation, the share of domestic materials will increase. Finland also has remarkable gold reserves. The largest gold mine in Europe is in Finland, even though globally Finland is not among the largest gold producers.” All in all, the volume of metallic ores mined in Finland was only about 4 million tons in 2007, while in 2020 the figure could be 70 million tons.

The bright future As Kuparinen believes, the future looks quite bright from mining companies’ point of view. “Prices were for the long time quite low till the beginning of 2000. But in the last ten years many metal prices have approximately tripled. Recession had a shorter-term effect on prices than possibly foreseen. There is no reason why prices could not remain relatively high. “Incomes and standard of living is getting higher for hundreds of millions of people in many developing countries.

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This automatically leads to the increasing use of metals. There is no risk of rapid depletion of basic raw materials, but processing is getting more expensive because of, for example, the high price of energy.” Future mining operations will have to be increasingly based on underground operations (instead of open-pit quarries), which is more expensive. “New deposits to be exploited will also usually have lower concentrations, which also keep prices higher. Furthermore, recycling of metals is very important in the future, but it is not enough to satisfy the fast-growing demand. For example, now already 80 percent of copper is recycled. But the recycling time is long. Products where copper is found, for example water pipes, are in use for decades. The average life time of copper products is 30 years.” Recycling covers only one-third of the current copper need. This is the reason why there are quite many rather new copper mines, such as in Chile, Sweden, Canada, Australia and Kongo. Also most of iron is recycled effectively, but more and more new iron ore mines are needed.

In Finland a new Mining Act has been prepared for more than 10 years, and it will be taken into use in 2011. The new mining legislation has been criticised by the mining industry. Kuparinen believes, however, that the new mining act is well-balanced to ensure exploration and claiming rights, plus some responsibilities for the other interest groups of the society. The critics have mainly targeted at claiming and excavation fees, which actually do not differ very much from the present level. “It is true that fees increase to some extent. For example, claiming fees will be 20 euro per hectare per annum for the first four years, whereas at present it is 16,75. The new element in the regulation is that the maximum time for claims will increase from eight to fifteen years, but claiming fees will increase stepwise in time. The idea behind this is that the claimer would not keep the claim for too long time. After ten years the claiming fee is 50 euro per hectare per year. “It should also be noted that the mining is regulated through other legislation as well, for example, environmental legislation. Environmental legislation and permission define how mining processes must be carried out, and how the mining site must be cleaned and its safety protected in the closure of the mine. These kinds of post-production measures are inevitable in modern mining,” says Kuparinen. “Some financial guarantees for postproduction measures are needed, in case that the mining company for example will go bankruptcy in the future.” Finland’s mining industry is based on sustainable approach, which can be an even stronger competitive factor in the future. “In the case of uranium the new act will give the municipality the veto right to prevent the opening of uranium mine. In Sweden similar law has been effective since 2005. Although in Finland the mu-

Finland naturally does not rest only on foreign capital or expertise. “The Finnish government actually actively promotes mining activities. During the 2010s several new projects are expected to be started,” says Counsellor Kuparinen. “Last autumn we have finalised ‘Finnish Minerals Strategy’, in which process the Ministry of Employment and the Economy has had an important role.” “Our strategy was drafted in response to a commission by the ministerial working group, as part of the Natural Resources Strategy of Finland. Ministry of Employment and the Economy appointed the Geological Survey to coordinate the preparation process.” Contributions from a team of more than 20 experts were drawn from the minerals sector. An additional 90 persons supported the process. (For more information about minerals strategy, see the separate article). The minerals sector is not only about digging resources with proven machines. “Services and research count much. Services include mine planning, excavation and crushing contracting, sampling,

geophysical surveys, beneficiation and enrichment tests, information services, permitting matters, many kinds of consulting etc.. The minerals sector is very capital intensive and requires effective financing channels.”

State’s role In Sweden the state has a strong role. LKAB is wholly owned by the state. There has been discussion if Finnish state should have its own mining company instead of or in addition to having minority stakes in some companies. Kuparinen says that state “interference” possibly is not needed, with many new mining companies already existing by private investors. “The Talvivaara Mining Company Plc, which a couple of years ago commenced exploitation of large multi-metal deposit, is mainly owned by Finnish companies and private investors.” At the early stage, the state-owned Finnish Industrial Investment Fund Ltd also owned Talvivaara shares, but afterwards has sold them. n

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nicipality does not yet have veto, even a single person can appeal against the decision of mining authority to the highest administrative court. “However, there have been really few appeals, whether it is a question about exploration claims or about establishing a mine, but uranium exploration and possible mining have raised discussions also in Finland.” “When ready, Finland’s mining legislation is progressive”, believes Kuparinen. “Mining industry is one of the branches where EU has no competence for direct regulations on EU level. So the mining regulation is in all countries based on national legislation. Of course, very much of the EU regulations, for example, environmental, waste and energy legislation, concerns mining industry as well.” The European commission has taken measures to improve the long-term availability of raw materials through the Raw Material initiative from 2008. “This is really needed. For example, EU member countries consume 25–30 % of metals produced globally, yet its share of metals production is only 3 %.” The Commission has also listed socalled critical metals and minerals, which are highly important to industry and society. These include rare earth metals, which are used in electronics, defence and other high technology products.

www.tem.fi

Foreign investment needed Until the EEA (European Economic Area) agreement mining branch in Finland was practically closed for foreign companies. “Today many foreign companies operate in Finland, and they are welcomed. Many of them have lots of know-how. They invest in Finland by financing their operations themselves. “Naturally there could be more Finnish entrepreneurs. And though many open-pit and underground mines are now owned by foreign companies, those companies employ Finnish experts and workers.”

Business Finland 1/2011

Mining and minerals have much wider positive impact on our economy and society than generally known."

Olavi Paatsola, Secretary General of the Kaivannaisteollisuus ry (FinnMin Association)

Business Finland 1/2011

FINNISH MINING INDUSTRY strong years ahead Text: Klaus Susiluoto Photos: Anders Korhonen

innMin was established in 1999. Owing to the rising prices in metals, minerals and investors’ interest, Finnish mining in the 2000s developed strongly. Paatsola tells that the gross value of Finnish mining industry in 2009 was 481 million, but in 2010 already little more than 800 million. “This figure includes only direct value of mining industry, and is steadily on the increase. Although in earlier years the situation was not so good, mining industry is now doing relatively well.” Paatsola repeats that positive trend is expected: “A small surprise was that the recovery in raw material prices was faster than expected, after the 2008-2009 recession.” Mining industry investments in Finland will be quite large in the next ten years. “The report by Ruralia Insitute from the year 2009 estimates that investments in mining of the known projects will be 2,5 billion euros by 2020. At least 1,6 billion of this has not been finalized yet.” “The share of mining industry in

Olavi Paatsola, Secretary General of the Kaivannaisteollisuus ry (FinnMin Association), believes that Finland can have a 30-year upward trend in the field of mining industry.

Finland is around one percent of GNP, whereas in Canada the figure is as high as 6 %. I don’t think we can reach Canada’s figure, but mining is clearly on the increase at the moment.”

Communication needed According to Paatsola it is sometimes easy to forget the importance of the basic industry like mining. “The value of mining industry is just a fraction of metals, electronics, or pulp and paper industry, but Finland is in European context quite strong in mining.” Though Finland imports some main metals like iron and copper in the use of processing industry, for nickel, zinc, copper, gold and chrome, Finland has its own production. In industrial minerals, limestone, talc and phosphate reserves are quite good. “Yet only recently people have started to grasp how varied resources we have,” says Paatsola. “It’s a pity that the public opinion can sometimes be manipulated, and people

may have wrong or incomplete information about mining. We don’t always remember that we need these metals and minerals in everyday living. They are too daily like electricity from net or milk from a shop.” “Mining industry is not even an oldfashioned industry. In environment and safety issues, mining industry has led the way. Many improvements have been done even before these have been obliged by the law,” says Paatsola. In spite of advanced approaches, the message of sustainable and safe mining has not always reached the general public, not even every leading decision-maker. This is because different messages are coming from some countries where the mining is not on the same level. “Further measures can be taken to boost communication. Naturally all mining projects have some impact on nature and the community around. To inform interest groups of what is going on is of utmost importance. This should be an ongoing process. We will have to listen

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mines & mining technology 10

in Parainen and Lappeenranta, as well as in Siilinjärvi, where phosphate is quarried and refined. “The most recent mining projects in Finland have started in northern and eastern part of the country, but actually we have mines and mining-related-industry all over Finland. I would call this the balanced regional impact,” says Olavi Paatsola.

Favorable prices

to others, and at the same time be able to convey our own message clearly. The latter has not always succeeded, but more efforts have been put to it.”

joitus Oy and others. The Finnish state has already had different ways to participate in mining, for example through Solidium.”

State’s role

Balanced regional impact

Sometimes there has been the opinion that the state should control or even own a great deal of mineral resources, possibly through a separate company. But Olavi Paatsola does not believe that this would be a good solution. He says: “It’s difficult to foresee, what benefits larger state interference would bring. Government-owned companies often withdraw from businesses when the better solution is to continue and put more efforts. And sometimes the state would like to enter new businesses, when it’s actually too late. I don’t recommend jumping into a moving train.” “However, if Finnish state would like to establish a mining company of its own, we naturally welcome this option, as long as operating opportunities are the same for all companies. It’s good to remember that the state or partly state-owned companies have already important stakes in Outokumpu, Talvivaara, and even in gold mine in Pampalo through the Teollisuusi-

In Paatsola’s opinion, one can already speak about minerals cluster in Finland. “Mining and minerals have much wider positive impact on our economy and society than generally known. People possibly do not know or remember that our strong metals industry is based largely on mining and minerals companies. For example, we also have a remarkable group of technology companies that serve mining industry all over the world, generating export revenues. I think that decision-makers also understand the role of minerals cluster, so that our competitiveness will remain good.” Finnish modern metals and minerals refining plants are located mainly in the coastal areas of Finland, but the effect radiates to the inner part of the country too. Plants are located in Tornio, Kemi, Raahe, Pori, Parainen etc.. Industrial minerals are in many cases refined just next to quarries or mines. This is the case in limestone production

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Mining industry has benefited from the rising raw material prices. “For example, the recently-opened Talvivaara mine recently turned profitable. after minor challenges. In the United States, to some extent, raw materials prices are affected by reserve supplies.” “Cyclical nature of mining business will possibly always remain, but some measures could be done for more stable development. But it is not easy to figure out how speculation with raw materials prices could be diminished. What we also need is more flexible labour and enterprise legislation. Private companies should strengthen their balance sheets, since cyclical nature of this business is likely to continue.” Education and training in the field of mining cluster should be intensified. Paatsola studied applied geophysics in the Mining department of Helsinki University of Technology at the end of 1960s. “At that time, some people said that change your main subject, otherwise you wouldn’t find a job! Now I have been in this branch for more than 30 years, mainly as a mining geophysicist and mining engineer, in Rautaruukki corporation and Siilinjärvi mine. It indeed seems that there were difficult times in our branch. For a long time, raw material prices were quite low. Even if we were successful in developing new solutions, operations were not always profitable. If metals side of our business did worse, industrial minerals could do better.” Slow progress is not always only negative. “Some proven deposits have in a way

New methods Also other mines in Finland have benefited from technological expertise in mining. “Geophysical methods developed by Outokumpu Oy, Otanmäki Oy and Rautaruukki Oy were important, as were ICT-based methods developed in all companies but especially in Outo-

kumpu Oy. These have been integrated to normal working routines, but they actually required much effort to develop,” says Olavi Paatsola. With new methods it is easier to take into use also older ore deposits with less minerals content. The richness of ore is an economic concept that changes according to profitability requirements. The importance of refining industry is indeed undeniable. Finland has a long history of mining upon which metal and other industries are built. Especially Outokumpu ore had consequences at the industrial level: several smelting plants and metal refining plants were constructed. Later these plants have used foreign-based concentrations. In Sotkamo, talc (a kind of soapstone) production has continued for a long time. In Parainen and Lappeenranta, limestone is quarried, Lohja’s Tytyri has underground limestone resources, and in Kemi chrome ore is excavated. Impact of these mines will spread in many branches and secure important

export revenues as well as domestic refining. “All these units affect Finnish economy in a more positive way than direct amount of jobs can tell us. Also it is important to bear in mind that the mines of Otanmäki Oy in Otanmäki ( iron ore), Kolari and Raajärvi resulted in establishing Rautaruukki steel company with a large plant built in Raahe. “If all these mines and units and their impact would be put together, along with services and strong technology industry ( machinery), minerals industry in Finland employs around 50 000 people. It is a large figure. Yet more is about to follow,” says Paatsola. “After projects finished within a couple of years, and those concluded in the next few years – Kittilä ( in operation), Talvivaara (in operation), Pampalo (started in January 2011), Kevitsa, Kylylahti, Kälviä, Ranua, Kolari, Sokli etc., we will see even larger figures in turnover and those employed.” n

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been waiting for better times. This was the case with Talvivaara and Sokli mines.” The whole issue of setting up and utilising resources is quite complicated. “From my own perspective, saving Siilinjärvi mill was a success. In this process I feel I also had a certain role. Today Siilinjärvi, the only phosphate mine and refine plant in European Union, is operating in an efficient and profitable way.” (The plant is owned by Norwagian Yara, which has invested in the mill.) “There were several development programs that had to be carried out in Siilinjärvi. Strategic decisions were made with good timing and success.”

www.kaivannaisteollisuus.fi

Finnmin in a nutshell FinnMin was established in 1999 to improve the operational environment of the Finnish extractive resources industry, to promote the common and general working conditions of the extractive industry, and to continue the long-term work of Tutkimusvaltuuskunta inside Vuorimiesyhdistys (Finnish Association of Mining and Metallurgical Engineers). Tasks: - to increase knowledge and awareness of environmental and industrial safety issues among the member companies; - to organize and coordinate the members’ joint research projects and - to provide a forum for cooperation between the members. FinnMin's members operate in a variety of fields: - Research and planning in the extractive resources industry; - Exploration for ores and other minerals; - Use of earth resources through excavation or mining; - Processing of extracted substances by various methods; - Design and manufacture of machinery, equipment and accessories for the extractive resources industry; - Services and products for the extractive resources industry.

Business Finland 1/2011

Invest in

Finland – Improving the Economy Text: Juhana Hurula Photos: Miira Ojanen, iStockphoto

Invest in Finland is a government agency that tries to attract new companies to Finland. It is funded by Finnish taxpayers and offers its services for free to business clients.

couple of years ago, Finland was chosen as the country with the most potential for investment because of its great infrastructure. The economic and political situation is stable and operation is relatively easy. This is the main reason why Invest in Finland was set up back in 1992, when Finland was in the process of joining the EU. Invest in Finland is a government agency that promotes foreign investment in Finland. Its activities are steered by economic and innovation policies and it assists foreign companies to find business opportunities in the country. Its services cover every stage of setting up a business in Finland, from initial data collection and opportunity analysis to networking and the actual launch of the business. “Through our own marketing we are seeking and offering business opportunities for our clients,” says Tuomo Airaksinen, CEO of Invest in Finland. “This part involves reporting the

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situation with the competition: what services are provided; what research development factors are here; is there a skilled workforce?” Invest in Finland gathers information that might come in handy when a company needs to make fact-based decisions, including national rules and regulations, which competitors work in the country, and a valuable insight into the country's infrastructure. It is also compiling and maintaining a database of information about foreign-owned companies operating in Finland. Airaksinen says that this will work as a sort of indicator, put together purely because of “love for the game”. Invest in Finland also offers professional consulting services. “We have a big consulting army working for us. We're working alongside local networks and businesses who want new entrepreneurs in their area.”

The key to success is to target the message as precisely as possible to exactly the right customer."

Tuomo Airaksinen, CEO of Invest in Finland Business Finland 1/2011

mines & mining technology

The mining industry is relevant to Finland because it would create job opportunities in rural areas in the eastern part of Finland and Lapland, where it's otherwise diﬃcult to ﬁnd jobs."

The agency's services are free, because it is funded by Finnish taxpayers via the Ministry of Employment and the Economy. The assistance it provides is tailormade for carefully selected companies, but it has particular expertise in nine specific fields: cleantech, healthcare and wellbeing, information and communications technology, business services, logistics, real estate, retail, mining, as well as travel and tourism.

Business Finland 1/2011

Between now... The purpose of Invest in Finland is to encourage foreign companies to establish their business in Finland, in order to create job opportunities, stimulate economic growth, and to bring in capital, taxes and export earnings. “The key to success is to target the message as precisely as possible to exactly the right customer. No business executive is interested in the common trivia of Fin-

land, but when the message concerns the trivia of Finland from his business’ point of view, then interest might arise. Targeting is everything,” says Airaksinen. “The customers can roughly be divided into two sectors. First, there is reactive demand, when a customer walks in and has already decided to start operating in Finland. They might need assistance in order to run things smoothly with the local authorities, bureaucracy, partners and so on. “Secondly, we seek business opportunities all across Finland, looking for an ideal market gap for a company to launch successfully and benefit from the country.” Invest in Finland has a responsibility to select companies that want to support structural change in the country. The idea is that new companies will come in when older industries have moved on, employing Finnish people but bringing their knowledge and innovation with them. “The national economy should benefit from it. We constantly remind ourselves that we are obliged to Finnish taxpayers, whose money we're spending. The investments have to work for the good of Finnish people.”

Foreign direct investment means that a foreign investor invests in a local company. The purpose of the investment is to create a permanent economic relationship by obtaining ownership and control, giving the local company decision-making powers. Economic trends affect the investment field more than they do the stock market. It can take a customer between a year and a half and three years to decide whether to make an investment, because the company could be involved in the investment for the next 20 to 30 years. Last autumn, the forecast was for moderate growth after

a long downturn. Invest in Finland works with about 400 to 500 clients a year. “The biggest investors are in Sweden, Norway, Denmark, the Netherlands, Germany and Britain. We are also working actively in the USA and some Asian countries. Russia is still a great challenge for us. There's a lot of potential there, but Russian companies are slow to move abroad due to the country's vast internal markets.” According to Airaksinen, the future holds a plethora of investment possibilities for environmental technologies and renewable energy companies. He also hopes that the mining industry will kick off. “The mining industry is relevant to

Finland because it would create job opportunities in rural areas in the eastern part of Finland and Lapland, where it's otherwise difficult to find jobs. Every industrial job creates three jobs in the service sector. “At the moment, the New Mining Act is on the table in the Finnish Parliament. Mining could increase 20-fold over the next 10 years, if the bill is passed. “The mining industry and tourism can both make Lapland a very successful area. If you look at the map of Lapland, you'll see that there's plenty of room for both of them,” says Airaksinen.

mines & mining technology

...and the future

www.investinfinland.fi

Business Finland 1/2011

Text: www.mineraalistrategia.fi Photos: www.mineraalistrategia.fi, stock.xchng

Efficiently managed and sustainable utilisation of our mineral resources secures the long-term supply of raw materials at a national level, while creating the preconditions for stable regional development far into the future. Expertise in the minerals sector also enables Finland to effectively promote responsible and sustainable management of mineral resources within a global environment, as well as generating opportunities for new international business activities.

VISION 2050

Finland’s Minerals Strategy

Finland is a global leader in the sustainable utilisation of mineral resources and the minerals sector is one of the key foundations of the Finnish national economy.

The themes of the action proposals: • Strengthening minerals policy • Securing the supply of raw materials • Reducing the environmental impact of the minerals sector and increasing its productivity • Strengthening R&D capabilities and expertise

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he availability of natural resources and resource-based industries production have become essential to prosperity and well-being in our rapidly changing world. However, the global distribution of mineral resources is rather uneven, with over 50% of the world’s mineral production originating from politically unstable areas. At a time when the minerals industry is becoming more and more diversified, there is nevertheless an increased vulnerability to regulatory changes in access to resources, to obstacles in trade and commerce and to major fluctuations in commodity prices. With regard to many critical metals and minerals, Europe is heavily or fully reliant on imports, so that disruptions in availability and supply can pose a significant risk. The EU has begun to address this issue by implementing the Raw Material Initiative in 2008. A number of related measures have been launched since then, including the attempt to formulate a uniform minerals policy for the EU. Finland has expressed its strong support for the initiative. In addition to EU policy measures, national strategies are required to secure resources and to promote the minerals sector. Accordingly, the ministerial working group on climate and energy policy has commissioned the preparation of a Minerals Strategy for Finland. The key terms of reference have been to anticipate international and domestic development trends in the minerals sector over the next few decades, and to make recommendations concerning the formulation

Strategic objectives: • Promoting domestic growth and prosperity • Solutions for global mineral chain challenges • Mitigating environmental impact

of a sustainable minerals policy and the development of the minerals sector in a way that satisfies the needs of both society and business. The minerals sector covers the mining industry, which produces metallic ores and industrial minerals, as well as other extractive industries that refine rock material and natural stones. The minerals sector also includes companies who produce the machinery, equipment, technology and services required for extraction and mining. Finland’s diverse mineral resources represent a significant part of the Finnish national wealth. Finnish expertise and innovations in the minerals sector also have a significant global impact, through the provision of exploration and mining equipment and processing technologies and services. Effective utilisation of our mineral resources both secures the supply of raw materials and creates the prerequisites for balanced and sustainable regional development far into the future. Through our expertise in

the minerals sector, we can also actively promote a global minerals economy that is both efficient and socially and environmentally responsible, as well as generate new international business opportunities. Three strategic objectives and 12 action proposals related to four distinct themes have been defined to facilitate implementation of the minerals strategic vision. n

Material well-being requires the use of minerals – anything you can’t grow, you have to dig from the ground.”

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mines & mining technology

Minerals policy in the EU

he availability of mineral raw materials is very important for the prosperity of Europe. The combined turnover of the construction, chemical, automobile, aeroplane, machinery and equipment manufacturing industries is about EUR 1,300 billion, and they provide employment for 30 million people. Since EU industries are generally heavily reliant on imported raw materials, measures by both the EU and individual member countries are needed to secure the supply of mineral resources. Europe is largely self-sufficient in the production of industrial minerals and aggregates. However, the sustainable supply of aggregates faces major challenges because there are extensive regional differences in the availability of aggregate resources. In Finland, for example, the available resources near most population centres are only sufficient to meet shortterm demand EU member countries consume 25â&#x20AC;&#x201C; 30% of metals produced globally. In con-

trast, metal production within the EU is only about 3% of global production, and many important metals are not produced in Europe at all. The overall intensity of metal use in the EU is slowly decreasing and as in other developed countries, recycling is becoming more efficient, and new replacement materials are being found. Despite that, it is expected that European industries will, for a long time to come, remain vulnerable to disruptions in metal supply and to market volatility. An important issue with respect to material recycling is that an increasing volume of recyclable materials is being exported, legally and illegally, to developing countries. The European Commission has taken measures to improve the long-term availability of raw materials through implementation of the Raw Material Initiative in 2008. According to the initiative, maintaining transparency in the world market for raw materials must be encouraged. Production and consumption must move towards improvements in reducing waste and conserving resources, and in promoting sustainable utilisation and recycling of raw materials. Measures must be taken by the EU and individual mem-

Building a typical family home makes use of 250-400 tonnes of aggregates.

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Action proposals defined in the EUâ&#x20AC;&#x2122;s Raw Material Initiative: 1) Define critical raw materials. 2) Launch of EU strategic raw materials diplomacy with major industrialised and resource rich countries. 3) Include provisions on access to and sustainable management of raw materials in all bilateral and multilateral trade agreements and regulatory dialogues as appropriate. 4) Identify and challenge trade distortion measures taken by third countries using all available mechanisms and instruments. 5) Promote the sustainable access to raw materials in the field of development policy through the use of budget support, cooperation strategies and other instruments. 6) Improve the regulatory framework related to access to land. 7) Encourage better networking between national geological surveys with the aim of increasing the EUâ&#x20AC;&#x2122;s knowledge base. 8) Promote skills and focussed research on innovative exploration and extraction technologies, recycling, materials substitution and resource efficiency. 9) Increase resource efficiency and foster substitution of raw materials. 10) Promote recycling and facilitate the use of secondary raw materials in the EU.

ber countries to promote the utilisation of raw material resources within the EU, while enhancing expertise and developing new technology in the sector. A favourable operating environment must be secured by developing and integrating legislation, permit procedures and land use planning. The Raw Materials Initiative also aims to create a uniform minerals policy for the EU and member countries. This could also act as the basis for global minerals policy measures in the future. The European Commission has already investigated best practice options for land use planning that balances extractive operations with other forms of land use, and for expediting permitting processes. These measures would prevent the exclusion of large areas from mining purposes and also otherwise improve the operating environment for the sector. The Commission has also listed socalled critical metals and minerals, for those commodities that are highly important to industry and society, and whose availability is subject to risk and uncertainty. The overall consumption of many critical metals maybe rather insignificant, but their production is very centralised. China, for example, produces the majority of rare earth metals and in recent years has imposed export restrictions, at least partly in order to centralise component and product manufacturing in China. According to the Europe 2020 plan, released by the European Commission, the EU must develop a knowledge-based economy, which also is resource-efficient, low-carbon and competitive. The Commission has defined five measurable goals aimed at sustainable growth, including improving employment rates, investing in research and development, reducing emissions, improving the education level of young people, and reducing poverty. Achieving these goals presents major challenges, but they also are clear opportunities for the minerals sector. n

Metal/mineral

Mining production in Finland

Discovery potential in Finland

Antimony

Deposits

Moderate discovery potential

Beryllium

No deposits

Moderate discovery potential

Cobalt

Mining production

Good discovery potential

Fluorspar

No deposits

Low discovery potential

Gallium

No deposits

Low discovery potential

Germanium

No deposits

Low discovery potential

Graphite

Deposits

Moderate discovery potential

Indium

No deposits

Moderate discovery potential

Magnesium

No deposits

Low discovery potential

Niobium

Mining projects

Good discovery potential

Platinum group metals

Mining projects

Good discovery potential

Rare earth metals

Deposits

Good discovery potential

Tantalum

Deposits

Moderate discovery potential

Tungsten

Deposits

Moderate discovery potential

Aluminium

No deposits

Low discovery potential

Chromium

Mining production

Good discovery potential

Iron

Mining projects

Moderate discovery potential

Magnesite

No deposits

Moderate discovery potential

Manganese

Mining projects

Moderate discovery potential

Molybdenum

Deposits

Moderate discovery potential

Nickel

Mining production

Good discovery potential

Rhenium

No deposits

Low discovery potential

Tellurium

Deposits

Good discovery potential

Vanadium

Mining projects

Good discovery potential

Zinc

Mining production

Good discovery potential

Barite

No deposits

Moderate discovery potential

Bentonite

No deposits

Low discovery potential

Boron

No deposits

Low discovery potential

Clay minerals

Deposits

Moderate discovery potential

Copper

Mining production

Good discovery potential

Diatomite

No deposits

Low discovery potential

Feldspar

Mining production

Good discovery potential

Gypsum

No deposits

Low discovery potential

Limestone

Mining production

Good discovery potential

Lithium

Mining projects

Good discovery potential

Perlite

No deposits

Low discovery potential

Quartz

Mining production

Good discovery potential

Silver

Mining projects

Moderate discovery potential

Talc

Mining production

Good discovery potential

Titanium

Mining projects

Good discovery potential

Critical:

mines & mining technology

Critical raw materials as specified by the EU

Economically very important:

Economically important:

Business Finland 1/2011

mines & mining technology

Global challenges

n increase in population, more rapid urbanisation and higher material living standards have resulted in an unprecedented demand for metals, minerals and rock aggregates. It has been forecast that 60â&#x20AC;&#x201C;80 million people will move annually to cities, and as many as 70% of the population will live in cities by 2030. At the same time, the middle class is becoming larger and more affluent. Urban expansion encroaches upon agriculture and the natural environment. As a consequence, to guarantee adequate food supply in the future requires that agriculture will become more efficient, which in practice means that mineralbased fertilisers, machinery and equipment will be used to a greater extent. Despite the continual increase in demand for mineral resources, there is no risk of rapid depletion of raw materials the Earth is made up entirely of minerals. In addition to identified ore resources, a large number of sub-economic mineral deposits are known, which may become economically viable in the future, de-

pending on their geographic location, demand and fluctuations in commodity prices, and the introduction of new beneficiation technologies. Our knowledge of the mineral potential of many areas continues to be deficient, and our level of understanding in areas that have been extensively surveyed is usually limited to the near-surface environment. The success of a new mining operation requires both adequate mineable reserves, and the availability of an appropriate technology for ore processing. Future mining operations will have to be increasingly based on underground operations and exploiting deposits having lower concentrations, or which are technically more difficult to process. Compe-

tition for available water and energy is becoming more intense, which may prevent mining activity in some areas. Responses to these challenges require innovative technological developments throughout the entire extraction and production chain. Permit procedures are also becoming more demanding, which can lead to delays in processing. These factors, when combined with a continuous increase in consumption and demand, raise metal prices, which in turn provides incentives for seeking either alternative raw materials or improving recycling efficiency. n

The Finnish minerals sector

he Finnish minerals sector covers a diverse range of activities, including the mining of metallic ores and industrial minerals, as well as other industries that extract and process aggregates and natural stones. The minerals sector is also considered to include industries that produce and supply machinery, equipment, technology and services for mining operations. In addition the minerals sector is supported by

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Aggregate industry Annual aggregate production in Finland is about 120 million tonnes, and the aggregates sector is the biggest extractive industry in Finland with respect to tonnage. Approximately 22 tonnes of aggregate materials per resident are used annually in Finland. The term aggregate is applied to either crushed rock or gravel and sand. Production of crushed rock has increased in recent years due to the limited availability of gravel and sand, particularly near population centres, where demand for aggregate materials is greater. Aggregate extraction is regulated by the permitting procedures designated in the Land Extraction Act and the Environmental Protection Act, and in areas in proximity to water resources, is also subject to the Water Act. Activities central to the aggregate industry operations comprises raw material procurement, administration, permit acquisition, production, logistics, sales and the landscape rehabilitation and monitoring. In Finland, a special characteristic of the sector is that production is usually assigned separately to companies carrying out crushing and quarrying contracting. Rudus Oy, Lemmink채inen Infra Oy, Destia Oy, Morenia Oy and NCC Roads Oy are aggregate companies, which oper-

ate nationally and dominate production, with hundreds of smaller companies operating alongside them. Transport of large volumes of aggregates can become prohibitively expensive over long distances, more than several tens of kilometers. Accordingly, the aggregates business is almost always local, meeting the needs of nearby construction and society. Aggregate extraction competes with other land use activities and priorities, so that availability of materials of the right quality near the point of use is a critical factor in production.

Natural stone industry

mines & mining technology

various institutions including research organizations and agencies, universities and technical and trade schools. The mining industry is global in nature and through acquisition and consolidation has become increasingly dominated by a small number of transnational mining houses. Nevertheless, a multitude of smaller mining companies and junior exploration companies still operate in the sector. The smaller exploration companies typically aim to discover deposits that can be sold to mining companies. In Finland at present, the majority of exploration and mining companies are small or mediumsized mining companies, most of which are listed on and funded through foreign stock exchanges in Toronto, London, Stockholm, Oslo and Sydney. In fact, the mining sector is one of the few industry sectors that is substantially targeted by, and dependent upon, foreign investment in Finland. The minerals sector differs from other industries in that the location of operations is dictated by geological factors, which effectively means that mining operations cannot be relocated to countries with lower expenses. Conversely, the mining industry has the potential to create long-term employment opportunities, as is currently evident in eastern and northern Finland.

The Finnish natural stone industry has a long tradition, and Finland is well-known internationally as a producer and exporter of granite. Examples of the use of Finnish natural stone can be seen all over the world. The City of St. Petersburg, for example, was largely built with Finnish stones. Currently, China is the most important market for granite. Natural stone production extracts large stone blocks for mechanically upgrading of finished or intermediate products in Finland. Soapstone ovens and other products represent the highest degree of upgrading in the industry. Tulikivi Oyj and Nunnauuni Oy are the most im-

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mines & mining technology

portant companies manufacturing soapstone products. The Finnish soapstone industry is the world market leader. The degree to which materials quarried as dimension stones, such as granite, are refined and dressed varies more extensively and intermediate products are exported, to China in particular. Many small companies are active in this sector, with Palin Granit Oy being the main operator. In the case of soapstone and limestone, natural stone extraction is regulated by the Mining Act and the Environmental Protection Act. The excavation and utilisation of other natural stone products are mainly subject to the Land Extraction Act and the Environmental Protection Act.

Minerals sector technologies and services The long tradition of mining in Finland has generated a manufacturing industry that is recognized internationally as a leading supplier of mining equipment and machinery and processing plants. Indeed it is claimed that when an under-

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ground mine is established anywhere in the world, 70â&#x20AC;&#x201C;90% of the required technology comes from either Finland or Sweden. The entire ore research, extraction and refining chain requires specialized skills and competence in using designing and using a variety of machinery, equipment and processing technologies. Mineral exploration relies heavily on the use of geophysical techniques and drilling equipment, while ore extraction requires expertise with drilling, crushing, blasting and rockbolting and shotcrete spraying, to ensure stability of underground rockfaces. Loading and transportation often requires highly automated machinery which operates in tight places in mines, as well as technology designed for ore hoisting and transfer. Ore enrichment involves crushing, grinding, flotation, dissolution, thickening and filtering systems. The entire mining and beneficiation process is increasingly automated, and water and waste treatment must be regulated and monitored. Finland enjoys a reputation as a global leader in mine systems and processing technologies, represented by

such companies as Metso Corporation, Normet Oy, Outotec Oyj and Sandvik Mining and Construction Oy. Key minerals sector services include mine planning, excavation and crushing contracting, sampling, geophysical surveys, laboratory analytical services, beneficiation and enrichment tests, information services, permitting matters, and other kinds of consulting. The minerals sector is also very capital-intensive and therefore requires effective financing channels. There are numerous globally operating companies that provide services to the industry, but also a large number of established local SMEs. Service provider companies include: Ahma Engineers Ltd, Astrock Oy, Destia Ltd, E. Hartikainen Oy, Kati Oy, Labtium Oy, Outotec Oyj, PĂśyry Plc, Ramboll Oy, Suomen Malmi Oy, YIT Corporation, and various financing sector organisations and lawyerâ&#x20AC;&#x2122;s offices. The Geological Survey of Finland also provides diverse consulting, information and processing technology services to the minerals sector, both within Finland and abroad. n

lobal changes in the minerals sector present many opportunities for Finland. Finnish bedrock contains significant known deposits of many critical metals and minerals, and has considerable potential for discovery of new resources. Finland also has a globally recognized position as a leading supplier of skills and equipment in the minerals sector. The question is: Are we able to make use of the opportunities provided by the increased global demand for minerals so as to bring further benefits to Finnish society? The long-term goal of Finlandâ&#x20AC;&#x2122;s minerals strategy is an active minerals sector which is globally competitive, secures Finlandâ&#x20AC;&#x2122;s raw material supply, supports regional development and promotes responsible use of natural resources. The minerals sector has significant direct and indirect

impacts on Finlandâ&#x20AC;&#x2122;s national economy, employment and society as a whole. The minerals sector is already well-placed to serve as a platform for a sustainable and diverse export-oriented industry based on refinement and value-enhancement of mineral products and related technologies and services. However, this is only possible by providing an optimal legislative regime and business environment for the sector. This vision for the minerals strategy is therefore based on promoting knowledge and skills enhancement coupled with innovation research and development, as a basis for sustained and sustainable growth in the sector.

Promoting domestic growth and prosperity The minerals sector has significant potential to further enhance its position as a vital foundation of the national economy, particularly from the perspective of invigorating and sustaining regional development. However, continued development in the sector requires proactive support and commitment from both the Finnish Government and other relevant

public authorities, to generate a business environment conducive to attracting ongoing, long-term investment. A positive attitude and approach is in general needed towards ecologically and socially sustainable utilisation of natural resources, as well as appropriate support for the education system, and for regulatory and administrative reform, and ensuring that logistic requirements are optimized. The expanding and rapidly diversifying Finnish minerals sector therefore has an important role to play in supplying raw material supply both in Finland and elsewhere in the EU. The long-term utilisation of mineral resources should be included as a key aspect of nationally coordinated regional planning progammes, so that the relevance of the sector can be considered in land use planning and zonation at all levels of the decisionmaking process.

mines & mining technology

The minerals sector as an opportunity for Finland

Solutions for global mineral chain challenges Sustained growth in the Finnish mining industry creates a favourable environment for maintaining technological leadership across the whole minerals sector. Awareness of both international and Finnish trends and product demand together constitute a strong, synergistic combination which stimulates innovation in refinement processes, and in product development and services, for both domestic and export markets. The global increase in consumption of mineral raw materials, together with growing environmental challenges, offers considerable potential for business activities promoting sustainable utilisation of mineral resources.

Mitigating environmental impact Finland should take a proactive role in implementing the principles of sustainable development throughout the extractive minerals sector, ensuring that mining

Business Finland 1/2011

mines & mining technology

An average Finnish family owns thousands of items based on mineral products. and processing is compliant with established best-practice guidelines. Increasing the proportion of raw materials produced sustainably in Finland represents a significant step towards meeting these objectives, while at the same time gaining practical experience of implementation of sustainable mining strategies, which can then be applied elsewhere, for example in developing economies. Incentives for using environmentally benign raw materials, quality certification for materials and processes and the implementation of penalties through environmental taxes will be among the principal steering mechanisms for guiding reform in the sector.

Mining industry In recent years, significant new mines have been opened in Finland, while existing mines have recorded increased production, and many more mining projects are in progress. It is anticipated that the total volume of metallic ore production will increase markedly by the end of the decade, with mining operations remaining strongly focused on the eastern and northern parts of the country. Mining activities impact on regional economies directly through work income and the demand for locally based subcontractors and services. In addition, revenue from corporate taxes, municipal tax-

Minerals sector challenges: • Greater volatility in the demand for mineral resources. • Deposits are of lower grade, or are located at greater depth. • Decline in availability of aggregates in proximity to locations of greatest use. • Extractive operations are limited by competing forms of land use and access. • Permitting procedures become more complex, and processes become longer. • Increasingly difficult to recruit expert consultants and skilled labour. • New exploration and beneficiation technologies must be developed. • Water and energy consumption must be decreased. • Emissions and waste need to be minimised. • Utilisation of by-products and replacement materials must be enhanced. • Automation in the mining industry must be encouraged. • Health and safety issues and workplace atmosphere must be improved. • Use of rehabilitated sites after mine closure needs to be promoted. • The general acceptability and perception of the industry must be improved. • Finnish ownership must be increased.

Business Finland 1/2011

es paid by new residents and taxes related to higher consumption levels all increase. According to various estimates, for each position generated directly by mining activity, three or four additional jobs are indirectly created. Mining activities will generally lead to a diversification of the regional business structure and may have a positive impact on other business areas through improved services and transport connections and other infrastructure developments. Over the long term, growth and diversification in the mining and minerals sector can only be sustained by discovery of new deposits. This in turn requires an ongoing commitment to exploration. Indeed, together with research into beneficiation technologies, exploration represents one of the key areas of mining industry research and development. On average, it can take 10-15 years from the commencement of an exploration program to the opening of a new mine. Moreover, exploration is a demanding, high-risk activity, such that for every thousand or so exploration targets evaluated, only a few will lead to discovery of an economically viable ore deposit. The strategies of larger mining companies usually involve an international focus, seeking locations that offer the best opportunities for success on the basis of both geological potential and various socioeconomical factors. Recent international evaluations have placed Finland as one of the most favoured countries for targeting mining operations. Finland provides a good operating environment for exploration and mining activity - in addition to diverse mineral potential, Finland has well-developed infrastructure and legislation, as well as a stable operating environment. The Finnish Government actively promotes mining activity, and local communities generally tend to have a positive view of new mining projects. However, growing concerns in the sector include increased land use restrictions, more complex legislation and longer permitting processes. Efforts should con-

tinue to be made, through legislation and other means, to ensure that a competitive operating environment for exploration and mining investment is maintained. The mining industry in Finland is one of the rare industrial sectors that is currently targeted by considerable foreign investment. Exploration is inherently a high-risk activity, and establishing a mine requires substantial capital investments. For maintaining long-term growth, it is therefore necessary to further strengthening financing mechanisms that promote development of the sector. Contributions to high-risk investment by institutional investors and the government, either through direct ownership or as a creditor, are important because in this way min-

ing and prospecting projects can be efficiently accelerated. An additional objective should also be to gradually increase Finnish ownership in the sector. In recent years, the government has begun providing support for infrastructure investment for mining projects; such support should be continued in the future. Competition for land use, and related conflicts of interest, and restrictions on land access present increasing challenges to all forms of mining and extractive activities. Mines in certain areas may, for example, need to accommodate competing interests related to environmental protection and tourism. However, the area of land required by mining activities is commonly relatively

Business Finland 1/2011

mines & mining technology

Constructing one kilometre of motorway demands 50,000 tonnes of aggregates.

small, and release of potentially harmful emissions from modern mines has been substantially minimised. Mining operations and tourism, for example, can also offer mutual benefits through improved services and transport connections. It should also be emphasized that jobs in the mining industry are permanent in the long term. Although mining operations may continue for decades, legislation now requires that applications for mining include a fully financed strategy for mine closure in an environmentally sound way and for post-closure monitoring. It is important to consult with and where possible, involve the local residents in mining

mines & mining technology

projects at all stages, in order to develop appropriate procedures for compensation and to prepare for any problems caused to local communities by mine closures.

Natural stone industry The Finnish soapstone industry is centralised in the eastern parts of the country, at Juuka in Northern Karelia, and partially in Kainuu, whereas the focus of granite production is in the YlĂ¤maa area in southeastern Finland. However, there are numerous other natural stone deposits throughout the country that are yet to be exploited, and Finland has substantial building stone resources. Locally, the sector also has a significant employment impact. Some 50% of the annual turnover of the Finnish natural stone industry derives from exports. The increase in the export of undressed stone is largely due to demand by the major buyers, China and India. Domestic and European markets are the most important for more extensively refined products. The emphasis on natural materials and high-quality construction work provides a solid basis for in-

creasing uptake of natural stone products in future construction projects. The aim of increasing the use of bioenergy also serves to stimulate demand for fireplaces made of soapstone. In order to ensure that raw materials are accessible in the future, the requirements of the natural stone industry, including potential areas for quarrying, must be included within regional and local government land use planning activities. An adequate and assured domestic supply of suitable raw materials is also an essential condition for the ongoing development of product refinement. The degree of refinement of building stones should in particular be increased, and related research and development should be carried out with structural designers, architects and industrial designers. Priority areas for development include production automation, improving the productivity and supply of quality materials and finding opportunities for using rock currently stockpiled as waste. The sector is also characterized by numerous small companies, which poses challenges for business management and the supply of skilled labour.

Increasing food production leads to 3% annual increase in global demand for mineral fertilisers.

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Minerals sector technologies and services The current strengthening of the mining and minerals industries in Finland presents new export opportunities for the sector as a whole. Refinements to existing production processes and further innovations in the sector provide a strong basis for future success. Some of the key challenges facing the entire sector are enhanced recycling of materials, more efficient use of resources, the search for alternative and new materials, and mitigation of adverse environmental impacts. Indeed, it is expected that advances in efficient use of resources, and implementation of intelligent systems, together with recycling initiatives that promote sustainable mining practices, will define the key future areas of growth within the sector. Existing expertise across the breadth of the minerals sector in Finland can be integrated to develop new business opportunities and alliances, for example by combining skills and expertise in environmental and mining technologies with those in metals processing and machinery and equipment manufacturing. Without active intervention by the government, including contributing to R&D financing of the minerals sector, Finland will not succeed as an innovative provider of technologies within the emerging green economy. A strong and sustained commitment to education, research, product development and commercialisation, integrated across sector boundaries will form the basis for new Finnish business models and activities in the minerals sector. The success of this approach will also require entrepreneur training and risk financing for both the SME sector and spinoff companies. The European Raw Material Initiative places strong emphasis on efficient use of resources and the development of new technologies. A â&#x20AC;&#x153;resource-efficient Europeâ&#x20AC;? is also one of the flagship projects of the Europe 2020 plan. This alignment

Education and research The Finnish minerals sector is facing a shortage of experts. The average age of specialists is high throughout the sector, but due to recent expansion and investments, demand for them is growing

mines & mining technology

between EU goals and national strategic objectives provides further opportunities for strengthening the minerals sector in Finland, by applying for EU assistance in developing new mining equipment and processing technologies. Ensuring the stable supply of raw materials from sources outside Finland and the EU requires that the Finnish Government actively supports the EU in overcoming and eliminating barriers to international trade, while at the same time promoting good governance and transparency in the mineral policies of developing countries. Indeed, the opportunity exists for a servicebased consortium based on Finnish expertise, in developing regulatory regimes and administrative policies and institutions for the minerals sector in developing companies. At the same time, this could create export opportunities for Finnish industry and increase Finland’s international influence and support in expanding awareness of the impacts and responsibilities associated with the consumption of natural resources.

A mobile phone contains different chemical elements from over 20 different mines. continuously. Training in Finland has also been poorly coordinated across the sector, while training programmes in the sector have been reduced and teachers have retired. In addition, the minerals sector does not appeal to young people, which is principally due to the characteristic cyclic nature of investment in exploration and mining and the general image of the sector. The mining industry also demands a skilled professional workforce trained in modern mining techniques, which in turn requires appropriate, comprehensive training programmes in universities of applied sciences, technical colleges and trade schools. There is no

Priority research areas: • • • • • • • • • •

Invisible and intelligent mining Innovative processes, automation and optimisation Efficient use of materials, energy and water Minimisation of emissions Chemical/biological beneficiation processes Geodata systems and multi-dimensional modeling Innovative exploration technologies High-tech metal exploration and beneficiation Recycling, new and alternative materials Environmental impact management and measurement

quick remedy in sight for the labour problem due to the low training volumes in the sector, and this is made worse by tighter global competition. Attainment of the minerals strategy vision requires not only existing expertise but training and recruitment of a new generation of specialists to focus on priority areas. The business sector has an important contribution to make in this area, whereas public sector geoscience agencies should invest in minerals sector research programmes and international exchange programmes. The Finnish Funding Agency for Technology and Innovation (Tekes) should be implement a minerals sector research programme, aiming to develop new and innovative products, processes and services embracing all aspects of the mineral utilisation chain. Enhanced collaboration between research groups working in material sciences and metal refining can also open up new opportunities. The visible inclusion of minerals sector proposals in the EU’s FP8 Framework Programme (2014–2020) is a key objective. Cooperation with Sweden in particular should be strengthened because Finland and Sweden are united through their very common mining histories, competence and challenges in the minerals sector. www.mineraalistrategia.fi

Business Finland 1/2011

Like the rest of the European Union countries, Finland imports and recycles a great deal of its metals. However, Finland has relatively strong metals mining industry. For example, nickel, zinc and gold reserves are quite large yet in some cases scattered. Within a couple of years, several new mines will also be opened.

Kittilä Kevitsa Pahtavaara

Tornio Kemi

Raahe

Talvivaara

Kaustinen

Pyhäsalmi

Sotkamo

Siilinjärvi Vimpeli

Kylylahti

Loukolampi Orivesi

Siikainen

Parainen

Pampalo Kerimäki Jokisivu

Huittinen Pargas

Nunnanlahti

Lappeenranta

Lohja Sipoo

Förby

Major

Metal Mines in Finland

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Talvivaara mine

he Talvivaara polymetallic deposits - Kuusilampi and Kolmisoppi - comprise one of the largest known sulphide nickel resources in Europe with more than 1 1100 million tonnes of ore in measured and indicated categories, sufficient to support an anticipated production for at least 46 years. The Geological Survey of Finland carried out detailed exploration in the Talvivaara area from 1977 to 1983. Outokumpu Plc. was granted mining licenses to the Talvivaara deposits in 1986 and continued the work in the late 1980's and early 1990's. Deposits were found to be large but of relatively low grade, and it was concluded at the time that the exploitation of the deposits was not economically viable using conventional metal extraction techniques.

The source remained unexploited until Outokumpu Plc., as part of its strategic decision to withdraw from mining activities, sold the rights to mine the Talvivaara deposits to Talvivaara Mining Company Plc in February 2004. Talvivaara was at the same time assigned the right to use all exploration data and research documentation relating to bioheapleaching, which had been in development at Outokumpu since 1987.

Acquiring the rights to mine the Talvivaara deposits, the group actively pursued the development of the Talvivaara deposits. In March 2007, the bankable feasibility study was approved. The group also obtained an environmental permit and other material permits required for the ongoing projects. Between April 2007 and October 2008., After 18 months of the start up of the construction of the mine Talvivaara

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mines & mining technology

successfully produced first metalsulphides at the Sotkamo mine in October of 2008 as planned. The planned annual full nickel production of 50,000 tonnes is anticipated to be reached in 2012. As by-products the mine will also produce approximately. 90,000 tpa of zinc, 15,000 tpa of copper and 1,800 tpa of cobalt.

which raised a further 33 million euros to accelerate the development of Talvivaara Mining Company. Construction of an on-site pilot heap was started in June 2005 and initial bioheapleaching commenced in August of that year. A metals recovery trial using leach solutions was then run from March to September 2006.

Financing

Leaching methods

Successful financing ensured the launch of Talvivaara project. In November 2005, the first round of financing from institutional and strategic investors raised 7 million euros, which enabled the completion of a feasibility study. This was followed by a second fundraising in October 2006,

Bioleaching is a process, whereby metals are leached from ore as a result of bacterial action. In nature, bioleaching is triggered spontaneously by micro-organisms in the presence of air and water. Commercially applied bioleaching technologies utilize the same phenomenon, but

accelerate this natural process. Several physicochemical and microbiological process parameters are modified in order to enhance and speed up the metal recovery process. The bacteria used in the Talvivaara bioheapleaching process are naturally growing in the ore. The bacteria are thus endemic to the area and therefore well adjusted to the prevailing environmental conditions. www.talvivaara.com

Executive Director and CEO of the company Pekka Per채 Photos: Talvivaara

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mines & mining technology

Pyhäsalmi zinc and copper mine

he Pyhäsalmi underground mine in central Finland is 100 percent owned by the Canadian company Inmet Mining. Originally Pyhäsalmi mine was opened in 1962. Primary metal is copper, but zinc also plays an important role. Pyrite is utilised to some extent. Average reserve grades are copper 1.1 and zinc 2.2 percent. Copper and zinc concentrates are sold under long-term contracts to smelters in Finland. Pyrite is sold under contract to customers in Europe and Asia as well as in the spot market. Almost half of the revenue comes from copper and one third from zinc. Inmet announced that in 2010 zinc grades and production were significantly higher than 2009. In 2010 Pyhäsalmi expected to mine 1.4 million tons of 1 percent copper and 2.5 percent zinc, to

produce 13,400 tons of copper and 31,300 tons of zinc. Pyrite production objective was increased to 500 000 tons. Mining

method are sub-level and bench stoping. Inmet Pyhäsalmi has about 220 employees. Expected mine life is till 2018. www.inmetmining.com

Kemi chrome ore

lijärvi mine, often referred to as Kemi chrome ore mine, is located in Kemi in northern Finland. The large mine utilises chromite ore deposit, which was found in the late 1950s, when diver Martti Matilainen sent some surveys to Geological Survey Finland. Explorations continued till 1962, also by Outokumpu mining company. Ore resources were estimated at 30 million tons. The open-pit chromite mining began at Kemi in 1966 and ferrochrome production in 1967 at nearby Tornio. Chrome and 52 % ferrochrome was solfd to West Europe, but stainless steel production at Tornio commenced in 1976.

Kemi chrome is refined in nearby Tornio

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mines & mining technology

Chrome is an important material for several steel grades, so the importance of the mine grew considerably in the vicinity of huge steel factory. In the 1990s and 2000s Outokumpu made major stainless steel expansions. This affected the fate of the chrome mine. A parallel Intelligent Mine Programme focused on grade-based, real-time, operation-wide control using fast communications interfaced with a master database. The system was designed to allow automation of mine production as suit-

able equipment became available. Nowadays more than 1.3 million tons are excavated every year. According to newest information reserves can last hundreds of years instead of previous 7080 years. According to estimates chrome ore can be found down to 2-3, even four kilometres. Open-pit quarrying was possible till 170 meters, which was reached in 2008. Underground mining was started already in 2003. The mine is still owned by Outokumpu, which however, has transformed from a mining company to steel manufacturer. It is possible that production at Elij채rvi mine will double in the future. Geologically the ore is 2.5. billion year-old mafic-ultramafic layered intrusion type, extending 15 kilometers northeast of Kemi hosts11 chromite orebodies. On average, the chromite-rich horizon dips 70째 northwest and is 40 meters thick. As the main immediate host rock is weak talc-carbonate, pit-slope stability had to be carefully monitored, although there is strong granite some 80 meters below the footwall. The operation gained ISO 9002 quality certification in 1993 and ISO 14001 environmental management system certification in 2000. www.outokumpu.com

Chrome is used in Tornio steel processing plant in certain steel grades.

Business Finland 1/2011

mines & mining technology

Kittilä gold mine

gnico-Eagle Ltd is a Canadian-based gold producer with operations in Canada, Finland and Mexico, and exploration and development activities in Canada, Finland, Mexico and the U.S. LaRonde mine is Canada’s largest operating gold mine in terms of reserves. Open-pit and underground operations in northern Finland in Kittilä are extracting one of the largest known gold deposits in Europe. The Kittilä mine poured its first gold in January 2009, and reached commercial production on May 1, 2009, becoming Agnico-Eagle’s first mine to open outside of Canada. The Kittilä mine has proven and probable gold reserves containing 4.0 million ounces (26.0 million tonnes grading 4.8 grams/ tonne gold).

The mine is located in Suurikuusikko. The mine produced 96,484 ounces of gold, at a total cash cost per ounce of USD 603 in the nine-month period of 2010. First underground stopes were mined in the second quarter of 2010. Ground conditions were encouraging and under-

ground ore expected to provide about 10 percent of 2010 production Estimate for 2011 production is 150,000 ounces. Estimated mine life is 2009-2024. Agnico–Eagle Kittilä employs about 600 persons. www.agnico-eagle.com

Pahtavaara gold mine

ahtavaara is an active gold mine (in production 1996–2000 and after 2003), with a total in situ size estimate of 15 tons of gold (production plus resource, February 2006). Pahtavaara gold was found in 1985 by Geological Survey Finland. The mine is owned by Swedish company Lappland Goldminers AB which also carries out exploration work. The mine in Pahtavaara in Finnish Lapland also forms an important part of the company’s strategy. Lapland Goldminers acquired the Pahtavaara gold mine, the concentration plant, mining claims and concessions in 2008. Gold production in Pahtavaara has on the average been 800-900 kilos per annum.

Production during the second quarter was 155 kilos ( in 2009 170 kilos). The company announced that mining of gold-rich ore has been negatively affected by the spring water and rock mechanic problems, but this was expected to be temporary. The production for 2010 was

expexted to drop from 800 kilos to 675 kilos. Lappland Goldminers AB has also the Haveri gold deposit in the south of Finland. The company has gold project also in Sweden. www.lapplandgoldminers.com

Business Finland 1/2011

mines & mining technology

Orivesi and Jokisivu gold mines

olar Mining Oy, wholly owned subsidiary of Australian Dragon Mining Ltd. operates Orivesi and Jokisivu gold mines. Mining was commenced from the Sarvisuo ore loads in Orivesi August 2007 with ore being processed at the Vammala Production Centre. Mining has been conducted from the 285m level to the 540m level with the decline being extended to 620 meters. Since commencement 506,032 tonnes of ore have been mined and transported from Orivesi to Vammala. The Jokisivu mine is located 40 kilometres south west of the Vammala Production Centre and hosts a measured, indicated and inferred resource totalling 356,300 ounces from two deposits 200 metres apart.The Kujankallio deposit of Jokisivu has been shown by drilling to extend to at least 525 metres depth, though resource drilling currently extends only down to 440 metres, whilst the Arpola resource has only been drilled down to 200 metre

Jokisivu became Dragon Miningâ&#x20AC;&#x2122;s third operating mine in 2009, with the commencement of mining from the Kujankallio open pit in September 2009. Since the commencement, 97,450 tonnes of ore have been mined and transported from Jokisivu to Vammala.

The Vammala production centre is located in the Sastamala region in southern Finland, 165 kilometres northwest of Helsinki. The production centre is a 600,000 tonne per annum crushing, milling and flotation facility which was successfully recommissioned in June 2007. www.dragon-mining.com

Pampalo gold mine

ampalo gold mine, owned by Endomines, is Finlandâ&#x20AC;&#x2122;s newest gold mine, opened in the beginning of this year. The mine employs about 70 persons in eastern Finland. Significant step leading to the prospect of profitable gold mine production at Pampalo was the completion of a new ore reserve estimate last April by external consultants. The Pampalo Gold project ore reserves were increased by 90%, thus enabling planning for a 6-7 years mining and processing operation. Planned production capacity is 230,000 tonnes of ore per annum and planned annual gold production 900-1000 kg. These new estimates

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mines & mining technology

strengthen the outlook for sustainable and profitable long-term gold production at the Pampalo project. Though gold production will be the main focus of the company in the near future, Endomines also owns mineral rights for significant ilmenite assets due for development in the future. Endomines’ fully held subsidiary, Kalvinit Oy, is unique in that it possesses the most advanced known ilmenite project within the European Union. Used in the production of titanium alloys, painting pigments and other industrial purposes, the European Union currently consumes c. 1-1.5 million tonnes of ilmenite concentrate per annum, all of which is imported. Endomines therefore has a significant logistical advantage to the main producers of ilmenite, mainly Australia, South Africa and Ukraine. www.endomines.com

Industrial Minerals Siilinjärvi apatite

orwegian Yara International ASA is aglobal company specializing in plant nutrition and industrial solutions. Yara informs that it is the number one global supplier of mineral fertilisers. Phosphate is one main raw material for fertilisers, and Yara’s operations include phosphate mining and phosphoric acid production in Siilinjärvi, Central Finland. Siilinjärvi site is the only producer of phosphate ore in Western Europe. In addition to phosphate, Siilinjärvi mine produces biotite and calcite. The Siilinjärvi deposit was found in 1950, when a worker in central Finland

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mines & mining technology

discovered it during the construction of a railway. In addition to Siilinjärvi Yara has potentially strategic ore reserves in Sokli, close to Finnish-Russian border. The deposit at Sokli in the north of Finland was found in 1967 by a professional company carrying out a systematic exploration. The phosphate ore of Siilinjärvi and Sokli is called apatite. However, at Siilinjärvi the ore feed is hard rock, which has to be mined by drilling and blasting. Sokli’s ore feed is weathered rock – a type of loose soil or gravel – which can be partly excavated and partly blast, if ore will be utilised in the future.

Concentrate process of apatite At Siilinjärvi the apatite concentration process, the rock is crushed and milled and then further refined through flotation, thickening and filtration. This concentrates the hard rock ore feed, giving it the necessary phosphorus content for

the production of phosphoric acid (from 4 percent phosphorus to 36,5 percent). The phosphorus content of rock is traditionally expressed as phosphorus pentoxide P2O5. Then the apatite concentrate can be mixed with sulphuric acid to create phosphoric acid. Phosphoric acid can be used as a raw material in the production of fertilizer and feed phosphates, as well as in the manufacture of washing detergents, in the food industry and in biological water purification. Siilinjärvi’s production volumes are

Nordkalk mines in Finland

ordkalk is the leading producer of high quality limestone-based products in Northern Europe. The company produces limestone products at ten sites in Finland, five in Sweden, three in Estonia and four in Poland. Dolomite is extracted at Kurevere in Estonia. The products are used mainly in the paper, steel and building materials industries as well as in environmental care and agriculture. The product brand is Nordkalk Limestone usually has to be extracted by means of blasting but the softest types can be excavated by machine. The extracted stone is transported for rough crushing after which it is processed further, for example, by, crushing, sifting, grinding, refining or burning.

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Lappeenranta quarry

1 000 000 tons of apatite, 500 000 tons of fertilizers, 850 000 tons of sulphuric acid, 300 000 tons of phosphoric acid and 150 000 tons of nitric acid annually. In the nitrophosphate process used by Yara, nitric acid is used for digestion of the phosphate rock. This benefits the extraction of calcium by crystallization as calcium nitrate (CN), and processing of high-quality prilled or granular CN products. The majority of manufacturing processes for complex fertilizers are based on dissolution of phosphate rock in mineral acid followed by neutralization, concentration and finally, granulation or prilling. In some processes, sulphuric acid is used for the dissolution of phosphates. The calcium originating from the rock is then extracted as gypsum. -Gypsum is used to improve soil structure. By spreading gypsum onto the fields erosion is reduced which leads to markedly reduced phosphorus leakage. www.yara.com

Finland, where Lappeenranta is currently Nordkalk's biggest location. However, also Parainen quarry is quite big, In Lappeenranta, Finland, Nordkalk uses a flotation process. The limestone is first ground into a wet slurry and the concentrated calcite is separated from the slurry by flotation.

Nordkalk has mines also in Siikainen, Huittinen, Kerimäki, Sipoo, Vimpeli, Turku region and Lohja. Company’s strength is that is can provide many different qualities of limestone. www.nordkalk.com

mines & mining technology

Nordkalk limestone business started already more than 100 years ago, when Pargas Kalks Aktiebolag gathered for their first meeting in 1894. In 1910 Pargas Kalk also began operations in Lappeenranta and built the first shaft kiln. Since the beginning the two towns have formed the core of company's lime operations in

Pargas limestone resources.

SMA Minerals

roduction and handling lime products are SMA Mineral’s core business. In Finland the company has lime production in Tornio ( Kalkkimaa, Röyttä) and Loukolampi. SMA Mineral is a major producer of lime products for the cellulose industry. The alkali process in the cellulose industry requires a lime product of high purity which must also have very good alkaline properties. One of the applications SMA Mineral has specialized in is asphalt masses. Our filler and adhesion products are all of absolute highest quality. SMA Mineral has developed a unique production control where the entire process is structured to regulate and control the final composi-

tion of the product. The company provides a wide range of superior quality lime products, including structural calci-

um, which loosens up soil. Lime products can be used to remove these pollutants. www.smamineral.com

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mines & mining technology

Salon Mineraali Oy

alon Mineraali Oy is owned by Swiss Omya, a leading global producer of industrial minerals, mainly fillers and pigments derived from calcium carbonate and dolomite, and a worldwide distributor of chemical products. In Finland products are manufactured from limestone in Kemi. from marble in FĂśrby and Lappeenranta, and from limestone (PCC) in Imatra. www.omya.com

Sibelco Nordic Oy Ab

ibelco Nordic is part of SCR- Sibelco and is the leading producer of sand and industrial minerals in the Nordic countries. With more than 20 operations and sales offices in Norway, Sweden, Finland and Denmark as well as Poland and Russia, Sibelco Nordic is market leader in extraction, production and distribution of industrial minerals such as nepheline syenite, silica sand, feldspar and olivine. www.sibelco.com

Mondo Minerals

ondo Minerals has a talc deposit and refining facilities in Sotkamo, central Finland. Talc is the world's softest and most hydrophobic mineral. It adds new features to products and makes processes more efficient. Mondo Minerals is the worldâ&#x20AC;&#x2122;s second largest talc producer. The company is currently supplying customers in over 70 countries. Production of talc in Sotkamo started in 1968. Mondo operates in all continents. Another deposit in Finland is located in Outokumpu. www.mondominerals.com

Business Finland 1/2011

Nunnanlahti Mammuttistone

tone used in NunnaUuni Oy products is excavated in Nunnanlahti in Northern Karelia. This extensive stone deposit has been named the MammuttiStone deposit, and stone from it has been registered as MammuttiStone. The deposit contains approximately 15,000,000 mÂł of MammuttiStone â&#x20AC;&#x201C; enough for the next 500 years at the current production rate. The quality of the deposit is very homogenous, and the stone is easy to detach.

The strength of the stone in the deposit lies in its unique, strongly foliated talc structure, which provides the stone with its resistance to high temperatures and its outstanding thermal conductivity, as well as the resulting capacity for storing large amounts of energy. NunnaUuni Oy produces fireplaces and stoves from its own mine. More than half of turnover comes from export sales. The export turnover mainly comes from the German-speaking countries in Central Europe.

mines & mining technology

Stones and Aggregates www.nunnauuni.com

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mines & mining technology

Mines under Construction or under Serious Consideration Kevitsa multi-metal mine

evitsa will be open-pit, it is under construction in Finnish Lapland. Kevitsa is located 142 km to the north from Rovaniemi, the regional centre of Lapland. In June 2008, the company First Quantum Minerals acquired 100 percent of Scandinavian Minerals for approximately 282 million USD. Kevitsa Mining AB has one of the world’s largest undeveloped sulphide nickel deposits, with important copper, cobalt and platinum co-product cred-

its. Gold possibly will play certain role, but end products are mainly nickel and copper concentrates. Proven mineral reserves of Kevitsa are 56.2 million tons, with probable 10.6 million tons on top of this. Kevitsa mine will be opened during summer 2012. The total investment cost is around 400 million euros. About 300 employees are constructing the mine at the moment. When ready, the mine and enrichment plant have 250 jobs. However, there are enlargement plans even before the original part of the

mine is ready, so the total number of employees will possibly increase. Kevitsa has ordered huge mining machines, which will be delivered during 2011. Five Cat 793F and 795F truck can carry loads of 226-313 tons. Trucks are so large that they will have to be assembled on spot. Some five million tons of multi-metal ore will be handled in Kevitsa, with another 20 million side ore. According to First Quantum’s Kevitsa mine director Reijo Uusitalo the project is in schedule. www.first-quantum.com

Laiva gold mine

aiva gold mine is under construction in Raahe, northwestern coast of the Gulf of Bothnia. Investment costs will be about 90 million euros and the mine will be opened during 2011. The parent company behind Laiva is Nordic Mines AB, which originally was an exploration company. Work on the Laiva project has reached an industrial phase. The company is focusing on completing the concentration

Business Finland 1/2011

plant, further buildings and other necessary infrastructure. In parallel to Laiva, exploration will be conducted at the project areas of Tormua (gold) and Kumiseva (gold, platinum and palladium), both in Finland. In Sweden Fjälltuna (gold) Tjärgetvare (zinc), Alanäs (silver, lead, zinc), Kilberget (silver, lead) are under investigation. www.nordicmines.se

n Kylylahti a copper mine is being constructed. The estimated investment cost is 30 million euros. The company in Finland is called

Kylylahti Copper Oy and the responsible company carrying out the project is Australian Altona Mining Ltd. Copper, cobalt, nickel as well as zinc are processed.

Mine lifecycle is estimated to last till 2011. www.altonamining.com

Taivaljärvi silver mine

mines & mining technology

Kylylahti copper mine

otkamo Silver owns through its wholly owned subsidiary Sotkamo Silver Oy a silver deposit in Taivaljärvi and a gold deposit in Hopeavuori in the Tampere region, both in Finland. In addition, there is one gold deposit, Harnäs, which is a former small scale gold mining site in Sweden. Of these, the Taivaljärvi mine is most likely to be built and put in production. In addition to silver, lead, gold and zinc will be quarried. The Taivaljärvi Silver Mine is located in Sotkamo municipalty, which is known for the large Talvivaara nickel mine. The Taivaljärvi Silver Mine could start in 2013, but there are no final decisions. Much effort has been put down for example in the draining operations, drilling and technical studies so it is likely that the mine will be operational in a near future. Also, according to new drilling results, resources can be larger than anticipated. According to estimates Taivaljärvi Silver Mine will cost around 30 million euros to build up. www.silver.fi

Keliber’s lithium

eliber Oy is a Finnish mining company. 68% of the company is owned by Nordic Mining ASA, and 32% by private persons in Finland. The company was established in 2001 as a research and development company within the mining industry, and previously it operated under the name Keliber Resources Ltd Oy. The company was transformed into a mining company in August 2006, and the name

was changed into Keliber Oy. For the lithium deposits in Central Ostrobothnia, the company has developed a tailored production process, which enables competitive production. The main product will be lithium carbonate. At the moment, the company holds the miningand exploration rights for three lithium deposits. Decisions of the actual mine construction has not yet been made. www.keliber.fi

Business Finland 1/2011

Nordkalk

â&#x20AC;&#x201C; Commercial Limestone from a Family-run Business Text: Klaus Susiluoto Images: Anders Korhonen

Nord

Business Finland 1/2011

Nordkalk Corporation is the third largest producer of limestone-based products in Europe. It only sells about a fifth of its production as limestone. “The main products are mechanically, thermically or chemically processed,” says Nordkalk CEO Bertel Karlstedt. “Being more than a raw material producer is important in our business approach.”

N dkalk

ordkalk is the leading producer of high quality limestone-based products in northern Europe. The products are mainly used in the paper, steel and building material industries, as well as in environmental care, soil stabilisation and agriculture. The raw material for all lime-based products is a natural stone – limestone – which is composed almost exclusively

of calcium carbonate (CaCO3). Quicklime or burnt lime is obtained by calcining pure limestone at temperatures above 1000° C. This highly reactive product is essential to many industrial processes. “Nordkalk produces quicklime (CaO) in Finland, Sweden, Norway, Estonia and Russia in a total of 17 kilns,” says Karlstedt. Hydrated lime or slaked lime (Ca(OH)2) is a dry powder resulting from the controlled slaking of quicklime with water. After this process the slaked lime is mechanically separated into fine and coarse fractions. “Quicklime and slaked lime form about one third of the total business in terms of turnover. About 40 percent is used as a powdered product. This kind of lime is used, for example, in paper-making, which is the most important single customer group for Nordkalk.” Quicklime plays a key role in removing impurities from pig iron and in the actual steel manufacturing process. PCC

is precipitated calcium carbonate made from quicklime. “It is most commonly manufactured at or for paper mills. PCC is a filling agent that gives fine grade paper its brightness and opacity. It is also used as coating pigment,” says Karlstedt. The raw material for quicklime for PCC applications comes mainly from the Tromsdalen mine in Verdal in Norway. “Production in Norway is ensured by NorFraKalk, half of which is owned by Nordkalk,” says Karlstedt. “The kiln in Norway was completed in 2007 and it can produce 200,000 tonnes a year. It is a modern and effective unit.”

Paper industry expertise Another product is GCC, which is made from concentrated finely ground calcium carbonate. GCC is also used in the paper industry. Nordkalk’s subsidiary, Suomen Karbonaatti, manufactures GCC in Lappeenranta from the local white crystalline limestone, which is actually marble.

Business Finland 1/2011

mines & mining technology Pargas Quarry, Finland “Nordkalk’s strength clearly is that we can provide many different limestone qualities plus a great variety of products derived from these qualities.” Nordkalk is one of the few wollastonite producers in the world and the only one mining and processing high-quality wollastonite in the European Union. “We focus on developing products for the challenging requirements of the ceramic and plastic industry. Properties such as stiffness and impact resistance improve with wollastonite.” But the company does not produce many items for direct end consumer use, with the exception of garden and soil improvement products.

Strong ownership The limestone business was affected by a deep recession, which started more than two years ago. “The year 2009 was especially difficult for us as well,” says Karlstedt, “but 2010 was a positive development and the magnitude of the recovery was somewhat of

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a surprise for us. In 2009, demand went down 25 percent. Now our growth figures are a little more than 20 percent, so we are catching up quite well.” However, Nordkalk has continued to moderately downsize. “We have some 10 percent less of a workforce than two years ago. Jobs have been cut in Finland, Sweden, Poland, Estonia and Russia. All in all, we have about 1,150 employees at the moment.” Nordkalk’s ownership changed in 2010. In May last year, the Finnish company Rettig Group signed a contract with the other owners of Nordkalk to buy the company’s entire share capital. Rettig Group now owns 100 percent of Nordkalk Corporation. The new owner has strong family traditions. “I believe in Rettig’s ownership,” says Karlstedt. “They are patient and have time to wait for results. There is a saying that a quarter of a family-owned company is 25 years (instead of three months in stock-listed companies).” Nordkalk has four divisions, which have their own specific targets. The di-

visions are Pulp and Paper, Metals and Mining, Finland, and Central and Eastern Europe. The two latter ones include customer segments Other Chemical industry, Construction, Environmental Care, and Agriculture. “The divisions are quite independent, but naturally we have some co-operation between them in development, administration, as well as in daily practical operational issues.”

100 years of tradition Rettig had been a shareholder of Nordkalk from 2002, with its stake growing in 2006 and 2009. “Rettig Group now has three legs to stand on,” says Karlstedt. “Retting ICC concentrates on hydronic and electrical heat emitters and indoor climate regulation solutions. Bore is a shipping company. The third branch is now Nordkalk, which officially became part of the Rettig Group in August 2010.” Karlstedt reminds us that Rettig was a co-owner of Partek for most of the

Investing in Sweden Nordkalk’s Swedish subsidiary applied for a permit to open a new limestone quarry in Bunge in northern Gotland because the present quarry, under current permits, will run out of limestone in 2013. The case appeared before the Environmental Court of the Nacka District Court and was ruled against in December 2008. “We appealed to the High Court for

the Environment, which gave its ruling in October 2009, granting a conditional permit to Nordkalk to start quarrying in the area in question. The decision was later appealed to the Supreme Court, which stated in October 2010 that it would not accept the appeal,” says Karlstedt. This means that Nordkalk will invest about EUR 50 million, and quarrying can continue for 25 to 40 years. The current quarry is expected to be able to continue until the end of 2013. “The project implementation has started and the new quarry can be opened before this. The limestone from Gotland

Lump lime is an essential raw material for the Nordic steel industry. “This has been a long and demanding process (started in the late 1990s), which has made it difficult to plan our future activities. For example, only now can we properly start with the building works of the new quarry and a related conveyor belt to Storugns. The conveyor belt will be up to 9 km.” The limestone in Gotland is of sedimentary quality and production of it gives strong support to the steel industry. Companies such as Ruukki, Ovako and Outokumpu use this quality in their processes.

The Bunge quarry and Storugns plant are located about 40 km to the north of Gotland’s biggest city, Visby. “The environment is taken into account extremely carefully in the building of the facilities and in the future operation of the new quarry,” says Karlstedt.

Opportunities for growth On a smaller scale, Nordkalk will reopen a limestone quarry in Finland. The limestone in Kolari, in Finnish Lapland, is very well suited to the purification and neutralisation processes of the mining industry. “We used to quarry limestone for nearly 30 years in Kolari in the twentieth century. Now Nordkalk is about to re-open the old quarry as the new mining projects (related to the metals and mining division’s industrial customers) started in northern Finland offer new markets for limestone-based products,” says Karlstedt. “A one-month test mining in Kolari quarry was started in week 42 by a local entrepreneur.” The stone has been tested in the customer’s processes, and based on the feedback Nordkalk is evaluating where and how best to utilise it. Karlstedt says it is possible that Nordkalk will also invest in the central and eastern European market. “In Russia we have proceeded at a slower pace, but in Estonia we have made some investment. Since 2005, the Baltic countries and Russia have played an important role in our business. However, the best results we have are from Poland, with good growth figures and profitable operations. “We develop our operations not only geographically. New technologies are naturally applied where it is sensible. For example, heat recovery from our processes has developed a lot. In 2008, Nordkalk committed to the Energy Efficiency Agreement for Industries. We have as another example in this field tested a wide variety of alternative fuels. Some of these are already used regularly.

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mines & mining technology

20th century. “In 1912-1994, Rettig was a major shareholder of Pargas Kalkbergs Aktiebolag, later known as Partek. Later Partek became a multi-branch company, but it indeed originated from the limestone business, which started on an industrial scale in the 1890s.” Pargas limestone had been used for hundreds of years on a small scale. Limestone was used in construction and lime paint was processed from slaked lime. “Nordkalk now operates in several countries and it seeks opportunities to expand further in a manner that could be described as non-aggressive. We are the third biggest lime company in Europe, but limestone is more or less a local and regional business. “However, because sea freight is an important means of transportation and because some mines are located close to harbours, longer transportation can be utilised. For example, from our kiln in Verdal, Norway, quicklime is shipped to Sweden and the Netherlands.” However, longer distances are usually not an option. Central Europe has its own limestone market led by German and Belgian companies such as Felswerke, Lhoist and Carmeuse. “It is typical of companies in this field that they are family-owned,” says Karlstedt. “This is now the case also for Nordkalk under the Rettig ownership.” Nordkalk’s operations are still run from Pargas, western Finland, where one of the company’s largest quarries is still in production.

mines & mining technology Storugns, Sweden (Photo: Gunnar Britse) “Prices are affected mainly by energy and logistics costs, so energy efficiency benefits us and our customers. However, prices are relatively stable despite some overcapacity for certain product segments in central Europe.” Karlstedt says that average consumers usually do not recognise the Nordkalk

brand. “This is not a big problem for us. However, we are at the forefront of research and we develop new products for industrial and end consumer needs and use. “People are also interested in our operations. Thousands of people have visited our quarry in Pargas. The site is really

large and deep. At the moment we mainly excavate and blast 100-120 meters beneath the sea level.” Nordkalk has also participated in European Minerals Day, which promotes the minerals industry to consumers and schoolchildren. n www.nordkalk.fi

Nordkalk values The company’s values are trust, competence and quality. A customer survey of Nordkalk’s customers at the beginning of 2010 clearly showed that the company lives up to these values. According to Karlstedt, Nordkalk is considered to be a reliable supplier that knows its own processes as well as those of its customers and can adjust products to those processes. Meanwhile, Rettig’s values and way of working are based on openness, fairness, modesty, trust and respect. These fit fully with the main drivers in Nordkalk’s leadership. “Together with our new owner we are well equipped to improve our products, services and continue to interact with our customers with confidence and respect.”

Business Finland 1/2011

Nordkalk manufactures special products for environmental care needs. Our limestonebased products are used not only to produce clean drinking water but also to treat waste water, and industrial process waters. Lime can also be used to reduce air pollution and protect water systems. By cleaning flue gases and systematically liming water systems, the harmful effects of acidification can be reduced safely and efficiently. By spreading lime on fields, water systems can be protected against excessive nutrient loads.

mines & mining technology

Lime Is Part of Environmental Care â&#x20AC;&#x201C; Naturally

For Pure Drinking Water and Clean Water Systems In the treatment of drinking water, various lime products are used to change the water pH value and alkalinity, thus reducing corrosion in pipes and improving water quality. Either quicklime, slaked lime or crushed limestone is used by waterworks. The safe and easy limestone alkalisation method is also suitable for improving water quality in private wells. In waste water treatment, lime products are used to regulate the water pH and alkalinity to a level that is optimal for the treatment process. The removal of phosphorus and nitrogen is enhanced by lime products, which reduces the eutrophication of water systems.

Efficient Cleaner of Flue Gases Energy production and waste incineration produce acid emissions that are harmful to the environment; these can be removed from flue gases before they are released through a chimney. This is achieved by neutralising the compounds by means of limestone-based products. The flue gas cleaning process usually relies on quicklime, slaked lime or ground limestone. The technique using limestone slurry can help to reduce e.g. sulphur dioxide emissions by up to 90%.

Lime Increases Productivity in Agriculture â&#x20AC;&#x201C; and Protects Water Systems Spreading lime on arable land reduces soil acidity, allowing plants to absorb nutrients released from the soil and added fertilisers more readily. This results in bigger and better crops, while fewer nutrients are discharged into the water systems.

Business Finland 1/2011

Golden Opportunities

With the gold price rising it is little wonder that smaller mining projects are providing good opportunities for joining the 'gold rush'.

Text: Klaus Susiluoto Photos: Endomines

he Pampalo gold mine in eastern Finland is owned by Swedish mining company Endomines AB, recently started test runs with a view to beginning operations in the first quarter of 2011. Pampalo is not a big mine on a global scale, but it aims to generate about EUR 20 million in annual revenue during a normal year of operations. The projected output is about 900-1,000 kilos of gold per year. Markus Ekberg, CEO of Endomines, says Pampalo's construction phase went well. “The investment costs of the Pampalo project have been approximately EUR 20 million. Although we decided to upgrade

Business Finland 1/2011

certain critical areas during the construction period, such as crushers and the plant laboratory, the overall cost of the project was still in line with our original budget.” The critical elements for the project's energy supply, including a 49 km power line, switch yards and transformer stations, were inspected and approved in November. The power line was partially financed by government subsidies. The processing plant works were completed in December. “We commenced test runs in November-December 2010,” says Ekberg. “Production will be starting in early 2011.”

Markus Ekberg, CEO of Endomines

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Satisfied investors Much work was completed even before the mine facilities were completed. “In 2007, Endomines was listed on the Stockholm OMX First North Premier List,” says Ekberg. “In Sweden, there is a market for small and mid-scale mining companies, so Sweden was a better choice for listing Endomines than Finland.” Almost 60 percent of the ownerships is in Sweden, with some 30 percent in Finland and remaining elsewhere mainly in Europe. Finnish Industry Investment, a government-owned investment company, is a major owner of Endomines with an 8 percent shareholding, according to Ekberg, who is a minor shareholder himself. “As far as I understand, shareholders have been very satisfied with their investments. These kinds of projects are always made on a long-term basis. Currently known reserves secure production for at least eight years. However, mines can often produce ore well beyond the original mine life estimates.” Endomines reports its mineral resources and ore reserves according to the Aus-

tralasian Joint Ore Reserves Committee (JORC), which is an internationally accepted standard. It also uses International Financial Reporting Standards (IFRS), which are approved by the European Union. According to Ekberg, JORC is an important tool for a company such as Endomines. “The Pampalo ore reserve and mineral resource estimates were prepared by Outotec Oyj, a leading provider of process solutions for the mining and metallurgical industries, under JORC standards.” Ekberg says it was also important that this report was prepared by an independent assessor. “The data was derived from an infill drilling campaign done early 2010 in the Pampalo underground mine. The drilling campaign increased mineable reserve tonnes by 50 percent. This adds almost two years to our current gold mine production plan." “We use gravimetric and flotation methods for processing the ore. These methods do not require the use of cyanide or other harmful substances. The Pampalo mine will therefore have a low impact on the environment, and sustainability is a primary concern for Endomines,” says Ekberg.

Grinding mill balls

Filling the grinding mill with the balls

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North, south and west Ekberg says Endomines aims to develop further deposits along the Karelian Gold Line in the future. “The mining concession area which we acquired for the Pampalo Mine is 297 hectares. In addition to this, we have claims and mining concessions along a 40 km gold critical belt – the so-called Karelian Gold Line – on which Pampalo is also located. Endomines is the sole owner of all known mineral rights along this belt.” Endomines also has additional claims in Finnish Lapland (gold), Ostrobothinia (ilmenite) and southern Finland (limestone/wollastonite). However, the rapidly expanding mining industry in Finland faces a key challenge in the scarcity of trained staff. “To find competent personnel is not always easy in the mining and minerals business. We have dealt with this challenge by training our own personnel at Pampalo,” says Ekberg. “In fact, most of the training costs incurred have been covered by government grants.”

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We use gravimetric and flotation methods for processing the ore. These methods do not require the use of cyanide or other harmful substances. The Pampalo mine will therefore have a low impact on the environment, and sustainability is a primary concern for Endomines." History of Endomines

Sample analyzing in the laboratory

The Pampalo deposit was originally discovered by Geological Survey of Finland in 1990. Intensive exploration and mining were subsequently carried out by Outokumpu, which sold it to Australian Dragon Mining following its decision to exit the mining business. “It was later acquired by two Finnish 'academic prospectors' and entrepreneurs in 2006, and incorporated under Endomines. The strong increase in the gold price in recent years has made this project financially robust,” says Ekberg. “In a European context, Finland is a relatively significant producer of gold, but globally we are far behind big gold mining countries such as China, Russia, South Africa, the USA and several others.” According to Ekberg, who became chief executive officer of Endomines in August 2009, the current situation in the metals and minerals industry is an interesting one. “Previously, I worked for 20 years for Outokumpu, Finland’s main mining company at that time. In addition to Finland, I have worked in Norway, Ireland and Australia since 2004. During these years, I have been involved with several different mining operations, and worked with chrome, gold, zinc, nickel and copper projects.” n www.endomines.com

Fire assaying in the laboratory

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We have implemented an ore processing technique unique and new to Finland."

Ingmar Haga, Agnicoâ&#x20AC;&#x2122;s vice-president for Europe and managing director for Agnico-Eagle Finland

Agnico-Eagle Mines – Gold Production in Finland

Text: Nita Ukkonen Photos: Agnico

Mining in Finland is currently going through an unprecedented boom. New mines have been built and several are currently being developed. Thousands of people now work in this growing industry. The Kittilä Mine, operated by Agnico-Eagle Finland Oy, is one of Europe’s largest and most exciting gold deposits.

n late 2005 there was big news in the small town of Kittilä in northern Finland. A Canadian mining company called Agnico-Eagle Mines Limited had acquired the nearby Suurikuusikko gold project and announced plans to open the mine in less than three years. Hundreds of people applied for jobs at the Kittilä mine. Eventually it employed close to 600 people, including the company’s own employees and the employees of contractors working full-time at the mine.

Ingmar Haga, Agnico’s vice-president for Europe and managing director for Agnico-Eagle Finland, estimates that the employment impact on the region is even higher: “One mine job indirectly creates approximately three additional jobs.” The Kittilä mine, located approximately 900 km north of Helsinki and 150 km north of the Arctic Circle, has been in operation for over two years. The first gold was poured in January 2009 and commercial production began four months later. Every day, 3,000 tonnes of rock is crushed and processed to extract

mines & mining technology

is released. Gold is then extracted from the gold-rich sludge through a cyanide leaching process. In the last stages of the process, gold is recovered from the solution through an electro-winning circuit and melted into 25 kg doré bars containing 93-95 percent gold. About one million tonnes of ore is treated annually in the mill, or 3,000 tonnes per day. The gold doré bars are shipped from

a yield which is currently 150,000 ounces (slightly less than five tonnes) of gold a year. Mining was originally estimated to last at the site for 13 years. However, extensions to the ore deposits as well as other deposits have been found in the mine area and Agnico now forecasts that mining at Kittilä will last at least up to 2032. The mine is going through many changes. “It started as an open-pit mine, but we are gradually moving to underground mining and within two years all mining will be from the underground,” says Haga. “Because of the growing ore reserves, Agnico is also planning to expand the mine production. A feasibility study on the expansion will be completed in late 2011.” The development of a mining project from discovery to production generally takes a long time. The first hints of gold in the Suurikuusikko area were found in 1986 – more than two decades before the mine was opened.

Complex ore processing Agnico-Eagle Mines has long experience of mining in Canada and over the past four years it has built new mines in Canada, Mexico and Finland. At Kittilä, the company had to adopt

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and implement new methods and new technology for processing ore. Because of the refractory nature of Kittilä, ore processing is very challenging and complex. “We have implemented an ore processing technique unique and new to Finland,” says Haga. The gold in the Kittilä ore deposits occurs as microscopic small grains locked inside sulphide minerals – gold is impossible to see with the naked eye. The gold ore is mined and concentrated in the processing plant and finally it is smelted into gold doré bars. This is all done on-site in a modern processing plant using the best available techniques. Ore processing starts when the ore is hauled from the mine, crushed and conveyed to the ore bin. The ore is then milled in a grinding mill and an average of 124 tonnes per hour of ground ore is fed to a flotation circuit. During flotation, gold-bearing sulphide minerals are concentrated and the gold content of the sulphide concentrate is increased to about 10 times that of the ore. In the second stage of the process, the sulphide concentrate is fed into an autoclave. Sulphur is burned off in the high pressure and high temperature environment of the autoclave and the gold

A fast-growing sector Finland has a long tradition of mining, but just a decade ago the industry was in a dire state. The prices of ores and most metals were very low and mines were closing down as big state-owned companies exited the industry. Engineers moved on to other fields and students were not interested in the industry, and mining expertise nearly disappeared.

Thanks to continuing economic development in countries such as China, India and Brazil the demand for most metals has been increasing over the last nine years. As a result, prices have risen dramatically for all metals. This is also the reason for the recent boom in Finland. Haga believes that mining in Finland will continue to grow in the future. “Geologically, Finland has good potential for many metals as the Finnish bedrock is one of the most prospective in Europe. We have expertise, world-leading mining equipment manufacturers and technology – Finland has every possibility to excel in this field.” Haga also points out that it is important to mine and produce metals in countries such as Finland that have good, stringent mining and environmental regulation. “If we stop producing metals in Europe – as some environmentalists advocate – we will only export metal production and environmental problems to countries with poor or non-existent regulation.” During Agnico’s rapid growth over the last few years the number of employees working for the company has risen from about 800 to close to 3,000 in 2010. In addition, almost 5,000 contractors work at various Agnico locations around the world. The company’s policy on recruiting is to recruit locally wherever it operates. Haga began working for Agnico in 2006 and has over 30 years’ experience in the mining industry. He has seen the ups and downs of the international mining industry over the years and is very happy to have been able to be part of Agnico’s transition from a one-mine gold producer to a senior multinational gold mining company. n www.agnico-eagle.com

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the mine to a refinery where the gold is refined to 99.99 percent gold bullion and sold on the international market. The demand for gold occurs in many sectors and geographical areas. Around 60 percent of today’s gold is used for jewellery; India and China with their expanding economies are the biggest consumers. Gold demand is also coming from investment, central bank reserves and high-tech sectors.

The risks and money involved grow bigger at this stage.â&#x20AC;?

Carl LĂśfberg, the managing director of Magnus Minerals 56

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Magnus Minerals – DIGGING DEEP

Text: Juhana Hurula Photos: Sini Pennanen

agnus Minerals is a privately owned company that focuses on mineral exploration in Finland. It has four founding members, Finnish and Canadian experts, who have extensive knowledge and experience in geochemistry, geophysics, mineral exploration and business administration. The company has been operating in more than a dozen prospective areas over the past five and a half years. It has acquired several land holdings in different areas across Finland. It understands the importance of a long-term approach to advance its prospects. “We are focusing on acquiring exploration permits in areas. We see these areas as geologically prospective (our senior geologists have worked in Finland for more than 30 years and have vast experience in the country), and in these areas we can add value by compiling the old data together, remodel and re-interpret them and then further carry out some lighter field exploration like geochemical

Magnus Minerals is an exploration company that uses hi-tech exploration methods as well as good old-fashioned shovels in the field of prospecting.

sampling, ground geophysics and trenching. We have employed 3 to 7 geologists in addition to our core team over the years,” Carl Löfberg, the managing director of Magnus Minerals, says.

Extensive database The company uses advanced methods, for example, modern magnetometric methods, which are combined with geological reinterpretation of data gathered from the past decades. Magnus Minerals has compiled an extensive database that includes geophysical and geochemical data to analyze and interpret the mineral potential of an area. “The understanding of ore-formation processes is of great importance, and we believe that the general understanding of the ore-formation processes of certain areas we are working on is erroneous, and a new model fits the data better. Having the right theory about ore-formation is crucial for knowing where and how to look for economic ore deposits,” Löfberg says.

Costs and odds of the diamond drilling “After digging deep in the old data, digitizing everything, gathering new data from the field with comparatively inexpensive geophysical and chemical methods (you can get a long way with just a few tens of thousands or hundreds of thousands euros), and remodeling and re-interpreting the data, you eventually get to the phase where you need some diamond drilling.” “The risks and money involved grow bigger at this stage.” “The diamond drilling costs roughly 100 EUR per metre. Even a comparatively small drill program where you drill half a dozen or a dozen holes into 100 to 600 meters costs in the ballpark half a million.” “Statistically less than one prospect in three thousand ever becomes a mine. That’s less than 0,1 percent. Our prospects are a bit more advanced, many of them having past drilling and even small resources defined, some being old mine

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sites. But we are still dealing with odds that are statistically against us. When we start on a prospect we are most likely in the fraction of a percent likelihood of finding something of economic value. After we have consolidated the land position, put all the old data together and done our own part of field work, we have probably taken the odds to a few percent in the better areas. So we have reduced the risk to roughly a tenth.” “The next stage is a diamond drill program, which would normally have a

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budget of 2 to 5 million euros (just to give you a ballpark idea). If that is successful, we have further increased the odds of finding something of economic value.” “The feasible stage often needs a few tens of millions euros, and the capital expenditure for mid size to larger mining operations runs between 200 million and one billion euros.” “So you are possibly looking at a cash flow of one billion euros on the negative side before money starts to pour in,” Löfberg says.

Start drilling with a partner “Our strategy at Magnus is to take everything as far as possible, until it is time to start drilling. It is then when we take an industrial partner or a well-managed exploration company along with access to capital and get outside fund by establishing a joint venture. Or if the prospect looks really good, we can spin it out and incorporate it on its own, as we have done with Attu Zinc Ltd.” Magnus Minerals’s biggest partner

A generator and roylty company The business strategy of Magnus Minerals is to be a kind of an exploration prospect generator and royalty company. They believe that their rich experience in Finland makes them a preferred partner for a company looking for a foothold in Finland. The small current revenue of Magnus Minerals consists of two parts:

Magnus Minerals now have over one hundred claims and prospects with Western Areas, and Magnus holds ten claims and half a dozen reservations on its own." the option payments on joint ventures and consulting services that they provide to joint ventures. To accompany this comes the royalties, which might turn to gold in the future. “The basic model we have used over the years is an Option Deal. Our partner has a work commitment between 2 to 5 million euros over three to four years to earn 51 to 90 or even 100 percent of a project, with option payments ranging between 10 to 50 percent of the work commitment. On top of this we maintain a 1 to 2,6 percent NSR-royalty (Net Smelter Return),” Löfberg says.

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currently is Australian nickel mining company Western Areas. “It owns 75 percent of our projects in central Finland where we are looking for Talvivaara and Outokumpu-type mineralization. Western Areas was not afraid of taking risks back in 2008 when the market was pretty much dead. They saw the potential as we did. They have a longterm strategy for growth and exploration. It is a fantastic partner to work with. We are very glad to work with them,” Löfberg says. Magnus Minerals now have over one hundred claims and prospects with Western Areas, and Magnus holds ten claims and half a dozen reservations on its own. “Magnus Minerals has land holdings in several prospective gold areas which we are currently consolidating into one ‘package’ and for which are looking for a partner. Another area is in western Finland with several Rear Earth Element (REE) and Lithium (Li) prospects. We are consolidating the land position there as well and doing some preliminary work on our own. There is one Lithium mine and several other companies active in the area. In addition to the gold and REE/Li prospects, we have permits over several old mine sites, which have exploration potential at depth. In addition to all of these we are looking at the possibility of taking Attu Zinc Ltd. into small-scale production on our own. We have our hands full, and only limited funds, but we are confident that we can advance our properties in a successful way if we take our time and choose our partners wisely.”

few prospects eventually become mines. We at Magnus have no producing mines currently, but we are committed to being part of bringing one or two into production in the coming years. Mining in Finland has a very bright future,” Löfberg says. www.magnusminerals.com

Promising future Mining in Finland has been going through a downward spiral that started at the turn of the millennium, when stateowned company Outokumpu decided to move out of the exploration and mining business. Furthermore the legislation did not allow foreign companies for mineral exploration in Finland until 1994. Now the situation has changed, and the new Mining Act is in the Parliament. Carl Löfberg is keeping his fingers crossed. “A couple of years ago, 870 claims were granted a year and there was a bit less than 2000 approved claims all together in Finland. There were five operating mines. Now there are nine, I think. It kind of gives the idea. There is a long way from mineral exploration to mining. Only very

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cutting edge solutions

NORMET

- Building on a Tunnel Boom

Aaro Cantell is the main owner, chairman and CEO of mining and tunnelling specialist Normet. Under his guidance, the company has grown and developed into a truly global group. â&#x20AC;&#x153;Mining machinery markets are gaining strength. The year 2010 has meant a strong recovery from the recession, and order intake has increased considerablyâ&#x20AC;? says Cantell.

Text: Klaus Susiluoto Photos: Normet, Anders Korhonen

More and more mining is done in underground mines instead of open-pit mines, so demand for our products is likely to remain high." 60

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cutting edge solutions CEO of Normet, Aaro Cantell. Business Finland 1/2011

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ormet's market is divided into two segments – underground mining and tunnelling – both of which are doing well. The latter refers to all kinds of tunnels from metro to road and water to hydro power. Cantell says the company has traditionally been strong in underground mining machinery. “Now Normet’s turnover is now more evenly split between the two segments. Particularly in remote tunnel construction sites, service and support are of utmost importance. Help and spare parts must be found quickly. Our local service companies have done a valuable job in establishing good relations with tunnel project companies.” Normet now has about 570 professionals around the world in 6 continents and 25 locations.

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“Tunnel construction is increasing, especially in large cities and in developing countries. In many cases new space in city centres can now only be found underground. It is no surprise that – especially in India and China – the amount of infrastructure ie. railroads, roads and metros being built is enormous,” says Cantell. Tunnel construction machines have recently been delivered to Sochi in Russia, where the Winter Olympics will be held in 2014. “There are also some tunnel projects in London thanks to the forthcoming 2012 Olympic Games, where our machinery is used.”

Underground mining Normet’s machinery is also widely used in underground mining, where Normet also is the global market leader in its key product segments. “Normet has a particularly high level of technological know how in robotised concrete spraying. In addition to the automated equipment Normet provides concrete chemicals, concrete batching plants, transportation, operator training, maintenance, process optimisation etc. in other words everything the customer may need around the process to optimally apply concrete spraying underground.” “More and more mining is done in underground mines instead of open-pit mines,

Service business Normet has sales and service offices in 25 cities across 15 countries. “The role of these offices in maintenance, customer support, spare parts service, operator training and other services is very important. We aim to optimise customer processes and this requires local presence. To customers the most important this is that the tunnel building or mining process can go on fast and efficiently with minimal down times.” says Cantell.

Large delivery to Hong Kong Normet has signed a contract worth approximately EUR 5 million with the Hong Kong harbour area project known as HATS, a major sewerage project in Hong Kong serving an area with approximately five million inhabitants. Normet’s delivery includes 20 different machines and cassettes for sprayed concrete and material delivery. The project will be finished in March 2012.

“Our sales and marketing is coordinated from Switzerland, which is not an inexpensive country. However, from the point of view of recruiting top leadership competence to our front-line operations, Switzerland is an attractive location.” The company's main manufacturing facilities are located in Iisalmi in central Finland. Production capacity has been continuously increased in the last five years and the last investment was finalised in summer 2010. “Modernising production facilities increased Normet's assembly capacity by 30 percent and another 25 percent growth is expected

in the near future,” says Cantell. “I try to visit our factory quite frequently. Iisalmi is a good place for our production. People there are professionally very skilled and exceptionally committed to their work and Normet” .. “Naturally we face the same challenges as most manufacturing companies do in today’s world – an increasing productivity and cost pressure – but we have so far been successful in continuously improving our manufacturing methods and productivity in Iisalmi” According to Cantell, research and development plays an important role at Normet. “Developing mechanised and customised equipment in close co-operation with Finnish mines is what made Normets products successful in the first place.an opened the path also to international success. Today we also seek to add value to our customers processes through different service concepts, but R&D is still very important to us. We spend annually on R&D 3-4 percent of our turnover.” In addition to automated explosive charging systems and robotised concrete spraying equipment, the company also manufactures concrete transport, lifting and installations (including twin-lifting booms), multi-purpose carriers and scaling systems. According to Cantell, Normet’s products are typically more robust and have a longer life that those of it’s competitors’ because it is possible to refit various accessories and machine parts.

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so demand for our products is likely to remain high,” says Cantell. Machines provided by Normet typically cost roughly between EUR 250,000 and 300,000, but the price also varies a lot case by case.

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Hard rock environment In addition to productivity also work safety underground will improve, when mechanised solutions are used instead of manual labour. Globally, most minerelated accidents happen in coal mines. “We do not have products for soft rock environment such as coal mines – our clients work in a hard rock environment. There also rock falls, water, heat, highly corrosive environment in changing rock conditions mean that both workers and equipment are very often under extreme conditions” Over 30 percent of Normet's business now comes from life-time care. Some customers do

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not want to invest in machinery, but instead ask about the possibility of renting. “This will likely become more common particularly in tunnelling projects which typically last around 18-36 months. For this purpose we have a separate company called Normet Rental Oy”

International recognition According to Cantell, the basic business principles and logics of customers are essentially the same, regardless of where the customer operates. “Naturally there

are some cultural differences and practices that you need to know, but Finnish companies sometimes mystify too much the process of internationalisation. Customer needs outside of Finland are similar to customer needs in Finland” Cantell won recognition for his entrepreneurial skills, after he was chosen Entrepreneur of the year in Finland in 2008 and participated in the ‘world championships’ for growth companies by Ernst & Young in Monte Carlo. “Both of these were great experiences personally. However, the key here is that positive publicity and wider recognition of our achievements have increased the selfes-

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teem of our employees. They certainly can and should be proud of their work. This strong positive energy is the engine that creates good results and further attracts other top professionals around the world to join Normet. “In addition to strong organic growth we aim to strengthen our position also through acquisitions and co-operation agreements. For example in 2008, we acquired a local company in Chile to serve as our base in Latin America. Last year, we acquired a 40 percent stake in TAM, a concrete chemistry company, to support the launch our own new underground chemicals division.” “Partnering with TAM International means that we sell construction chemicals to complement our concrete spraying equipment. Normet represents TAM products in areas where TAM is not yet active. In return, TAM will act as an agent and distributor of Normet equipment and services in the UK, Hong Kong, Taiwan and in some of the ASEAN countries.”

Working with growth companies Cantell graduated from Helsinki University of Technology in 1989. “From 1989 to 1992 I was employed by Fiskars Corporation. I first assisted in international divestments of some business units and in other corporate arrangements and then worked as a Product Man-

ager in an international business unit.. “Ever since that I have worked with Finnish growth companies, now over 20 years, of which I spent some 12 years as a private equity investor at Fenno Management Oy, which I bought out in 2001 . So transforming in to my current entrepreneurs role has happened gradually step by step. Being an entrepreneur is the role I absolutely like the most. Being able to build something important and enjoying

the work at the same time is a privilege.” In 2005 Cantell acquired Normet. “I knew the company quite well from before. I had already once acquired Normet from Orion Group to our private equity funds back in 1999 and had been on Normet’s board since then.” The new challenge then was to transform an excellent but local Finnish manufacturing company into a globally operating service company. n www.normet.fi

Supplier of the Year Normet was awarded Main Supplier of the Year 2010 at the International Subcontracting Trade Fair in Tampere, Finland, in September, for its contribution in actively developing its subcontractor network relations.. The award was presented by the Finnish Association of Purchasing and Logistics (LOGY). Normet is the only company to win this award twice during the award's 20-year history. It first won the award back in 1988. This time the judging committee noted Normet’s active role in the long-term development of its supplier network in Finland, as well as its continuing use of both Finnish and foreign suppliers.

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Our aim is to provide performance-driven services for life-time reliability to the mining and construction industries globally."

Matti KĂ¤hkĂśnen, President and CEO of Metso Group 66

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METSO At the Head of the Construction and Mining World Text: Klaus Susiluoto Photos: Sini Pennanen, Metso

Metso, headquartered in Helsinki, Finland, is a leading global supplier of equipment, systems and services for the construction industry and for the mining and minerals processing industries. “It is all about delivering high-value performance to our customers while lowering their operating costs in a sustainable way,” says Matti Kähkönen, the new President and CEO of Metso Group.

etso’s main products for the mining and construction industries are grinding mills, crushing and materials handling equipment, stationary and mobile crushers, screens and conveyors. The segment’s net sales decreased in 2009, but 2010 proved to be much better. “We aim to be number one in our chosen customer industries,” says Kähkönen. “We have reached the target in grinding mills and mining crushers, and in crushing and screening plants for construction we are number one or two depending on the application. Over the years we have delivered more than 2,000 grinding mills for mining and over 35,000 crushers to our construction customers.” As with most businesses, mining and construction have suffered in the recent market downturn. “It has been a relief to see the market is picking up. Orders from our mining and construction customers are looking good. Also, the share of orders from emerging markets is quite high, which is in line with the group’s strategy – after all, most of the western world has developed infrastructure, while Brazil, Russia, India and China are investing in their roads, harbours and airports, not to mention cities.

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“In spite of the focus of the world’s mining and construction activity shifting towards the south, the share of net sales from Finland and other Nordic countries remains around 10 percent of Metso’s Mining and Construction Technology segment – by no means insignificant.” Brazil, Peru and Chile are important mining markets for Metso, as well as Australia, North America and the EMEA (Europe, the Middle East and Africa) region. Some eastern European countries are also developing their mining activities.

Metso Park in India The most active market in Asia is China, where Metso serves various groups of customers: mining operators, ports and terminals and aggregates producers as well as dam and road construction, power plants and the steel industry. The large coal terminals, in particular, have invested in bulk material handling systems in recent years. In India, large infrastructure and mining projects are underway. “Today’s infra projects, whether airports, bridges or roads, are being built to ever-tougher deadlines and specifications. This means that the equipment, systems and wear materials used must be available when you need them – without any major interruptions,” says Kähkönen. Metso has put a lot of investment into India. ‘Metso Park’ in Rajasthan is an interesting concept that combines Metso’s manufacturing and engineering operations, as well as those of its partners, under one roof, enabling rapid communication and cooperation, and logistical synergy. The first phase of the Park is complete and already in operation. “Metso Park also serves other Asian countries, not just India. Our global presence will therefore be spurred on even more by it.” Every year, Kähkönen observes Metso’s international businesses by visiting India and China three to four times and South America two to three times.

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Metso’s services for the mining and construction industries include wear and spare parts and engineered-to-order parts and components, life-cycle and performance-based services, process technology and engineering services, materials technology solutions and individual service activities. On the equipment side, Metso typically delivers complete processing systems and custom-made equipment solutions, according to the customer’s needs. “Orders are typically from two to four million to 70-80 million at the project level. We also sell machines based on single orders. On the mining side we almost always deliver larger systems,” says Kähkönen. “Some of our recent projects include an extensive mining equipment system to

the largest copper mine in Brazil, processing 15 million tonnes of ore per year. The Serra de Sossego mine is located in Pará state, Northern Brazil. To the Gaisky copper mine in Russia we delivered a package of grinding mills – semi-autogenous and ball mills – and 17 units of flotation cells. Typically, in these types of projects we also deliver installation and commissioning support services, depending on the customer’s needs. “Russia is a growing market for all Metso’s segments. We are present in mining and construction, but our energy and environmental business and the paper and fibre business also have promising prospects.” Metso employs approximately 2,800 professionals in China, which is already an established market for the company,

including joint ventures. “Metso runs five manufacturing plants and one with local partners in China. China’s share of the group’s net sales is growing. There is currently one manufacturing unit dedicated to mining and construction in Tianjin, near Beijing, but our sales network serving the industry covers most of China.” Metso’s other major mining and construction equipment manufacturing plants are located in Brazil, Finland, France, India and the USA. “Our plant in Sorocaba, Brazil, is Metso’s biggest single unit with all our businesses present. Metso acquired its competitor Svedala in 2001 and we more than tripled the size of our mining and construction activities. Today, we have about 1,700 employees in Brazil. Buying Svedala was a strategic choice, and a good one seen from today’s perspective.”

Changing of the wear parts to a grinding mill in Sweden.

Portable crushing and screening operation in Karnataka province, India.

Mobile crushing and conveying results in less site traffic and less exhaust emissions.

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mines & mining technology

Extensive systems

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Aggregates business Metso’s strong competence in aggregates processing goes back to its Nordberg and Lokomo brands, which have been around for at least a decade. “Having such a solid background in these areas gives us – in addition to a large installed base, first class equipment and experience – confidence that can’t be measured in money,” says Kähkönen. “The aggregates business counts for more than one third of our revenues in Mining and Construction Technology. Naturally, the technology is quite similar to mining equipment, but there are some differences.” Energy saving is important in the aggregates business. One of the company’s German customers, BAG (Basalt-AktienGesellschaft), asked to connect mobile conveying technology to a stationary conveyor system almost one kilometre long. “They could boost the efficiency of crushed aggregates transportation. A total of six large dump trucks were eliminated. The equipment the company acquired was electrically-driven, which adds to Metso’s and its customers’ sustainability commitments.”

Performance and solutions Over half of Metso’s deliveries to the mining and construction industries are service-based. “We have to be able to offer not only products but solutions and performance. We aim to deliver the right service to the right place at the right time,” says Kähkönen. “We have some new service products that are developed around solutions and life-cycle performance contracts. This could mean a completely ‘outsourced’ mine or quarry, where Metso would run a performance-based contract. But, naturally, the customer can also choose just a spare part delivery or some other single service act.” Metso has the expertise to engineer an entire mineral concentrator and to pro-

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are in integrating processes, engineering services, technical field services and erection supervision, start-up services, spare parts, maintenance operations and customer training. Our target is to bring maximised customer service to the market.” Kähkönen believes that reliability is one of the company’s main strengths. “In some types of mining equipment we use subcontracting, but the original drawings, engineering, service and spare parts businesses are in our own hands.”

Lifetime reliability According to Kähkönen, energy efficiency is of the utmost importance to Metso and its customers. In addition, noise and dust need to be reduced, fuel has to be saved and emissions must be lowered. “One example of our energy-efficient

Dust suppression and environmental aspects are becoming today more important when planning a crushing operation.

SAG mill

Analyzing the vibration of a screen is one service concept offered by Metso.

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mines & mining technology

vide complete mine-to-mill optimisation. “We have initiated measures to further develop our strong services business. More integrated services are available, and we have organised our operations to support this development. On the mining side we have dozens of experts travelling across the world, helping to optimise customers’ processes. They are reviewing factors such as the consumption of water and energy, optimisation of the end product size and form, chemical aspects etc.” The company’s service teams work closely with customers. Local services are supported by a global group of experts with in-depth knowledge of the customer’s processes. Kähkönen says it is difficult to copy the service concept: “It takes years to build a large service network with reliable partners. Our main competitive advantages

mines & mining technology

approach is that in the mobile jaw crusher plant in the contractor segment, the revolution speed of the engine has been adjusted and the crusher optimised so that fuel consumption is over 20 percent lower than before.” Kähkönen says that another of Metso’s strengths is its lifetime services option. “We can provide performance-driven services for lifetime reliability. We deliver results that can be clearly measured. We can provide state-of-the-art process simulation with our software. This guarantees the right choice of equipment.”

Sustainability as a priority Metso has about 27,000 employees worldwide in over 50 countries, and it is listed in the Helsinki stock exchange. Metso has three business segments: Mining and Construction Technology, Energy and Environmental Technology and Paper and Fibre Technology. “In the Energy and Environmental Technology segment we are the leading supplier of biomass boilers, we are strong in the automation business and the world leader in providing paper and board machine solutions. Our balance sheet is in good condition,” says Kähkönen. On the mining and construction side, the journey from the ore face to a refined metal or mineral can be a long one. “It calls for the best in crushing, grinding, separation and filtration equipment as well as in entire processing systems. All our business segments strive for more energy-efficient solutions, better work safety and reduced emissions.”

Andrew Benko: A constantly changing industry Matti Kähkönen became President and CEO of Metso Group in March. He previously headed Metso’s Mining and Construction Technology business, which is now the responsibility of Andrew Benko. Benko joined the team in 2001, when Metso bought the Swedish company Svedala.

Business Finland 1/2011

A complete, static installation delivered by Metso in Spain

mines & mining technology

Prior to his current position, he headed the Equipment and Systems business and, before that, the Mining business. Benko says that the portfolio Metso offers the mining and construction industry is solid and covers the whole process lifecycle: “It is critical that we understand the needs of our customers in this constantly changing industry and business environment. Issues that are important to our customers have a high position on our agenda.” According to Benko, these issues include improving energy efficiency and reducing water usage. “I look forward to building even closer relationships with our customers in future projects. We are here to provide them with excellent results.” n www.metso.com

Pioneering the Lokotrack concept Metso has a number of proven product names including Nordberg, Barmac, and Trellex, as well as the pioneering Lokotrack concept. Metso was the leading developer of the track-mounted crushing plant called Lokotrack. The concept was invented in the mid-1980s when a Finnish customer Telamurska Oy asked Metso – then called Lokomo – to build crushers on tracks instead of tyres. The idea was to move the machine to the stone, and not the other way around. This reduced the need for internal logistics and was also intended to improve work safety and save energy. The Lokotrack concept can be used in quarries as well as in road and bridge construction. The stone crushed on the spot can, in many cases, be used as the ground for new roads. Today, Lokotracks include interactive intelligent control systems that monitor and control the crushing process ensuring continuous and stable material flow to the crusher, ensuring good capacity and quality end products. The control systems show all the essential information concerning the crushing process and the operation of the unit. Crushing process parameters, such as crusher speed, can be optimised and adjusted using the interactive display.

Business Finland 1/2011

Text: Anni Jyrinki Photos: Polar-Automaatio

Polar-Automaatio - 25 Profitable Years of Hi-tech Innovation

Polar-Automaatio specialises in hi-tech industrial electronics and automation. Over the past 25 years, the company has established a strong position in a variety of industrial markets. Polar-Automaatio products are used by companies such as Outokumpu Tornio, Rautaruukki, Agico Eagle, Metso Minerals and Stora Enso. One of its latest customers is Talvivaara Sotkamo. The deal with Talvivaara is one of the reasons that Polar-Automaatio has not suffered from the recession and has, in fact, seen significant growth over the past year.

Business Finland 1/2011

Mining is probably the ‘hottest’ industry in Finland nowadays. Of course we want to be part of that hype too."

Wide range of products Polar-Automaatio, a family company based in Keminmaa in northern Finland, was founded in 1985. It currently employs 30 experienced technicians and engineers. “We have a brand new office at our disposal and all the up-to-date programming, documentation and design tools,” says Polar-Automaatio managing director Hannu Saloniemi. When Polar-Automaatio was set up, its first goal was to offer services to the wood and steel industries in nearby Kemi-Tornio. Its customers are no longer to be found only in northern Finland; they are now based all over the country and abroad. Polar-Automaatio provides automation and electrification services for process industries such as steel, wood, metallurgy and energy. Its specialised services deal with steel converters and furnaces, hot and cold rolling mills, concentrators, water treatment, dust removal, paper and cardboard machines, evaporation plants, and turbines and generators. “You could say that we handle all the processes that are part of the paper machine, metallurgy and steel industries.”

Tripper car and stacker, in the morning 30.12.2010

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Taking on Talvivaara However, the steel and wood industries are no longer the only fields in which Polar-Automaatio operates. “Mining is probably the ‘hottest’ industry in Finland nowadays. Of course we want to be part of that hype too,” says Saloniemi. Polar-Automaatio executed automation systems for the gold concentration plant in Kittilä a couple of years ago, and it is now starting a large project in Talvivaara together with Paakkola Conveyors.

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“Our job there is to supply automation and electrification for a conveyor system that moves 4,500 tonnes of ore per hour. T his project, called SK10, consist in addition to conveyors also reclaimer and stacker which both are one of the largest machines in Finland and they are even moving ones controlled automatically by using the GPSR technique. The system is altogether about 7km long, and is fully designed and manufactured in Finland.” SK10 consists of 10 transformers 20 kV/690 VAC, 30 pc electric rooms, many of them are even moving. The automa-

Care for the environment Saloniemi says that environmental issues are close to his heart, which is why Polar-Automaatio has developed, to-

gether with two other companies, equipment that removes nitrogen from sewage water. This facility can also be used in the process and mining industries. â&#x20AC;&#x153;In my spare time I am training my racehorse and I am a very devoted fisherman. I enjoy the wilderness areas that we have in northern Finland.â&#x20AC;? The company has even sponsored Kalle Palander, a world champion slalom skier, with a package that includes physiotherapy treatments whenever the sportsman is abroad. n www.polar-automaatio.fi

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tion system is made using Siemens S7 Wince. System buss consists of 100 switches and remote I/O units. We have put together Siemens Automation and ABB electrification. According to Saloniemi, this new project could be a big step for the company towards the international market.

450 meter long moving bridge conveyor, stacker, start up 21.11.2010 Business Finland 1/2011

Solving - The Way to Success is Continuous Development Solving has its headquarters in Pietarsaari, Finland, but altogether it employs about 60 people in six different countries. Its subsidiaries are located in Norway, the UK, Italy, Germany and Sweden. The Swedish subsidiary is a production unit where air-bearing elements are manufactured, while complete transport systems are produced in Finland.

Text: Anni Jyrinki Photos: Solving

Business Finland 1/2011

Our company produces a variety of transporters for different industry segments and for many different geographic areas."

Managing director, Peter Bjรถrk Business Finland 1/2011

cutting edge solutions Almost 40-tonne aircraft wings of Airbus A380 are moved during wing assembly on a Solving Air Film Mover.

he development and growth of this company has been a real success story, which begins in 1977, when the managing director, Peter Björk, brought air film technology to Finland. This happened after he had seen a 50-tonne container floating on air in a factory in Sweden. “My interest in air film technology was born,” says Björk.

Staffing makes a difference Björk established Solving together with his two brothers, but the air film idea developed quite slowly at first. “Initially the Finnish customers were rather sceptical and hard to convince,” says Björk of his family's first steps in the business.

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After almost a year of industrial sales work, the first order was finally obtained – an air film transporter at a Finnish printing house. During the first 10 years, Solving was only active on the Finnish market. The first international steps were taken into other Nordic countries followed by the rest of Europe. Today the company operates all over the world and about 80 percent of customers come from outside Finland. Over the 33 years since Solving was established, products have been continuously developed, more automated products have been added to the portfolio, subsidiaries have been formed and a network of agents and suppliers has been created.

“All this, together with an enthusiastic staff, has enabled us to run the worldwide business that Solving represents today,” says Björk.

Products for heavy loads Solving’s product range covers three types of transporters: air film movers, wheeled movers and AGV movers (automated guided vehicles). Half of the products currently being manufactured are air film movers and the other half are wheeled movers and AGVs. These movers are used mainly by customers in the paper and graphic, motor, heavy workshop and heavy electric industries. “Solving air film movers are used to

bly and test run facilities. “We are extending our facilities and we expect the new facilities and factory equipment to stand ready in spring this year,” says Björk. “This extension includes an area for testing the movers and it can also be used for training of our customers’ staff.”

“We have found our niche” “Our company produces a variety of transporters for different industry segments and for many different geographic areas. Thanks to this, Solving has managed its way out of the economic recession quite well,” says Björk. In 2010, Solving installed different material handling systems at international companies such as Areva and Airbus,

and received new orders to several factories within these groups. Some of these orders were installed in 2010 and others will be installed this year. Solving has done very well in this competitive field. “Solving has specialised in manufacturing customised transporters that suit the specific requirements of our customers. Our speciality is transporters for particularly heavy loads weighing up to several hundred tonnes. Also, AGVs can be equipped with air bearings if considered the best solution.” According to Björk, the future of Solving seems quite positive. “We will focus on the three existing product categories in the future. New features will be developed to suit our customers´ requirements.” n www.solving.com

cutting edge solutions

move the aircraft wings of Airbus A380s during wing assembly,” says Björk, describing an example of the application of his company's products. “Weighing almost 40 tonnes, these are actually the largest wings ever manufactured for any civil aircraft. An air film mover system enables a single operator to move the wings sideways from one stage to another with extreme accuracy and safety. Solving air film movers are also used for moving complete fuselages in another Airbus factory.” Solving´s AGV movers are installed for continuous and driverless operation in a variety of industries. For example, at AGGO Sisu Diesel, a manufacturer of diesel engines for tractors, laser-guided AGVs automatically moves engines weighing up to 1500 kg between assem-

Solving’s laser guided forklift AGVs automatically move diesel engines weighing up to 1 500 kg between assembly and test run facilities.

Business Finland 1/2011

CALCUS Text: Tiina Rahkonen Photos: Miira Ojanen

Calcus' head office is situated in Helsinki's central Punavuori district, where a strong team of professionals produce high quality and cost-efficient corporate branding publications.

alcus is Finland’s leading company specialising in building employer brands and developing corporate images. Its clients include most of the Talouselämä 500 list of the largest companies in Finland and many listed companies, as well as growing companies in various fields. Calcus' employees carry out more than 250 corporate presentations on a turnkey basis every year, focusing exclusively on the development of corporate and employer brands. 

Business Finland 1/2011

Calcus is Finlandâ&#x20AC;&#x2122;s leading company specialising in building employer brands and developing corporate images.

Calcus' managing director Mikko Silventola

Business Finland 1/2011

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Team of builders and developers A good corporate image is built on continuous and active communication with the right target groups. According to Calcus, it is important to select the best and the most cost-effective channels in order to profile and develop this image. Calcus publishes high quality articles for leading companies in economic daily newspapers and magazines, the readers of which consist of key professionals and decision-makers. It creates the layout and content of articles according to the wishes of the customer. All articles include a satisfaction guarantee and are always approved by the client. Calcus' managing director Mikko Silventola says the company's team spirit is excellent and energetic and all employees work closely together. “Our team consists of youthful experts with the ambition to evolve and respond to the needs of our partners. Our team is international and very experienced. The journalists are writing hundreds of articles each year.”

Corporate and employer branding According to Silventola, a good corporate brand is the key to a company’s success. A favourable corporate image helps companies to attract new clients, and to recruit and maintain client relations. “By building a positive corporate image a company says that it's a good partner for new customers, existing customers and potential new employees.” At the same time, a favourable image as an employer helps a company attract the best job applicants. Silventola predicts that competition for good workers will intensify in the coming years, and the companies that have handled communications well will be the winners. Good and ambitious employees directly reflect the performance of the company, and Calcus believes that investment in current and future talent is always profitable. The company has 'faces' in its publications; successful leaders or employees

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A satisfied customer Calcus has worked with Mars Finland for a long time, and has received excellent feedback from this work. According to Silventola, success in such a relationship is not solely about money but about continuous innovation and the company's ability to predict future trends. “We are especially proud of cases where the client has acquired new accounts or succeeded in profiling itself as a trendsetter.”

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inside the company who talk about its operations and actions. Its corporate branding publications can provide high-quality and cost-efficient corporate visibility in the client's target group.

Future prospects Calcus currently operates in Finland, Sweden and Norway. It recently opened a new office in Denmark and later this year will be opening in central Europe. “Globalisation will surely bring lots of interesting projects and customer relationships. Our objectives for the coming year are highly ambitious, and we believe that the year will be really interesting,” says Silventola. Calcus continues to offer excellent channels for companies to raise their profile among the largest companies in Finland, Scandinavia and soon in the rest of Europe. n www.calcus.fi

Business Finland 1/2011

Tekn 'rubber' solutions of the future

Teknikum Group CEO Vesa Vihavainen 86

ikum Text: Simo Raittila Photos: Anders Korhonen

Teknikum has a strong R&D branch rooted in Finnish innovation. Although the company traces it's roots back to the year 1898 Suomen Gummitehdas, it is also reaching well into the future.

t is common knowledge that plastic and rubber are used everywhere in the modern world. Rubber and similar products are used in mining, energy, chemistry, food, water, drinks, filtration and cleaning – to name just a few applications. Teknikum Group is involved in all these areas using multiple materials including rubber, plastic, thermoplastic elastomers, liquid silicon, natural fibres and composite materials. Teknikum is a Finland-based company employing 420 people which had a turnover of about 40 million euros in 2009. It's business is to develop and manufacture solutions from polymer materials and it's game is consultative sales, which means that it aims to be involved in a project as early as possible to find the best possible solutions for the customer.

Teknikum's core competence area is heavy process industry, particularly mining, where it offers products such as slurry hose solutions and protective coating for ore grinding mills. Although the company sells some products under it's own brand, it is also a specialised vendor for original equipment manufacturers, this is one of it's more active areas.

Quality and profit “Our basic premise is to work for our customer. We produce hi-tech solutions for them using modern and proven methods” says Teknikum Group CEO Vesa Vihavainen. According to Vihavainen Teknikum works in long-term partnership with its customers, which include companies of

Our basic premise is to work for our customer. We produce hi-tech solutions for them using modern and proven methods.”

Business Finland 1/2011

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all different sizes. 'We aim to be part of a project from the early phases of development. The effect on productivity is positive, since the resources and the materials used can be optimisedâ&#x20AC;?, he says. The company mainly works at the start of projects and during times of maintenance. In mining, it often plays a part in setting up mill-linings and material hoses. It also provides antistatic surfaces in electronics. In Venice, its hoses are used to help stop the city from sinking. At the Shanghai World Expo in 2010, their products were used to dampen the vibration and noise of air conditioning in the award-winning Finnish pavillion Kirnu. Vihavainen believes Finland's assets in global competition are quality and reliability. â&#x20AC;&#x153;The cheapest looking offer doesn't always end up having the lowest total cost. Everything must be fitted perfectly for the best results.â&#x20AC;?

Global solutions from a very Finnish company Teknikum is a model example of how Finnish firms are heading to the international markets armed with new technology and top-notch quality. The company certainly puts a lot of effort into research and development. One of its innovations is a special ceramic hose for use in the mining industry. It has a longer lifespan than normal hoses and can take more damage, but, unlike competitor's similar products, is still flexible. The company has also combined its zest for adaptation and the needs of mining companies, to create simulation software that helps optimise composite, polymer, and metal materials for use in mills. This makes Teknikum parts more durable and longer lasting. Another example is Teknikum's involvement in Elastopoli, which develops modern and sustainable composite materials, many of which are local. Thanks to these, Teknikum will be less depend-

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We might also develop new solutions in infrastructure etc. And are also tightening our cooperation with Tampere University of Technology."

Going global, staying local While it puts local and imported materials to use, Teknikum itself has become extendedly international. It exports to over 30 countries and about 40 percent of production goes straight to export. Since the company does a lot of OEM (original equipment manufacture), it is not easy to tell how many of its products actually end up outside Finland. Other companies offer similar products and services, but according to Teknikum sales director Juha Myllärinen the quality and range differ. “When competition tightens, those who have something unique to offer triumph.” Myllärinen reveals that some of the company's own products will be available online in the near future. “Just a small product segment, though. This will be only a minor part of our business.” Teknikum is not strictly Finnish. Although it has its three main factories in Finland, it also has one in Russia and another in Suzhou, China. “We also have a marketing and sales subsidiary T.OYTEK GmbH in Germany to take care of central European sales and customers. The Chinese factory helps us in their developing market,” says Myllärinen. The company's CEO is on the board of directors of the Finnish-Chinese Trade Association and the board of the German-Finnish Chamber of Commerce. Vihavainen also has one more practical use of the company's products to share: “The machines used for making ski trails in Lapland and snow plough blades are made from our materials. That's how the tools endure the rough Finnish winter.” n

cutting edge solutions

ent on the price of foreign raw materials than has been customary in the rubber industry. “We might also develop new solutions in infrastructure etc. And are also tightening our cooperation with Tampere University of Technology”, Vihavainen hints.

www.teknikum.com

Business Finland 1/2011

cutting edge solutions

We are working alongside the Finnish forest industry in exporting technology; for example, our turbine solutions. We have the critical size and global experience to act in different conditions.â&#x20AC;?

Siemens OsakeyhtiĂś's division director Petri Sarnes 90

Business Finland 1/2011

Siemens Solutions

cutting edge solutions

Text: Simo Raittila Photos: Anders Korhonen

increase energy efficiency Siemens is the world's leading provider of comprehensive solutions along the entire energy conversion chain. Its current technologies can already considerably reduce carbon emissions and there are undeniable benefits in working with such a large company.

Business Finland 1/2011

cutting edge solutions

iemens and its subsidiaries employ over 400,000 people around the world. It is Europe's biggest engineering conglomerate and had a global revenue of over EUR 76 billion in the fiscal year 2009/2010. The company is divided into three main sectors: industry, energy and healthcare. According to division director Petri Sarnes, the border between different sectors is not carved in stone and the different parts communicate well with each other. Sarnes is director of four of the six energy divisions – fossil, oil & gas, services and renewables – in Finland and the Baltic countries. Overall, Siemens' business area covers nearly 190 countries, and includes products used for power generation throughout the world. In 2010, Siemens registered over 8,000 inventions. Siemens' wind power technology, for example, enables environmentally friendly power production. The next step forward will be direct drive technology, which will make the company's wind turbines lighter and even more efficient. “We are well-known as technological pioneers”, says Sarnes. “By offering sustainable and efficient solutions, Siemens adds value for the customers, but also for the greater environment, society and culture.”

Alongside wind power, solar is the most fast-growing part of the global energy portfolio." Local globalism is key Local companies based in-country serve better understanding of customer needs, cultures and norms, says Sarnes. They are also adding up to Siemens's already wide portfolio of solutions. In Finland, Siemens works for national utilities companies and the whole industry – including the typical pulp and paper industries. “We are working alongside the Finnish forest industry in exporting technology; for example, our turbine solutions. We have the critical size and global experience to act in different conditions.” Locality in Finland mainly means a strong sense of excellence and corporate responsibility. According to Sarnes, that is how the company stands the test of time.

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The expertise Siemens brings into details of conceptualisation is important, and, according to Sarnes, the most efficient and optimised solutions are always the most environmentally friendly. Thanks to its scope, Siemens is the only company in the world that has energy solutions along the entire energy conversion chain. The company offers specialised lifecycle care and long-term collaboration. As the parts are maintained by Siemens, they can also be modernised. Global warming can already be mitigated with existing technology, but carbon capture and storage can help older power plants reach today's higher standards. “One can trust in Siemens, because one knows that Siemens was here yesterday, is here today and will be here 'til tomorrow and after,” says Sarnes.

cutting edge solutions

the company has always been an active innovator “We've always aimed to support and promote wellbeing in different countries and societies, says Sarnes. “We are a responsible long-time actor. We fulfil the global and local standards everywhere.” Sarnes explains how Siemens has provend it values through its actions: “ Product development is one of our central areas and we have supported environmental friendliness and efficiency for a very long time.” While Siemens continues to answer international problems, efficiency is constantly being improved and old solutions are being replaced with new and sustainable ones. Global energy production continues to crave versatile solutions. According to Sarnes, all types of energy production should be used – fossil, renewable, biomass and nuclear – during the transitional period. Siemens is making sure they are used as efficiently and sustainably as possible. www.siemens.fi

Towards a common sustainable future One future dream is to harness the unlimited energy of the sun. Also this year Siemens continues investing in solar power technology and manufacturing facilities. “Alongside wind power, solar is the most fast-growing part of the global energy portfolio”, says Sarnes, who is certain that there will be solar solutions even for Finland's dark hemisphere. Many countries have made policies on sustainable development and allowable carbon emissions. This growing political trend puts pressure on multiple industries, especially those characterised by high energy consumption. Siemens believes it is possible to relieve this pressure. With its major investments in R&D,

Business Finland 1/2011

cutting edge solutions

Text: Klaus Susiluoto Photos: Pentti Vänskä

Performance with Experion Process knowledge systems and wireless solutions increase business performance in the pulp, paper and printing industries, as well as many related industrial areas. Honeywell is one of the foremost companies offering these systems.

oneywell’s Experion Process Knowledge System (PKS) was used, for example, to streamline production when Finnish paper machine manufacturer Vaahto deployed Honeywell process control technology in a US$40 million revamp of the Kama paper mill in Krasnokamsk, located in Russia’s Perm region. “Vaahto relied on Honeywell for project engineering services at the beginning of the project and for training and on-site services upon completion,” says Marko Jämsén, Business Director of pulp, paper, printing and continuous web solutions for Honeywell Process Solutions in Europe, the Middle East and Africa. The system ties together critical subsystems, including process units and safety systems, throughout the plant and delivers relevant information directly to operators for improved decision making in the control room. Experion PKS refers to Honeywell’s whole automation system, while Experion MX is part of it, forming the Quality Control System (QCS). “To put is short, Experion® Process Knowledge System (PKS) is Honeywell’s main industrial automation and control platform and can be applied to all portfo-

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lios, not only pulp and paper,says Marko Jämsén. In Experion systems, Honeywell also has a long relationship with Stora Enso Fors board mill in Sweden, which has over the years increasingly become a mutually successful partnership for solving bigger business challenges. “The first on-line fibre orientation measurements on board were installed to board machine #3, which has resulted in the elimination of board flatness-related rejects altogether. A recent step is the successful installation of new Experion MX QCS on board machine #2. “With it is easier to deliver the right information to the right people at the right time. Less maintenance is needed. Service and on-site expertise keep the system functioning at top performance.” Measurements provide information throughout the process, from wire to reel. The newest offerings include press section dry content measurement, strength and imaging camera sensor for formation fiber orientation and surface topography. Also fiber orientation angle is done by capturing images of a moving paper sheet surface.

Other portfolios “Honeywell’s Experion® Process Knowledge System (PKS) portfolio of products provides easy access to operational functionality from mill-wide production planning to individual machine logic functions all in one platform.” Experion MX has faster scan speeds, which have been important to reduce recovery time after paper breaks and grade changes. “Scanning data is used in many places, like control,

cutting edge solutions

To put it in short, Experion is Honeywell’s main industrial automation and control platform."

Marko Jämsén, Business Director of pulp, paper, printing and continuous web solutions for Honeywell Process Solutions in Europe, the Middle East and Africa. Business Finland 1/2011

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management information systems (MIS), data historians, quality lab, shipping office etc. Comparisons between runs or from day-to-day are easier.”

Knowledge increases productivity New Quality Control System for Paper and Board production Experion MX has to a large degree developed in Kuopio. "Experion MX is a rather new product, but it is build on Honeywell's 40 years of experience in leading QCS (Quality Control System) technology and performance. Experion MX can be integrated with larger Experion Process Knowledge System (PKS)." According to Jämsén, Experion MX sets standards to future paper making quality control solutions, helping to improve business performance. According to Jämsén, Experion sets standards for future automation solutions, which help to improve business performance. “We continuously observe opportunities to improve effectiveness in businesses the company provides, to ensure customer satisfaction

Business Finland 1/2011

and global competitiveness in the future.” Experion MX is an integrated quality control and process knowledge system which provides superior visibility into the paper- and boardmaking process. Visibility concretely means also seeing, better monitoring processes with cameras and imaging sensor solutions. “During recent years we have published more new sensors than our competitors combined. New imaging sensors provide new perspective on quality for formation, fiber orientation angle and surface topgraphy. “There are no moving parts in the sensor module, which minimises maintenance needs and ensures a long lifetime. Captured images are shown in system displays for operator observation," describes Jämsén. Latest release in imaging sensor family is Surface Topography measurement. The image control unit inside the sensor controls both the camera and the illumination unit for the best possible image quality for varying machine speeds and illumination conditions. The captured image is analysed with a proprietary algorithm, pro-

ducing a numerical value for PPS smoothness and Bendtsen roughness. “The idea is to identify smoothness/ roughness profiles which could cause a range of imperfections in paper and board products – and in turn cause printability problems. The sensors allows mill personnel to electronically monitor web surface characteristics the entire production process. “Corrective actions are immediately taken. This increases the yield as less paper or board is rejected. This also increases paper makers customer satisfaction,” empahises Jämsén.

Kuopio expertise Finland, especially the city of Kuopio, plays quite an important role in Honeywell’s global process automation business. In Finland, many global key players operate in the energy and forest industries. “A good example of Honeywell’s trust in world-class Kuopio expertise is that the competence centres of the energy and forest industry are located here,” says Jämsén. The Kuopio centre is continuously being developed to meet the challenges of the business environment. “Over the years Kuopio has developed into a Centre of Excellence, supporting pulp, paper and printing customers globally with innovative technology solutions. Honeywell’s process automation systems have helped the production operations of these customers to become more safe, secure and efficient,” says Jämsén. Cooperation with universities and technical institutions in the Kuopio region is important. This area is sometimes called Kuopio’s ‘Science Valley’, which Honeywell’s modern premises are situated just next to. “Contacts with regional research institutes are good. Honeywell has for many years participated in common research projects. At the moment there is a remarkable research programme going on in the field of sensor competence, the results of which can be applied to bio-fuels, power plants, the medical industry and printed electronics,” says Jämsén.

Middle East and Asia in focus Europe Middle East and Africa area Russia is very important market for us in pulp and paper business. Possibly not so well known, but also Middle East is an important market area in paper automation. “Naturally Middle Eastern market mainly consists of machinery based on recycling material. In global perspective Asia and Latin America are strongest growth areas in pulp and paper industry and Honeywell in strongly present in these growth markets. Jämsén knows also the Asian market pretty well. Since 1994 he worked and lived several years in Asia in Singapore, Thailand, Taiwan and after moving back to Finland he has provided leadership globally in automation and manufacturing execution systems businesses in several positions in several world class companies. “Since 2008 I have provided business leadership of the Honeywell Process Solutions (HPS) in Pulp, Paper and Printing business for Europe, Middle East and Africa (EMEA). This business includes delivery and support of distributed control systems, quality control systems, advanced solutions and field sensors. Globally HPS is a 3,3 billion USD business, of which pulp and paper is important and remarkable segment in Honeywell Process Solutions.” “The remarkable size of Pulp and paper business in Honeywell Process Solution enables us to maintain our development funding and Honeywell has been leading company for example releasing Quality Control Sensors to market based on superior camera technologies and of course totally new Quality Control System platform itself Experion MX. For our customer to get the best systems naturally counts much.” n www.honeywell.com

Experion in Russia Honeywell is also designing an automation system that will control a new pulping line for one of Russia’s largest paper producers, Mondi Syktyvkar in North Russia. Specifically, Honeywell will provide its Experion PKS to control the new chemical regeneration unit at Mondi Syktyvkar’s uncoated fine paper plant. The integrated paper mill produces office and offset printing papers, white top papers used in items such as corrugated packaging products and newsprint papers. The chemical regeneration unit includes a new wood yard, white liquor plant, soda recovery boiler, evaporation plant and two new cooling towers. Controlled by Experion and Honeywell’s Field Device Manager, the unit will provide additional pulp that will help increase the overall capacity of Mondi Syktyvkar’s paper machines. “This new chemical regeneration plant will play a crucial role in the growth of our company as it reduces our reliance on pulp produced by third parties and so will make us more self sufficient,” said Gerhard Kornfeld, managing director of Mondi Syktyvkar. “Honeywell was chosen for this project because it has been a reliable partner for the last decade and Experion is a proven solution that delivers the right production information to the right people at the right time.” The Field Device Manager, which can be directly integrated with Experion, streamlines maintenance by allowing operators to monitor how their field instruments are functioning. Mondi Syktyvkar will produce one million tonnes of paper and board per year and is supplied with wood from its own logging companies. “This system will help Mondi Syktyvkar advance its position as one of the premier paper and board producers in Russia, so reliable and efficient operations are critically important,” said Alexander Rodionov, Russian sales manager at Honeywell Process Solutions. “Solutions such as Experion and Field Device Manager are meant to do more than just keep operations running – they truly bring more meaningful process knowledge to all levels of the plant to help personnel make better decisions. This improves overall business performance.”

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Honeywell Finland has also played a special role in developing pulp, paper and printing businesses in neighbouring Russia, where the industry is growing rapidly.

OneWireless One of Honeywell’s strengths is its ability to provide wireless network solutions. The obvious advantage of wireless is the savings that can be realised in installation and maintenance, since wireless installation typically costs 50 to 90 percent less than wired. Honeywell has a product family of OneWireless industrial wireless networks designed for use inside the plant and at the gathering field well pads to track key personnel and assets during both construction and operational phases. Operational staff will be equipped with wireless gas detectors that will transmit alerts when dangerous gases are detected. They will also have Honeywell’s wireless Dolphin hand-held and web-pad computers that will allow them to develop consistent and safe operating rounds and procedures, and to view and manage key control parameters. OneWireless can be tailored to offer the coverage needed for any industrial application, from a simple wireless field instrument mesh to a completely integrated, plant-wide multi-application wireless network. OneWireless R200, the process industry’s first truly universal wireless mesh network solution, is fully compliant with the ISA100.11a standard, which will allow plants to design a wireless network with different types of wireless coverage. With OneWireless, users have the flexibility to create easily a wireless sensor mesh encompassing field monitoring and maintenance applications, and then later expand to a control network that includes wireless voice communication, cameras and security protocols.

Business Finland 1/2011

Incap - An International Contract Manufacturer

Business Finland 1/2011

Text: Klaus Susiluoto Photos: Incap

Incap is an international contract manufacturer with strong product and testing design expertise. Its current customers are leading technology companies, which build their competitiveness in cooperation with strategic partners.

he company’s business focus includes energy efficiency and wellbeing technologies which, according to Sami Mykkänen, president and CEO of Incap, are future growth areas. Mykkänen believes the whole contract manufacturing business is changing. “Many customers are beginning to favour more extensive cooperation models, where the contract manufacturer is increasingly seen as a genuine strategic partner who must provide its customer with added value. This means that product design and product life-cycle management will also have to be taken into account. “Customers can therefore fully focus on product development, brand management, sales and marketing, instead of building or developing production facilities of their own. Many customers see the big picture, the change not occurring only in the business environment,” says Mykkänen. “Technologies that aim at improved energy efficiency are developing strongly in the near future due to the challenges brought on by climate change. Renewable energy sources are being utilised in a

Sami Mykkänen, president and CEO of Incap

more versatile way and efforts to improve energy efficiency in energy production, energy distribution and electrical equipment are increasing. The growing importance of environmental aspects has intensified interest in equipment that involves advanced automation and control engineering.” In order to fulfil the wishes of its customers, Incap also needs to observe changes in the business environment and to react accordingly. “Our structural change is to a large degree completed, and Incap is ready to face the challenges of the present time,” says Mykkänen.

Strong Asian potential Incap is able to manufacture its customers’ products in plants in Finland, Estonia and India. “Our plant in India in Tumkur near Bangalore is not a greenfield site. Instead, we acquired a production plant that at that time was 15 years old,” says Mykkänen. “In our agreement with the previous owner they were committed to building new facilities on a land plot owned by us.” The new plant was inaugurated in July 2009 and the company now has about

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We keep a constant track of trends in healthcare technology and well-being sectors, proactively searching for long-term solutions that benefit our customers and their value chains.

“Systematic materials management secures high-quality and cost-effective manufacturing. It is quite possible that we will also have design and manufacturing operations in China at a later stage, but at the moment we are concentrating on sourcing. “Some components we get from Japan, Europe and the USA. From India we acquire plates for circuit boards. I believe that India will be more important in the future in component production.”

Estonian and Finnish expertise

400 employees in India, of which 35 to 40 work in research and development. “Before becoming part of Incap, the previous owner had already received quality training, which intensified after our acquisition. This fact certainly helped our start-up in India. In India we also have planning services. One strength in this vast country is that a great deal of the staff can speak English,” says Mykkänen. “Social responsibility is well taken care of in our Indian branch. There are schools and kindergartens for staff children, and transportation to and from the plant is

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arranged. It has been a great delight to see that the local staff in India are so motivated.” The modern line was delivered to India in summer 2009. It is a high-speed line, since accuracy and speed are very important. In Mykkänen’s view, Incap’s greatest growth potential geographically lies in the Asian market, where components are less expensive than elsewhere. Sourcing is concentrated in China in the SuzhouShanghai and Hong Kong-Shenzen regions.

Incap’s European factory is located in Kuressare in Estonia. “Last spring, our Estonian subsidiary, Incap Electronics Estonia, celebrated its 10th anniversary in Kuressaare. Incap established manufacturing operations in Estonia in 2000 when it acquired the local electronics manufacturer Altron,” says Mykkänen. “This factory mainly deals with our European customers. Two production lines were brought from the Finnish unit to Estonia. Our customer base in Europe is quite stable, but naturally we seek new customers.” Europe is an important part of Incap’s strategy, because although its key cus-

Strong design services Mykkänen says the company’s focus is not solely on manufacturing, but that it can also provide design services. “We are strong in sheet metal mechanics design; for example EMC shields, box device mechanics etc. Moulded plastic product design, machined parts design, precision casting design and the design of accessory units are options.” It is also involved in electrical design. Power electronics and RF design include circuit simulation, EMC and environmental design, prototype measurement and testing. Projects redesign is also possible

Incap provides energy-segment customers with generator and electrical motor components, emergency power sources, energy meters, power suplies, control cabinets and components for electricity supply and power distribution equipment.

with modifications and product variants. “All in all, our approach means that the customer can get design and manufacturing services from one partner. Close communication between design and proto-manufacturing is easier. This results in shorter project lead-time and thus a shorter time to market.” Incap has a wide range of design equipment, from 3D modelling to HW design and test design. With ‘Incap concept’ product design, manufacturing and testing can be optimised. “All these result in deep practical knowledge of product manufacturability. We have experience in how to manufacture commercially successful products.”

ABB and other customer references Incap's customers include GE Healthcare, Vaisala, Suunto, specific units of ABB, Oras and Rapiscan Systems (which

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tomers engage in international business, they also want more local services. Mykkänen believes that the Estonian business environment is satisfactory and that it has a good location in northern Europe. “Estonia’s tax laws are relatively favourable; it is reasonable to invest in new production technology and training of the staff. Under consideration is a 35005000 square metre enlargement in Estonia.” Mykkänen visits the Estonian plant almost every second month, compared to India where he travels just three to five times a year. “We also have production in the Finnish city of Vaasa, where the sheet metal mechanics factory operates. Components for wind turbine blades are manufactured there. “In India we have strong expertise in inverter and power technology. Estonia is focused more on wellbeing technology.” The company's final assembly plant is located in Helsinki. Incap's end products include health and patient care monitors, performance measuring devices for sports, electronic weighing scales, slot machines, metal detectors, locks and meteorological equipment. “The development of wellbeing technology is driven by the increase in average life expectancy, which strongly boosts the demand for health-related equipment.”

is known for safety gates). In India, Kone Corporation, Emerson, Victron Energy and General Electric are customers. Incap is the principal manufacturer of magnet poles and rotor components for ABB’s synchronous machine rotors. All these components are custom-built to the end customer‘s requirements. “ABB and Incap have a history of cooperation spanning over a decade. As a contract manufacturer of magnet poles and rotor components for ABB’s synchronous machines, Incap contributes to the global success of ABB’s Helsinki plant,” says Mykkänen. In addition to its loyal customers, Incap welcomes start-up companies. “We can offer manufacturing to a start-up company without its own production. We are involved in the Clean Future Fund as investors. We had two rights issues, one in June and the other in September; both were successful. A total of 6.5 million new shares were issued.” n www.incap.fi

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CEO of Fennovoima Oy, Mr. Tapio Saarenpää

Fennovoima is a nuclear power company that represents a large clientele, with altogether 70 shareowners.” 102

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New Power to Finnish Market

Text: Klaus Susiluoto Photos: Fennovoima, Anders Korhonen

Fennovoima, a new Finnish nuclear power company, is preparing to select the location for the plant supplier and to select the plant supplier after the positive Decision-in-Principle.

n July 2010, the Finnish Government and Parliament granted Fennovoima Oy the Decision-inPrinciple for constructing a new nuclear power reactor, along with the other company, TVO. Fennovoima was thus the other lucky energy company to get the licence to build a nuclear power plant. The CEO of Fennovoima Oy, Mr. Tapio Saarenpää, says, however, that it was not about luck, but about carefully planned concept that resulted in Fennovoima being granted a Decision-inPrinciple. “Fennovoima is a nuclear power company that represents a large clientele, with altogether 70 shareowners. Fennovoima will produce electricity for its owners’ needs at the production cost. Each owner will get the share of capacity proportional to its ownership in the company.” Included are not only power-producing companies but also electricity users such as industry and trade. Saarenpää says that Fennovoima brings new competition to the electricity market. “This will benefit the entire national economy and all electricity users in Finland. Fennovoima improves Finland’s security of supply as the power plant is to be located in a new site. Dozens of new nuclear power owners will enter into the market and a new nuclear power expert will emerge.” The largest single user of electricity in the future is one of Fennovoima’s shareholders, steel-making giant Outokumpu,

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cutting edge solutions Pyhäjoki but retailers like Kesko, one of Fennovoima’s shareholders as well, are big consumers as well. Outokumpu uses about 3 percent of Finland’s electricity. Other steel-making companies such as Ruukki, Boliden and Ovako are also shareholders in the project. The core of the shareholders was known from the beginning, but several new ones were added. “They include Haukiputaan Sähköosuuskunta, Keminmaan Energia, Lammaisten Energia, Naantalin Energia, Raahen Energia, Tornion Energia and Talvivaara Mining Company. Haukiputaan Sähköosuuskunta, Keminmaan Energia, Raahen Energia and Tornion Energia are local utilities that operate in Northern Finland,” says Saarenpää.

“Their participation in Fennovoima increases the importance of the project in the future location of the new nuclear power plant. Like most of the utilities that already have a share in Fennovoima, these utilities are owned by municipalities or their operation is based on a cooperative model. Talvivaara Mining Company operates in Kainuu and it is a considerable electricity consumer in this region.”

E.ON strategic partner All in all, the Finnish company Voimaosakeyhtiö SF, representing all Finnish shareholders, owns 66 percent of Fennovoima and nuclear expert E.ON Kärnkraft Finland 34 percent.

Fennovoima will produce electricity for its owners´ needs at the production cost.”

Simo

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“E.ON is a technical and strategic partner, with profound knowledge in nuclear power plant projects,” says Saarenpää. Fennovoima will choose the location for its power plant during the first half of 2011. “The decision will be made on the basis of extensive studies, and special attention will be paid to safety, environment, technical feasibility and constructing costs. Also willingness and capability of the municipality and its region to support a vast project such as a nuclear power plant count.” “The land use plans for Fennovoima’s nuclear power plant have been completed in both alternative locations, Pyhäjoki and Simo,” says Saarenpää. The Ministry of the Environment has ratified Pyhäjoki’s Hanhikivi regional land use plan for nuclear power. "The decision means that Fennovoima´s plans for constructing a nuclear power plant in either Pyhäjoki or Simo are feasible. Extensive studies regarding environmental and other possible impact were carried out for making the changes in the land use plan.” “Pyhäjoki and Simo have both welcomed us, and the neighbouring municipalities also had a rather positive attitude to our project. Fennovoima’s Environmental Impact Assessment procedure was concluded in 2009 when the Finnish

Toshiba and Areva With the ongoing technical development, Fennovoima is preparing to select the plant supplier and applying for the construction license. Advanced technical development works contribute to the safety of the nuclear power plant. Fennovoima will select the plant supplier in 2012 after the forthcoming competitive bidding process which will cover issues related to implementation and commercial matters. “The new reactor would possibly be built during 2015–2019. Toshiba and Areva are both good choices. Price of the

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Ministry of Employment and the Economy gave its final statement. he Parliament’s ratification for the Decision-in-Principle includes a motion in which the Parliament requires that during 2010 the government contribute to the assessment and negotiations between Posiva, Posiva’s owners and Fennovoima regarding the final depositing of spent nuclear fuel targeting at having a joint repository for all spent nuclear fuel in Finland. Fennovoima is prepared to act in accordance with the will of Parliament and is willing to ready to co operate with Posiva and its owners. This solutions supported by the Parliament is prioritised.

new plant will be 4–6 billion euros,” says Saarenpää. “Fennovoima has signed technical development agreements with two reactor designs, Areva’s EPR and Toshiba’s ABWR.” Areva’s EPR is an advanced pressurized water reactor rated in a range up to 1,700 MW electric. Toshiba’s ABWR is an advanced boiling water reactor rated about 1,600 MW electric. “The works to be performed are based on the agreements and ensure that these reactors will fulfil both the Finnish safety requirements and Fennovoima’s own technical requirements,” emphasizes Saarenpää.

Emissions-free energy Tapio Saarenpää has rich experience in nuclear power business. He was involved in Olkiluoto 3 project in its initial stage. Saarenpää believes in nuclear energy solutions. “Nuclear power as emission-free energy complements well the bio-based fuels. It also helps in getting self-sufficiency. At the moment Finland’s undercapacity is 12–14 TWh, which is mainly imported from Russia, Norway and Sweden, some even from Estonia.”

When ready in around year 2020, Fennovoima will produce 15 % of Finland’s electricity. "Fennovoima will produce electricity for its owners´ needs at the production cost.” According to a recent study, Fennovoima’s nuclear power plant project benefits many interest groups. “Trade and industry get lower energy prices. Especially metals process industry saves money, even up to 60–150 million euros, depending on the price of electricity.” n www.fennovoima.fi

Nuclear expertise in Oulu

Areva's EPR

University of Oulu is planning to start nuclear power training from 2012. The supplementary training program is for engineering and physics graduates and the trainees are to be selected next autumn. The training will last 1,5 years and at least 25 students will participate. Lauri Lajunen, Rector of University of Oulu states that details, such as curriculum content and schedule, are to be specified by a working group that has just been established. The plans are expected to be finalized around March 2011. Tapio Saarenpää does not want to speculate about timetables, but he says that the city of Oulu will anyway be an important center in the project. The university has been talking with Oulu Chamber of Commerce, Council of Oulu Region and Fennovoima about how to get sufficiently train qualified staff for the new nuclear power plant project.

Toshiba's ABWR

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YIT

tunnelling expertise

At the moment there are many underground infra projects in the Helsinki region. “With underground solutions many advantages can be achieved, from compact city structure to better employment and traffic conditions,” says Ari Bergström, Director of Rock Engineering, Construction Ltd/Infra division of YIT company. Text: Klaus Susiluoto Photos: Anders Korhonen, YIT

IT Construction Ltd/Infra has had quite many large tunnel projects in the Helsinki metropolitan region within a couple of years. In the autumn 2009, YIT started the excavation of the Aviapolis tunnel station and related rail tunnels in the Ring Rail Line. The Ring Rail is the largest urban rail line infrastructure project in Finland. By combining Vantaankoski and Tikkurila stations, the ring rail is formed, since two existing lines add together. Going from Vantaankoski neighbourhood via the Airport to Tikkurila, the rail line will improve public transport in the metropolitan area by connecting residential and workplace areas. At the same time, traffic connections to the Helsinki-Vantaa airport improve. Being part of the 18-kilometer rail line, the tunnels are about 8 kilometers. The tunnel running beneath the airport is being excavated by Skanska Infra Ltd, while the Aviapolis section is within the responsibility of YIT Construction Ltd/ Infra, and the Ruskeasanta section is excavated by SRV Toimitilat Ltd. The Eastern Mouth is being built by Lemminkäinen Infra Ltd. The combined price of the tunnel excavation and mouth construction contracts is around 116 million euros. “YIT’s share of this is significant, little more than 21 million euros. Our part of the Ring Rail Line will end soon in May 2011,” tells Ari Bergström. In addition to Aviapolis tunnels, YIT contracted part of the access tunnels. “Ring Rail project has been an important project for our division. We could take use of our expertise in underground rock contracting and new tunnelling machinery like DTi drilling machinery by Sandvik.” YIT also has machinery by Atlas Copco and Normet, so YIT Infra uses machinery manufactured in Finland and Sweden as well. “In the last two years many investments have been done, and at the beginning of 2011 we got the most up-to-date drilling jumbos. We are studying what kind of machinery is needed in the mines that will be opened soon.

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We have a long tradition in cooperation with mining machine manufacturers."

Ari Bergstrรถm, Director of Rock Engineering, Construction Ltd/Infra division of YIT company Business Finland 1/2011

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cutting edge solutions Kehä 1 road project

“We have a long tradition in cooperation with mining machine manufacturers. We want this to continue. When making large orders, almost without any exception we can suggest some improvements in machinery usability and accessories. Manufacturers also benefit from this kind of cooperation by having improvement suggestions directly from users.”

West Metro project continues In the next few years, also the Helsinki metro line will make significant forward leaps. The route will be extended from Ruoholahti to Matinkylä via Tapiola. This is called Länsimetro (West Metro). Most of the rock blasting work will be completed by the end of 2012. The Otaniemi access tunnel rock blasting contract will be carried out by YIT Rakennus Oy. After all the rock blasting work done, the fitting out of the excavated tunnels and stations will begin. Now excavation work for the “west extension” of metro has started in many areas of Helsinki and Espoo. Once excavation is complete, construction will start on the stations. The line will be in use in 2015. “The direct connection will bring southern Espoo and Helsinki closer. The extension will make the Helsinki metropolitan area a real metropolis. The metro will reduce traffic jams on the congested Länsiväylä road,” tells Bergström.

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The Master Tunnel The third significant project of YIT is the Master Tunnel (Mestaritunneli) in Espoo’s Leppävaara. It was chosen as the Infra Project of Year 2010, and in the first months of 2011 the tunnel will be opened to road traffic. The project is well ahead of the schedule. “This tunnel will be the widest road tunnel in Finland. It is part of the Ring Road I. The tunnel is located in Leppävaara, Espoo, and work is done in terms of residents and heavy traffic. About 70 0000 cars pass the site every working day.” “This project utilises all of YIT’s extensive infrastructure competence, including road and tunnel construction,

technical building systems inside the tunnels and road tunnel telematics. The project is one of the largest underground infra projects ever undertaken by YIT. “For example, the concrete construction and base construction works were massive. The heating and air conditioning works were all done by YIT. A 12-meter chimney rises in the middle of residential buildings, conducting the emissions from the tunnel into the sky.” There is much more technology in these kinds of projects than people possibly know. “From our point of view, the Leppävaara or Master tunnel is an excellent reference, confirming that we can carry out almost the whole project by our own units.”

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Infra projects boost employment Ari Bergström has been the chairman of the Infra ry association, which observes the underground infra projects, and at the same time promotes the advantages of tunnelling solutions. Bergström tells that according to studies, one miner employs 5-6 other persons. “This figure can in all likelihood apply to large infra projects. To improve employment, it would be essential to launch new tunnel projects after Länsimetro and some other major projects.” In the next a few years, the Helsinki metro line gives much work to contractors. “We are glad that we can participate in this project, but there could still be some improvements from our point of view. In tunnel projects about 70 percent of costs is tied to the time used. For example, in Länsimetro project one cannot quarry after 6 pm if decibel level is more than 45. However, in the Aviapolis project we could do even in three shifts, since there were no residential buildings nearby.” “Finnish environmental authority can restrict the working time scale. In many cases broadening time limits even with a couple of hours would make our work economically more reasonable.” “Too often the effective contract time is short. Since longer working time is not possible, machinery is not in effective use. One machine can be used in two shifts, while now in some cases two machines are used in one shift. Increased costs are carried by tax payers’ money.” “Usually tunnel works require relatively a short time. It is important that the environmental authority could grant permits to longer working hours, at least till 9 pm,” says Bergström. “Those residents disturbed by tunnel works will later benefit from tunnels because of their smoother and quicker connections.” “Even the value of apartments and houses will in most cases increase thanks to better traffic connections. Tunnels re-

duce traffic jams, so less emission is one positive result as well. At the same time, the city structure becomes more compact.” Therefore, environmental issues should be taken more into account, but the big picture should be seen. Boosted by state-stimulating measures, we could foresee more tunnel projects in the future.

Better prospects As a whole, infrastructure construction has developed steadily in 2009-2010. “However, under-utilizing the capacity of infrastructure construction keeps the prices down. For the next three years, the market for underground infrastructure projects will be around 130-150 million euros every year. Some projects, such as tunnel works of Länsimetro (West Metro) line and some mining projects, continue or will be launched.” “However, after the Länsimetro there are not so big projects any more. Much depends on how finances of the state and municipalities develop. It remains to be seen, if the public sector can afford to construct larger road or rail connections such as rail line Pisararata in the Helsinki region.”

In Bergström’s view, there is a certain difference between Finland and Sweden with regards to infra projects. “In Sweden more infra was built in the time of recession. In Finland unfortunately this is not usually the case.” One of the several tunnelling works outside Helsinki region is in Tampere, where Särkänniementie will be put into tunnel. Waste water equipment is installed in underground space. These kinds of projects are in Espoo and Mikkeli at the moment. “YIT also has mining projects, for example in Kylylahti, North Karelia, where we build 700 meters tunnel, worth of 1.4 million euros,” says Ari Bergström. YIT has some tunnelling and mining projects also outside of Finland. “YIT Sverige operates in northern Sweden and has several projects there. LKAB is a large customer. Part of the pre-piping work is done in YIT’s Finnish plant in Ylivieska. “Sweden is a very important market for us, since mining investments will continue in northern Sweden. LKAB’s new Kiruna mine will start in autumn 2011. “I believe that also Russian companies will invest in mining and industrial services. If Russia becomes the WTO member, the situation will get better from our point of view.” n www.yit.fi

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JANLA - CHALLENGING THE BIG BOYS Text: Juhana Hurula Images: Miira Ojanen

JanLa was founded in 2004 and in just three years has fought its way to the big league of the metal sheet wholesale business.

anLa started in 2004 as a one-man agency. The company had a turning point in 2007, when it moved into the metal sheet wholesale business, and its revenue grew enormously, by 1,661 percent. Between 2007 and 2009, the annual growth of the company was 248 percent. JanLa now employs seven people and its revenue has continued to climb. “Our rapid growth is based on our quickness and very good customer service,” says Janne Lahtela, CEO and owner of JanLa, who sits sipping his milk coffee and looking happy. “We are able to turn our wheels around in a day if needed. When we get an order we can deliver the goods tomorrow, whilst bigger companies are taking a minimum of two weeks to react. We are taking orders – whether it is a weekend, Christmas Eve or another Bank Holiday. “We open at six in the morning. Our clients are already working before morning traffic starts, so therefore they can avoid the rush hour and get straight to work. There’s usually a queue already at six o’clock.”

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cutting edge solutions 80 percent of JanLa’s customers are tinsmith shops. There are approximately 1,800 tinker shops in Finland and 300 of them – one sixth – order goods from JanLa. The company has made aggressive investments and hired new people and, by doing so, has been able to offer new services to its clients and contracted new partnerships. In 2009, it invested in two new profiling lines, which cost EUR 400,000. They now have five production lines. “There are 16 different colour choices, two different coatings and in addition galvanized metal sheet products. We are able to distribute specific lenghts and thicknesses; for example, in metal standing seam roofs." The storage is the heart of JanLa. Paradoxically, it seems to be JanLa’s both strongest and weakest point, because there is always pressure to expand its stock. “In the beginning we estimated that with a monthly revenue of EUR 100,000, we’d be okay. Now, the monthly revenue is EUR 800,000 – the difference is drastic. There have to be massive amounts of ma112

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Life in the fast lane At first, the big companies did not pay any interest to this newcomer, but in just three years the situation completely changed. JanLa’s revenue in 2010 was EUR 6,200,000 and its competitors have started to fight back. “Earlier the problem was that big customers didn’t believe that we could meet their requirements. Now the problem is that we have grown. Rivals are wondering how this has been possible. There are

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terials in stock, so that we can serve our customers and keep our efficiency and reliability. Our revenue would be even bigger if the storage was bigger. Its value is EUR 1,020,000; even bigger companies don’t hold a storage that size.”

companies that have been in the business 10 years and longer, with revenues of two, two and a half million. “We came from zero, passed them in a year, and now we’re far away. Finnish bitterness and envy has been hurting a lot. The steel business in Finland is relatively small and everyone knows each other,” sighs Lahtela. But Lahtela is determined to take his company even further. “My goal is to get to the big boys’ club. I need to fit into some pretty big boots. I want a revenue of ten million euros. It needs a lot work, and it’s impossible to tell how the global market is going to change, but i figure it’ll take us three years to get to the ten million club. When you start your work a bit earlier than the others and finish off a bit later, then you’re almost there,” he smiles. www.janla.fi

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People Man

– Courier in Globalisation of Managem

Behind the impressive stone walls in central Helsinki, People Management’s strong team can be found. The group of four talented people is specialised in the global recruitment of executives for corporate management and sales. The company’s business is based on a deep understanding of both international and national clients’ business strategies and future challenges.

eople Management’s offices are situated in a historical granite building in the financial district of central Helsinki. The company’s facilities on the corner of Aleksanterinkatu and Mikonkatu date back to 1900, when the construction of the Aleksaterinkatu 44 site began. The façade is built of grey soapstone and the first floor is lined with red granite and a dark serpentine. Several Finnish epic characters adorn the façade and a torch-bearing brown bear can be found on the interior carvings. The columns and stairways are made of wood, stone and iron. Behind these impressive solid walls the team itself can be found; a group of four talented people who are specialised in the global recruitment of executives for corporate management and sales. People Management was established in 1991 and its business is based on a deep understanding of the unique situations facing international and national clients.

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From left: Jarkko Lahti, Jorma Minkkinen and Janne Huusela

PM’s strength lies in its profound knowledge of Finnish business life and its consultants’ full commitment to working for their clients.

Deeper local knowledge about neighbouring Baltic countries and their business communities is another one of the company’s specialities, and People Management has offices in Estonia, Latvia and Lithuania. The company’s strength lies in its profound knowledge of Finnish business life and its consultants’ full commitment to working for their clients.

Friends do not leave Jorma Minkkinen, a Managing partner of the company, is specialised in executive search and has gained a lot of experience over the decades in Finnish and international business life. Janne Huusela is an executive search consultant together with Minkkinen. Jarkko Lahti is an executive search consultant specialised in sales and possesses talent in building winning sales teams together with consultant Hanna Pyysalo.

agement

ment Recruitment

Text: Tiina Rahkonen Images: Anders Korhonen, Matti Summa

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Together they are a strong and professional team and represent the company slogan: ‘Friends do not leave.’ This slogan also perfectly underlines People Management’s attitude towards its clients. The team genuinely knows its strengths in the global recruitment business and has learned from client success stories that it is “probably the most experienced consulting company in executive and sales search”.

Global Executive Search Building corporate management into a successful team requires a systematic search for the right talent. To create the proper composition, a company strategy is needed for correct staff placement. Based on its deep knowledge of business life and corporate management, People Management is a good partner for international Finnish companies and for companies about to go international. “We search for the right business executives for the company who will ensure the company’s development in accordance with its strategy,” says Minkkinen, who has had a 33-year career in the recruitment business. He has a record of over 1,000 recruitments, mainly at the level of director or executive. In Finland, over 50 percent of the company’s clients are subsidiaries of international companies.

Jorma Minkkinen

We search for the right business executives for the company.

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Building Winning Teams

Jarkko Lahti

The dynamics and talents of the team are crucially important both in sales and management. “In order to be able to help in building the perfect winning teams, one should know the client company thoroughly,” says Minkkinen. Commitment and a thorough knowledge of the company’s clients guarantees its success. People Management’s consultants work closely with the client to clarify the company’s strategy and aims for the future. The professionalism of a consultant is proved when the work is complete and the client company finds its missing member of the team. Once the mandate is received from the client company, total commitment is required. “There is only one real target; absolute success,” says Lahti of his work as a consultant.

The People Management team offers ambitious, top talent the opportunity for career advancement with more challenging tasks.

A member of INAC In the responsible world of global executive search, People Management is part of an effective network called INAC. INAC – Executive Search Worldwide – is a formal network of independent companies present in 40 countries with over 70 offices around the world. Member firms and partners cooperate with each other to provide a truly global and professional search capability for clients. Many of the partners in INAC know each other personally, and this creates smooth and efficient communication. n www.peoplemanagement.fi

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Informa

Text: Nita Ukkonen Photos: Anders Korhonen, Informa

Professional Labelling for the Packaging Industry Informa has provided professional labelling and marking solutions for companies for more than 20 years. Instead of a regular printing house, the company offers a whole range of advanced services from label design to system training and maintenance. Perhaps this is why Informa has become the leading company in the Finnish industrial labelling business.

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Pekka Väisälä, CEO of the Informa Oy

t is clear from the start that Informa does not only label or mark products; it also provides bar code readers, label printers, software and even eight-colour flexo-printed labels and tags. In addition to these labelling techniques, Informa is well-versed in international marking standards, such as GS1, which are important for marking parcels and pallets in the competitive global economy most companies face these days. Advanced labelling and marking may seem like an alien world to an outsider. Different kinds of technologies and standards can easily leave your head spinning and sometimes customers themselves do not know exactly what they need, which is where the professionals at Informa step in. “Our employees are highly experienced and they know practically everything when it comes to finding the right way to label or mark something,” says Informa CEO Pekka Väisälä. “We have a very low turnover rate and high commitment among our staff and that guarantees that the know-how stays in-house for years.” According to Väisälä, most people do not appreciate the changing factors that need to be considered before the actual labelling progress can begin. “For example, in Finland it’s extremely important to use the right kind of glues and label materials, so that the labels don’t get ruined or ripped off because of the cold and unpredictable weather conditions.” Informa also offers consulting, testing, installation and even education about marking for its customers. Training is compulsory because the company sells devices and systems that use comprehensive software. “Customers usually buy these machines and systems from us and we, of course, offer maintenance by overhauling them. There are also some leasing possibilities for these devices.”

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The secret weapons Despite its success, Informa has not rested on its laurels. Last summer, the company made a huge investment by purchasing a new hi-tech eight-colour flexo-printing machine. In flexography printing, flexible plates are used to print demanding objects such as cellophane and plastic. Just like the company, the device is one of a kind in Finland. “We have converted labels and wraps before, but now we can really offer our customers state-of-the-art quality labels, tags and wraps,” says Väisälä. “Our firm commitment is to be the leading supplier

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of these products in our market segments in the coming years. Our design team, Informa Grafis, is always at our customers’ disposal when they need assistance in designing new print products. Using our team also ensures that the result is the best possible both from the outlook and production point of view.” The new flexo-printing machine is a world-class device, but just one of the things the company is proud of. Another reason that Informa stands out from its competitors is because of Print Conductor, its own specially developed labelling and marking software.

“Print Conductor works by supervising the whole labelling and marking process on the production lines in a production unit. It can communicate with companies' ERP [enterprise resource planning] systems and perform a lot more than just print labels,” says Väisälä proudly. Informa is a Microsoft Gold Certified Partner, which is a mark of its software knowledge and trust.

Finnish through and through Informa's headquarters are located in the city of Espoo in southern Finland, but its

customers – mainly from industrial companies – come from all industrial areas of the country. Their needs are often similar but the required capacity varies; one customer may need a thousand labels, another a million. Even customers requiring relatively small amounts of labelling can be accommodated. Informa Sprint, a special printing service, delivers labels such as bar codes and trade descriptions quickly; even on the same day they were ordered. The technology used for these labels is thermal or thermal transfer printing. Since Informa was set up in 1989, the

private company has been kept under Finnish ownership. At the moment it employs over 30 people, which is rather a high number for a labelling company but, according to Väisälä, it is still a small company which makes it easier to make swift decisions and act quickly. “We can have general meetings every day, if we like,” laughs Väisälä. Overall, Informa appears to be a trustworthy partner when it comes to the world of marking and printing. With knowledge from all different fields of the labelling industry packed under one roof – could labelling be any easier? n www.informa.fi

The International GS1 Standard The GS1 identifier is used over five billion times every day in the registration and handling of transactions. But what does it actually stand for? GS1 is an international non-profit association dating back to 1977. GS1 Finland Oy was established in 2005, when EAN Finland decided to change its name following the international example. GS1 refers itself as “the global language of business”. Through GS1, companies receive their company identification number, which is used for bar codes for consumer products and transport packages. The GS1 system is the most widely used supply chain standard system in the world. www.gs1.fi

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Our quality has been noticed over the borders."

Vivago president Katja K채채ri채

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t all started with an inventor being worried about his parents. He developed a new technology that informs selected people if a radical change takes place in the user's activity level. In addition to this useful function, the modern wellbeing watch also allows precise and real-time monitoring of the wearer's sleep and other indicators. “The watch calls for help when the user cannot,” says Vivago president Katja Kääriä. “The first one went on the shelves in 2001. Since then we have sold about 40,000 of them.” To date, Vivago is still the only company in the world offering such an automatic alarm, but this and other products are still under development in order to offer the best possible service.

Text: Simo Raittila Photos: Anders Korhonen

When no easy solution exists yet for a difficult problem, somebody just has to come up with one. This was how Vivago's award-winning product came about.

Vivago Active Ultra PC • Helps in maintaining a healthy lifestyle answers the following questions: – How active have I been? Change in my activity level? – How much calories have I burnt? – How much have I slept? My sleep quality?

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Vivago Care 1) Manual alarms • The user can always call for help by pressing the button on the wrist unit.

2) Automatic alarms • "Wrist unit off wrist" and "Wrist unit back on wrist" notifications ensure that the unit is in use and that the user is supported by the unit´s security features. • Alarms based on changes in activity levels alert carers to unusual periods of immobility or the user´s prolonged passivity. • With a device interface, a discreet access control solution can be implemented even at home. The system then provides "At home" and "Out" notifications. • Automatic technical alarms on, for example, low batteries or radio transmission problems.

Award-winner Vivago has received numerous awards including the Innosuomi prize, which is given by the president of Finland every year for outstanding Finnish innovation. In 2006, the company was awarded the Frost & Sullivan award for product innovation, and from the USA it brought home the INPEX excellence award. “Our quality has been noticed over the borders,” Kääriä acknowledges. “A care concept called SOPHIA, which uses our products, was chosen as one of the best remote care concepts in 2010.” The watch is mainly used to take care of elderly people, but is also suitable for those who wish to monitor their vitality and health. Vivago products give the user information about their sleep quality, length and overall vitality, which can help improve their daily life.

Vivago Active Sleep

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• Give you greater health and fitness awareness, including sleep pattern and exercise levels • Help exploit overall well-being • Safeguard you against long-term health issues

We at Vivago want to help you to take better care of yourself."

With the watch we can, for example, follow up medication better, it's a good thing when we have patients with several chronic conditions that need medication.”

Vivago's main field is wellbeing in institutional care and sheltered housing. It has also spread out to wellness technology, which gives more information about the customer's daily activity and sleep patterns. The company's wellbeing watch is a hi-tech alternative for busy people who want to take care of themselves. The wellness watch can be found in Vivago's internet store, but it is also used for occupational care. One example of its use is the observation of flight cabin personnel's sleep and recovery from jet lag. Kääriä herself uses the wellness watch every day. “This motivates one's self-care,” she says. “I can see instantly how my activity changes and how I have slept.” In the future the customers will be able to use a smaller, more compact version of the watch which is currently being developed. Kääriä also reveals that the company is aiming to bring the product to new markets. n

cutting edge solutions

Time for wellbeing

www.vivago.fi

Vivago Personal Wellness Manager

• Continuously measures your activity • Measures the changes in your daily activity • Analyses the amount of sleep and its development • Measures the overall calorie expenditure without a separate transmitter belt

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Omena Hotels – The No-Frills Concept Expands Overseas

Text: Nita Ukkonen Photos: Anders Korhonen

At the age of 17, a determined young man decided he would one day work in the hotel business. On the road to creating an international hotel chain, Rabbe Grönblom happened to become an unofficial pizza emperor and an official Counsellor of Commerce, named by the President of Finland.

Rabbe Grönblom

The Omena hotel concept includes the idea of centred location."

rönblom's dream eventually became reality when the first Omena hotel opened its doors in 2003. Since then, Omenas have popped up all over the place. It is quite hard to find someone who has not heard of the Omena chain in Finland. These functional hotels have become highly appreciated among customers seeking affordable luxury and problem-free accommodation. Grönblom, the 60-year-old founder of the chain, says the idea was borne in the early 1990s. “We did polls concerning hotels and services. What we found out was that the customers weren’t really willing to pay extra for additional facilities like restaurants or check-in services. Even the hotel sauna wasn’t as important as the affordable price!” Based on the polls, Grönblom started to work on his idea. A test hotel room was already in use at the Royal Vaasa hotel, but Finland’s economic downturn during the 1990s hindered his plans. However, the hotel idea was not buried completely – it was just waiting for the right time and place. The new concept was ready to be introduced to a public audience in 2003, when the first Omena hotel was opened in the town centre of Tampere, Finland. A proper hotel without a reception or staff was unheard of at the time. As today, bookings were made through the Internet and corridors were guarded by watchmen and CCTV cameras. All the rooms were exactly alike and when buying a room the price was

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always the same, regardless of whether one or four people stayed in it. The concept proved to be feasible and, by the end of 2010, eight more hotels had been set up in Finland. The image of a self-service hotel turned into a hotel where customers did not have to pay additional fees for useless services.

Expanding with patience The Omena hotel concept includes the idea of centred location. Customers do not have to pay extra for traffic costs on their trip because most of the current hotels are near local sights. Founding a hotel chain like this, with excellent locations, takes time and patience, and the premises are not that easy to get hold of.

The most recent example is from Lahti in Finland, where a new Omena hotel will open in February 2011. The company spent five years searching for a proper location for the hotel. In 2012, Omena will open a hotel right in the centre of Stockholm – Torsgatan – just a few blocks from the Arlanda Airport Express stop. There is no need to mention how much time and patience went into that project. Thanks to the years of work invested in the Omena brand, Grönblom is not worried about the possible clones that such a successful hotel concept may generate. “Copying always appears when you create something excellent. But I don’t mind – just the brand-creating takes years and we really are ahead of everyone else.”

In 2023 we will have approximately 120,000 hotel rooms, around 900 hotels and activity on every continent."

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The name Omena (the Finnish word for apple) first came to Grönblom's mind when he started to think of names that would describe his hotel concept. It had to be something fresh and bright with a good taste – just like an apple. Later on, the actual apple was removed from the hotel logo following market research and to avoid associations with a particular multinational company. Grönblom guarantees that the Finnish name Omena will stay the same in every country. “That’s how a trusted brand is created. There’s no need to do confusing name changes in different countries. We’d like people all over the world to say that they are going to spend the night at Omena.”

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The first Omena outside Finland was opened during summer 2010 in Copenhagen. It has only taken a few years for the chain to spread to Scandinavia and that is just the beginning.

Look in to the future Grönblom has already created a small emporium that later went international. In Finland, he is well-known for his pizzeria chain Kotipizza, which is a success worthy of its own story, so his claims for the future growth of Omena hotels are not to be taken lightly. “In 2023 we will have approximately 120,000 hotel rooms, around 900 hotels and activity on every continent,” he says. Some of the plans may sound exaggerated, but as an experienced businessman he surely knows what he is talking about. The ideology of Omena hotels fits in perfectly with today’s world. There will always be customers who demand personal service, but the ever-growing population of active and independent people will be looking for affordable, efficient and environmentally friendly services. At the moment, Omena hotels are not promoting themselves as green establishments. However, the whole concept makes the chain more green than most of its competitors due to the fact that there are fewer personnel who need to get to the workplace and the locations are selected so customers can use public transportation. Typically, environmental aspects are taken care of in the hotels, but there will always be the human factor; it is up to the client how much water they use. When examining the largest hotel chains in the world, it is obvious that most of them are spending time and money to lessen their impact on nature. Grönblom's concept of tomorrow’s hotel is clearly on the same ecological page as his competitors. n

Omena Hotels ABC: 1. Reservation - www.omenahotels.com 2. On arrival - Walk directly to your room after 4pm. - Punch in the PIN code you’ve decided on during reservation. 3. ‘What if ?’ situations - You can always call Omena Hotels help desk. In case you lose your PIN code or noisy neighbours disturb you 4. Departure - Check-out time by 12pm.

www.omenahotels.com

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Breaking out of the frame - Battling with materials can also give a light touch

To leave frames out of one’s painting is quite common nowadays. But When Pauno Pohjolainen started his artistic career in earnest in mid 1970s, he was seen as a vigorous reformer, partly because of his sculpt-like paintings without frames. Text: Klaus Susiluoto

auno’s artworks are so strong that frames or gates would only hinder his energy from flowing. In spite of non-conformist, relief-type of works, he considers himself a painter rather than a sculptor. Usually his artworks are not made to be examined from every angle, but they contain some three-dimensionality. The term sculpted painting has often been used. “Sculptural method is not enough for me. In my opinion, painting requires more wit than sculpting,” Pauno says. The art critic Dan Sundell says that “Pohjolainen wants to break the traditional heavyweight monolith of sculpture”. Although possessing an anti-monolith attitude, Pauno likes large scales. Nevertheless, he has made smaller pieces of art as well. Many of them have found their way to private citizens. He is known to work not only with an artist’s brush, but also with a chain saw, axe, street brush and spade. Although many artworks are quite rough, they are seldom uninteresting, thanks to varied forms and skilful use of patina, among others. “A sculptor compensates in his works a physical handicap and the painter a mental trauma – I'm compensating them both.” Pauno has a strong relationship with the materials he uses. “I want to battle with the works and the materials. This is psychophysical work to a great extent.” He also states that sentimentality is the art’s worst enemy. But battling with materials has been his mantra for decades.

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He likes wood, which he uses in many variations: “Wood is pleasant to the touch and it smells good. Wood is also ecological. A great deal of wood I use is felled as waste wood. Too often, owing to the large forest resources, wood is taken for granted in Finland.” In 1988, he had an honour to participate in the joint exhibition of Language of Wood which was shown in New York and Moscow.

Pure art Pauno uses rather few directly representational elements in his work. He often talks about pure art: “In many cases abstract form is less constrictive and easier to use to describe the atmosphere and feelings. Action and movement in a piece of art are more important than that it describes something.” The art critic A.I. Routio even compared Pauno’s style to that of American abstract expressionists: “The strength of the splashes scrapes in the paintings of the Kuopio artist Pauno Pohjolainen is the most powerful, not far off the American action painting method of work.” The comment is from the year 1980, and cannot naturally be applied to all of Pauno’s works. “In Finland in the 1980s, the burden of Socialist Realism was

Mikko M채ntyniemi

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culture & design St. George slays the dragon 2008 not that evident as in the1970s. Abstract art was more widely accepted. Today there is no single “ism” that prevails, which is just fine for me. I do not want to jump into anyone’s bandwagon.”

Ancient and modern In the 1980s, Pauno had many one-man shows and group exhibitions. Influences on him were manifold. He has studied ancient Egyptian and Roman Catholic art. In 1993, he spent one month in an artist’s studio in Florence and studied Renaissance and preRenaissance paintings. Pauno filtered these influences in an original way into his own art. Also, modern art to some extent is important for him. “The Catalan artist Antoni Tàpies is an artist who has had a profound effect on me.” Tàpies started as a surrealist painter. His early works were influenced by Paul Klee and Joan Miró, but soon he became an informal artist, working in a style known as “pintura matérica”, in which non- artistic materials are incorporated into the paintings. “However, in my opinion, first of all Tàpies is a poet working with visual images. It's like magic how everything he touches will become spirit.” “Another major figure who influenced me was Frank Stella, who changed the way

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Aivoitus 2010

how visual arts were understood. Stella’s influence was strong during the years of my art studies.” “I came to understand Gaudi’s greatness only later. His La Pedrera building in Barcelona is a masterpiece. Especially the banisters of balconies are breathtaking,” comments Pauno. The art critic Dan Sundell said that these artworks were aggressive sculptures that take control of the space they occupy and exhibit fury and movement. Although Pauno’s fury is often hid, it is no coincidence that the “furious” Italian Renaissance master Caravaggio is close to his heart. “Caravaggio’s The Incredulity of Saint Thomas is a painting that has had a great impact on me. He could create a visual language of his own. Caravaggio reinterpreted many Biblical stories in an extremely interesting way.”

The uncompromising attitude of Caravaggio is close to Pauno’s thoughts: “The role of the artist is to tear himself away from the need to please, and to denounce the good taste.” Although “being rebellious” to some extent, Pauno does not denounce the role of religion. “I want to show secularized people the reality of belief. My intention is to some extent visualise what is included in the Word of the Bible, but from my own point of view.” Many titles of his artworks are linked with legendary religious stories. The Walls of Jericho and Saint George Slays the Dragon are good examples of this. Pauno is formally a Lutheran, but he has been influenced also by Greek-Russian Orthodox religion. “However, it is not the grand buildings that I am interested in Orthodox, but the language and technique of icons.” Orthodox religion has some presence also in Finland, especially among Karelians, easternmost part of Finland. Part of Karelia was lost to Russia in World War Two. “After the war, many Karelians were re-housed in Kuopio (because they had to leave their original homes from the other side of the Finnish-Soviet Union border). They brought with them Orthodox culture, also friendliness and hospitality. Although only a smaller part of Karelians are Orthodox, their religious influence in Kuopio is very visible.” Pauno has visited the Orthodox Church Museum in Kuopio

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Denouncing the good taste

To the Virgin Mary 1996

A sculptor compensates in his works a physical handicap and the painter a mental trauma – I'm compensating them both.”

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so often that he was eventually given a free ticket to the Museum for the rest of his life! Pauno Pohjolainen’s works can be seen in many churches. In 1991, he completed the altarpiece for Rantasalmi Lutheran Church. After this, many other works followed suit. For example, in 2003 Pauno finished an altarpiece triptych for Laajasalo Church in Helsinki.

Broken surface and presence of light Pauno has made many public works with other themes as well. In 2001, he completed the work Pennies from Heaven for the façade of the Finnish Osuuspankki bank and the work Kallavesj' for the foyer of the Kuopio Science Park main building. In 2006, he created the public work The Stream of Life for the façade of Hesperia Hospital in Helsinki. His newer achievement is the sculpture Aivoitus ( Braining) , which is located on the front door of the Neuroscience Centre of Kuopio University Hospital. According to the art critic Mia Haltia, Pauno’s newer works appear to be more severe and malformed than his previous ones. “The broken surface of the wood is allowed to show, the colour contrast is very strong and there is a good deal of black alongside red. In fact, red has returned even stronger than before. Metal is bent and twisted like a crashed car.” Another art critic Dan Sundell says that light is in fact a key

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theme in Pauno’s works. “To begin with, it is light that plays over a vivid surface, then light works as a transparent sensation and as an element that contrasts with darkness. And finally, light is a presence of its right, a source of the spiritual, for instance in the use of goldleaf.”n

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Sunset on Neulalampi lake 2010

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There's a rosy glow in the east - does it mean a storm? 2010 Pauno: Some picks from the artistic career Pauno Pohjolainen was born in May 1949 of modest yeoman stock at Pilppa near Kuopio. His father was a carpenter. In the mid 1970s, he started his artist’s career under the guidance of Sulo Väänänen, and already participated in exhibitions. In 1975 Pauno held his first one-man show and in 1976 took part in 29th Young Artists’ exhibition. Later he successfully participated in the latter several times. In 1976, he started his studies at the Finnish Academy of Fine Arts, and graduated in 1980. Pauno was awarded a stipend for post-graduate studies and visited also New York. After his studies, he acquired his first studio in a new house built by his father. Art atmosphere was quite lively in the 1980s, not only in Helsinki, but also in some other cities in Finland. Kuopio was one of these cities. The 1980s is a productive decade for Pauno. He took part in Finnish Artists’ Exhibitions, and arranged one-man shows in renowned galleries in Helsinki (Gallery Pelin and Gallery Sculptor, among others). In the 1990s, he held numerous private exhibitions mainly at Galerie Forsblom in Helsinki. In 1993, he took part in the Mänttä Art Festival and was awarded the prize the visitors’ most popular work. In 1994, Pauno married architect Annika Hobin, who moved to Kuopio in 1992. Today the couple Annika-Pauno Pohjolainen have five children. From the previous marriage, Pauno has two kids. His wife Annika has to a great extent helped Pauno in artist’s publicity work. In 1997 Pauno won the appreciated Ars Fennica Award. Director of the Irish Museum of Modern Art, Mr Declan MacGonagie, said in reason, “Pauno manages to create a synthesis between historical universal elements and his own individualistic artistic language to express ideas.” The Ars Fennica Exhibition Discussion with a Celestial Being, referring to Joseph Brodsky’s collection of short stories, was shown at the Hämeenlinna Art Museum, Kuopio Art Museum and Kunstihoone in Tallinn. In the same year 1997, Pauno made an altarpiece for the consecration of Päiväranta Church in Kuopio. In 1999, when he turned 50, he held the anniversary exhibition at the Orthodox Church Museum. In 2003, Pauno erected his work Sauna and sisu at the Finnish Embassy in Canberra, Australia. In 2009, he had a one-man show at La Galleria in Barcelona and two shows in Helsinki and Kuopio. In the same year he celebrated his 60th birthday. In 2010, he had a retrospective exhibition at Turku Art Museum. It was later shown at Kuopio Art Museum ( September-February 2010-2011).Kuopio exhibition well showed how complicated methods Pauno uses in creating his artworks. Many kinds of wood, harts, acryl and oil colours, glass fibre wax colour etc were used. www.paunopohjolainen.net Business Finland 1/2011

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Text: Klaus Susiluoto Photos: Sini Pennanen

All-weather style by

Pertti Palmroth - summer collection goes in green, blue and light beige

ertti Palmroth is an internationally valued brand with 80 years of tradition in shoe-manufacturing. Today, the 3rd Palmroth generation continues the tradition of the family business: Mikko and Petrina Palmroth have been working for many years in the company. Mikko works as the managing director, and foresees the future in very positive terms. “We have four shops in the Helsinki region, and the fifth will be opened in April. About 60 percent of our production are exported,” tells Mikko Palmroth. The main export markets are Canada, USA, Sweden, Norway, Japan and increasingly Russia. In Russia, Finnish quality is appreciated. At the moment, however, Canada is the largest country in terms of sales. “The recession of 2008–2009 affected us abroad because of the changes in currency value. US dollar, Swedish crown and rouble were devalued. On the other hand, there have been two good (= cold) winters from our point of view. They have increased sales in the Nordic countries and Russia.” “We mainly export women’s winter boots. Of our total production, some 70 percent are winter shoes, but summer collection is also important in Finland and some other countries.”

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Visitors to Helsinki

Pertti Palmroth boots have been known for luxurious materials and fashionable designs for many decades. Today, the focus is on the exclusive footwear made of soft leathers and warm lamb skins along with the famous all-weather boots. AllWeather material and Waterproof-suede have been designed for the demanding, cold and slushy weather condition of the North. “Our shoes can be used when it is even minus 20–40 degrees.” “We mainly use the best Italian leather, but manufacture shoes ourselves right from the beginning,” says Mikko Palmroth. “Our products are designed by a 5–6 persons design team, in which youth, fashion and the company’s long traditions are combined. We do not use freelance designers, because we have our own specific style that is unique, created and taught by Pertti Palmroth.” “One of Pertti Palmroth’s strengths is that the company can offer also bags, which often complement the shoes.”

Mikko Palmroth tells that more and more tourists and business travellers visiting Helsinki buy Pertti Palmroth shoes directly from outlets. The four Helsinki shops are in the city centre (three shops) and Itäkeskus. “We have shops also in Tampere and Turku. Abroad our shops are in Stockholm, Oslo, Berlin and Maastricht, but through department stores there are many more sales points. We sell through Stockmann in Finland and Russia. Sokos and some other renowned department stores in Finland sell our shoes, boots and bags.” Pertti Palmroth is known also for fashionable summer shoes. “Blue and green are next season’s colours. Light beige is also one of the colours of the season. What we call animal prints is also popular,” notes Mikko Palmroth. Compared to its high quality, Pertti Palmroth shoes are not expensive. Typically prices are 150–200 euros, and only rarely more than 300 euros

Pertti Palmroth–collection has been divided into three different segments: classic, fashion and casual. Also manufacturing is in Pertti Palmroth’s own hands. “Pertti Palmroth-products are manufactured in our own production units in Finland. The company’s factories locate in Tampere and Virrat. We manufacture 80 000 pairs of shoes every year.”

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Only the best materials

www.palmroth.com

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Aalto Venture Garage Aalto Venture Garage, also known as Aaltovg, is a new kind of pre-seed venture accelerator from Aalto-University aimed at boosting startup companies. Aaltovgâ&#x20AC;&#x2122;s objective is to facilitate the creation of ambitious teams and ideas for growth ventures. After attending the Aalto Venture programme, a team should have real market potential and significantly improved ability to raise venture capital funding in the near future. Text: Tiina Rahkonen Photos: Aalto / Lari Haataja

he Garage was set up in early 2010 as part of a grassroots initiative by a group of students and entrepreneurs from the Aalto Entrepreneurship Society, who wanted to foster an entrepreneurial culture and help create great startup companies in Finland. Kristo Ovaska co-founded the society and brought the Aalto Venture Garage to life. Aalto University first gave seed funding to the Garage, which has created an effective model that gives early stage startups a kick-start. The Garage is located in Aalto Universityâ&#x20AC;&#x2122;s campus in Espoo in southern Finland. It has a 700 sq m working space available for anyone living in the Baltic area, which has everything needed to build a startup: Wi-Fi internet, a kitchen, coffee machine, copy machine, meeting rooms, hot-desks, a big open auditorium and great people. There are currently about 40 startup companies working at the Garage. Coaches are constantly visiting and entrepreneurs can receive support and work together to grow their businesses.

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- Giving a Boost to Innovative Startups

The objective of the Garage is to help entrepreneurs meet together and to grow great businesses."

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The Grinder for the best startups The Garage is also the home of the Startup Grinder, which takes place four times a year. The Grinder is an intensive twoweek training programme for the best startup teams from around the Baltic Rim, which is supported by Aalto University. It is designed to help pre-seed startup companies become successful venture offers, by giving them the chance to develop and test an idea and to team up with experienced coaches. The Nordic region’s best serial entrepreneurs and investors from the region visit the Grinder and share their knowledge with new companies. “Teams at the Grinder are co-operating,” says Juha Ruohonen, entrepreneurin-residence at Aalto Venture Garage, COO of HyperIn and CEO of Value Chain. “They are working on each other’s ideas and challenging them. It’s not only a competition but more about sharing and team building.”

The highest potential teams from the Grinder become Garage startups”

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The Grinder was previously known as Boot Camp. Ruohonen says the new name is a better reflection of the intensity and activity that are essential both in the programme and in entrepreneurship in general. The Grinder teams with the most potential become Garage startups and receive a mentoring package including coaching, office space for six months and budget to spend time abrod. The Garage also sends its startup companies to Silicon Valley in the USA, Israel or China to broaden their business contacts.

Co-founder and networker Ovaska, who co-founded the Aalto Entrepreneurship Society, is an excellent motivator and a great leader for young Garage startups. He is also a skilful networker and knows who to ask to get the job done. The next 5-week Grinder will take place from the end of April until the beginning of May. Over 200 teams from around the world are expected to apply, of which 20 will be selected. The deadline for applications is April 2011.

Aalto University Aalto University is a new university created from the merger of three Finnish higher education institutions: the Helsinki School of Economics, the University of Art and Design Helsinki and the Helsinki University of Technology. These are all leading and renowned institutions in their respective fields and in their own right. The combination of three universities opens up new possibilities for strong multi-disciplinary education and research. The new universityâ&#x20AC;&#x2122;s ambitious goal is to be one of the leading institutions in the world for research and education in its own specialised disciplines. www.aaltovg.com

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L-Fashion Group - a Strong Finnish Clothing Company Text: Tiina Rahkonen Photos: Anders Korhonen, Luhta

With over a hundred years in the clothing business, Luhta’s operating environment started in the Finnish city of Lahti and grew to take in the whole world. The family-owned company, which has been known as L-Fashion Group since 1992, has aimed to become one of Europe’s leading companies in leisure wear fashion.

Inherited values in leadership Vihtori Luhtanen, the original founder of Luhta, decided to start his own clothing company in 1907. His wife Jenny designed and sewed while Vihtori was responsible for sales. In the early 1900s he employed two seamstresses and this was the first step toward creating his own sewing workshop making underwear which were sold at market. It was here that the seed of Luhta was sown. A lot has been accomplished since those days. Although the company’s values have remained intact, it has undergone an evolutionary process. Its head office is still located in Lahti, just a few hundred metres from the place where its ancestors Vihtori and Jenny lived. The first generation head of the company was a merchant, the next two were industrialists and the fourth, with Vesa Luhtanen at the helm, has returned to the retail business.

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Experience and commitment The era of fourth-generation manager Luhtanen started in 1999. He had a heavy responsibility on his shoulders and huge challenges due to the ongoing revolutionary changes in the global clothing industry. “I was trusted and given time to overcome the challenges,” says Luhtanen thankfully. “With the excellent performance of great talents in development, design, production and corporate management I have managed to satisfy the owners with good results.” The core of designing is creativity which is allowed and supported by the company's excellent working conditions. “The staff work creatively in a controlled environment achieving good results,” says Luhtanen. This is easily believed when visiting the modern head office with its happy working employees. Luhtanen believes that well-managed schedules and processes create a good spirit among the loyal teams, which explains the low turnover in key staff.

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Changes in production and commerce The clothing industry has experienced exceptional changes during the past decade. The Far East, particularly China and India, have come through strongly on the industrial side and have dominated the international clothing industry. As with many clothing companies, LFashion Group’s production has moved to Asia. A subsidiary was established in China, which is now the major manufacturing country for the company’s products, but the responsibility for products remains in Finland. Work at a Finnish clothing company involves developing, designing, marketing and services; these jobs are performed in teams. All the key employees, including 30 designers, work in Finland so all L-Fashion Group’s products have an authentic Nordic touch. In addition to production changes, the clothing industry has had to adjust to changes in commerce. In Europe, retail businesses have invested in own-labels and direct imports. Internationalisation and centralisation in the form of Swedish clothing chains and markets have also endangered Luhta’s domestic sales. A solution was found in the form of a makeover of the corporate image, uncompromised investment in product development and a renewal of the corporate structure. The retail business was also revived and well-managed distribution channels were expanded to various types of stores. The acquisition of the Aleksi 13 and Vaatehuone chains brought back the group's emphasis on Finnish soil.

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culture & design Big in Europe These days, L-Fashion Group is one of the biggest clothing manufacturers in Scandinavia and has begun conquering other countries in Europe. The group has a turnover of about EUR 224 million and employs 1,590 people, of whom 1081 work in Finland. In addition to Luhta, the company's oldest brand, the group also owns Rukka, Ice Peak, Skila Torstai, Rilâ&#x20AC;&#x2122;s, O.i.s., Story, Big-L, Beavers, Your FACE and Sinisalo. The main export countries are Germany, Russia, Sweden, the Netherlands and France. At the moment the group's business units, which are determined to succeed in dynamic and evolving markets, are creating their visions for the future.

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Future of fashioning When considering the future, Luhtanen predicts that production in the fashion industry will become more homogeneous. In a global world, cultural differences become less visible while the marketing area becomes larger and business partners operate on a larger scale, and this results in less individual design. The change in the economic environment has been rapid and the company is now aiming for new growth markets in China and Russia. Canada and the USA are also on the radar. The strengthening of its own retail business in Finland is a meaningful opportunity for L-Fashion Group. Luhtanen believes that hard work is essential to achievement. The slogan 'No pain, no gain' definitely applies to him and the company he is heading, which will help it succeed in a future filled with new challenges. n www.luhta.fi

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Vantaa Innova - Excellence in Busines Vantaa Innovation Institute is a key player in what is called Vantaa International HUB. “Our role is to facilitate the growth and development of the airport city of Aviapolis and Vantaa in general,” tells Ritva Alatalo, Chief Executive Officer of the Institute.

antaa Innovation Institute Ltd. is a non-profit development company established in 2009. “We are fully owned by the City of Vantaa. We support the growth and internationalization of the companies, and help operating or establishing business in the Vantaa area. Together with our part-

ners, we develop and create new business, new innovations and jobs.” The institute has versatile business development services to promote the competitiveness of companies. “The core of our innovation service activities is the group of business labs and core clusters serving the selected industrial areas.” “Our Soft landing services support companies establishing operations in the capital area of Finland, especially in Vantaa-Aviapolis. There are already 33 000 jobs in the Aviapolis area, which is the fastest growing business Hub in Finland,” says Alatalo. “Vantaa Innovation Institute supports companies looking to start their internationalisation process from Finland. We help and accompany a company or organization successfully through the entire set-up and start-up process together with Vantaa`s Business Development Unit. I believe that especially small companies could benefit from our services.”

Profound China expertise Ritva Alatalo says that it is not easy to attract foreign investors, who would use the airport area as their base for Finnish, European or Far East’s operations. “In China for example, average yields are double those of ours. Quite many Asian companies would also like to diversify

their investments, for example, to invest in European technology companies to acquire expertise, or to have distribution solutions, or to invest in real estates.” “Some business premises in the Aviapolis area are owned by US, British, or German property investment companies. There is no reason why Asians would not be interested in the same solutions as well,” tells Ritva Alatalo, who has profound experience in Finnish-Chinese relations. As an example of the first result of the cooperation, China Development Bank, the fourth largest Chinese bank, started operations in Finland in May 2009. “We have Finland-China Technology Co operation Committee, which fosters access of Finnish companies to China and access of Chinese enterprises to Finland and Europe. Founders of the Committee are China Development Bank and the City of Vantaa. The Committee is operated by Vantaa Innovation Institute Ltd.”

Far from periphery One competitive advantage of the Helsinki-Vantaa airport is its central location. “From the point of view of international air traffic, Finland is not the periphery,” says Alatalo.

Mayor of Vantaa, Mr Juhani Paajanen and Mr Liu Yuan Ping from China Development Bank ( Heilong Jian province) signed a co operation agreement in May 2009. 150

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“On the contrary, in Europe it is from Finland that the routes to some Asian destinations are among one of the shortest. Helsinki-Vantaa indeed is the gateway to Asia and gateway to Europe, depending on where you come from,” says Alatalo. “Helsinki is a good choice also for selected North American-Asian routes. For example, from New York to Delhi, a good choice is via Helsinki.” About 20 percent of airport customers are transit passengers, and this figure has grown in the 2000s. In the international Skytrax study, the Helsinki-Vantaa airport has been chosen as the best airport for many years. In the year 2010 it was the 9.th best airport in the world and the number one transfer airport. There are 120 direct flights to various destinations.

Ritva Alatalo says that the airport is the core of Aviapolis airport city, but much more is included. The well-known airport researcher John Kasarda has regarded the Helsinki-Vantaa Airport as a good example of varied developments around the airport. “In addition to the airport, airport areas are actually multifunctional urban centres. In a globalised economy, major airports are a decisive factor in an economy’s success. Aviapolis is not only about business. Also comfortable living areas can be built just next to the airport with modern technology.” The City of Vantaa has coordinated zoning processes in the commercial as well as residential areas of Vantaa, and Kartanonkoski suburb has gained positive publicity.

Aviapolis Innovation Hub One important project of Vantaa Innovation Institute is Airport Cluster Finland. The goal of this promotional group is to make known technologies that Finnish companies can offer to airports. “For example, China will build or renew one hundred airports. India will have tens of projects and other Asian countries are also renewing their airport infrastructure. Airport Cluster Finland aims at creating turnkey solutions for airports by combining the services and products which the companies of the group can offer,” says Alatalo. For example, the Kone elevators and escalators and Vaisala weather obser-

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ation Institute ss Innovation Services vation sensors are used in hundreds of airports already now. A less known company is Rapiscan, which offers security solutions for airports, for example, baggage scanning systems. There is also a RFID Lab, a non-profit association. It promotes RFID-technology, which can be applied to logistics, retail branch, wellness and health care business etc “For example, patient information can be put in wrist band for elderly people. Or a retailer or food product processor can tell more detailed products information in shops.” One active participant in Aviapolis Innovation environment is Sensor Center Ltd., which promotes Sensor technology solutions. Sensor Center is owned by Helsinki University, Metropolia University of Applied Sciences and the City of Vantaa.n www.vantaainnovation.fi Note: Airport Cluster Finland 2nd Annual Seminar 12th April 2011. www.airportcluster.fi

Pictured RFIDlab

RFIDLab Spring Seminar May 31, 2011 Hilton Hotel Helsinki-Vantaa Airport more information www.rfidlab.fi

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Railway boost development

Airport city Aviapolis will include living areas as well Text: Klaus Susiluoto

In Finland, the Helsinki Airport and the Aviapolis sub-city of 42 km� have developed hand in hand, and the real airport city is on formation. Lentoasemakiinteistöt Plc (LAK), a subsidiary of Finavia Corporation, has an important role in this development.

owadays airport surroundings are the most dynamic part of the larger business or administrative city. However, there are still relatively few airports, around which a real airport city – not only warehouses and terminals – has been developed. In Finland, strong steps have been taken to the right direction. Airport land owners, real estate developers, the City of Vantaa and Finavia have worked together to make the Helsinki Airport and Aviapolis a stronger transport and business hub, also with comfortable residential areas. LAK plays a significant role in this. “LAK is a property company wholly owned by Finavia, which is responsible for operations at Finnish airports,” tells

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the director of project development of LAK, Mr Juha Jaakola. “We lease premises in our buildings located at airports for the needs of businesses that are part of the air traffic service chain. However, we do not own passenger terminals, multi-storey car parks or buildings that are directly related to Finavia's own operations.” “Our portfolio includes logistics buildings, offices and hotels. Some office space is available at the moment from tens of

square meters to several thousands of square meters. However, on the drawing board there are larges-scale projects.” “Our customers are companies that seek out airports and for whom a location at an airport or within its immediate vicinity provides a significant advantage for the business. Their operations may be linked directly to air traffic, or the location advantage is based on exploiting the high volume of cargo or passenger traffic.” In the future, also different kinds of activities will emerge close to the airport. With this in mind, LAK participates in the development of the area, but do not play a contractor’s role. “Zoning is done in cooperation with the City of Vantaa. In the first phase, probably 200 000- 300 000 square meters will come to be finalised in the Aviapolis area by us and our partners.” “The plot which owned by us is 15-16 hectares. In addition to this, developers have their own areas and projects. ”

Airport city Aviapolis will include living areas as well “The area where we operate is the central part of Aviapolis. Residential housing, a

multiple. Of course to bring services. There is always the discussion, whether the services should be the first to attract people, or the services follow after people move to the new residential areas.” “However, contrary to the common belief, there can be living areas just a few kilometres from the airport. Modern aircraft are environment-friendly and flight noise is surprisingly low.”

Urban rail line boosts development The Helsinki Airport will get the urban rail line in the near future. Railway will arrive at the Helsinki Airport in 2014. The Ring Rail Line, as it is called, will

hotel, shops and other services and kindergartens will be constructed, in addition to the office space.” “I could imagine that people could acquire the second apartment from this neighbourhood, or people working at the airport would like to live close to their workplace.” There are already a large Technopolis complex and some minor offices in the area. “Our aim is to create a real lively suburb out of the area. At the moment there are several houses in near-by Aerola, designed by the famous architect Alvar Aalto, but the number of residents will

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ts property connect Helsinki Airport and the adjacent Aviapolis business and retail district to the Helsinki commuter rail network. Four new stations will be built, with space reserved for four more in the future. The journey time from the airport to Helsinki Central Railway Station will be about 30 minutes. “This will further facilitate the growth of Aviapolis airport city which is emerging around the Helsinki Airport. Two new train stations will provide further accessibility – one at the airport and the other exactly in the centre of Aviapolis. The latter station will locate in the middle of the emerging new commercial and residential concentration.” LAK is also managing the WTC Helsinki Airport, the highest building at Helsinki airport, and owns the hotel property of Hilton Helsinki Airport. The extension of the Hilton Helsinki Airport is being completed by May this year, offering 84 new guest rooms.n www.lak.fi

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A Large Netw Business Blue1 is the second-largest Finnish airline. Blue1's mission is to fly within Finland, from and to Finland. "We offer business and leisure travelers a large network in Finland, to other Scandinavian countries, and to the rest of Europe," says Tom Christides, Vice President Communications of Blue1.

"We also have so-called summer collection destinations to France, Croatia and Scotland. In France, we have Nice and Marseille as a new one. In Croatia, Dubrovnik and Split. Pula is a new destination as well. To Edinburgh we also fly only in the summer time." "Our key customers are Finnish busi-

i nce 1998 Blue1 has been part of SAS Group, which supports the company's operations in a good way. "We are also a member of Star Alliance. Being part of this alliance gives us a total of 1170 destinations. Our own route network covers major North and Central European cities.” “We have been able to extend our network, although the year 2010 was difficult for us and most of other European airlines. The recession persisted and Icelandic ash cloud has affected Europe for several weeks. However, the number of our passengers increased to 1.5 million.” “We started three new destinations already in 2010, Berlin, Brussels and München. We now have two daily flights also to London, Brussels, Paris, Zürich, and from this March on, to Amsterdam. Timetables are so well-planned that passengers from Tallinn and Oulu can easily continue from Helsinki to London, for example," says Christides.

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New ﬂeet in formation To meet the needs of rapidly expanding route network, Blue1 is investing in a new fleet of Boeing 717 aircrafts. "The Boeing 717 is a modern aircraft to operate for short- and medium-haul flights. It is the perfect type for flights between Europe and Finland. All of the aircrafts are manufactured during the 2000s and equipped with modern technology. The size of Boeing 717s is comparable with larger aircrafts. There is enough space for seating and legs. The luggage store is also equal in volume to that of a larger aircraft," says Christides. "We have released six Boeing 717 planes, with three more to come by the end of March. The 717s can seat 115 passengers. In a way, our previous plane was too big with 166 seats. We still have 5 AVRO four-engine planes, three ATRs and two SAAB 2000 planes. Old MD 90 airplanes will not be used any more.” “In the future, all our airplanes will be Boeing," says Christides.

Two classes ness travelers. We have tailor-made timetables that suite them well. We have well-suited destinations, such as Finnish Lapland in the winter time, and Croatian and French destinations in the summer time. (Summer time actually starts in April-May and ends around the 10th of October, so part of spring and autumn time is also covered).

Tom Christides says that Blue1 has only two classes, Economy and Blue1 Premium. The latter one is almost equal to the business class. “Well, you do not get champagne, but a good selection of food and drinks are included. Fares are just significantly lower. Premium includes genuine business class features such as Business-Class check-in, fast-track security control, pre-

mium-class seating, a baggage allowance of two pieces of 23 kilos and flexible rebooking options with Blue1 or SAS. Full refund is possible. If a traveler does not need a flexible ticket, the choice is Premium Holiday. It means seating in the Premium Cabin, but without the flexibility to re-book and cancel. Economy Class offers good basic service.” Blue1 Premium class was launched in last October. The feedback has been good.

The new look Since this year, Blue1 has a new visual look. "Aalto University participated in the work. The winning proposal was called Flowing. Also Air Finland and Finnair have renewed their visual outlooks, but Blue1 was the first to launch the new look.”

Competition intensifies Tom Christides says that Blue1 can cope with competition inside Finland and in North Europe too. "Air Baltic and Norwegian are our competitors. So is Finnair. We naturally observe the situation, but I do not think we should be too worried. Our flight network is strong. For example, in HelsinkiOulu route we have as many as 11 daily flights." “Stockholm and Copenhagen naturally play an important role. We have Vaasa-Stockholm, Tampere-Stockholm and Turku-Stockholm routes, where we have established our position." Copenhagen ensures connecting flights to North America and Asia. "SAS is launching a Copenhagen-Shanghai route besides to Tokyo, Bangkok and Beijing. It is good to remember that SAS is three

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work for Nordic Travellers times larger than Finnair, with excellent routes. Even if Asian routes are not so varied, SAS has good connections to North America, for example flights to Washington and Chicago, and two daily flights to New York. Daily flights via Oslo to New York are also available from 28th of March.

Modernisation of the terminal Blue1 operates in Helsinki at Terminal One, which is quite compact. "However, the terminal can become too small within a couple of years. Modernisation and enlargement of the terminal would benefit customers.” More and more customers will arrive at the terminal by train after mid 2014, when the new Ring Rail line is opened. Also this would speak in favour of a modernized flight terminal. n www.blue1.fi

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Hotel GLO He

- Enjoy additional sleep time Palace KĂ¤mp Group is a modern and multifaceted group of lifestyle businesses and services. It includes a collection of the most renowned hotels and restaurants.

he group has three luxury hotels in the Helsinki city centre, one business-class hotel in connection to the Sello shopping centre and one smaller, extremely practical hotel at Helsinki-Vantaa International Airport. Hotel GLO Helsinki Airport at Helsinki-Vantaa International Airport is the only hotel located in the airport building itself, on the service floor of Terminal 2 and with direct indoor access from Terminal 1. The small intimate hotel has 37 rooms, including single and double rooms and two special rooms with saunas. Small meetings up to eight persons can be arranged, and naturally the airport has larger meeting rooms as well. For many business travellers the airport hotel is the best solution. The need for car or taxi services and airport commuting is eliminated due to the location at the heart of Helsinki-Vantaa Airport. Traveller can enjoy extra sleeping time, without wasting time for commuting.

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The perfect location makes it convenient when travelling with small children, large quantities of luggage, or when the flight is departing very early, or arriving very late. In addition to its ideal location, comfort and personal service are guaranteed when enjoying the exclusive service at the new Hotel GLO Helsinki Airport. GLO also optionally offers day rooms. These are made available, depending on the booking situation, between 9 am and 7 pm. Guestrooms offer every comfort you need - the modern rooms have no windows and are therefore whisper quiet. All rooms were renovated in the autumn 2010. There are a variety of things to make travelling easier including premium TV channels, pay movies, minibar and wireless high-speed. Internet access is for free. Hotel GLO Helsinki Airport offers also complimentary breakfast 24 hours a day. You can check the flight information at the comfort of the hotelâ&#x20AC;&#x2122;s lobby. GLO Bar at the hotel offers a variety of beverages and a perfect spot for a relaxing time away from your room. The hotel bar is a great place to meet with your friends or to wait for the arriving passengers due to the location right next to the arrivals hall. n

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elsinki Airport

Palace Kämp hotels in the city centre If you need high-quality hotel in the Helsinki city centre, you can choose from three hotels in the Palace Kämp group. Hotel Kämp has been listed on many luxury hotel categories, and Hotel GLO City Centre is the epitome of what you would call a modern and urban lifestyle hotel. Hotel Linna (“Castle”) is the most unique chateau hotel in Helsinki, where the word average is simply not in the vocabulary. The uniqueness of the Art Nouveau building of Hotel Linna is evident from its beautiful façade and its intricate details which so aptly reflect its long history. All Palace Kämp luxuriously have comfortable rooms, suites are both spacious and stylish, and the restaurant services are unequalled in the whole Helsinki. More about Hotel GLO Helsinki Airport and other Palace Kämp hotels and restaurants at www.palacekamp.fi

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ScanWings

- Almost there ScanWings is a business flight company offering its clients a topnotch service.

canWings is a Finnish company that offers first class business flights. It operates from Helsinki-Vantaa International Airport with a jet and three prop-planes. The company’s phone lines are open 24 hours a day and it is ready to operate with just two hours’ notice. “Time is money,” says Yrjö Jussila, sales manager of ScanWings. “There’s no reason to queue in lines at the airport when it’s possible to save several hours of working time when flying with us.

Cessna Citation CJ2+ 158

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Aviapolis Beechcraft 90 King Air turboprop

“It’s a lot easier and quicker when one can board the aircraft via the business terminal – all the luggage handling and security checks are provided. Air travel is a lot faster. Furthermore, there’s no need to worry about time-consuming flight transfers and traffic, because ScanWings flies directly to the nearest airport.” ScanWings can tailor a schedule to fit the needs of its passengers. The company is flexible enough to adjust to timetable or destination changes in customers’ plans, even while they are travelling; just one phone call and a new flight plan will be mapped out. “The passenger can concentrate on work, prepare for a business meeting or just kick back and relax during the flight. We order our catering from high-end gourmet restaurants to serve our clients the luxury they deserve. Our aircraft seat configurations have been tailored to the best possible facilities required for in-

flight business meetings. Professional travellers can respect this. Travelling is not luxury, but hard work,” says Jussila.

Fleet ScanWings’ fleet includes three pressurised Beechcraft 90 King Air turboprops and a Cessna Citation CJ2+ jet, which is the company’s pride and joy. The jet cost US$7 million and it flies at an altitude of 14 km; normal flight traffic flies at 10-12 km. “You don’t need to make way for anyone, because there’s no-one up there,” smiles Jussila. “There aren’t even any worries about thunderstorms, because we’re flying over them.”

Specialities As well as business flights, ScanWings carries out medical and ambulance

flights. The King Air craft can be easily converted for the special transportation needs of various medical and emergency clients. It allows medical personnel to accompany and treat patients during the flight and it offers a high-speed alternative for urgent transplant deliveries.

Company ScanWings is a Finnish business flight company that has been operating since 1977.

Price A flight costs EUR 4,000 plus EUR 7.5 per mile. The fees are the same regardless of how many passengers are on board. Note: Every tenth flight is free of charge! n www.scanwings.fi

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Finnish Aviati â&#x20AC;&#x201C; Where T Tired of sitting in airports? Instead of waiting around getting bored you could be having some fun at the Finnish Aviation Museum, which is located near Helsinki-Vantaa Airport. Visitors to the museum can admire the historic war planes or sit in an aeroplane that is more than 50 years old. They can even steer a military aircraft in a flight simulator. Text: Susanna Rinkineva Images: Finnish Aviation Museum

The museumâ&#x20AC;&#x2122;s permanent exhibition consists of 70 different aircraft, including impressive war planes, airliners and retro helicopters, as well as beautiful gliders with long wings that hang from the ceiling. The aircraft date from the 1920s to the 1980s, and each one has a little story written next to it. Besides the planes there are miniatures on display, as well as engines and propellers. The museum currently has a special exhibition called The Mythical Flight, which is about flying in dreams and fairy tales. One exhibit tells the story of an inventor who built himself wings and tried to fly with them. In June, the special theme will be post-war reparations and aerospace industries, and in November the exhibition will focus on kites. For people interested in flying, the museum offers a great opportunity to try it out safely. Its very own flight simulator allows visitors to perform six different defence tasks from wars in which Finland has been involved. New simulators will also be arriving at the museum this spring, which will be built around cabins

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tion Museum Time Flies

and will therefore be very realistic. The Finnish Aviation Museum offers conference organisers something a little different. Its refreshing meeting package includes the possibility of combining a conference with a free museum tour. The auditorium can accommodate up to 200 people and the meeting room can sit up to 20. Coffee and food can be ordered. Transport links to the museum are great, both abroad and from various parts of Finland. Meanwhile the museum gift shop has a variety of miniatures, gliders and aviation-related books for people looking for souvenirs. It also has a library and archive holding literature such as pilot logbooks to flight manuals. And after a museum tour itâ&#x20AC;&#x2122;s nice to have a cup of coffee at the museum cafĂŠ, Cockpit. The best way to get to the museum from the airport is to take bus number 61 or 615T. The address is Tietotie 3. The ticket price is EUR 8 per person and for groups it goes down to EUR 6 per person. The Finnish Aviation Museum is open from Monday to Tuesday and Thursday to Sunday from 10.00 until 17.00 and on Wednesdays from 10.00 until 20.00. www.ilmailumuseo.fi

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Sokos Hotels - Keeping up the Chain's Reputation Two different Sokos Hotels in Vantaa, Finland, are attracting a wide variety of clients for both business and leisure

okos Hotels is the biggest hotel chain in Finland; according to Statistics Finland, it holds one third of the domestic market. All the hotels are located in city centres or at leisure sites and have good transport connections. In total the chain has over 40 hotels in Finland, Tallinn and St Petersburg. “The three most important factors of a hotel are location, location, location,” says Heli Engblom, general manager of Sokos Hotel Vantaa and Flamingo.

Sokos Hotel Vantaa Sokos Hotel Vantaa is situated in Tikkurila, Vantaa, just next to the railway station. It started as a five-star white-glove hotel in 1991, before the current owner bought the property, lowered it to a four-star hotel and introduced a dance element to the concept. The hotel now offers many restaurants and conference services. It has become a popular meeting place for local people, but visitors also come from hundreds of kilometres away. Finns love their ‘ruotsinlaiva’, which involves a ferry trip to Stockholm; Booze & Snooze is the dry land equivalent. There are five restaurants to fit the needs of different customers: Sevilla is a laid back Spanish-style restaurant; Point is a lobby pub with a good whisky selection; Pub Hertas is a popular venue with karaoke; Tulisuudelma is a restaurant with live bands and dance floor that has been going for 18 years; Night Vantaa is a nightclub for younger visitors. The 14 meeting rooms (seating six to 350 people) all come equipped with a wireless internet connection, data projector and laptop. There is also a private business centre at the disposal of the meeting manager. In addition, the hotel has four private saunas for between six and 60 people, as well as comfortable relaxation rooms with a view.

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Text: Juhana Huurula Images: Sini Pennanen

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Sokos Hotel Flamingo The new Sokos Hotel Flamingo is located in the Flamingo complex, the biggest entertainment centre in Scandinavia which opened in 2008, near Helsinki-Vantaa Airport. It is connected to the Jumbo shopping centre which has 120 shops. The hotel offers conference facilities – 12 meeting rooms of various sizes (12–140 people) provide all the necessary equipment but it also has a wide variety of relaxation and leisure activities. The Flamingo maze includes a spa and water park, pampering services, shops, cinemas, bowling alleys, a nightclub and restaurants. Two restaurants, Amarillo and Banquett, are also available for privat hire. n

Company Sokos Hotels is part of S-Group, a Finnish co-operative trade corporate group founded in 1904. It is composed of SOK Corporation and its subsidiaries in addition to 22 regional co-ops. S-Group has 1.9 million customer owners. www.sokoshotels.fi www.ﬂamingo.fi

Heli Engblom General Manager Sokos Hotel Vantaa and Flamingo and Business Operations Director Sokotel Ltd. Harri Havia

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Aviapolis Wireless internet in your car Avis opened in Finland in 1969 and currently operates in over 110 locations across the country, making it Finland’s largest car rental chain. “Avis service is based on a safe and dependable fleet of vehicles,” says Avis marketing manager Marko Haakanen. “Rental periods range from a single day to several months depending on the needs of the customer. We can also provide different services and products for travellers on business or for pleasure.” These services include GPS navigation, roof racks and the option of having the car dropped off at a specific location and being picked up again. “Our concept also includes a 24-hour service number in case of unforeseen problems while you are on the road,” says Haakanen. Avis’ latest service is mobile internet in the car, which includes all data traffic in the fee. The service is provided by recently established Finnish company Zonga.

Comprehensive ﬂeet Customers can reserve a car on the internet by calling the service centre or from their travel agent. They can also contact their nearest Avis branch. Although cars are usually dropped off or picked up from particular Avis locations, the company can deliver to a hotel or business and arrange for it to be collected again afterwards. The Avis fleet consists of a large variety of makes and models, from compacts to minivans. There are also specialities such as vans and luxury cars. The majority of the fleet has manual gears, but automatic compacts, mid-sized and large cars are available. The fleet is changed and renewed throughout the year so specific brands or models cannot be reserved. Instead, customers can choose a particular class of car.

Things to consider In order to rent a car, customers need to provide an international credit card, drivers’ licence and have over a year of driving experience. There are also age restrictions to consider that apply to different classes of car. www.avis.fi

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- Cars for Vacation and Business Trips

ertz was originally founded in 1918 in the United States. It has operated in Finland since 1966 and currently has 70 locations across the country. The core of the company’s business is short-term passenger car and truck rental for holiday and business trips, mini-leasing services and service loan cars. In addition Hertz offers supporting services such as drop off and pick up, online check-in and additional insurances. “You can reserve a car online by calling the service centre or by visiting a Hertz location,” says Jaakko Haikonen, marketing manager for Hertz Finland. “You can also pick up your car from the Hertz location, in case of a loan, from the dealership or it can be delivered to you. It is possible to return the car to the same location or to any other Hertz location in Finland.” During the peak season Hertz has a fleet of 2,000 vehicles. The most common brand in the fleet is Volvo, but the company also has Ford, Peugeot and Nissan cars, all of wich are equipped with manual gears.

rental agreement and should check thevehicle for pre-existing damage. Comprehensive super cover insurance is worth considering when renting a vehicle in an unfamiliar country. "Renting a car allows you to be flexible and to go as you please during your stay. Hertz can provide you with a car for a short perioid of time, or up to a year with the mini-leasing service. Hertz canalso provide competitive rates to corporate customers. From our wide selection of cars, everyone can find a vehicle tosuit their needs," says Haikonen.n www.hertz.fi

Always check the rental agreement Customers should always be aware of what is stated in their

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Si x t Finland - Committed to Customer Service Sixt Finland began operating in 2005 and has grown rapidly despite the economic downturn. Today, the company has 22 offices in major cities and airports across Finland. In July 2010, it was acquired by Veho Group, the largest automotive corporation in Finland. Perfect customer service

Automatic and manual

Sixt Rent a Car is famous for having fast rental administration, a simple reservation system and ready-to-go cars. It was recently voted the best car rental company in the world by readers of Business Traveler USA. As in all Sixt offices, Sixt Finland is committed to providing its customers with perfect service. Customers have a choice of reserving a car using the phone, internet, smartphone or email. The Sixt smartphone application has become increasingly popular over the past few years. With the Sixt Express Card, customers can save valuable time when booking and picking up a car as all their details are saved under their loyalty card number. In central Europe, Sixt has quick check-in kiosks where customers can simply enter their reservation number, sign the rental agreement electronically and collect their car keys from an electronic deposit box. This facility is not yet available in Finland but the company says that its friendly staff make sure customers get their keys within minutes. "Cars are serviced regularly to ensure maximum safety for customers," says Sixt Finland's marketing manager Taina Kivistö. "They are cleaned just before the customer's arrival to ensure comfort. Naturally, Sixt offers any additional equipment required such as child or baby seats, navigation systems, winter packages and ski racks. In many locations the secure key drop box gives customers the possibility of returning the car at any time."

Sixt Finland has a large variety of vehicles ranging from small economy cars to vans, trucks and luxury SUVs. Cars are available with either automatic or manual gears. As a subsidiary to Veho Group, Sixt Finland is able to cater for all the needs of its customers and for any size order. Sixt has around 100,000 rental cars around the world, excluding limousines and lease vehicles, and it is Mercedes-Benz’s biggest corporate client. All Sixt cars are new; their average age is just six months. “During the summer, Sixt Finland also offers more exotic cars like cabriolets. In Spain, France and Germany Sixt customers have the choice of Sixt Luxury Cars. How about a Ferrari or a Maserati? Or perhaps you prefer a Rolls Royce?” suggests Kivistö. As with all car rental companies, Sixt customers need to provide a valid drivers’ license and credit card in order to rent a car. Online customers can also opt for a prepaid booking, which can lower the price by up to 10 percent. Insurance can be purchased from Sixt to cover the car in case of an accident. Loss damage waivers do not provide cover in case something happens to the glass or tyres of the car, so customers can opt for special glass and tyre insurance. "Insurance policies cab have major differences depending on the country you rent the car in. It is advisable to make the booking in your home country where you can ask questions from a local Sixt representative in your own language. In Finland - despite what many southern customers think," says Kivistö.n www.sixt.fi

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Lapponia Lakka Cloudberry Liqueur - Experience the Northern Wilderness

apponia Lakka cloudberry liqueur makes an excellent gift to bring back home from Finland. This exotic drink is made from hand-picked cloudberries and can be enjoyed just as it is, but it goes particularly well with coffee and desserts. Lapponia’s tradition of liqueur-making goes all the way to 1867, when Russian Tsar Aleksander II granted rights to Turku-based merchant Anders Nordfors to manufacture alcoholic beverages. The production of Lapponia Lakka liqueurs has remained in Turku in southern Finland to this day. Lapponia Lakka, a golden, delicate and aromatic liqueur, is made from hand-picked cloudberries from northern nature.

Part of a global group Lapponia is now part of the Pernod Ricard group, a world-leading wine and spirits producer known for its premium brands. Pernod Ricard’s portfolio includes well-known brands such as Mumm and Perrier-Jouët champagnes, Absolut Vodka, and Scotch whiskies Chivas Regal and The Glenlivet. Cloudberry (rubus chamaemorus) is often seen as a Nordic berry, but it grows in northern Russia all the way to the Pacific Ocean. Cloudberries also grow wild in northern Canada and Alaska. Cloudberry is a marsh plant with many different names in Finnish. Its berries can be found in open and wood-covered marshlands all over the country. The leaves of the cloudberry are very sensitive to harsh growing conditions, such as heavy rains or night frosts. In Finland, the plant’s white flowers are in bloom in June and the golden

berries ripen in July/August. A ripe berry is yellow, juicy and tasty. Cloudberries are one of the most valued wild berries in Finland. Cloudberries contain more fibre than other Finnish berries, and their vitamin A and C content is high. They also contain more vitamin E than many other fruit and vegetables. Cloudberries are even used in skincare products made by the cosmetics industry.n www.pernod-ricard-finland.com

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Expertise leaves its mark.

When high technology combines with world-class competence, the printing product can be nothing short of immaculate.

Art-Print Oy www.artprint.fi Helsinki Haukilahdenkatu 4 PO Box 45, FI-00551 Helsinki tel +358 20 750 4500 fax +358 20 750 4555

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