Business Estonia 1/2010 by Perhemediat Oy

BUSINESS ESTONIA

1/2010

www.business-estonia.eu

ESTONIA

1/2010

Estonia - Striving to become a true ''Nordic'' economy

Competitive Estonian economy open to growth

SKANSKA EMV Building Bridges to and in Estonia www.business-estonia.eu

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50 Editor-in-Chief Jorma Leppäniemi Editors Maris Hellrand Tiit Konsand Martin Palm

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Language editor Nordic International Ltd

Design and layout Aivo Blum Heidi Kiviaho Photography Aldo Luud Jaak Kadarik Villu Kraan Marketing Jorma Leppäniemi Tel. +358 9 42821012 Publisher Peremeedia OÜ Pärnu mnt. 141 11314 Tallinn Estonia Contact tuotanto2@perhemediat.fi Tel. +358 9 42821015 Fax. +358 9 42821030 Cover photo: iStockphoto Printed in Estonia by Uniprint OÜ, Tallinn

EDITORIAL New professional business publication Business Estonia

innish publishing company Perhemediat Oy Ltd has expanded in Estonia, where it is known as Peremeedia OÜ. The classic English-language economic publication of Business Finland has now come out in an Estonian version, Business Estonia. The new Business Estonia offers a vast overview of Estonian business life and new business opportunities. Business Estonia will be published three times a year. In addition there will be special themed issues including current topics of the economy or politics. We also introduce the most attractive travel destinations from the viewpoint of potential international Jorma Leppäniemi customers. Editor-in-Chief Apart from dealing with the economy, this first issue of Business Estonia introduces politicians from the top of the Republic of Estonia: President of Estonia Toomas Hendrik Ilves and economy and communications minister Juhan Parts. As well as regular business coverage, the magazine also contains a fresh and up-to-date view of Estonian politics, culture, lifestyle and sports. Distribution of Business Estonia is mainly outside Estonia, for example through the country’s trade representations, chambers of commerce and foreign media. Foreigners working and studying in Estonia, and those visiting Estonia, are also target groups. This very first issue of Business Estonia will also be handed out at the Shanghai World EXPO 2010, in the Estonian Pavilion.

About publishing company Perhemediat Business Finland, the leading international publication on the Finnish economy, has reached the age of 20. During its two decades of publication it has featured movers and shakers of Finnish business as well as a number of the country’s key decision makers. The publisher of the Business Finland is Perhemediat Oy Ltd, a company owned by an active publishing family for two generations. Perhemediat Oy Ltd also publishes magazines, non-fiction books within education, guide books, as well as books on hobbies and lifestyle. We are delighted to start supplying positive business news from Estonia too!

Photo: iStockphoto 4

Business Estonia 1/2010

Estonia

- Striving to become a true ''Nordic'' economy

Estoniaâ&#x20AC;&#x2122;s president talks frankly about his countryâ&#x20AC;&#x2122;s competitive advantage when it comes to logistics and high-tech creativity. He dreams of a truly knowledge-based economy that will lead to a higher quality of life for Estonians and people throughout the world. Text: Maris Hellrand Photos: Villu Kraan

Business Estonia 1/2010

One aspect that investors have found very appealing is the countryâ&#x20AC;&#x2122;s tax policy; Estonia has a flat tax rate and no corporate tax on reinvested profit.â&#x20AC;&#x153;

President of Estonia, Toomas Hendrik Ilves

Business Estonia 1/2010

oomas Hendrik Ilves, President of Estonia, strongly believes that his country is one of the easiest places to do business today in Europe because it has the most friendly business climate, and he is not afraid to say it. "To start with you can just register a company online," he says. "It's a matter of 10 minutes and you have your company established." One aspect that investors have found very appealing is the country's tax policy; Estonia has a flat tax rate and no corporate tax on reinvested profit.

On-time delivery President Ilves believes Estonia's competitive advantage rests on two major

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pillars. When it comes to the production of traditional products such as furniture the advantage lies in logistics, and in the realm of intellectual services Estonia has the advantage of providing creative software solutions. "I'll tell you why countries in northern Europe have found Estonia particularly interesting to do business with. In this globalised world, where everyone is talking about cheap production in China, what has kept northern Europe functioning is a new logistical model called 'ontime delivery', which clearly goes in the opposite direction of massive cheap production," he says. It is clear that few companies can compete with Shanghai in terms of labour costs. Products are produced in bulk at low cost, and are then shipped

over for three months and stored in a big warehouse. As Estonia's labour costs cannot compete with those in China, companies have had to adopt the alternative model. In this model, companies produce things only when customers want them, they make them quickly to a much higher level of quality and bring them to customers quickly. President Ilves illustrates this with a perfect example; a Finnish furniture company, based in V천rumaa, Antsla, which is completely computerised. "They have showrooms all over northern Europe. So a customer goes into a showroom, says 'I like that chair but I'd really like pink polka dots on it, not green leather'. The order goes to Antsla. The chair is tailor-made according to the

The internet phone service Skype, in particular, has become Estoniaâ&#x20AC;&#x2122;s trademark in the IT world, but it is not the only example. One of the most successful public mobile phone parking systems used in the world was also invented in the country.

customer's choice, the next morning it's on a truck, goes to the ferry in Paldiski and arrives a day after in JonkĂśping in the showroom." He believes this will be a major part of Estonia's competitive advantage, as the labour costs are still somewhat lower than the rest of northern Europe but the quality: price ratio is very favourable. Customers get well-manufactured goods delivered quickly at a lower price, because they do not have to bear the cost of massive warehousing.

High tech President Ilves clearly considers the hightech innovative side of business to be another area in which his country is highly competitive. The internet phone service

Skype, in particular, has become Estonia's trademark in the IT world, but it is not the only example. One of the most successful public mobile phone parking systems used in the world was also invented in the country. "There are a lot of creative people here thinking of new ways of doing things," says President Ilves. "Regio, based in Tartu, started out 20 years ago as a map company which, in typical Estonian fashion, was probably the first map company in the world to go completely computerised. Today Regio is developing logistics systems for Latin American countries and India, among others. In cooperation with Ericsson there is a tie-in between high-quality maps and communication systems in the Ericsson network. If you want to drive a truck from Gujarat to

Chennai and find the best way of getting there, the highly computerised logistics system helps you do that."

Transparency in e-Estonia President Ilves has been a keen supporter of everything related to IT ever since he came up with the idea of 'Tiger Leap' several years ago, which brought high-speed internet connection to the furthest corners of Estonia. It is only fitting that he now emphasises the role of intelligent software solutions in the functioning of the country's government and administration. In Estonia nearly everything can be done online â&#x20AC;&#x201C; you can register your company, administer your taxes, organise your healthcare, education and even ac-

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Business Estonia

The President characterises Estonians as responsible people who do not spend more than they have and who are willing to make sacrifices and work hard. cess immigration services. This means it is very easy for companies to do business and everything is very transparent. The computerisation of all kinds of dealings with the government adds to this transparency. President Ilves sees this as a very important factor for the overall business climate. "As opposed to the unfortunately standard image of eastern Europe, Estonia is a very clean place when it comes to corruption. You will see that we don't have the problems that are not even restricted to the so-called east European countries. On the transparency list of international corruption we can see that there are quite a few of the so-called old European countries that Estonia is ahead of." Considering a recent decision by the European Commission in May, the odds that there will be a political decision for Estonia to adopt the Euro are overwhelming, which will make it even cheaper to do business here. In addition, Estonia and Sweden are now the only countries fulfilling the Maastricht criteria for public deficit.

Innovative creativity The President sees the most positive scenario for the future of Estonia as a knowledge-based economy that increasingly relies on intellectual creativity. But

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he admits that, in order to do this, Estonia needs greater investment in higher education. "The education system is fine for what we have today but if we want to take a serious step forward in really becoming a knowledge-based society, we need to put even more money into education. My own vision is that our competitive advantage lies in the intellectual creativity of the population." This is clearly a political decision, which will be relevant in future elections. But President Ilves sees that while the creativity is already there, the educational base needs to be developed. Denmark, Finland and Sweden have all already moved in that direction. "In the quickly changing world, education is something that needs to be life-long. To think as we did in the 20th century or even more in the 18th or 19th, that what you were born to do is what you will do your entire life, does not apply today. Up to the 19th century â&#x20AC;&#x201C; for 1,000 years â&#x20AC;&#x201C; if your father was a farmer you were a farmer. Maybe you had a better plough but nothing changed. In the 20th century things changed quite a bit but nevertheless if you studied to be a doctor in the 1930s you would still be operating with the same technique in the 1970s. "Today, what you learned in university, especially in science or technically-related subjects, it may completely change 10

years later. When I was a child I couldn't understand how my parents lived without television; now my oldest child cannot conceive how I ever lived without the internet. In fact, I don't understand how I lived without the internet. Clearly education is the key factor." President Ilves admits that Estonia also needs to devote more attention to quality-of-life issues, while will involve better infrastructure and more attention paid to life outside Tallinn. "If we want Tartu University to be a place where people come to, we have to make sure that Tartu is an appealing place for people outside Estonia. It may be very charming to us but not necessarily to people from TĂźbingen."

Flexible labour market President Ilves praises Estonia's flexible labour market. The country's employment policy is much more flexible than the rigid systems in place in many other countries in Europe. In fact, in his view this is what has enabled Estonian companies to land on their feet during this international crisis. The flexibility has allowed companies to stay alive. President Ilves underlines the importance of ensuring the will of the government and the people to put up with very dramatic and serious cuts in expenditures. Estonia's state costs were reduced in

2009 by 9 per cent. Nevertheless, the government continues to enjoy support at a level that is higher than average in the European Union. "We can compare [our situation] to developments elsewhere where there has been profligate spending, where cutting back on clearly unsustainable policies results in riots. The Estonians have shown

a remarkable willingness to face difficult times stoically." The President characterises Estonians as responsible people who do not spend more than they have and who are willing to make sacrifices and work hard. These are the same characteristics that built the success of Finland, Sweden and Denmark, and will determine the future suc-

cess of Estonia. "As I have been saying for over a decade, we are fundamentally a Nordic country with a somewhat unfortunate history but our values of behaviour and mindset are the same as in other northern countries and differ substantially from those of other countries that underwent communism against their own will." www.president.ee

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Minister of Economic Affairs and Communications, Juhan Parts 14

Business Estonia 1/2010

Competitive Estonian economy open to growth The Estonian economy has proved its ability to succeed. Flexibility and openness are the characteristics and pervading principles of Estonian economic policy. We are an ecountry with a favourable business climate and cost advantages, and open to growth. The objective of the Ministry of Economic Affairs and Communications is to create overall conditions for the growth in the competitiveness of the Estonian economy, and its balanced and vital development. It will aid this through the drafting and implementation of Estonian economic policy and by evaluating its outcome.

Text: Tiit Konsand Photos: Jaak Kadarik

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Business Estonia

inister Juhan Parts has led the Ministry of Economic Affairs and Communications since 2007. He has also been Prime Minister, a member of the Estonian Parliament (Riigikogu) twice, Auditor General and Deputy Secretary General of the Ministry of Justice.

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Achiever of the Year 2009 Juhan Partsâ&#x20AC;&#x2122;s political party Pro Patria and fellow conservative party (with whom Pro Patria merged in 2006) Res Publica Union declared him to be the achiever of the year 2009 for getting things done. Parts gained recognition for protecting and supporting business-oriented pro-

grammes in government, helping to create jobs and creating conditions that at the end of 2010 means unemployment in Estonia will stop rising. Parts says it is a nice recognition, which definitely encourages harder work. And he adds that to work as the minister of economy during an economic recession is a major challenge for him.

We have implemented a stimulating programme for our economy in Estonia, equivalent in volume to the average of OECD countries apart from the United States. This has been done to create jobs and maintain and develop the exports of Estonian enterprises.”

“We have implemented a stimulating programme for our economy in Estonia, equivalent in volume to the average of OECD countries apart from the United States. This has been done to create jobs and maintain and develop the exports of Estonian enterprises,” explains Parts. “Despite this the crisis has had serious consequences. An explanation for this is simple – credit volumes, which came to Estonia during the boom years were so large that to replace their effect with something else was unrealistic and probably incorrect. As of now, payments from that period made by EU funds are around EEK 11 billion. This amount is large and definitely gives a boost to the development of our country, but it is not so large as to turn day into night or the economic crisis into growth. During the boom years much more money came into the economy with loans than is now coming from European support. For example in 2007 the increase in the loan portfolio of individuals and companies was over EEK 60 billion, which is about the same as for the entire financial period that came from Europe.”

Economy rises gradually The International Monetary Fund (IMF) was more optimistic in its recent economic forecast for Estonia, predicting economic growth of 0.8 per cent this year and 3.6 per cent next year. The Ministry of Finance expects the growth to be 1 per cent this year and 4 per cent in 2011. Parts admits that economic growth definitely makes him pleased, but in the first quarter of this year Estonia's GDP still decreased. “However, it is expected that if the world economy is not attacked by new setbacks and demand does not weaken on Estonia's main export markets, the time when we’ll be talking about real growth is not far away.” According to Juhan Parts decisions alone to adapt have led us to more reliability and adaptability, which we have shown is the argument for investing in Estonia.

Business Estonia 1/2010

Business Estonia

the overall economic situation in the economy, but not only that. When I compare the current time with the beginning of the 1990s, it is easier to get investment in Estonia today than it was at that time. We are known and trusted partners for our close neighbours. Over the years we have built up an environment that provides a secure basis to act here. With the economic crisis prices and wages have fallen and, unlike better times, it is possible to find qualified workers. So if someone has a good business plan, Estonia may be a good place to carry it out. For instance in addition to latest investments in Estonia we can mention – in addition to Hyrles –Trelleborg and Ericsson too.”

“Decisions on adapting are made by individuals and businesses, as well as the country. The initial reaction to the economic downturn and loss of revenue is that costs should be reduced. It’s not pleasant, but there is no other way. Decisions have been made to adapt and preserve. For many companies this has meant more work in searching for export opportunities. The countries have handled it redirecting the money instead of supporting different businesses to export guarantees and support. “Thanks to the conservative fiscal policy, we are producing stability in a world which is full of debt-stricken countries. Saying that, I somehow do not want to understate the problem of unemployment, which remains a major challenge for the Estonian state and people. The new jobs will require new investment and we are working for this.”

Estonia's attractiveness increases Parts sees in his everyday work that the willingness to invest among entrepreneurs has been gradually increasing. “This is for both domestic and foreign investors. Of course, this greatly affects

Business Estonia 1/2010

Joining the euro zone would be the logical continuation of the successful monetary policy based on the currency board system. Particularly in the current global economic situation clear and specific prospects for the adoption of the euro provide assurance and increase the reliability of the business environment here. “The introduction of the euro does not change night into day or loss into profit. However, it is certainly a good thing that the currency circulating in Estonia and the prices are easily understood by the half a billion people living in the European Union, and actually probably by a lot more. For foreign investors there is no longer a need to explore and think about what kind of risks the local currency involves. For Estonia the euro is a predisposing factor in the current economic situation, although not a panacea.”

Thanks to the conservative fiscal policy, we are producing stability in a world which is full of debt-stricken countries.”

Competitive in the world? “Since the outbreak of the crisis, we see exports from Estonia to be the answer and the last few months have brought the first positive news. Estonia’s exports in January grew slightly more than a tenth. In February compared to the same time last year the growth was 24 per cent and the Estonian foreign trade balance was positive again after a long time. In February industrial production in Estonia also turned positive. In recent weeks the registered unemployment rate has fallen,” says Parts. “The economic crisis teaches us conservatism and although the figures listed above are positive, we must also take into account the fact that they are partly influenced by one-off factors such as the cold winter, which increased power consumption and exports. However, I believe that the Estonian companies have chosen the right course in the new situation, and sooner or later, the work will bear fruit.” www.mkm.ee

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Estonian pavilion

Business Estonia

Enterprise Estoniaâ&#x20AC;&#x2122;s director of marketing and communications, Erki Peegel 20

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at EXPO 2010 in Shanghai urges action to save the cities

The EXPO 2010 in Shanghai, China, runs from 1 May to 31 October this year and the main theme is “Better city, better life.” It will highlight the global public attention on the rapid urbanization problems and tries to look for solutions. EXPO’s theme reflects mankind’s desire for a better life in the future urban environment – in 1800, 2 per cent of the world’s population lived in a city, 29 per cent did in 1950 and in 2010 the United Nations estimates the urban population share of the total to be 55 per cent. At EXPO, Estonia is portraying itself as a small and innovative Nordic country that wants to help people arrive at better solutions through improving environments for living and creativity. The organizer of Estonia’s participation at EXPO 2010 is Enterprise Estonia.

Text: Tiit Konsand Photos: Jaak Kadarik /EAS

ccording to Enterprise Estonia’s director of marketing and communications, Erki Peegel, Estonia will unveil an interactive pavilion (ca. 1,000 sq m) that calls on people to join in an initiative to "save" the world’s cities. "The pavilion will allow people to make their voice heard regarding urbanization, encouraging all visitors to think about and look for solutions to topics related to growing cities. The Estonian pavilion will literally be clad in bright folk costume, distinct from the other Nordic pavilions (Finnish, Swedish, Danish and Norwegian) and their more

Business Estonia 1/2010

Business Estonia

modest shades of colour. An Estonian flag on the roof of the pavilion will wave on Google Earth. Inside, an art installation offers participatory possibilities. Situated throughout the entire pavilion are giant piggy banks that will fill up with good ideas from visitors for making the world’s cities better. The big screen in the pavilion will demonstrate to visitors what the world’s best city is like," says Peegel. "The last few decades have seen an

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increase in community-oriented thinking worldwide. The greater level of civic association stems from a desire to do something to make living environments better. Community networking is facilitated by modern information technology solutions – the Internet, and the online telephony application Skype, which was developed in Estonia and continues to be based in the Estonian capital, Tallinn," he says.

Seedbed of the global debate Peegel points out that Estonia has put into practice a number of initiatives worth sharing with the world. Consider the "Let’s Do It" campaign in 2008, when 50,000 volunteers took part in a rubbish cleanup event nationwide. Valuable experience has been shared on the global arena – similar actions have been carried out in India, Italy, Portugal, Slovenia

The Estonian pavilion’s seedbed for global synergy is an online interface called SAVECITY.ORG. It is dedicated to gathering good thoughts and ideas and sending them to different cities. Ideas and solutions will be posted on the portal for exchanging and developing experiences. For instance, a city with a problem of rubbish left on the streets might learn from the positive experiences of another urban area.”

and Romania, among other countries. In 2009, people turned out en masse for nationwide brainstorming sessions on how to improve governance and make life in society better – a valuable exchange of experience that instilled self-confidence and spawned many new initiatives. "The Estonian pavilion’s seedbed for global synergy is an online interface called SAVECITY.ORG. It is dedicated to gathering good thoughts and ideas and

sending them to different cities. Ideas and solutions will be posted on the portal for exchanging and developing experiences. For instance, a city with a problem of rubbish left on the streets might learn from the positive experiences of another urban area," explains Peegel. "SAVECITY.ORG also provides a way for those who cannot make it to Shanghai to address issues concerning their home towns and other cities. And to allow visi-

tors to continue to communicate and exchange positions, the portal boasts a forum categorized by topic and city, where visitors can interact and comment," Peegel adds. "One of the portal’s central goals is to use a community-based mindset to improve the situation in the world’s cities. Part of the interface focuses on offering a means for creating and administering efficient communities of engaged people all over the world – people who will continue to keep these virtual cities active even after the EXPO closes in October 2010."

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Business Estonia

Increasing interest in Estonia? "EXPO is not a trade fair, but is an event for introducing different countries. It will not put too much emphasis on what someone has to sell. Estonians, however, built a small conference room by their pavilion where universities or companies can look for customers and partners," Peegel admits. The concept of the Estonian pavilion at EXPO 2010 was created by a team from the brand agency Identity, the architecture company AET-Arhitektid and the interior design firm Ruumilabor. The aims of the Estonian pavilion at the World Exhibition are: to create interest so visitors will want to travel to Estonia; to create an interest in Estonia as a place where you can do business or study; to organize special events in a closed area of the pavilion (to develop commercial, cultural, educational and other relations); to introduce Estonia in general on the global stage.

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According to Peegel Estonia has an opportunity to attract attention among other pavilions thanks to its different form, and after the event as well with its content. "To serve people the things why we are there through surprising effect. After that the team’s work at the pavilion is to direct people to look at Estonian cultural, educational and tourism opportunities and to turn initial interest into real business contacts." "WORLD EXPO 2010 is the best opportunity for Estonian innovative companies and institutions to establish contacts with a rapidly developing Asia. In the socalled “closed workshop area” (for VIPs) various business and professional associations – and umbrella organizations – have expressed an interest in introduc-

ing themselves. A number of events have been planned in advance already. Most active are the logistics and transit sector with clear economic interests in China. They have planned a series of events for June and the autumn. In early May an exhibition of the IT sector was opened in the pavilion area and seminars were held by the Centre for Information Technology and Telecommunications Union (ITL), and the City of Tallinn. In late May events were organized by the tourism sector. In addition to the transit sector event in June, the Tallinn Tehnopol and Tartu Science Park seminar also took place." Erki Peegel explains that EXPO presents a major opportunity to establish direct contact with major foreign partners. "Businesses or business organizations themselves have to set specific objectives and focus and I know that many of the industries already have their objectives. The Estonian state offers, through the pavilion at the EXPO, a unique opportunity to create meaningful contacts with one of the world’s fastest growing countries. It can be said that the EXPO is a global meeting place for six months. I believe that the EXPO has been an inspiration to businesses and active people. "Enterprise Estonia’s EXPO team consisted of five members during the setup period. This was in addition to the serious

work over the past year done by a consortium, ‘savecity.org’ (AET Architects, Ruumilabor and Identity). From the beginning of the EXPO 2010 – 1 May – 21 people have been working at the Estonian pavilion every day, building stands, IT specialists and so on. They come from places such as China and Estonia." The EXPO should see 70-80 million visitors during the six month duration, and the Estonian pavilion expects about 2-2.5 million people to visit it. Participation in the world exhibition will cost Estonia about EEK 60 million.

Good opportunities for the IT sector Estonian IT entrepreneurs and representatives from the City of Tallinn introduced the country’s e-solutions at a seminar held in the Estonian pavilion at EXPO 2010. Taavi Kotka, President of the Estonian Association of Information Technology and Telecommunications, and chairman of the management board of Webmedia, says EXPO 2010 offers a good chance to promote various e-solutions. "The Chinese want to implement and develop various e-services in a number of areas, and yet Estonia’s experience and progress to this point came as a surprise to many of them," said Kotka. "I believe the businesslike meetings and major media coverage we have seen will end up generating a substantial cooperation project." Jiang Yiqun, deputy head of economic affairs and IT of the City of Beijing, said he was impressed with the various e-solutions applied in Tallinn, especially the ID ticket and comprehensive strategy for development of e-services. And head of the Shanghai association of software companies, Yang Genxing, who delivered a presentation, said that given their calibre, Estonia’s innovative solutions such as e-school and m-parking deserved to be implemented in China as well. According to Maria Alajõe, member of the management board of Enterprise Estonia and organizer of Estonia’s participation in EXPO 2010, the seminars showed that entrepreneurs are developing good contacts by being active themselves at the EXPO. "What we are offering in the Estonian pavilion is a good place for entrepreneurs to organize various events; it is good that people have seized these opportunities actively," added Alajõe.

The EXPO should see 70-80 million visitors during the six month duration, and the Estonian pavilion expects about 2-2.5 million people to visit it.

www.savecity.org

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Business Estonia

Friends and neighbours - building Estonia's tourism industry

Estoniaâ&#x20AC;&#x2122;s natural resources and fascinating culture make it the perfect tourist destination for Baltic and international travellers alike. Business Finland meets the countryâ&#x20AC;&#x2122;s Tourist Board, which has the task of promoting Estonia as a top holiday and business destination.

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Next year Tallinn will be the European Capital of Culture, and the Tourist Board is tailoring some of its marketing activities on cultural events and culture in general.â&#x20AC;? Text: Tiit Konsand Photos: Jaak Kadarik / visitestonia / Toomas Tuul / Tiit MĂľtus / EAS

Director of the Tourist Board, Tarmo Mutso

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Business Estonia

reating a reputation for Estonia as a great international tourist destination effectively increases demand for all Estonian products and services as well as the tourism industry itself. The country's Tourist Board of Enterprise Estonia is its former Tourism Office. It benefited from EU structural funds and, in order to become more efficient and for convenience, joined Enterprise Estonia. Tarmo Mutso, Director of the Tourist Board, says his office's main task is to increase tourism revenue by presenting Estonia to the rest of the world and product development plays a very important part in achieving this.

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The three pillars He says that the performance of the Tourist Board relies on three pillars: promoting Estonia as a viable tourist spot, product development, and distributing and processing tourism information. The promotion of Estonia as a travel destination in foreign markets, he says, is done by very traditional marketing, in which the Tourist Board shows what Estonia has to offer. "We do this in selected countries and cooperate with professionals or turn straight to final consumers. We cooperate with travel agents and travel journalists. For example, in Finland we have a natural opportunity to go directly to tourists or potential tourists. In our marketing

process we use fairs, outdoor campaigns, social media and so on. By using all these different ways to promote our country, we raise the reputation of Estonia abroad. Our second pillar is product development. How to create as many tourist attractions as possible in Estonia, so that people would come here for those, spend more nights, and make them keep coming back. The product development side is an excellent opportunity to use EU structural funds, which help make investments in the creation of these products. On the other hand, we also have the opportunity to improve quality. It is like the customer service and management of any attraction. Our third principal is technical â&#x20AC;&#x201C; the

development of various brochures, printing and distributing them, are also our responsibilities.”

Marketing concept and values

distribution and processing of tourism information. Here the most important keyword for us is, of course, website. Our website www.visitestonia.com is the number one marketing channel, through which we turn to the foreign market. Tourism information is also shared by manned tourist information centres, which are scattered across the country. They are for the tourists or customers who have already come to Estonia. The

According to Mutso, the Tourist Board has developed a new marketing concept based on product development, as well as four main themes: health retreats, cultural holidays, city holidays and nature holidays. Cultural tourism is further divided into four sub-categories: architecture, traditional culture, modern culture and food. These subjects form the basis of what visitors of Estonia will be offered. Next year Tallinn will be the European Capital of Culture, and the Tourist Board is tailoring some of its marketing activities on cultural events and culture in general. “For example, in Latvia we launched a new campaign called “Reserved”. This implies that our neighbours in Latvia are all welcome to cultural events. The same applies to Finland. We are well-known to the Finns and we can offer them our cultural calendar, which is one of the most popular tourism products.” Mutso says the Tourist Board has to take into account that people want a vari-

ety of things from their holiday. “Health retreats and going to spas are still very popular forms of holiday. But the future trend is that people do not come just to take care of their health emergencies. They want to complete it with something else, whether it is a cultural event or something similar.” Nature tourism is one particular area that is set to become more popular with events such as wildlife and bird watching. “At first glance, it seems that this is an issue which only concerns a small number of people. In fact, the figures are speaking a different language. We also have a great geographic advantage. Estonia sees a very large number of migratory birds, which do not appear elsewhere. The state has put in a great deal of investment to make nature observation more comfortable for the client. For instance, in coastal areas large numbers of bird watching towers have been built.” The country also boasts with swamps and marshes, and many different trails and boardwalks have recently been built.

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Business Estonia

Business tourism "Today we will talk about Estonia as the place for business tourism and conference tourism. We have new hotels, in which a business tourist feels comfortable, but for a change he wants to do something else. Estonia is in a good position here, because it is relatively small and everything is available. When driving away from Tallinn, you are already in the middle of a bog. This is definitely a good combination of work and leisure that many of our visitors enjoy. Of course our capital Tallinn is, and will certainly be, the main tourism object. Tallinn's Old Town is unique. This definitely has a great value and is a great attraction for visitors. He who has been here for longer and who knows us better, travels away from Tallinn,â&#x20AC;? Mutso notes.

Customer service When it comes to customer service, Mutso admits that it is quite a complex issue â&#x20AC;&#x201C; it is the taxi drivers and hotel administrators who make the first contact with tourists in a new country. He says the quality is variable but very important, and that attitudes to customer services are not the same everywhere. "It is one of the areas, one of the subjects, which, together with our partners, we can and must improve. We want next year's Tallinn 2011 European Capital of Culture to be ready for good customer

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service. Together with the Foundation Tallinn 2011 we are launching a hospitality programme to improve customer service representatives' attitudes even more. "On the other hand we can talk about quality in infrastructure. If we take, for example, our accommodation services, then I dare to say that good quality hotels in this price range are not very easy to find in Europe today. Principally, of course, they are mainly in Tallinn. We actually have so many new hotels that

are newly built or renovated. I think that we must not feel ashamed about quality," says Mutso. The third quality issue is the fact that customers are increasingly interested in a hotel's values, not just its infrastructure. "They appreciate the fact that the hotel, for example, abides by ecological behaviour. A good example is the 'Green Key'. Itâ&#x20AC;&#x2122;s good for people to know that here we are sustainable with nature, our shared resource.

Again, this is one issue that we all want to develop through our quality programmes. We help entrepreneurs to learn more about green attitudes and how to be economically efficient at the same time. The number of participants in our training programmes has risen dramatically in recent times."

Value for money "We have a price advantage and we hope that competitive advantage will remain in all areas. It does not need to appear only in the nightclub entrance or in what you buy from there but it is reflected in the good price of all our tourism products. To some extent, time makes Estonia a good buy as well. Estonia is a place where within a short time you can see so many different things; figuratively speaking, during a four-hour journey you can see the cliffs and the sea, bogs, slopes and hills, flat land and forests. This is not the case everywhere. Of course, we welcome all visitors, even those who come here

just to spend a relaxing city break. But we certainly have much more to offer."

Latest trends Mutso says Estonia's nearest neighbours are now the most interested tourists. "Depending on the current economic situation there has been a tendency in Europe as a whole for distances and the duration of tours to become shorter. People are not making travel plans far in advance and they are looking for more favourable opportunities. It should be noted that Finland's share has not diminished but increased. The Finnish market grew by two per cent last year and the Finns make up about 50 per cent of tourist numbers. The Finns, who previously drove somewhere far away, this time decided to make a trip to Estonia. On the other hand, the number of tourists from Latvia, Lithuania and Poland has also greatly increased. Here a lot is certainly connected with logistics. It is

comfortable to come by car from Latvia. And when more expensive flights have to be passed over because of economic considerations, it is possible to replace them with cheaper car trips." The largest change has been in the number of Russian tourists, which increased by 48 per cent last year. During the first few months of this year, especially in February, the number of tourists from Russia rose by 98 per cent. â&#x20AC;&#x153;These are very large increases, and, again, I dare to believe that this has come largely from the fact that Russian tourists (mainly from St Petersburg), who first decided to go somewhere far away, replaced their trip with a trip to Estonia. "In many ways, I believe that it is also connected with their trip to Finland. Technically, the Schengen visa area helps us a lot. The role of neighbouring countries in our tourism revenues in today's economic situation has become even more important." www.visitestonia.com

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Capital of Culture 2011 - Telling the story of

Estonia Next year the Estonian capital Tallinn and the Finnish city Turku will share the honour of being European Capitals of Culture. With a schedule of exciting independent and collaborative events, the programme looks set to invigorate Estoniaâ&#x20AC;&#x2122;s cultural tourism industry. Text:Tiit Konsand Photos: visit.estonia.com, istockphoto, Villu Kraan

ince it was introduced 25 years ago, the European City of Culture has given more than 40 cities the opportunity to present their distinct and diverse culture to millions of people from all over the world. The status of the event and the attention it attracts give the city a great chance to transform the existing cultural scene â&#x20AC;&#x201C; carrying out daring ideas, creating new cooperative projects, reinforcing existing organisations and structures, and including more people in cultural life as organisers or participants.

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The enterprise was a great success right from the beginning and its scope was extended. Since 1999, the selected cities have been called European Capitals of Culture and for the past five years two cities have been named as Capitals each year. In 2011, Tallinn will share the role with Turku in Finland, a city close to Tallinn and the nation to which Estonia has the closest ties.

Cultural foundations The year of the Capital of Culture will be a great occasion for Estonia. The preparation and formulation of cultural events is assisted by Foundation Tallinn 2011, which aims to encourage local people to participate in the creation of the programme and to help convert ideas into real events. The Capital of Culture Foundation is an independent organisation tasked with planning the Capital of Culture programme by collecting, selecting and assessing ideas and proposals in order to ensure an exciting, extraordinary and sophisticated cultural year. The foundation was established in April 2007 by the city of Tallinn and has been fully operational since spring 2008. Tallinn was confirmed by the European Commission as the European Capital of Culture 2011 in November 2007. Every city bidding for the title must compile a comprehensive initial plan showcasing itself and outlining how it would view itself as a Cultural Capital, any problem areas in the programme and how they would go about achieving the title. This plan is submitted to the European Commission.

The Capital of Culture is formally different in different countries and this is perhaps on one hand the charm of it and, on the other hand, it is intended for experimentation and searching for something new.

â&#x20AC;&#x153;We want to tell storiesâ&#x20AC;? Mikko Fritze, International Relations Advisor, says the experience shows that the main aim of European Capital of Culture is to raise the number of tourists. The statistics show that participating cities normally have a two digit increase in tourist numbers, but in some countries the increase is negligible. Fritze is realistic and

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Business Estonia

International Relations Advisor, Mikko Fritze

We want to tell stories about Tallinn in general, which are not known. Of course, all of our events are packed so that everything is as interesting as possible. “

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believes numbers will rise by about seven to 15 per cent. “Even from Estonia itself many more people will come to Tallinn to see what we are doing here. A person thinks, ‘I have not visited Tallinn for a long time – let’s do it now. We’ve been to Oslo and Tampere but not to Tallinn.’ And the better the programme is, the better the communication is, the more people will come.” Fritze says that another important goal is to send the message to people that Tallinn has its own culture and its own story. “The fact is that the title Capital of Culture is a very strong brand since it is the only such cultural brand across Europe. This is still an event and only two cities a year have this possibility. The cities get attention in particular, of course, from the media and it is free. For example, when an Italian, Austrian, or even Canadian magazine starts thinking about what they are doing here in Tallinn, we

must be prepared to tell them something. We do not just tell them that the philharmonic is playing somewhere in the hall, but we want to tell stories. “We want to tell stories about Tallinn in general, which are not known. Of course, all of our events are packed so that everything is as interesting as possible. For example, we are making a straw theatre, which incidentally is the world’s largest straw building. We will attempt to set things so that when we already have the media’s attention, they start to talk about it.”

Sharpened attention Fritze describes the Capital of Culture as a “unique opportunity” to get media coverage of the city, but says that this will not happen overnight. “It is very, very important that we get more attention through the media coverage of this brand, this title ‘Euro-

pean Capital of Culture’. And anyone who reads something about us must not just appear in the same year. Maybe he comes in 2016 when he is on a business trip to Helsinki. He has seen or read somewhere that there is a town in which a song festival was held and where they opened the seaside and they had a straw theatre. He remembered it somehow. “You can’t underestimate that if you want to brand a place with conventional methods – if you want to buy ads in the media or articles – it gets very expensive, but now we get it all free of charge. Some people do not understand that this is a great opportunity for us. They want to immediately see that the hotels are full and every single event makes a lot of money. This opportunity is much wider,” says Fritze. “Maybe a straw theatre is so exciting that everyone wants to talk about it. In fact, it is a very simple idea and I’m sure it works. Maybe people really talk about

the fact that the Capital of Culture is a symbolic cultural event, which is joining different communities. I think we have a number of such things. For instance the bottle mail festival is a very modern idea; we make a raft from old bottles and sail from Tallinn to Turku. Many innovative and exclusive things will happen.” Although not everyone in Estonia understands the importance of the Capital of Culture, Fritze is hoping to promote the programme with an information campaign next year. “People all over the world will know that there is one country with its culture, its funny language, where a large minority lives with whom they also have to be able to get along and their neighbour is Russia. I think this already has value of its own.” The goal is not to show that one country is better than another. “We show that we are able to do things together. Not to just show that we are the best and it is

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Business Estonia

” The beginning phase was very difficult because everyone wanted to benefit from it and you started to look at the square – what kind of things are suitable and what kind of things must be created to make it a real Capital of Culture..” 36

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now the world’s best event. In the whole context, this is just one simple method to show that Europe is an interesting place.”

Creating the concept “The format of the European Capital of Culture is not like the Olympic Games in which you know in advance that you need a stadium and so many people will come to take a look at the competitions etc,” says Fritze. “The Capital of Culture is formally different in different countries and this is perhaps on one hand the charm of it and, on the other hand, it is intended for experimentation and searching for something new. The beginning phase was very difficult because everyone wanted to benefit from it and you started to look at the square – what kind of things are suitable and what kind of things must be created to make it a real Capital of Culture. Fritze says there was great pressure at the start of the process, because expectations were high and people wanted to see the results very early on. “Many people wanted to see some kind of programme within the first month, to see what to sell and have a clear picture of what we will have. It was difficult to create the right framework. The framework had to be such that, for instance, an opera had a chance to create something that had not been done before. “It was not easy to create the concept of the Capital of Culture. We did not want to just have slogans like ‘Tallinn is the most beautiful city in the world’ or ‘Love comes from Tallinn’. We wanted to find out what is really important in this city and what kind of things fit with its needs.”

Stories of the seashore In order to find this out, the organisers held a public competition open to everyone in the city, not just people already involved in culture. Residents were asked what they would like to see happen during the Capital of Culture year and were invited to come up with their own ideas. The main themes that came up were

the sea and the environment, particularly the urban environment. A key idea was that Tallinn should be open to the sea. “The sea just came out of it,” says Fritze. “It was one of my tasks to create a concept. It is painful to see that Tallinn does not have a real relationship with the sea – its whole history is linked with the sea. This place is unique and beautiful and, fortunately, this was also reflected in many of the proposals. The message we have is poetic and full of fantasy because the sea is always nice. It can only be a benefit to Tallinn – it is a very good concept. But the whole programme does not revolve around the sea.”

Events and criteria More than 600 ideas were proposed for a coveted spot on the official events calendar. A creative council made up of people respected in the cultural world went through the proposals, finally choosing 251 ideas to be developed. The criteria were that the events could not be too narrow, must be innovative and have a European dimension.

Cooperation with Turku Of course Estonia will not be the only Capital of Culture in 2011. Fritze says the relationship between Turku and Tallinn will be both cooperative and competitive, but the competition will be friendly and healthy. “In the beginning, when I started to work, we thought together with Turku

about how to develop cooperation. We always had contact persons on both sides that watched what was happening. We thought that it should develop organically and we did not forcefully organise any joint events.” Fritze says a variety of proposals came up, some which could be further developed together, some which could be divided and some which could happen simultaneously in both cities. Around a dozen joint cultural events have already been organised. “It is very important to create a good relationship. Some ideas are developed with Russia, especially St Petersburg; the project’s name is ‘Baltic Sea Trialog’ and before it ‘Baltic Memories’. And there are some bilateral projects too. “But we’ve always said that of course we are competitors with Turku. Of course we want to be better than each other. But this competition is not a bad thing. This will stimulate the situation. “We both realise that it is wise to present ourselves together to remote markets. If someone comes here from Germany, for instance, it is good for him to know that he can visit two cities at the same time. We’ve always cooperated with Helsinki and they also want their share. So we know that if someone comes to Turku from abroad he will maybe come to Tallinn as well and vice versa. It is a unique opportunity in history.” www.tallinn2011.ee

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Text: Maris Hellrand Photos: Villu Kraan / Eesti Energia

Maris Hellrand meets the Estonian company that boasts the worldâ&#x20AC;&#x2122;s most comprehensive solution for processing oil shale.

Eesti Energia - creating new energy

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We are now building a new factory that is twice as efficient, environmentallyfriendly and that uses all the oil shale that it is possible to excavate,â&#x20AC;?

CEO of Eesti Energia, Sandor Liive

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Estonian Solution

esti Energia is a state-owned Estonian company that manages the complete value chain from oil shale mining, electricity and heat generation. This includes shale oil production through to electricity distribution and sales, as well as additional energy-related services. In addition to operations in Estonia, Eesti Energia also sells electricity to retail customers in Latvia and Lithuania where it trades under the Enefit trademark. Eesti Energia also trades with electricity on the Latvian and Lithuanian wholesale markets, and in the Finnish price area of the Nord Pool power exchange. The opening of the European electricity market brings new challenges to a company that is also the largest employer in Estonia with over 7,000 members of staff.

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Unique oil shale expertise Sandor Liive, CEO of Eesti Energia, wants to concentrate on the unique aspects of his company. First of all it has many years of experience of using oil shale. There is plenty of oil shale around the world that is not yet used commercially. The biggest deposits of oil shale are located in the USA, and there are also very big ones in the Middle East, North Africa, Australia and China. Liive believes that the usage of oil shale to produce non-conventional liquid fuels has great potential, and Estonia is one of the few places where it is currently being used. In fact, the Estonian energy system is the only predominantly oil shale-based energy production system in the world. "The usage of oil per day in the world is just under 90 million barrels; this can-

not be done without deep sea drilling in new wells and we have all heard what happened in the Gulf of Mexico. It is cheaper to produce liquid fuel from oil shale than to drill oil from deep sea deposits," claims Liive. "As producing liquid fuel from shale oil is unique to Eesti Energia, it will be a cornerstone of our future development." Using its state-of-the-art technology, the company produced one million barrels of shale oil in 2009. It plans to produce three million in 2012 and seven million barrels four years later.

When producing oil, nearly every part of the oil shale will be used; 85% is turned into oil and gas and the rest will be burned for electricity. Even the ash can be used in the construction industry. "We are now building a new factory that is twice as efficient, environmentally-friendly and that uses all the oil shale that it is possible to excavate," says Liive, adding that the company does not have a competitor in this area. Eesti Energia's development will therefore concentrate on increasing the production of shale oil and on exporting

the technology to countries that have big deposits of oil shale and wish to start using it. The company has already signed a contract with Jordan to start research into Jordanian oil shale deposits and the possibility of using its shale oil production technology. Talks with Morocco, the USA and China are ongoing. The company wants to use its global advantage in shale oil production by selling its technology. Shale oil is currently produced in Estonia as crude oil, which is used in energy production and mixed into ship fuel. Liive says Eesti Energia

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Estonian Solution

plans to build an after-treatment plant where hydrogen treatment produces synthetic crude oil, which can be treated in refineries in order to create products such as diesel and petrol.

Regional leader The other key part of Eesti Energia's business is the retail of electricity in Estonia as well as in the Baltic and Nordic areas. "Of course our vision is to remain an important electricity retailer in this region," says Liive. Eesti Energia sees its role as a leading regional energy provider with a diversified portfolio, which at the same time guarantees energy security for Estonia ensuring that the country will always have electricity. The company's success in generating electricity and heat is based on a diverse production portfolio that

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conforms to the increasingly strict environmental requirements of the European Union and is competitive in the regional electricity market. "We see clearly that the amount of renewable energy is growing considerably in relation to fossil fuel-based energy," says Liive. Eesti Energia now has the most powerful wind farm in the Baltic States and is in the process of building new onland wind farms, one near Paldiski and one near Narva. It is also preparing its first on-sea wind farm project in the bay of P채rnu. This area has excellent conditions with low water levels and nearby network access points. Eesti Energia also offers a 'green energy' product with a higher retail price than normal energy. More than 3,000 clients are willing to pay more in order to use sustainable energy. According to Liive, if clients are prepared to do that it

will lead to faster development of renewable energy. The company also uses wood as biofuel for its power plants. This is a good source of renewable energy, says Liive, as it makes use of wood that would otherwise remain in forests and would not be used in timber production. It also lessens the environmental impact of oil shale energy as it reduces the usage of oil shale, CO2 emissions and ash. At present, 35 hydropower stations and 18 electric wind turbines across Estonia produce green energy, which amounts to about 2 per cent, or 100 million kWh, of Estonia's total electricity output. Eesti Energia renovated two of the bigger stations; Keila-Joa hydropower station has been generating electricity since 2005 and Linnam채e hydropower station since 2002. Another new beginning is the waste-

to-energy co-generation block that Eesti Energia is planning to build in the Iru power plant on the border of Tallinn. It will be the first energy block in the Baltic States to produce electricity and heat from household waste that has so far been dumped in landfills – a technology that has been common in the Scandinavian countries since the mid-1970s. Ando Leppiman, head of Eesti Energia's renewable energy unit, says that when the plant becomes operational in two years time it will be able to turn up to 220,000 tonnes of Estonian household waste into electricity, heat and hot water. Today this waste ends up on dumping grounds although, perhaps surprisingly, it has the same energy output as oil shale. This will also provide a chance to use more oil shale more efficiently by producing liquid fuels. According to Liive, Eesti Energia's investment plan for the next 10 years is fixed and in order to finance it the company will need equity in addition to credit. The company is 100 per cent owned by the Republic of Estonia, and the government has agreed to step in and provide capital if necessary. But because Eesti Energia will soon operate on a totally open and competitive market, Liive believes it is possible that at some point it will be open for private investment.

• Eesti Energia was established in 1939 • Operating areas: Estonia, Latvia, Lithuania, Finland and Jordan • Eesti Energia’s bonds are listed on the London Stock Exchange • Eesti Energia has nearly 470,000 private customers and over 26,000 corporate customers. Eesti Energia Jaotusvõrk OÜ (Distribution Network) is in charge of about 19,000 substations and about 49,600 km of power lines • Total revenue and other income of 701 million euros in FY 2009/10, assets 1.8 billion euros, operating profit of 131 million euros, investments 199 million euros • At the end of the financial year 2008/09, total installed capacity amounted to 2,380 MW in Eesti Energia Narva Elektrijaamad (Narva Power Plants), 190 MW in Iru Power Plant and 30 MW in Ahtme combined power production plant • A total of 185 GWh of renewable energy was produced in the financial year 2009/10. • Televõrgu (Telecommunications Network) launched the provision of high-speed internet services at the beginning of 2007 • At the end of the financial year 2009/10 total installed capacity amounted to 2528,4 MW. www.energia.ee

Nuclear option still open Estonia needs to pass nuclear power legislation by 2012. Eesti Energia wants to prepare for and hold on to the possibility of investing in nuclear energy in neighbouring countries, such as Lithuania and Finland, and in Estonia itself. There are nuclear power plans in Lithuania and Finland that will have an impact but none of these projects is yet mature enough. Eesti Energia has bought a plot of land on Suur-Pakri Island off Estonia’s northern coast, where it could be possible to build a nuclear power plant in the longterm future. Research and investigations are ongoing but it is too early to know what will happen yet.

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SKANSKA EMV Building Bridges to and in Estonia One of the largest and oldest construction companies in Estonia, Skanska EMV, is well known through its landmark projects and today also acts as a bridge bringing high ethical business standards and â&#x20AC;&#x153;green constructionâ&#x20AC;? know-how to Estonia.

Text: Maris Hellrand Photos: Villu Kraan / Skanska

veryone arriving in Estonia's capital by air will be greeted by one of the landmarks built by Skanska EMV - the Lennart Meri Airport of Tallinn. The former president of Estonia, Lennart Meri was also one of the first customers Skanska EMV's current CEO Andres Aavik worked for when he first started his career in construction and real estate business some 15 years ago. At that time his own small company was contracted to build the president's guesthouse in Paslepa in just

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five weeks. With a smile, Andres Aavik remembers the early starts and late nights when the president sometimes arrived after midnight and wanted to have a chat about the progress of the project. They did finish on schedule! Today he leads one of Estonia's biggest construction companies from a sleek office and faces challenges on a different scale. Skanska EMV traces its roots back to 1949 in Estonia. During the Soviet era EMV was part of a big state-run con-

struction company employing more than 10,000 people. In 2000 Skanska Estonia, part of the 19th century Swedish Skanska AB, acquired EMV which by the end of the 1990s was a public company. So today Skanska EMV is the oldest construction company in Estonia. Some of the employees have been working for the company for over 30 years. The construction industry enjoyed an unseen boom at the beginning of the 21st century and has been hit hard by the economic crisis of recent years. Residential

Today Skanska EMV is the oldest construction company in Estonia.â&#x20AC;?

CEO of Skanska EMV, Andres Aavik

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Lennart Meri Airport of Tallinn

developments have come to a near complete standstill and currently there are mainly projects in the public sector and infrastructure that all companies on the market compete for. So like many others, Skanska EMV has had to cut back its staff, from 430 two years ago to just 230. Today Andres Aavik sees a good chance to start hiring again as there are quite a few new developments in the planning stage. In a way the crisis has a positive side as well - a few years ago it was literally impossible to find qualified workers whereas today, with many smaller companies out of work, there are highly skilled specialists on the jobs market again. Skanska EMV offers services in four different business areas. General construction operates in Estonia as well as in Finland. In Finland though Skanska EMV usually works as subcontractor to the parent company Skanska OY. General construction makes up about 40 per cent of revenues. Apart from the Tallinn Airport building there are some other landmark sites that have been constructed by Skanska EMV recently, like the Meriton Con-

Lennart Meri Airport of Tallinn 46

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Lennart Meri Airport of Tallinn

ference and Spa hotel, Rocca-al-Mare shopping centre, Solaris centre in Tallinn and the University Clinic in Tartu. Another large part - also 40 per cent - of the company's business is engineering construction - bridges, groundwork and environmental projects. Two large ongoing projects in that area are the shale oil factory in Narva and concrete covering of the oil shale production waste deposits in north-east Estonia. Skanska EMV is also working at the reconstruction of the wastewater treatment plant in P천lva, south-east Estonia. The specialised works division handles in-the-building technical solutions like heating, ventilation, and canalisation. Real estate development, administration and maintenance forms the fourth part of the company's business. This was established to maintain residential buildings built by Skanska EMV and today administers over 1,000 apartments. In 2008 Skanska EMV decided to wind up its road construction unit, keeping just the bridge construction part of it operational. Last year Estonian

Skanska EMV aims to pioneer green construction in Estonia and to be the first point of call for customers who value the environmental sustainability of their buildings.â&#x20AC;&#x153;

Meriton Conference and Spa hotel, Tallinn

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Estonian Solution Headquarters of Eesti Energia in Tallinn.

Road Administration recognised Skanska EMVâ&#x20AC;&#x2122;s quality of work as the best bridge construction company, and Andres Aavik says today the company is considering entering the road construction market once again and is looking into ways to keep the risks involved under control. "Competition is tough though and the profit margins are not high. It is more about making sure who is still on the market when the economy picks up again," as he puts it. Skanska EMV aims to pioneer green construction in Estonia and to be the first point of call for customers who value the environmental sustainability of their buildings. Rocca al Mare shopping centre in Tallinn - built by Skanska EMV - is the first building in Estonia and the Baltic States that was awarded the LEED silver level certificate. In environmentally sustainable construction Skanska EMV is able to tap into the global experience of the parent company. Quite a few Skanska group projects in Scandinavia have been awarded platinum level LEED certificates. Andres Aavik sees a very strong

University Clinic in Tartu

Rocca-al-Mare shopping centre in Tallinn

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trend towards energy-efficient and environmentally-friendly construction worldwide. "With rising energy prices the cost efficiency of low-energy buildings is also rising," says Mr Aavik. He thinks the time is ripe to bring Skanska group's "green construction" experience to Estonia. Although part of a globally operating company, Skanska EMV's main geographical area of business is Estonia. However in special branches of construction, like piling works, the company is even a market leader in Latvia. There are also ongoing projects in Lithuania and Belorussia. Skanska Group used to have subsidiaries in Latvia, Lithuania and Russia but stopped operating there some time ago, as it seemed difficult to follow the company's ethical code and do business successfully at the same time. Considering Skanska Group's high ethical standards of business the company's continuous presence in Estonia is a positive and highly reassuring sign for the business climate in the country.

In brief: Moto: Traditions and reliability together with modern resources and opportunities. Mission: We develop, build and service the physical environment for living, working and travelling. Vision: To be the clientâ&#x20AC;&#x2122;s first choice in constructionrelated services and project development. Skanska EMV 228 employees Skanska EMV 2009 turnover EUR 49.2 million Skanska AB 53,000 employees Skanska AB 2009 turnover SEK 136.8 billion www.skanska.ee

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Member of the management board of Ecovis Vesiir, Eero K채채rik

Business Estonia 1/2010

Leave the ! s u o t s r e numb

ons s operati it n a g e Ă&#x153;b . To ltations O e first in its field rs u s n o C r th sii rovide pany Ve s one of ng the p onal o m The Com o, in 1997. It wa a s r ati ade ag an intern with of the le d e e n 13 years in o jo is r r ii ii is Ves 08 Ves dealing day Ecov g services. In 20 ther companies ue tion in E tin g a n lt u to u o s s c n g c o in a c r of gal ich b units g and le covis, wh than 60 in it re d o u m a , s group, E tion , it ha ng, taxa sia. In all A n e v accounti e d erica an rope, Am ies. ntr in 30 cou

Konsand k Text: Tiit ari aak Kad Photos: J

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Estonian Solution

hroughout its history Ecovis Vesiir has been a company based on Estonian capital and it plans to remain that way. However, the membership of the international chain gives it the opportunity to offer quality service to clients engaged in international business. Ecovis Vesiir has two offices in Estonia – its headquarters in Tallinn and branch office in Pärnu. In total, the company employs around 20 highly skilled professionals.

Innovative approaches Member of the management board of Ecovis Vesiir, Eero Käärik, points out that at the time their company was founded the outsourcing of business services was a completely new idea, and they had to explain to people how it worked. “Today the Estonian economy is highly developed, so explanations are not necessary,” he says. “After all, we had the monetary reform in 1992. Then five years passed. So in essence you could say that during the five years we experienced the kind of economic activity that we understand today. And to now this time is nearly four times longer. All things were emerging, taking shape.”

All from one place “Our philosophy is that we want to be like a one-stop-shop. That the client might get everything from one place,” explains Käärik. “Well, according to the law we can’t provide notary service, legal or auditing services. But at least we have a network of cooperation with which we can help our clients. A person who is starting business in his home country or coming here from abroad does not have to deal with any petty regulations, or think where to go about it. They all may come to us with their issues. Most of the things we can arrange in our office. And if our client has some specific questions, where there are

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some errors, we can solve those problems in conjunction with our partners,” says Käärik. “We belong to the Ecovis chain, we can find very reliable contacts from a lot of countries, from which we can ask for advice. In cooperation with our col-

leagues we can analyze the interaction of Estonian and other countries’ tax and accounting systems, and tax laws. For a company operating internationally these are very important questions,” Eero Käärik notes.

Our philosophy is that we want to be like a one-stop-shop. That the client might get everything from one place.”

regional sales representatives etc,” Eero Käärik says. “Another very interesting group are those who have discovered that Estonia is just a very attractive place for holding companies and regional distributing centres because here we have zero per cent corporate income tax, as long as it is not taken out of the company. This means that Estonia is able to generate capital accumulation. These structures are very efficient and we are able to create them in cooperation with our partners in other countries. We are even able to create structures operating in several countries.”

The creation of an association

Customer base “We cannot see the dominance of foreign customers yet. Approximately one third of our clients are currently from a foreign background. Having a foreign background usually means that those firms belong to foreign owners; foreign compa-

nies have their branches here, subsidiaries and agents. But as for the concept of jurisdiction those companies are usually registered in Estonia, and perform certain functions in the interests of their foreign owners. There are many sales offices,

“Ecovis Vesiir signed, on 16 June 2010 together with other charter members, the memorandum of association of the Estonian Accounting Firms Association (acronym in Estonian: ERPEL). ERPEL’s main objective in its activities is to improve the quality of accounting services and raise the awareness of entrepreneurs about this service,” says Eero Käärik. “In 2005 Ecovis Vesiir received its ISO 9001 quality certification. We sincerely

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Estonian Solution

hope that we can contribute to the development of Estonia's accounting standards,” he adds. Käärik also pointed out that one of the prerequisites is also the existence of liability insurance. “We have always considered this as a self-evident warranty for customers. In the event of the accountant making a mistake, the insurance will offset the losses incurred. This is mandatory in many countries and now it will also become a standard in Estonia.”

Helps to be familiar “Times of rapid change continue in Estonia. Not everything is ready yet. Everything is still changing, and the new laws, new approaches and solutions are com-

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ing and we must be informed,” says Eero Käärik. “We have a relatively big local bureau. For us it is a very serious effort to keep up with everything new. I cannot imagine that a foreign company that is operating in our country and has a variety of interests here, is able to keep itself informed about everything from a distance,” thinks Käärik. “Our laws are similar to those in the rest of Europe and the rest of the world. But they are still our laws and sometimes different. Here I can mention a lot of examples. “For example, a typical Finnish businessman knows that if you are in the restaurant with a client and you pay for a meal and drinks, then these are your

entertainment expenses. With Estonian laws, it is not quite that simple. Okay, the amounts of money are small, no big trouble. I can mention a lot of such examples. But it is clear that it is a good idea to retain someone who takes care of you here. To keep yourself up to speed with different local laws do not seem to be a very realistic plan.”

Upcoming euro “The transition to the euro is now surely the case, which will provide us with a big amount of work. It is a difficult process. Well, we can ask advice from our good European colleagues who have gone through this already. We can consult with them. Probably we can do it. And after-

wards it’s much easier to operate, no different currencies any more. “Well, we are ready for it with our theoretical knowledge. But there is a lot of state legislation. Different laws have provided a lot of steps. They are fixed. For instance, six months before and six months after price lists must be produced in two parallel currencies.”

Our laws are similar to those in the rest of Europe and the rest of the world. But they are still our laws and sometimes different. Here I can mention a lot of examples.”

Joining Ecovis “Joining Ecovis gave us a lot. It is important not just for us but for our customers as well. It means we have access to the information we need. So, for example, if we need to know something about the Slovak laws then we should first of all work pretty much to find the right company to contact. It might not be interested in cooperation, it might not be competent. “Belonging to the Ecovis chain definitely gives us that opportunity to ask our colleagues there. We need to send only one little email or to make one phone call. If our client wants to expand his business to another country we have a good opportunity to send him to our partners worldwide,” says Eero Käärik.

Reasonable costs “If someone is planning any commercial interests in Estonia it is important for him to know that he can get everything sorted without unnecessarily high costs and official matters must not be pointlessly frustrating. From us he receives everything with the highest quality and at reasonable cost. After all, this might not necessarily be a local branch office. “Recently we had a consulting case. A foreign businessman wanted to buy a café in Estonia. He came to us and asked us to analyze this thing. It turned out that the café’s financial performance and its sale price did not match what is common in Estonia. And when he heard it from us he cancelled his plans. I think he also had very many benefits although he did not make a contract,” concludes Eero Käärik. www.ecovisvesiir.ee

Business Estonia 1/2010

Two thirds of our production is exported and goes to our old and traditional customers.â&#x20AC;?

Chairman of the Board, Gunnar Kraft 56

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You achieve more with good quality shirt Sangar was founded in 1956 and its main products have always been high quality men’s shirts. In the meantime, they tried to make other products, a leisure collection for men and women. Then the company had a total of 15 stores in the Baltic countries. Today Sangar has again turned back to its main product, the men’s shirt. It also makes women’s blouses, boys’ shirts and uniforms. Sangar itself thinks that it is one of the best shirtmakers in the world. So do its clients. Text: Tiit Konsand Photos: Aldo Luud

unnar Kraft, who has been the Chairman of Sangar since 2002, says that in the best years of the Soviet era (when his father was the director of the factory) 1,000 workers were employed and Sangar produced a million shirts a year. “And selling them was not a problem. We sold all we could make. Today’s situation is a little bit different, we produce (during an economic crisis) around 400,000 to 500,000 shirts a year. The number of workers has now fallen and is around 270.”

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Estonian Solution

Exports “Two thirds of our production is exported and goes to our old and traditional customers. We do outsourcing, full outsourcing and private label. The most famous name is Eton, to whom about half of our production goes. And they are trying to have the highest quality in world class. They do not have their own production at home any more. We are their main producer and our people are doing and developing all of this. Marimekko is also well known, and Filippa K. In a word, expensive brands in Scandinavia which require very high quality and rapid flexible production,” Kraft says. He is proud of the achievements.

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“In addition to this we develop our own brand. We used to have stores in Estonia, Latvia and Lithuania, but today we have been forced to pull back a bit. So we only have stores in Estonia at present. We are doing pretty well compared with the previous year. We have once again turned towards growth and we hope, of course, to restore our sales in Latvia and Lithuania when the time is right. “We are also a manufacturer of uniforms,” he says. “The Estonian defence forces, police, uniform shirts for companies of all types. We are also trying to do this business abroad – in Latvia, Lithuania and Scandinavia.”

Made-to-measure shirts “It is smaller in volume but perhaps the most interesting project for us is madeto-measure shirts,” Kraft notes. “A madeto-measure shirt is an exclusive shirt tailor-made to the customer’s wishes. Your made-to-measure shirt carries your personality and is unique wherever in the world you go. If you feel that you deserve your own name on your shirt, then order Sangar’s made-to-measure shirt.” “The price will depend quite a lot on the price of the fabric. The price range

A made-to-measure shirt is an exclusive shirt tailor-made to the customer’s wishes. Your made-to-measure shirt carries your personality and is unique wherever in the world you go. If you feel that you deserve your own name on your shirt, then order Sangar’s made-to-measure shirt.”

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Estonian Solution

is from ca EEK 1,000 up to EEK 1,500. When compared to shirts made from the best fabrics in the shops, they perhaps cost some EEK 800-900. Interest in the made-to-measure shirt has grown and sales have actually grown abroad too. We definitely want to expand this project in Europe.”

Quality Kraft says that they are offering a high level of quality. “Some of our clients who

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were looking a few years ago for cheaper production sites in China and other places, have at least partially come back. “One thing is the quality, the second thing is reliability of supply and being able to dispatch on time. In fact, all this costs money. We are here in the European Union, we offer top quality, we are able to produce quickly and we are ready to send in time. “Maybe this is also a question of how you approach things. We can be faster and more flexible. The price can just be

undercut when you produce huge quantities of similar things. But there is still a question of time and quality,” Kraft adds. “Of course, expensive brands can use more expensive materials. But this again raises the price of the product. Here is more than one thing. But we are still at a very good level with our shirt.”

Sangar collection “The collection is being developed all the time. I think there are about a hundred

Today we achieved our greatest success with our made-to-measure shirt project in the Netherlands and Finland, and we think that this market actually exists in many countries.”

drop to around 350,000 items per year. But if you look at the profitability, we haven’t gone into the red. Thanks to our management and cost savings, we are still in a small surplus. And I hope that it gets better,” Gunnar Kraft says optimistically. “In what was a very good year, our turnover in 2006 was EEK 88 million, last year it dropped to EEK 55 million. Now we can see that our sales are starting to increase again and perhaps a slight increase in turnover at the end of this year may also be expected.”

Plans for the future different items in our shop. There are also different colours among them. Our main collection changes twice a year. “We have studied the market thoroughly, and in this price class we are the market leader in Estonia. The price range is somewhere around EEK 400-900.” Kraft goes on to emphasise his company’s product development and how product quality is world class. And so it automatically extends to its own Sangar shirt. “If we look at the cost of more expensive brands in the shops and compare them with Sangar, then there is a big difference. But the product is no worse,” he says. “Our main attention is still focused on men’s shirts, then comes women’s blouses, schoolboys’ shirts in small quantities, and then ties, cufflinks, napkins. Well, the future will show, but today we do not have very specific plans to expand our ranges.”

Estonian Enterprise “Sewn in Estonia by our own people. Only 15 per cent of our capital is held by foreigners – all the rest is Estonian. Essentially, that is our management plus former and current employees. We are a mainly Estonian company. “The number of employees is, as I al-

ready said, about 270. All the shirts are produced in Tartu. If we need larger quantities, we have sometimes used other sewing businesses. “For example we made 600,000 shirts in 2006, 500,000 in 2007, but now the economic downturn made that number

Kraft notes that Sangar does not have very big future plans in today’s conditions. “We certainly have some growth plans. Well, at the present moment our own brand is sold mainly in Estonia. This market is clearly too narrow for our quantities. So we definitely want to go back to Latvia and Lithuania. In Finland, Sweden and Denmark we can see basic opportunities for selling made-tomeasure shirts. “Today we achieved our greatest success with our made-to-measure shirt project in the Netherlands and Finland, and we think that this market actually exists in many countries. There you can sell it and we want to do it. The product is good,” he says. “Today we perhaps make a little less than a thousand made-to-measure shirts a month, but I think we have the capacity to double this quantity. “Made-to-measure shirts are not so unique. You can actually order your personal shirt in larger supermarkets and shops all over the world. But it might not be so common. We see that this demand is actually greater than the service is available today.” www.sangar.ee

Business Estonia 1/2010

Uniprint has developed and grown from a single machine company set up in 1992 into a wellestablished printing firm in the Nordic countries.â&#x20AC;?

Uniprint sales director AndrĂŠ Abner 62

Business Estonia 1/2010

UNIPRINT Setting the bar for quality The Estonian printing industry has developed rapidly over the past two decades. Companies such as Uniprint and Unipress now compete with established European printers to provide high quality products and excellent customer service. Text: Tiit Konsand Photos: Jaak Kadarik

he private printing market first developed in Estonia with the establishment of cooperatives in 1987. As with other areas of industry, printing was short of cash, suffered from being behind the times technologically and lacked staff with up-to-date training. But between 1991 and 1993 printing houses came into their own and it was during this period that the sheet printing company Uniprint emerged. AndrĂŠ Abner, Uniprint sales director, says the company went through a difficult time as it developed and grew from a single machine company set up in 1992 into a well-established printing firm in the Nordic countries. Uniprint and the web printing company Unipress, which was set up in 2003, are both part of UP Printing Group (UP),

which specialises in quality printing. Unipress is a subsidiary company of and 100 per cent owned by Uniprint. UP Printing Group's turnover in 2009 was EEK 150 million. "Unipress produces roll machine magazines," says Abner. "We have roll machines with downstream, glue binding and wiring possibilities and there are printed periodicals, all kinds of catalogues and customer papers."

Quality Unipress, founded in 2003, was one of the first periodical printing company in Estonia with modern equipment on an internationally competitive level. With its new fully automatic web print machine, the company is able to provide periodical printing that satisfies the most demand-

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ing clients. Unipress works efficiently and produces high quality work comparable to the best printing companies in Europe. In 2009, its net sales totalled EEK 150 million. UP considers consistent quality to be its most basic value, which is made possible through world-class printing technology and professional employees, as well as customer-focused service and flexibility. The company considers pollution prevention important. According to Abner, these values have enabled Uniprint to remain one of the top printers for high quality publications. "In the middle of the '90s, for example, all quality demanding publications (annual reports and art museum catalogues, other artistic works, works with high quality requirements from advertising agencies etc) were printed in Finland. "It was a great challenge for Uniprint at that time to bring those works back to Estonia and show that we can also print correctly. From that time we have aboveaverage quality requirements. Uniprint's product range is very wide, but at the same time we are still first of all the printers for high quality publications." In order to secure the best quality and necessary equipment the company has invested EEK 110 million over a number of years.

Export

In order to secure the best quality and necessary equipment the company has invested EEK 110 million over a number of years. 64

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Having started its activity on the Estonian market, the company is helped by its staff in Sweden and St Petersburg to target Scandinavian and Russian clients. "Today, especially over the past year, the proportion of exported products has grown considerably and is somewhere around 70 per cent," says Abner. "Thus, we have contributed a great deal to exports. Of course, it is not easy to do with-

out sales representatives abroad. We have our representatives in Sweden and in St Petersburg. In Finland, we have our own staff who offer Uniprint services directly. Service in the client's mother tongue is operationally much more significant than the coordination of it only from Tallinn." Together Uniprint and Unipress employ 94 people. "It is quite a lot," says Abner. "While we are talking about turnover, for example, in 2008 it was roughly EUR 15 million. Many people are engaged in sales work, which is distributed across Europe. We have the local market, the markets of the Nordic countries as well as western Europe,

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Holland, England, France and, of course, Germany, where we play an active role."

Wide range of products "Compared to the printers, in the Nordic countries in particular, we stand out with a very wide range of products which we can print in-house. To this can be added very different post-processing options so that we can virtually do almost anything in offset print. We do different post-processing jobs all in-house, which is certainly cost-effective and we are considerably more flexible than a printer, which needs to buy all those things from outside." Financially, periodicals and advertising materials of all kinds provide the

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most lucrative world. Uniprint customers are many well-known publishing houses and advertising agencies in the Nordic countries.

Future "Investment is a particular point in our future plans," says Abner. "Of course, everything that moves is getting older. In the upcoming years we plan to replace one of the sheet printing machines and also it is necessary to search for a new production area â&#x20AC;&#x201C; it is already a bit too tight. "These are investment plans in the coming years but we are not looking at completely new markets. Rather, we are trying to expand our operations in Scandinavia as well as in Germany and west-

ern Europe, where we are already present. "The Scandinavian market is like our home market to us. Finland and Sweden are the places where Uniprint has already occupied its place, and we are already well known. We have lately made several changes to our structure and composition, so that we have quite a lot of 'new blood'."

Charity More than 10 years, the Citizens' Union EMSL has chosen for civil society actors. In 2009, the council gave the title to Uniprint. Uniprint has supported the activities and creation of the NGO Own Family, including rooms, publications and

the CEO's salary, since 2007. Thanks to this partnership many children left have found a new home for themselves. In 2009, Uniprint supported 60 Lions Club's Charity Initiative projects, 'Welcome, friend! - Each child should have a home'. The company and its partners are supporting young people from children's homes who want to go onto higher education. Company executives Sirje and Andrus Reinsoo are the creators of the foundation Star Child. In addition, the company supports the Good Conduct Foundation, Pelgulinna maternity hospital fund, the Tallinn Children's Hospital Fund, the Cancer Union and the NGO Clinic Clowns. www.uniprint.ee

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The birth of the A Le Coq trademark dates back to 1807 when beverage company A Le Coq & Co was established in Prussia by a family bearing the same name. They descended from the Huguenots, who escaped from France in the 17th century. In the 1820s, Albert L J Le Coq settled in London in order to trade the products of his familyâ&#x20AC;&#x2122;s wine estate. He soon started to bottle and export under the name Russian Imperial Stout. More than 100 years later (1912) A Le Coq came to Tartu, where it has remained ever since.

Text: Maris Hellrand Photos: Villu Kraan

One of the best known trademarks in Estonia 68

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In 2009, all industries suffered from drawbacks and under such conditions, it is clear that you have won if you maintain your market position and sales volumes and can even increase them.â&#x20AC;?

Manager of AS A Le Coq, Tarmo Noop

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Estonian Solution

e talk with the manager of AS A Le Coq, Tarmo Noop, in a cosy meeting room along one wall of which is a cabinet with glass doors full of drinks produced and sold by A Le Coq. There is a row of beer cans, beer in glass and plastic bottles, juices, soft drinks and other light alcoholic beverages. A Le Coq even sells wines in Estonia.

Well-known trademark In 1941 A Le Coq Ltd was nationalized and renamed AS Tartu Õlletehas (Tartu Brewery), a name it retained during the Soviet era. Finnish beer manufacturer Olvi Oyj later acquired the shares of Tartu Õlletehas and shortly after the A Le Coq trademark was restored. In 2002 A Le Coq became the leading drinks producer of Estonia. A Le Coq is still the biggest drinks producer in Estonia, and leads the beer, juice and light alcohol drinks markets. It holds second position on the soft drinks market. How did it happen that in only 10 years the name A Le Coq became known to almost everyone in Estonia? More than anything it’s synonymous with beer. Tarmo Noop says that it’s pretty difficult to answer that question very briefly. “Right decisions first of all. The time was ripe for another

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major manufacturer to enter the market. We sat down with the new owners of the brewery and created 10 principles according to which we would manage, we made investments and built a new and contemporary factory. Even in the current difficult times we have not distanced ourselves from those principles and we are still successful. The factory has expanded and the old premises has become too tight. A Le Coq Logistics Centre (built in 2007) is situated next to Tallinn Tartu road near Tartu. “Over the past 10 years the Estonian drink and beer market has changed considerably. Small breweries have almost disappeared or their capacities are just marginal. Noop believes that fact has not directly affected their turnover, but it’s still a shame that so few real producers are left here in Estonia. For example, there are almost 20 breweries in Latvia. Many of their beers are not high-quality products, but are quite variable and unclean.” According to Noop, the former chief brewmaster Ilmar Kõrgesaar has said that good quality beer must comply with 15 different quality requirements. Noop does not believe in moving factories from Tartu to some-

where else. He is almost 100 per cent sure that the owners are not interested in this. They have invested quite a lot in the manufacture of drinks.

Successful despite the economic downturn A Le Coq increased the market share of its most important product segment, beer, in 2009 – at a time when the whole beer market fell by 7.1 per cent, according to Nielsen; at the same time, the company’s total sales of ciders and soft drinks increased according to its trading report for the year by a remarkable 18 per cent and 15 per cent respectively. In the opinion of Tarmo Noop the company has successfully managed to adapt in the conditions of a falling market. “In 2009, all industries suffered from drawbacks and under such conditions, it is clear that you have won if you maintain your market position and sales volumes and even been able to increase them.”

The entire large assortment of drinks is produced at the modernised factory in Tartu. Only juices are produced near Tartu in Reola.â&#x20AC;?

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Estonian Solution

Noop reckons the past year has been a successful one. A Le Coq produces drinks mainly for the Estonian market. Only around 10 per cent of drinks go for export. Finnish Olvi Oyj owns 100 per cent of A Le Coq. The Olvi group owns factories in Latvia, Lithuania and Belorussia as well. According to Tarmo Noop about 50 per cent of A Le Coq’s production consists of different beers. “The most popular of them are Premium and Alexander. For instance, A Le Coq is the first Estonian brewery that started to sell beer in green bottles, which is a symbol of high quality beer worldwide. Also, the shape of the bottle is new – it was designed especially for A Le Coq Premium Extra.” The entire large assortment of drinks is produced at the modernised factory in Tartu. Only juices are produced near Tartu in Reola. “A Le Coq has concluded a franchise contract for the production and marketing of Royal Crown Cola in Estonia with an American company, Cott Beverages Inc, the world’s third largest producer of cola beverages. The goal of A Le Coq is to have 20 per cent of the cola market within a year.”

Distributor of Heineken “We are known as the representative of the Heineken beer brand in Estonia. Maybe it’s a bit of global importance. “We have raised Heineken to the number one imported beer in Estonia during our successful partnership. Previously, Heineken was practically nonexistent here. Its market share has gone to somewhere near 1 per cent. This is, for instance, higher than the pretty wellknown beer brand in Estonia, Puls, produced by the third largest brewery, AS Viru Õlu,” says Noop. “Heineken is doing pretty well on the Estonian market. Well, we have really been marketing it. Cooperation with the international group gives us fresh ideas which we can use in our own manufacturing and product development,” concludes Noop.

A. Le Coq Beer Museum A Le Coq is investing ca EEK 4.5 million in the production of RC Cola. Noop emphasised that from now on, A Le Coq is the only company in Estonia that is producing an international cola brand.

“Tartu is the birthplace of the Estonian beer industry and has been a beer town for nearly a thousand years. In order to perpetuate the history of industrial

Tartu is the birthplace of the Estonian beer industry and has been a beer town for nearly a thousand years. In order to perpetuate the history of industrial brewing, the Beer Museum was opened on 1 July 2003. The Beer Museum is located on land belonging to A Le Coq in a malt tower built in 1898.” 72

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brewing, the Beer Museum was opened on 1 July 2003. The Beer Museum is located on land belonging to A Le Coq in a malt tower built in 1898,” says Noop. “The museum is on six floors and there are approximately 2,000 exhibits. The exhibition explains brewing traditions worldwide and in Estonia, starting from the ancient Egyptian beer culture until the present time. You can see both the home brewing tools and old industrial beer equipment. Naturally, the museum also includes beer corks, bottles, jars and barrels.” Noop says the museum exhibits speak of students’ beer-drinking traditions. “We have also displayed the prizes and awards from various global exhibitions. All museum visits are concluded in the museum pub, where the visitors have a chance to taste drinks produced by A Le Coq. By special request, tours can be arranged to see the production facilities.” Tarmo Noop is sure that the old malt tower is a symbol of Tartu, just like the old observatory, arch bridge and the main building of University of Tartu. www.alecoq.ee

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Estonian Solution

ALTIA

- Enterprising spirits

Finnish state alcohol producer Altia has gained a strong foothold in the Estonian market by combining a century-old tradition with the enterprising spirit of local production, reports Maris Hellrand. Text: Maris Hellrand Photos: Villu Kraan

Altia Eesti's managing director, Ivar Aus, 74

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ltia Eesti was established in 1991, the same year that Estonia regained independence. The company, then known as Ofelia, was the first alcohol producer to start production after the state alcohol monopoly was terminated. In 1994, the majority of Altia Eesti's shares were bought by leading Finnish wine and spirits house Altia Corporation, which now completely owns the company. Altia Corporation was established in 1888 in Finland, so through its parent company Altia Eesti is the oldest operating alcohol producer in Estonia. Altia Eesti is now the second largest alcohol producer in Estonia. It boasts flexible production facilities and a constantly improving portfolio, and was the first company to work out a balanced portfolio of both strong domestic and international brands in spirits and wines.

In terms of volume about 60 per cent is made up of own brands and the rest is imported alcohol; the own-brand spirits have higher profit margins. The company believes its key advantages are a wide premium segment customer base and strong premium brands portfolio.

Strong spirits Ivar Aus, Altia Eesti's managing director, says that the company has optimised its portfolio over the past year, retaining profitable products while lowering costs and focusing on important products like 'Saaremaa Vodka' and 'Koskenkorva Vodka'. â&#x20AC;&#x153;Koskenkorva Vodkaâ&#x20AC;? from Finland has been the strongest imported vodka on the Estonian market for a long time; today with changed consumption habits some Russian and Ukrainian brands

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Estonian Solution

have overtaken it. Saaremaa Vodka is the strongest Estonian vodka brand in the Finnish chain store Alko. Altia Eesti exports its own-brand products to Finland, Denmark and Latvia, where it is the largest alcohol importer. Over the past four years it has bottled the Finnair onboard wine, which equals Altiaâ&#x20AC;&#x2122;s sales on the Estonian wine market. Altia operates in all parts of Scandinavia and between these countries through travel retail on ships and ferries, taking up the first or second market position in most of these markets. Altia Eesti, together with Denmark, Latvia and the travel retail segment, belongs to the 'open markets' department of the Altia Corporation. The other Scandinavian countries have state alcohol retail monopolies that necessitate a different business approach. In terms of export, Altia Corporation's main focus has been on marketing Koskenkorva Vodka and Maximus Vodka. Aus believes that Saaremaa Vodka also

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has good export potential beyond Finland and he hopes to enter the Swedish market as well.

Branding vodka Saaremaa Vodka, Altia Eestiâ&#x20AC;&#x2122;s most important brand, is the leading local premium vodka. It was the first local vodka on the Estonian market since the late 1990s to be systematically built as a brand. Nowadays, it has a special place in the hearts of most Estonians with its own style of language and sense of humour, promoted by slightly offbeat advertising campaigns. The main competitor on the Estonian market, Viru Valge, has been on sale for over 40 years. Saaremaa Vodka was created less than 15 years ago and within just five years has become one of the bestselling premium vodkas. Today both brands compete on a more or less equal basis alternating between first and second position in the market.

The success of the brand, according to Aus, lies in its quality and marketing. Altia is the only alcohol producer in Estonia that produces spirits in its own distillery, which has been operating for many generations. Aus stresses that this distillery ensures there is consistent quality.

Tourism The tourism market is a very important one for Estonian alcohol business. Tourists buy about 25-30 per cent of the alcohol sold in Estonia to take back home and Altia has the leading market position in the area around Tallinn harbour. It is estimated that the alcohol sold to Finnish tourists in Estonia exceeds the amount sold in bars and restaurants in Finland. Altia has a very strong market position as it represents popular Finnish brands as well. Finnish tourists used to buy just a few well-known brands. Today the selection is much wider and they have started to like more local brands. Saaremaa

Vodka is still very popular as the brand image appeals to Finns as well as Estonians; it has a strong connection to the beloved song 'Saaremaa valss' â&#x20AC;&#x201C; it has a good story. Altia has about one quarter of the Estonian market, which puts it in second position. Now, however, the market share is not enough to generate sustainable turnover and profits. The habits of consumers have changed as a result of the overall weak economic situation of the last few years. People prefer cheaper products and supermarket chains are putting pressure on producers to offer considerable discounts. As a result, Altia has been flexible and developed cheaper products for the domestic market such as Eesti Standard, Ivanov and Aus Viin. The company has an internal ongoing joke, as the sales manager's surname is 'Viin', which means vodka in Estonian. So when Altia wanted to launch a new brand of vodka at the cheaper end of the market, it came up

Altia is the only alcohol producer in Estonia that produces spirits in its own distillery, which has been operating for many generations.â&#x20AC;?

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Estonian Solution

with the idea to call it 'Aus Viin', using the surnames of the general manager and the sales manager. This happened during a period when another Estonian alcohol company was involved in a scandal for falsifying tax labels. As 'aus' in Estonian means 'honest', Altia took the opportunity to play with words and created 'Aus Viin' – meaning 'Honest Vodka' –at the same time referring to two key figures in the team. "It was not done to serve my ego," Aus laughs, "For that I would have chosen something more expensive!"

An international portfolio Among the international brands to have been successfully re-launched onto the Estonian market, and which are now among leading brands next to Koskenkorva, are Finlandia, Jack Daniel’s, Amarula Cream and Codorníu. Wine portfolios

have also been in focus over the last few years with rapidly increasing sales volumes. Wine imports have shown a steady growth and today Altia is the fifth largest of more than 60 wine importers in Estonia. Among the leading brands in Altia's wine portfolio are Gallo – the largest wine brand in the world – Tarapaca, Misiones, Distell, Codorníu, Fresita, Laroche, Vicente Gandia, Masi and Kendermanns. Members of Altia’s sales team have even gone through a junior sommelier course in order to offer their clients excellent service. Altia Eesti has a wide network and cooperates with various interest groups in order to bring its brands to the right target groups. It has become linked to organisations that choose their partners very carefully, including national organisations and companies such as Estonian Air, Estonian National Opera, Estonian

Altia Eesti • • • • • •

Limited company Owned by Altia Corporation of Finland 70 employees Sales 2009 – 4 million litres Turnover 2009 – EUR 11.4 million Profit 2009 – EUR 1 million www.altia.ee

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National Football Club, Tallinn Philharmonic Society, the Finnish Embassy and the British Embassy (Altia being the supplier for the Queen's Birthday and Burn's Supper). Several hotel chains and concert venues also help build brands through opinion leaders and selected target groups. Altia Eesti's marketing team has been awarded the Golden Hammer, the Golden Egg and various other annual prizes for marketing. Altia Corporation's ownership by the Finnish state means that it is a very safe employer so even during the economic downturn it did not have to cut staff, with the exception of a few redundancies due to restructuring. As a state-owned company it has to have high business standards and to operate in a transparent way; there is no possibility of using shortcuts even during hard times. In spite of all the prejudices he encounters, Aus says that even though it is a state-owned business, Altia Corporation is not rigid and slow but has acted in a very quick and brave manner. It has been able to gain market share and still has a healthy marketing budget at a time when many privately-owned companies have had to make cutbacks.

Plans for the future Altia Corporation is the leading alcohol producer in Scandinavia and plans to stay that way. The corporation's main aim is

to increase its exports and for the Baltic States to expand operations to Lithuania when the time is right. In Estonia, it aims to work on its portfolio, increase export of own-brand products and keep the leading market position for own brands as well as imported brands. Altia Eesti has the leading market position in all product segments where it is actively involved, including premium vodka, American whisky, cream liqueurs and other liqueurs. As a result, Aus believes Altia will emerge stronger from the economic crisis than it was when it entered it. He predicts that in the long term probably only three to four alcohol producers will remain operating in Estonia as it takes a strong backbone to survive.

Saaremaa Vodka, Altia Eestiâ&#x20AC;&#x2122;s most important brand, is the leading local premium vodka.â&#x20AC;&#x153; Business Estonia 1/2010

Golf in Estonia – growing the game Text: Maris Hellrand Photos: Villu Kraan and iStockphoto

Golf in Estonia is a very young sport. The Estonian Golf Association (EGA) was established in 1992 and the first golf course near the capital Tallinn opened a few years later. However, in less than 20 years about 10,000“green cards” have been issued and there are currently seven golf courses in operation.

Business Estonia 1/2010

General Secretary of the Estonian Golf Association, Christine Marcus

hristine Marcus, the General Secretary of the Estonian Golf Association, estimates that there are about 2,500 active golfers. Being a traditionally male-dominated sport, golf is surprisingly popular amongst women in Estonia who make up at least a third of all active players. Even the EGA’s president Anu Hanson is a woman with a single figure handicap – “there are no 100-year old gentlemen-only clubs to compete with here in Estonia!”, Christine Marcus quips. The EGA has seen the number of players increase by 20 per cent annually, which is truly an achievement considering golf in Estonia is only a recent development. Christine Marcus sees the main task of the EGA as making golf a competitive sport where successful players can be a good example to others. The Association organizes the Estonian Amateur Championship and other competitions, as well as taking care of the national players and teams that compete in tournaments abroad.

Since 2005 the National Championship has been open to participants from countries around the world. This has helped host clubs become prestigious domestically and internationally. Estonia’s men’s team finished in 40th position out of 75 competing countries at the 2008 World Amateur Team Championship (the Eisenhower Trophy) in Australia. Considering the number of players and the relatively recent introduction of the game in Estonia this is an excellent result. As a comparison, our near neighbour Finland has 135,000 golfers. The star of Estonian golf is currently Mari Suursalu, the first playing pro who has competed at the Ladies European Tour (LET) qualifying tournament. Two young men, Egert Põldma and Mark Suursalu, have also gained headway in the international arena. The EGA is proud to point out that in this season’s diary the European Boys Challenge Trophy is to be held at the end of July 2010 in the EGCC in Jõelähtme. In order to develop competitive play-

Business Estonia 1/2010

ers of an international calibre, Christine Marcus sees the need for more qualified PGA professional coaches. Competitive golf like any other sport needs hours and hours of hard work and commitment. She elaborates: “Your handicap represents the hours spent in the office! Lack of time rather than money is probably what makes golf less accessible for most aspiring players.” The Estonian Golf Association is the governing body in Estonia that holds the license of the European Golf Association’s handicap system. It uses the ‘Golfbox’centralized handicap database system for all Estonian golfers. Add to this

Business Estonia 1/2010

In the long summer days you can tee off after 6 pm and still finish your 18 holes in daylight. “

the responsibilities for the golf course slope and course rating and you have an overview of the primary functions of an amateur golf union. For Christine Marcus the paramount aim of the EGA is ‘to grow the game in Estonia’ by encouraging the member clubs to dedicate more attention to juniors, thereby ensuring an increase in their future memberships. Even though golf in Estonia is only a young sport, the country has become an attractive golfing destination. The climate puts its own limitations down to the length of the season, but opens up other opportunities as well - In the long summer days you can tee off after 6 pm and still finish your 18 holes in daylight. Also, at least one club is open for ‘snow-golf’in the winter. In just under 30 minutes, you can drive from central Tallinn to three courses which offer a good variety of landscapes. Christine herself prefers to play on the natural, minimalist links courses, similar to those found in Scotland and Ireland and, just like most golfers, regrets not having enough time to play more.

MEMBERS

•Estonian Golf & Country Club •Otepää Golf Club •Saaremaa Golf Club •Suuresta Golf Club •Tallinn Golf Club •White Beach Golf Club

www.golf.ee

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EGCC

- Modern golfing in an ancient landscape

In just five years the Estonian Golf and Country Club has attracted hundreds of loyal members and hosted international golfing competitions. Now the attractive location and the club’s good reputation are helping it to grow in a competitive market.

Text: Maris Hellrand Photos: Mati Hiis, Villu Kraan

he golf season starts two weeks earlier in Estonia than in Finland, so the Estonian Golf and Country Club (EGCC) in Jõelahtme is full of Finnish golfers during May. It is the busiest month of the year for the club but CEO Hanno Kross found a moment to talk to Business Estonia about the course's history and future.

Business Estonia 1/2010

The EGCC is still very young – it was only established five years ago – and will celebrate its fifth anniversary this year with a visit from golfers belonging to a 405-year-old British club. However the club’s location in a natural heritage area is full of ancient history. When the grounds were being built many 4,000-year-old stone burial sites were uncovered on the Rebala heritage area

which are now part of the nine-hole stone course. Kross refers to this as a good example of cooperation between the government and the private sector as it is impressive that a golf course could be built on a site where the Vikings first came to Estonia and where there has been a village for over 5,000 years. In fact there is a small museum in the clubhouse with a

The variety of natural landscapes within this one golf club is quite unique. It lies open to the wind on a limestone plain between junipers, restored stone fences and 11 archaeological sites.â&#x20AC;&#x153;

Estonian Golf and Country Club (EGCC) CEO, Hanno Kross

6,000-year-old exhibit, which was found during the construction of the course. The variety of natural landscapes within this one golf club is quite unique. It lies open to the wind on a limestone plain between junipers, restored stone fences and 11 archaeological sites. The club hopes to extend the minimalist links-type stone course to 18 holes by 2013 or 2014. The 18-hole sea course is a true cham-

Business Estonia 1/2010

Golf in Estonia

As Estonia only has 2,500 players, the golf courses depend a lot on green-fee players. Kross says EGCC is convenient for Finnish players who can leave Helsinki on a ferry in the morning, play a round and get back home by the evening. However, players usually want to play on a few different courses during a four- or five-day trip.” pionship course. Holes built among virgin forests reach out to the beach and the Jägala river. The natural landscape provided Finnish architect Lassi Pekka Tilander, also a professional golf player, with excellent building materials. The course has it all – 40 m elevation differences, oak pathways, old boulders, natural ponds, winds from the sea and fantastic views. Its length and complexity makes it a real challenge even for low-handicap golfers. The Estonian climate, with its mild summers, offers good conditions for playing golf. In June, EGCC hosted nighttime golfing events where it was possible to play through the night as it does not get dark at that time of year. The clubhouse closes at 11 pm but it is possible to tee off up to closing time. In the autumn of 2009, EGCC hosted the Omega Mission Hills World Cup Eu-

Business Estonia 1/2010

ropean Qualifier. Two-man teams from around the world battled it out for the three available qualifying spots and the chance to take part in the World Cup at Mission Hills in China. Keith Waters, director of international policy for the European Tour, said: "Bringing a truly international event such as this to an emerging golf market such as Estonia can only serve to further accelerate the growth of the game in this country and also in this part of Europe." EGCC is one of seven European Tour venues, together with courses in Sweden, Portugal, Spain, Germany and Finland. The European Tour is the second largest professional golf organisation in the world, which shows that EGCC is capable of hosting big international tournaments. Kross believes that these kinds of tournaments are a chance to promote golf in

Estonia and give the sport attention from the media. He wants to counteract the myths and prejudices about golf being a past-time of wealthy old overweight men. In fact it can be very physically demanding; during one game a player might walk 10 km. He hopes that the big tournaments will change the public's mindset and present golf as an attractive sport to people who have never even thought about playing. As Estonia only has 2,500 players, the golf courses depend a lot on green-fee players. Kross says EGCC is convenient for Finnish players who can leave Helsinki on a ferry in the morning, play a round and get back home by the evening. However, players usually want to play on a few different courses during a four- or five-day trip.

Golf is already generating good income for the Estonian tourism industry. In 2009, foreign tourists played 6,500 rounds of golf at EGCC compared to the 11,000 rounds played by the club's 250 members. Tourists also spend money on travel, transport, accommodation and food, thereby making a considerable impact on the Estonian economy. There are attractive golf packages for corporate clients as well. Businesses can hold a meeting or seminar in the morning on the ferry from Helsinki, followed by a round of golf, and be back home by the end of a normal working day. EGCC's 250 members have to be the club's shareholders. Kross hopes to see the membership grow to 500, but no higher, because he wants members to always have a chance to play and to feel well looked after. However he thinks it will take 20 years for there to be enough players in Estonia for all existing golf clubs. "Golf currently really is a non-profit business in Estonia as all the profit has to be put back into the quality of the course," he admits. EGCC has also started to develop five golf villages, with a total of 120 lots, between and by the courses. Each lot is bordered at least on one side by a golf hole and many have sea views. Thirty villas have already been sold and finished. All new villas will be built according to â&#x20AC;&#x2DC;passive houseâ&#x20AC;&#x2122; energy standards meaning that the total energy cost per year should not exceed EUR 1,000. Kross only took over as CEO one year ago and has already become addicted to the game. For him the beauty of golf is that even a beginner can have a perfect shot and with the handicap system one always competes against oneself. He believes that golf shows a person's true nature. "It might not be that many deals are made during a game but the rule for business people surely is that after a game one will know if he wants to do a deal with that person." www.egcc.ee

Business Estonia 1/2010

Otep채채 Golf

Manager of the Otep채채 Golf, Markku Valo 88

Business Estonia 1/2010

Text: Maris Hellrand Photos: Villu Kraan

One hundred shades of green The new manager of Otepää Golf has ambitious plans to give the championship course a much-needed makeover. Its good reputation and great location in the middle of a stunning natural park will hold it in good stead over the coming summer season.

tepää Golf has had a brand new beginning this season. New ownership and new management took over the business earlier this year and are hoping to re-awaken the golf course's magnificent fairways situated in the rolling hills of southern Estonia. Markku Valo, the new manager of the course, has 25 years of experience in the golf business in Finland as well as in Portugal. He has big plans and big hopes for the championship course which he describes as one of the most beautiful in the Baltic states. The picturesque 18-hole course is situated just a few minutes by car from Estonia's 'winter capital' Otepää and was

designed by architect Pekka Wesamaa. It is near the centre of Otepää, with its many internationally famous sporting events, but far enough away from the noise and bustle in the middle of Otepää Nature Park. The course is unique and permanently entertaining due to the nature that surrounds it and provides a panoramic background, including cupolas, lakes, virgin forest and the animals of Otepää Nature Park – goats, hares and rare lesser spotted eagles. A cuckoo was a permanent companion on the day of Business Estonia's visit and the bright green croaking frogs in a pond were an amusing distraction. Valo admits that the course is a lit-

tle tough to walk – there are many hills, some of them quite steep – but it is possible to rent carts and power caddies. Otepää is different to most golf courses in Estonia, which do not offer activities all year round. Depending on the snow conditions, it holds an annual winter golf championship. The new management started a little too late this year to have a major impact on the summer season, as all the big events have to be planned months in advance. "The busiest time for a general manager is autumn when you build the next season, make contacts and contracts, negotiate with corporate clients and offer packages to tour operators," says Valo.

Business Estonia 1/2010

Golf in Estonia

Between 1997 to 2005, Valo was general manager of Nord Golf, a 1,800-member club in Finland. He came to Otepää in April after finishing the development of a golf course in Portugal. His work as the manager of Vida Vital in Vilamoura Golf in Portugal provided him with useful experience for re-developing a whole course. Otepää Golf has hosted marvellous events in recent years but because of the change of ownership there are not many signed contracts for this season. It is a big challenge to build a new client base and, according to Valo, in order to develop the course Otepää needs to hold big events as well as attract tourists. There are fewer than 100 active members in the club who pay the annual maintenance fee, which only covers a fraction of the cost of running the course at a high level. Valo plans some small alterations to the course, such as re-opening the restaurant by the start of the next season which he would like to see fully booked and successful. Valo's main experience is in commercial courses that hold frequent corporate events in order to keep the annual fees for members down. He says he can guarantee the best customer service and conditions for corporate competitions and events with a big restaurant tent catered by one of the best restaurants south of Tallinn, as well as newly refurbished saunas, locker rooms and amenities.

Business Estonia 1/2010

Summer tournaments Despite the change of management, Otepää Golf has managed to sign a contract for the Iberian Golf Tour Pro-am (IG Tour), one of the biggest golfing competitions in the Baltic region. The international tournament will be held in July. That Otepää is to host it is due to the lucky coincidence that the Finnish Challenge Tour Open was cancelled and the week from 21 - 28 July became free for professional (pro) golfers to play.

The busiest time for a general manager is autumn when you build the next season, make contacts and contracts, negotiate with corporate clients and offer packages to tour operators.”

IG Tour is the fastest growing tour in the world with many Spanish and Portuguese players, as well as players from the Scandinavian countries. It is considered to be preparation for players who aim to play on the European Tour. Pros will play two rounds with three amateurs, and on the third day amateurs play with amateurs and pros compete against each other. The event promises to be great fun for spectators. As it is a 'pro-am' (professional-amateur) tour, companies have the chance to buy places for amateurs to play together with pros. The main sponsorship is still available so one lucky company has the chance to have the tournament named after it. This package includes the opportunity for three groups of players to play with the best pros, 30-50 VIP tickets, transport, accommodation and a hos-

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pitality tent, as well as having the team named after the company. Valo expects the IG Tour to be shown on Scandinavian television, at least in the sports news. At the beginning of July, the famous White Nights Tournament will be held and in August Otepää will host the traditional Äripaev Business Golf Open competition. Then in September the Gentlemen VIP Trophy will be held, to name just a few well-known competitions of the season.

Going to Scandinavia Otepää's new manager is targeting the Scandinavian golf market while aiming commercial packages at Finland and Sweden. There are a few new products, including a pick-up service from hotels in Tartu and Otepää and one- and twonight packages in cooperation with local hotels. He is also putting together a full package for Finnish golf clubs. The bus leaves from their home club, so players will not have to carry their kit on the ferry, and they will be brought back home by bus as well. To develop this product, Markku plans to offer a free trip to Otepää Golf as a lucky draw prize at competitions in Finnish clubs. Another curious product is a 'forest sleepover' where players will tee off late in the evening, eat a three-course gourmet dinner after the 16th hole and sleep in luxurious silk-lined sleeping bags under the stars. The next morning they will finish the last two holes followed by sauna and breakfast.

Growing the local game The third big challenge is to bring more Estonian players to Otepää and to introduce golf to more local people. In order to do that, Estonian Golf Association (EGA) players who have paid maintenance or similar fees to their home clubs,

Business Estonia 1/2010

Education is a big part of golf – big words but that is what golf has been about for 400 years.”

will get up to a 50 per cent discount on green fees this summer. Valo draws parallels with Portugal; when he first started in 1985 there were about 1,500 Portuguese golfers but by the mid-1990s they had grown to 10,000. Clubs have managed to grow their numbers with programmes aimed at juniors, which is exactly what Markku plans to do in Otepää by copying Portugal's 'Jovem 2000' model. This grass-roots youth programme offered free golfing introductions to local schools, which inspired some pupils to become European Tour players for Portugal. This season is also likely to see a junior camp mixing club members together with young people from Finland. The

13-18 year olds will spend a week on the course practising and competing against each other. "Education is a big part of golf – big words but that is what golf has been about for 400 years," says Valo. He says that golf should not be seen as an elitist sport, adding that the more people who play, the more affordable it becomes. He cites studies showing that people who play golf save money for society in general; they do not tend to get ill when they get older, they keep working longer and provide tax income for the state. "Golf really is an everyman's sport look at Sweden which has 800,000 players!" www.otepaagolf.ee

Facts about the course • 18-hole PAR 73 • Total length from women’s tee is 4,936 m, from club tee 5,550 m and pros' tee 6,148 m • Course features: hill country adding length to the course, 60 per cent covered by forest, Saagjärv and Mäha lakes, many water hazards • Driving range with 19 places • Chipping and putting area next to clubhouse, which is open to all • Players must have a green card to play • No HCP limits

Business Estonia 1/2010

Text: Maris Hellrand Photos: Villu Kraan, iStockphoto

The golf season in Haapsalu begins with the arrival of swallows every spring. Maris Hellrand visits the town’s beautiful nine-hole course which has few amenities but manages to attract keen golfers from across Estonia and Finland with its stunning scenery and great value for money.

Haapsalu Golf – a course with potential

aapsalu Golf on the north western coast of Estonia is operated almost like a one-man course, with the manager Tõnu Merilo doing all of the day-to-day tasks from taking the bookings, looking after the players, mowing the lawns, building the caddy station and developing the company. The idea to build a golf course on this ancient seabed and former bog came from Heikki Simonen, a lifelong golfer from Finland, in 2004. The architect of the links-type course was the experienced

Finnish golf architect Reijo Louhimo Haapsalu was one of his last projects. The area is very flat with a height difference of only half a metre and is very soft to step on because the soil is made up of peat. The plot itself provided the builders with all the materials they needed as there was a thick layer of sand under the peat. While digging the lakes they also got the sand for the bunkers. The operating company owns 160 ha of land and has plans already approved for a clubhouse, a proper 18-hole club course and a golf village on 109 plots.

However, these plans are still waiting for a business partnership or a major investment. Haapsalu Golf is a ‘pay and play’ course, as well as the home course for the 170 members of Haapsalu Golf Club, who are not necessarily shareholders of the course. Haapsalu certainly attracts customers with its ‘back-to-nature’ appeal – it has no clubhouse, no amenities, not even electricity – but it also offers very good value for money; the green fee for a whole day is only EUR 16. In the last years the course has had sta-

Business Estonia 1/2010

The operating company owns 160 ha of land and has plans already approved for a clubhouse, a proper 18-hole club course and a golf village on 109 plots. However, these plans are still waiting for a business partnership or a major investment.“ Manager Tönu Merilo

ble figures of 2,000 to 2,500 players each season. This year will see the fifth club championship as well as the fifth Läänemaa (west Estonia) championship being held. But there are not many locals who play golf; Merilo says he could probably count fewer than 10 locals who play. In fact three quarters of the club members are Finns who are happy to travel the 100 km distance from Tallinn. There are also members from other parts of Estonia. On the day that Business Estonia visited, only Finnish golfers were playing on

Business Estonia 1/2010

the course. We spoke to Aarre Ruutuoksa who said that he likes playing in Haapsalu and goes there quite a few times every season for long weekends. He also plays on other courses in Estonia and Finland but always likes to come back to the laid back atmosphere and ‘slow greens’ of Haapsalu. Ruutuoksa praises the condition of the course at this time of the year and says it is great to have a course outside Tallinn as most of the country’s development is concentrated in and around the capital. Today the number of players does

not generate enough turnover to make the necessary investments and improvements. But although times are tough, Merilo has refused to raise the price of the green fee, fearing that the lack of amenities would put potential players off. Haapsalu has been a popular holiday town for over a century, attracting tourists with its therapeutic mud. There are a few well-established spa hotels, an ancient bishopâ&#x20AC;&#x2122;s castle with many cultural events all year round and a lovely seaside promenade. These opportunities are excellent

potential for Haapsalu golf course â&#x20AC;&#x201C; people visiting Haapsalu for a week-long spa break could also use the time to play golf â&#x20AC;&#x201C; but so far not much has been done to get this partnership off the ground. The local government supports many sports facilities but unfortunately has not helped finance the golf course, even though it brings visitors to Haapsalu who support local businesses. But Merilo remains hopeful that his vision to develop the course further will be realised one day. www.haapsalugolf.ee

In Brief: Par 34 100 km from Tallinn 9-hole links course Share with 1 game permission EEK 32,000

Business Estonia 1/2010

The Billionaire of Peace of Mind If somewhere there were a Red Book for artists, then hereâ&#x20AC;&#x2122;s a candidate for it. His name is Navitrolla and he is native to the wild jungles of southern Estonia. He is easily recognised by his clear and happy laugh, but even more easily by his naive paintings full of fantastic landscapes and absurd animals. Navitrolla is one of the unique species in the landscape of Estonian Art. So rare in fact that Estonian Art is still quite puzzled by his phenomenon. Can one artist ask for more? Letâ&#x20AC;&#x2122;s ask the artist.

Text: Martin Palm Photos: Navitrolla, Heikki Leis

OPTIMISTIC COMPANY 98 Business Estonia 1/2010

Navitrolla

Business Estonia 1/2010

Science & Culture

Did you fall on your head in your childhood, making you decide to choose such an unpredictable and hard path for an artist?

SHROOMEGIRAFFE

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It is clear that I did not choose it very consciously. My roots belong to south Estonian society, which is a pretty small tribe. These are the people who have their feet on the ground and who worry mostly about simple and basic things – that work would not kill you, but you’d still have enough money, that your wife would be great and not too lazy and the husband would not drink too much. These are the values that must be in balance in this society. When I was a little boy, my relatives always asked: “So tell us, what would you be?” and I always answered: “I’m gonna draw!” Then I was always admired. “Oh what a nice boy, not drinking and smoking, but drawing! That’s a good thing! Even if you go into the Soviet Army you will be safe there as a painter!” But years later, in my early twenties, when I met my relatives again – usually at someone’s wedding or funeral, they would ask me: “So, how have you been? What are you doing?” To their great surprise I answered that I was still painting. Instead of being happy for me, they asked: “Yeah, well, but do you do any work or something like that?” It even got to the point that once my father asked my mother: “What is he doing there in the city? What is he living off? Is he stealing or something?” He simply could not believe that I was painting and making a living from that. For him it was impossible. As far as I remember I had always had a strong interest in painting and artists. But I never thought I could be one. I remember myself looking at art books or reading biographies of famous artists and thinking “Wow! This is something!” I probably felt a bit like the person who has shaken hands with the president and will not wash his hands after that. I had too much respect for this title.

What about now? I did not dare to call myself an artist, even in my early thirties. Several years ago I met one real blue-blooded aristocrat in France. The kind of person who owned many huge castles, but gave them away just like that and moved to Tahiti. My friends introduced me to him as an artist. He looked at me angrily and asked: “How dare you call yourself an artist?” I explained to him that I’d never said that about myself for simply having too much respect for that title. He finally understood that I really meant it and so calmed down, telling me: “You are an artist only when other people will say that you are.” At the moment I do not even think if am I an artist or not. Just like a plant or tree does not think what it is. They just exist.

SMALL MISCALCULATION

TRAVELLING MERCHANTS

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Have you ever regretted your choice? I would love to say no, but this would not be true. I remember the moments of hesitation, while I was not sure at all that I’m on the right track. While I had used all my ideas and was thinking: “Oh no, what am I gonna do now. But when I think about how much joy I’ve felt thanks to walking this path, it is immeasurable. It sounds cheap, but this path has its own torments. But torments can be pleasures if you are able to enjoy them. Only through those torments and pains will you learn to understand what you are capable of. And this is the way you will reach a new level. But if I had chosen some other path or become someone else, I think I would have been a very successful criminal (laughing). By the way, do you remember what was the name of this French poet who wrote his only poetry book when he was 19 and then finished with writing and became an arms dealer?

MESSED UP

As far as I remember I had always had a strong interest in painting and artists. But I never thought I could be one.”

HIDDEN TALENTS

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Arthur Rimbaud

BETWEEN TWO BRANCHES

Exactly. Just think how he said all he had to say and then just quit. Though I have had many up and down periods, I have always been able to find my rhythm again. You need to rest, it is not possible to hit the bulls-eye every day. Iâ&#x20AC;&#x2122;ve faced many crises in my career. When your mind is blank and all your ideas and unfinished works feel like the most pointless crap. That is until you finally find that tiny clew and start sewing, and sooner or later you are back on track. The older I get, the better I know the importance of immediately using all those great moments of inspiration and creativity. You should never be too careless about them, because similar moments may not appear again. I recently quit most of my business contracts with different resellers of cups and T-shirts and calendars, so I could concentrate only on painting. Maybe I will make less money and there is a huge financial difference whether you are a pop artist in New York or a pop artist in the south of Estonia. But in terms of peace of mind I am definitely a billionaire.

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It is clearly visible through your paintings

CROSSROAD

There are some things I’m born with. Of course I’ve deeply analysed what I am doing. For example, the absence of humans in my art. I can draw them perfectly, but I simply see no point in it. What I want to do are those fantasy landscapes that will awaken your imagination. I like to create these compositions to trigger new ideas and connections in a viewer’s mind. I just try to help stimulate people’s minds to create new recognition and ways of thinking. Nothing else.

Why exactly all these animals? Was there a certain concept behind them? Animals appeared accidentally in my art. From the simple need to keep the compositions of landscapes alive.

A MEETING UNDER WOUNDED CLOUD

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THE ONE WHO SLIPS

THREE FAT TROUBLES

And by now these animals have basically hijacked your art? That is true. But they are great helpers too. For example, for a painting called “Stoned” I would rather paint a giraffe with its head in the clouds than some realistic portrait of a drug addict. In this way I can create much more symbolic associations and new thoughts in a viewer’s mind. I believe this is the most important thing for me. www.navitrolla.ee

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FIRST LAY EGGS, THEN FLY AWAY

Others about Navitrolla João de Deus, Portuguese diplomat in Switzerland I was introduced to Navitrolla's paintings, and to Estonian culture in general, years ago when I met my wife, who is, you would have guessed, Estonian. And even before I met the artist himself (who has become a dear friend to both of us), I can say I had a “crush” on his artwork. I have always liked naive

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style and the “childish” happiness that it brings to art as a whole, but Navitrolla goes way beyond naive, far too rich in detail and technique to be limited to a single style, unless books start using a new term: “Navitrolla's style”. At the same time that the artist is so rigorous in perfecting, in a very scholastic manner, every single white puffy cloud, little piece of grass or tree branch – in contrast to naive's usual abstraction to perspective and detail – his paintings take us, on the other hand, to a kind of “parallel universe”, an enchanted kingdom of pure nature populated by strange, wild and fascinating animals, often interacting between themselves in a very intriguing (and most of the time, comic)

human manner. What makes Navitrolla different, and supports his success, is that his art is truly unique, and always able to “awake the child inside us”, the one we should never put to sleep. Navitrolla reminds us that the amazement at nature in its most primitive forms, be it a golden sunset or an infinite forest, is the source of all true happiness, in contrast with our ever-growing contemporary consumerist society. That's why you never see a single human being portrayed in his paintings (a perfect world, with humans?). And even the animals are of a special kind, out of this world. I have the privilege of owning several of Navitrolla's pieces of art and, plainly speaking, they take me “somewhere else”.

Teppo Vuoristo, Finnish publisher and art collector I bought my first Navitrolla 15 years ago. It was an oil painting, with a buck on an autumnal forest meadow looking at a strange cloud. I liked it straight away and still do. After that I’ve bought his works for years. Although I cannot hold all Navitrolla’s work on my walls, I would not hesitate for a moment to buy a new paint-

ing again when I see some work I like in his studio. We’ve been friends with Navitrolla for years, but actually we have never discussed his work. And even though I work in the art sector, I’ve never even tried to analyse them. His works just have this something special that makes you stop. I experience something that I can’t or even don’t want to explain. When I give a good look at the certain painting, I would like to go inside that painting, step into the other world where the distances, time and perspectives seem to take on a new meaning. I also know that I would like to understand something that is beyond my comprehension. Navitrolla´s work is the best artistic experience for me. KING OF ANIMALS IN THE KINGDOM OF MUSHROOMS

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Vivat Academia, Vivant Professores Text: Tiit Konsand Photos: Aldo Luud, UT

The University of Tartu was founded in 1632 by the Swedish King Gustavus Adolphus. It was initially called Academia Dorpatensis. The necessary preparations for creating a university in Tartu (then Dorpat) were made by Johan Skytte, Governor General of Livonia.

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(Long live the academy! Long live the teachers!)

We cooperate with other universities. There is also a question of reputation. How well known and recognized we are. When your colleague knows that you’re from the University of Tartu, and you can prove that you’re a good scientist, the institution is respected as well. The Rector of the University of Tartu, professor Alar Karis.

niversity of Tartu is Estonia’s leading centre of research and training. It preserves the culture of the Estonian people and spearheads the country’s reputation within research and provision of higher education. As Estonia’s national university, UT stresses the importance of international co-operation and partnerships with reputable research universities all over the world. The robust research

potential of the university is evidenced by the fact that it is the only Baltic university that has been invited to join the Coimbra Group, a prestigious club of renowned research universities. In 2009 UT became the first Estonian university to be rated as one of the top 5% in the world by Times Higher Education-QS World University Rankings. UT includes 9 faculties, five colleges and several regional development units,

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of which the latter two are situated in different parts of Estonia. To support and develop the professional competence of its students and academic staff, the university has entered into bilateral agreements with 49 partner institutions in 19 countries. As of the end of 2009, the university employed more than 3,500 people, of whom approximately 50 per cent are members of the academic staff (including 180 professors). In 2009, the proportion of full-time lecturers and researchers holding a PhD was close to 60 per cent. There are a total of 17,500 students studying at the university’s 9 faculties and five colleges. This includes about 670 visiting and International students. The number of doctoral students is 1,300, with about 100 doctoral defences taking place each year.

Old and dignified classics The Rector of the University of Tartu, professor Alar Karis, says that the university is Estonia’s most senior and respected university. “Estonia is a small country and this limits the number of universities here. The general concept of university has become broader nowadays. Many former technical schools also have ambitions to achieve university status. It makes no sense to create another university here along the lines of the University of Tartu. Now the question is, what are the functions of the other universities? What are the purposes and mission of one or another university? “Well, for example, Tallinn University of Technology is oriented to technical studies. But if we look today, the majority of students study at social and humanitarian faculties. And, for example, there is also Tallinn University. What, then, is Tallinn University's role and mission here in our university landscape? But right now if we look at the country’s small size, you must clearly also think about what the priorities of the country and our national interests are.”

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“Over 60 per cent of science is done in the University of Tartu, doctoral defences the same. Approximately 25 per cent is based at Tallinn University of Technology. It is clear that Tallinn University of Technology and the University of Tartu cover the majority of areas and science resources. Everything else is like a bonus. It’s also important to look at our demographic situation,” admits Karis.

University can attract when it has something to offer “The university has its contents today. Without substance it definitely could not exist. But we can always make the

content, quality and level better. And today we have a situation where we have an open world where the boundaries do not actually exist. This competition, with Oxford and Cambridge for example, does not mean that we should compete with them in one area or another. But we compete on the fact that we are visible and the students know that there is at least one university in Estonia where they can get the best education without having to move away from home. This is important. If we don’t have it, then the country is not competitive,” says Karis. “And I said to our minister of education as well, that the task of the minister is to stand up for it. If you look at the

It has been a great advantage for the University of Tartu that we have been opened to various organizations and our scientists in many fields have been very well networked.”

“Liabilities are very difficult for us to cope with alone. We have areas that we think are important, but they do not make economic sense. This does not mean that they must be restricted. If something is strategic, we must find resources for it. “We must also make choices as a classic university. We must be able to compete with the rest of the world. I have also told that universitas must not be turned into omniversitas – in other words, a university dealing with everything. “The classic university has its limits. This shows that we have very clear areas in which we deal. We do not have to deal with everything. The university is not a profit-generating company. Of course, we

do have elements of business. The situation has changed with the number of students. One thing is the same competition, something that we did not speak about 20 years ago. Today, it clearly exists. We now have 17,500 students instead of 6,000. This means that there is a need for certain changes in the funding and decisionmaking process.”

International University Karis goes on: “Tartu University has always been international. Even during the Soviet times, it was international. Our people went abroad. True, this was very limited. And scientists from other coun-

maps of research funding in Europe, you can see that the boundaries of the Cold War are re-emerging. The task of the minister and the state is to stand up for Estonia having at least one science university – and it must be financially supported according to its status.”

How to ensure stable quality? “We cannot close areas which do not pay off. The University of Tartu has clearly distinct priorities. To preserve the Estonian language and culture is our obligation. Today, it is really just an obligation and responsibility. We do not have individual resources for it.

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Tartu University has always been international. Even during the Soviet times, it was international. Our people went abroad. True, this was very limited. And scientists from other countries came here too. tries came here too. The university is naturally international in any case. And if we do not have lecturers from outside and foreign students, we cannot take university seriously,” Karis says with certainty. “If we are talking today about the demographic situation, we have people with very different cultural backgrounds and this is this internationalization of the university. They inevitably bring different thought patterns. This is the idea of internationalization. And our own people also have many different possible backgrounds.”

Being competitive by being open “We're open to new ideas and new people. New people come with new ideas. Very high risks are to be limited. You may be in a closed circle, a circle of protection sometimes. Certain so-called mediocrity is protected. It can only be changed by new perspectives coming from outside. And then we are open, international. It has been a great advantage for the University of Tartu that we have been opened to various organizations and our scien-

tists in many fields have been very well networked. Because of limited resources you can only achieve such a result by being a part of a larger system.” “We cooperate with other universities. There is also a question of reputation. How well known and recognized we are. When your colleague knows that you’re from the University of Tartu, and you can prove that you’re a good scientist, the institution is respected as well. If you look at our university publications, there is still a great deal of cooperation between different institutions. Scientists still select the best possible partner. In larger countries your partner is somewhere near you. Smaller countries must look for a partner all over the world,” notes Karis. According to Alar Karis one advantage of the University of Tartu is that Tartu is a university town itself. “When

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you are here you understand that university is everywhere. The students are 20 per cent of the population and they are on the streets, you can see them. In larger cities such as Tallinn you can bypass some university and you will not notice it at all. Here you are like part of a community. And it must be stressed that students are awaited here, they are visible and they can operate freely. Pirogov Square (behind the Town Hall of Tartu, near the university main building), is one of the only public places in Estonia and the only in Tartu where you are allowed to drink beer. It may seem ridiculous, but in fact, this is another indicator. You can open your laptop and watch or listen to the latest lectures. It does not replace real lectures, but it creates an added value. “Competitiveness today does not only mean with other universities, it means

Wikipedia, Google, You Tube etc, from where you can get information as well. And that potential keeps our lecturers on their toes. For instance, if a student is sitting opposite you, and opens the latest issue of a scientific journal and he asks something specific of you about a new article that was just released. You cannot say: ‘I have not had time to read it.’”

Greeting to the future University Rector Alar Karis wrote last year “a greeting to the future” for the 800th anniversary of the University of Cambridge. Cambridge chose more than 800 people from all over the world, among them 150 academics, and the Vice-Chancellor, Alison Richard, asked them to write a vision of the future 100 years from now. The letter will be opened

after 100 years. Alar Karis says that choosing him to write that letter indicates that we are international, we are networked. “It really shows that we are partners with Cambridge. And we are partners through the so-called Coimbra Group, which is the association of old universities including about 40 countries. “When you’re talking with your colleague from the wide world you recognize immediately whether she/he talks to you like an equal or just out of politeness. Thankfully, my experience shows that the Rector of the University of Tartu is still taken very seriously as a partner in each sense. We are well known. It’s good but we must not be satisfied with it. This means that we must make much more effort,” concludes Karis. www.ut.ee

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Cultural highlights in the summer of Tallinn Text: Tiit Konsand Photos: Jaak Kadarik, Birgitta Festival

Birgitta Festival was created in 2005 and takes place this year for the sixth time. The idea came in December 2004 when the director of the Tallinn Philharmonic Society, J端ri Leiten, and artistic director Eri Klas went to the ruins of Pirita Convent. They had a plan for a long time to create a great music festival in Estonia. They wanted it to have opera as well as ballet. The island of Saaremaa had an opera festival once but it was not their vision. 114

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And there is still one important thing. We want to experiment, we are never going to look for best sellers or the most popular shows. Rather we consider things such as the environment, producer, music etc. Itâ&#x20AC;&#x2122;s easy to take Traviata and put it up for sale. But the organizers are looking for solutions appropriate to the environment.â&#x20AC;?

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Director of the festival, Jüri Leiten

he main organizer and director of the festival, Jüri Leiten, recalls that the historic convent in Pirita led them to interesting ideas and plans. “We built the roof to the ruins and the tribune for the people. We managed to create there really such an environment that really has Estonia’s best acoustics. We have an opera hall for 1,500 customers. And of course the historic 600 year-old walls. It’s a very good environment,” notes Leiten.

Thinking and content “We did not want to copy the Savonlinna Opera Festival in Finland and we thought a little bit wider. And the result we arrived at is that the thinking behind our

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festival is theatrical music. This always gives the possibility to create something new and innovative. “Five years has seen all sorts of experimentation. We have done opera-jazz, modern ballet, we have also had a Spanish flamenco theatre and kong players from Taiwan. So the audiences have seen a real variety of performances,” says Leiten. “And there is still one important thing. We want to experiment, we are never going to look for bestsellers or the most popular shows. Rather we consider things such as the environment, producer, music etc. It’s easy to take La Traviata and put it on, but the organizers are looking for solutions appropriate to the particular environment.”

C. W. Gluck Orpheus and Eurydice

Well-known festival “The Birgitta Festival has become known for sure in Estonia’s neighbouring countries such as Finland, Sweden, Latvia, Lithuania. Well, of course, it’s quite well known in Russia (especially in St Petersburg and Moscow). Many top Russian musicians have visited us over the years,” says Leiten. “We’ve gone to tourism fairs, and there has always been the Savonlinna Opera Festival. We are competing with them. The battle is mainly over the audience, which is located in the Helsinki region. There is a choice for Finn to drive 370 km north from Helsinki or take a 90-minute boat trip over the sea to Tallinn,” he adds. “I've been in many opera houses to ask, check and make deals. Then thanks to doing that, our festival is also wellknown. And it has become known more widely thanks to all those directors who have been here,” Leiten says with an air of certainty.

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Ballet Joanna Tentata, music by E. Tamberg

This year's festival (12-21 August) “My friends ask for suggestions all the time. I’m always in terrible trouble. It’s a very complicated question. All of our performances are very good. This year we have lots of music and performing works, which can be characterized by the word ‘new’.” “Orpheus is a production of our own. Every year we have one production we do ourselves. A very international crowd is performing. It is directed by Georg Rootering from Germany, and we

Ballet Underground, music by P. Vasks

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have Swedish and German soloists with opera-physical Pan-Optikum. This is a very attractive show; the actors are like stuntmen at the same time. In short, we combine baroque opera with a modern approach,” says Leiten. The artists of the physical theatre are not operating merely on the stage but also use the audience area, walls and windows. “The Kyiv Modern Ballet theatre is a very high level group. They are ballet dancers of innovative thinking who separated from the Kyiv National Ballet and created their own troupe. The performances are very humorous and very clever-

ly resolved. They use music by Arvo Pärt and Peteris Vasks in one of their performances. The second one is a very interesting solution – G Bizet’s opera Carmen. People will hear music from the opera and see only dancing. The main theme is ‘how I saw Carmen on TV’.” Leiten goes on to say that Lohengrin is a big Wagner opera. “Moscow Novaya Opera actors discovered that the historical Pirita convent walls are very suitable decorations for the opera. The opera leaves three quarters of its decorations at home and only takes the most necessary accessories. And the novelty of Lohengrin lies in the fact that in this production our famous bass Ain Anger from Vienna takes part. This opera is conducted by Jan Latham-Koenig from the UK,” explains Leiten. “C Orff ’s Carmina Burana is a good tradition of ours. The same night our audience can see E Tamberg’s ballet Joanna Tentata. The stage director and choreographer for it is Teet Kask. Stage designer is Kisa Kawakami, an architect and designer from Japan who lives in London. “Rossini's opera The Barber of Seville is important to us. It was staged by the world famous director Elijah Moshinsky and is a relatively new production,” says Leiten. “We will finish our festival with opera@pop-jazz. It is our own fantasy,

Artistic Director Eri Klas

which has already been working very well for several years. The main idea is that opera world’s top arias are first presented as they are in original and then jazz arrangements are made from them.”

Tallinn 2011 European Capital of Culture Jüri Leiten says next year, when Tallinn is the European Capital of Culture, they will commission a completely new Estonian opera based on one of the well-known Estonian literary works. “I hope we will meet maestro Neeme Järvi at next year’s Birgitta Festival for the first time. Wagner is a musical theme. “We have agreements with the world famous St Petersburg Maria Theatre and the world-famous conductor Valery Gergijev that they will visit our festival next year, while they are on their Scandinavian tour. Then there is an agreement with the Latvian Ballet. And certainly we do not forget to surprise our audience,” Leiten says. www.birgitta.ee

PROGRAM 12.08 20:00 C. W. GLUCK opera-physical theatre ORPHEUS AND EURYDICE 13.08 20:00 C. W. GLUCK opera-physical theatre ORPHEUS AND EURYDICE 14.08 20:00 Ballets BOLERO, UNDERGROUND and WARD NO 6 15.08 20:00 G. Bizet ballet CARMEN.TV 18.08 20:00 R. Wagner opera LOHENGRIN 19.08 20:00 E. Tamberg ballet JOANNA TENTATA C. Orff CARMINA BURANA 20.08 20:00 G. Rossini opera buffa IL BARBIERE DI SIVIGLIA 21.08 20:00 OPERA@POP-JAZZ

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The best city for the world

Tartu

Tartu, with its population of 101,246 (Population Census data from 2000) in an area of 38.8 sq km, is the second largest city in Estonia. Tartu, lying 185 km south of Tallinn, is also the centre of southern Estonia. The River Emajõgi (Mother River), which connects the two largest lakes in Estonia, flows for 10 km within the city limits and adds colour to the city. The first written records of Tartu date from 1030.

Text: Tiit Konsand Photos: Meelis Lokk, University of Tartu

Promenade on the banks of Emajõgi River

hen the Swedish King Gustav II Adolf signed the establishment order of Academia Gustaviana (University of Tartu) in 1632 Tartu had already been known as a city for six centuries. Tartu’s favourable, easyto-defend and beautiful location did not go unnoticed for anybody on either side of the River Emajõgi. Both before and after the creation of the University of Tartu, the city had played a very large role in trade, science and culture.

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If a city has so many values, good people, thoughts, glory and history, this city is the best city for the world and Tartu is happy to share it with everyone. Welcome!”

Town Hall Square

The head of the Tartu City Government Public Relations Department, Indrek Mustimets, says we have heard a variety of cities claiming to be the world's best cities. “But Tartu instead wants to be the best city for the world and thus fulfil its obligations, both historical and modern. We have never measured how well known we are in Europe and the world. But thinking about this, whoever has found Tartu for themselves throughout the centuries is something we may be proud of.”

Every era has left its mark “Every era has left its mark on Tartu. So, we may talk about the conquering of Tartu, repeated major fires, diseases and rapacious conquerors. But we can also talk about the huge military airfield that Tartu inherited from the Soviet era and in the direct vicinity of which is one of the most interesting museums in the world – the Estonian National Museum. The international architectural competition was won by the work called “Memory Field” and

which is full of symbolic meaning – Tartu has a large number of sources of Estonian folk and rich culture. Although Tartu was a closed city for half a century under Soviet control, good thoughts and spirituality never disappeared for a moment,” says Mustimets. “If one of the architectural jewels is built on an old military airfield in Tartu and the old airfield is permanently closed, it is symbolic that the civilian airport in Tartu is extended. Through it, Tartu has its connections with the rest of the world.

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Tartu

Tartu, although the capital of southern Estonia, has been without a fast link to the rest of the world for a long time. Citizens of Tartu can now also talk about the progress of road traffic between Tallinn and Tartu, and Tartu and Riga. The latest news from the Estonian government confirms that the state is also vigorously planning a Tallinn-Tartu-Valga-RigaWarsaw railway line, Rail Baltica.”

Colourful and international Tartu is undeniably an international city – nearly 1,000 foreign students are studying in various educational institutions. Researchers work at post-doctorate level and senior lecturers from different universities work alongside each other. Numerous spin-off companies have inFashion and Leisure Center Tasku

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novators from all over the world sharing their knowledge. In the world of theatre, the Vanemuine ballet stage features dancers from 15 different countries. All year round this captivating city is well known by artists, musicians, writers and theatrical people, not to mention ramblers for whom Tartu is an integral part of a visit to Estonia. Indrek Mustimets thinks there are thousands of reasons and people to explain why Tartu is exactly like this and not a boring or colourless city. “City of good thoughts, it’s the slogan of Tartu, and it absorbs a lot of good and valuable things. Speaking of Tartu, the cradle of the ethnic awakening of Estonia, we can be proud that the foundation stone of spirit was laid here. Here we have the Estonian Literary Museum, the Estonian

National Museum, Tartu University, Estonian University of Life Sciences, Estonia's first professional theatre, with opera and ballet. Tartu is the birthplace of song festivals and the national media. This diversity and colour has given a great impulse to the whole Estonian culture, mental forces and statehood.”

Tartu = University of Tartu “The heart of Tartu is the University of Tartu. There is probably no family with Estonian roots anywhere in the world that is not related to the university in some way. Through the independence years, the university has step by step restored and developed all of its legendary faculties, created new research centres, and supplied educational and research

institutions with modern technology. All of this creates an opportunity. A hundred years ago Nobel Prize winner in chemistry, Wilhelm Ostwald, worked at the University of Tartu. We all hope that another scientist from the university will one day win the Nobel Prize. But in the University a lot of world famous scientists work,â&#x20AC;? says Mustimets. â&#x20AC;&#x153;Being Estonia's leading university, it competes with European and global research institutes and centres, and must hold onto a reputation gained over the centuries. The most outstanding research areas of the University of Tartu include molecular and cell biology, gene technology, immunology, pharmacology, chemistry, biochemistry, laser medicine, material science, laser spectroscopy, environmental technologies, computer lin-

Maarja Fair

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Hanseatic Days

Emajõgi River

guistics, psychology and semiotics. This list could go on. “Tartu is a well-known educational and scientific centre and the achievements of its scientists generate interest around the world, and in biotechnology some of the projects promise a real breakthrough. So For example, researchers of Tartu have reached the final stage of HIV vaccine development. Estonia's largest biotechnology company, called Asper Biotech, is also working in Tartu. It developed gene analysis detectors which are operating in the French Cancer Research Centre, at a genetic analysis company in South Korea and in Columbia University in the US. These are just some examples of the great potential of the university of a small country like Estonia,” Mustimets adds. “Of course, the potential of Tartu researchers is also used by domestic companies. Estonia's largest dairy products manufacturer, Tere, has co-designed a unique product line that includes lactic acid bacteria ME-3, discovered by microbiologists of the University of Tartu. Tere worked in collaboration with researchers from the University of Tartu. Yoghurt and curd creams containing new bacteria are very popular among Estonians,” Mustimets says. “The Estonian Genome Project was born in Tartu about 10 years ago. The Genome Project’s goal is to get – by the end

Panorama of the borough Karlova

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of 2010 – the gene data of 100,000 Estonians. The collection of genetic data will allow the diagnosis of diseases, improved treatment and ways to determine cancer risk in the future. “We may proudly name Tartu University Hospital the flagship of Estonian medical sciences. It recently opened an excellently equipped new building on the Maarjamõisa medical campus.”

A favourable business and natural environment “In the economy of Estonia's second largest city the rapid development of the information and communications sector sticks out,” says Mustimets. “Tartu has about 125 IT companies, with an estimated total annual turnover exceeding EUR 75 million, and approximately 1,200 employees. “A favourable business environment and several support structures help create and develop businesses. This includes the Tartu Science Park, Business Advisory Services Tartu, Tartu Biotechnology Park, as well as the recently established Centre of Creative Industries. Enterprise development organizations are providing support and advice – to established and start-up companies – and offering them a variety of services,” says Mustimets. “Tartu is a fascinating city where the

modern infrastructure and industrial harmony is intertwined with a distinctive natural environment. So, for example, the downtown café surfer on the Internet (Tartu city centre is almost entirely covered with a free Wi-Fi network) can go to Toome Hill with its ancient trees within few minutes by foot or take a walk on the riverside promenade. Within a 20-minute walking distance from the city centre are biggest meadow regions of Estonia. Their rich flora and variety of birds belong to the Natura 2000 areas list.

“Both the developers and planners have to take into account the unique nature environment. And urban planning has led to a unique set of ideas in Estonia – the proposed housing estate will include islands for plants which are under protection,” adds Mustimets. “If a city has so many values, good people, thoughts, glory and history, this city is the best city for the world and Tartu is happy to share it with everyone. Welcome!” www.tartu.ee

The main building of Tartu University

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Jomet Oy P.o Box 27, 30101 Forssa Tel.: +358 10 404 6200 Fax: +358 3 422 5706 Internet: www.jomet.fi Email: jomet@jomet.fi Established: 1977 President: Bruno Lespinasse Net sales: 5,6 million EUR (2007) Net profit: 0,01 million EUR (2007) Employees: 43 Main line of business: Packaging

Food and Packaging

Lihel Oy Mänkimiehentie 21, 02780 Espoo Tel.: +358 9 819 0110 Fax: +358 9 8190 1199 Internet: www.lihel.fi Email: firstname.surname@lihel.fi Established: 1987 President: Dave Knaster Net sales: 17,2 million EUR (2007) Net profit: 1,2 million EUR (2007) Employees: 40 Main line of business: Food products

Metsä Tissue Oyj P.O. Box 25, 02020 Metsä Tel.: +358 10 4616 Fax: +358 10 4654199 Internet: www.metsatissue.com Established: 2003 President: Hannu Kottonen Net sales: 211,5 million EUR (2007) Net profit: 8,9 million EUR (2007) Employees: 3326 Main line of business: Pulp and paper products Oy M.Haloila Ab Ruskontie 16, 21250 Masku Tel.: +358 2 437 6111 Fax: +348 2 437 6211 Internet: www.haloila.com Email: haloila@mimaitw.com Established: 1978 President: Jari Paavola Net sales: 36,7 million EUR (2007) Net profit: 7,6 million EUR (2007) Employees: 72 Main line of business: Packaging

Olvi Oyj P.O. Box 16, 74101 Iisalmi Tel.: +358 29 0001050 Fax: +358 17 8385215 Internet: www.olvi.fi Established: 1925 President: Lasse Aho Net sales: 96,5 million EUR (2007) Net profit: 8,5 million EUR (2007) Employees: 389 Main line of business: Food products and beverages

Karl Fazer Oy Ab P.O. Box 44, 00101 Helsinki Tel.: +358 20 5553000 Fax: +358 20 5553128 Internet: www.fazergroup.com Established: 1919 President: Karsten Slotte Net sales: 39,6 million EUR (2007) Net profit: 11,3 million EUR (2007) Employees: 81 Main line of business: Food products and beverages

Liljendals Bruk Ab Krogarvägen 9, 07880 Liljendal Tel.: +358 19 521 6100 Fax: +358 19 616 516 Internet: www.itw.com Established: 1990 President: Juhani Liinamaa Net sales: 25,8 million EUR (2007) Net profit: 2,1 million EUR (2007) Employees: 50 Main line of business: Packaging

Osuuskunta Pohjolan Maito Teollisuustie 4, 86600 Haapavesi Tel.: +358 10 381 148 Fax: +358 10 381 6161 Email: firstname.lastname@valio.fi Internet: www.pohjolanmaito.fi Established: 1963 President: Markku Hukkanen Net sales: 188,4 million EUR (2007) Net profit: 1,13 million EUR (2007) Employees: 23 Main line of business: Food products

Laihian Mallas Oy Länsitie 372 66400 Laihia Tel.: +358 6 475 2111 Fax: +358 6 476 2555 Internet: www.laihianmallas.fi Email: mallas@laihianmallas.fi Established: 1992 President: Lasse Koski Net sales: 12,6 million EUR (2007) Net profit: 1,3 million EUR (2007) Employees: 49 Main line of business: Food products

Lännen Tehtaat Oyj P.O. Box 100, 27801 Säkylä Tel.: +358 10 40200 Fax: +358 10 4024022 Internet: www.lannen.fi Established: 1951 President: Matti Karppinen Net sales: 349,1 million EUR (2008) Net profit: 17,1 million EUR (2008) Employees: 755 Main line of business: Food products and beverages

Osuuskunta Tradeka-yhtymä P.o Box 72, 00501 Helsinki Tel.: +358 9 73 351 Fax: +358 9 733 5005 Email: tradeka@tradeka.fi Internet: www.tradeka.fi Established: 1918 President: Juha Laisaari Net sales: 190,9 million EUR (2007) Net profit: 29,3 million EUR (2007) Employees: 11 Main line of business: Food products

Oy Panda AB P.o Box 3, 40801 Vaajakoski Email: panda.bear@panda.fi Internet: www.panda.fi Established: 1998 President: Ami Wardi Net Sales: 52 million EUR (2007) Net Profit: 0,23 million EUR (2007) Employees: 318 Main line of Business: Food products Oy Paulig Gustav Ab P.O. Box 15, 00991 Helsinki Tel.: +358 9 31981 Fax: +358 9 3198400 Internet: www.paulig.fi Established: 1991 President: Pekka Pirinen Net sales: 210,1 million EUR (2007) Net profit: 18,5 million EUR (2007) Employees: 187 Main line of business: Food products and beverages Pernod Ricard Finland Oy Panuntie 4, 00610 Helsinki Tel.: +358 20 721 2200 Fax: +358 20 721 2229 Internet: www.pernod-ricard-finland.com Email: info@pernod-ricard-finland.com Established: 1999 President: Tarja Uitti Net sales: 68,2 million EUR (2007) Net profit: 4,5 million EUR (2007) Employees: 209 Main line of business: Beverages Polarica Finland Oy Ristijärventie 51 B, 88600 Sotkamo Tel.: +358 20 775 1450 Fax: +358 20 775 1459 Internet: www.polarica.fi Email: firstname.lastname@polarica.fi Established: 1976 President: Tommy Innala Net sales: 11,9 million EUR (2007) Net profit: -0,22 million EUR (2007) Employees: 19 Main line of business: Food products Polttimo Oy P.O. Box 20, 15141 Lahti Tel.: +358 3 86411 Fax: +358 3 7522742 Internet: www.polttimo.com Established: 1897 President: Katharina Stenholm Net sales: 7,766 million EUR (2007) Net profit: 3,6 million EUR (2007) Employees: 34 Main line of business: Food products and beverages

Food and Packaging

Liha-Saarioinen Oy P.O. Box 122, 37601 Valkeakoski Tel.: +358 3 2447111 Fax: +358 3 2447777 Internet: www.saarioinen.fi Established: 1992 President: Kai Metsänvuori Net sales: 95,3 million EUR (2007) Net profit: 0,772 million EUR (2007) Employees: 388 Main line of business: Food products and beverages

“In Moscow, our long-term goal is to achieve a central position in the bakery market. Being situated in Moscow, we have better opportunities for expansion to other locations in Russia,” said Berndt Brunow, former Group President, when interviewed by Business Finland in 2006. As delivering bread all over Russia from just one or two locations is logistically challenging, Fazer is interested in setting up bakeries in other cities as well. Member of the Board of Directors of Fazer Berndt Brunow

n May 2005, Fazer Bakeries expanded its operations in Russia as it acquired the Moscow bakery Zvezdny (OAO Experimentalny KonditerskoBulochny Kombinat “Zvezdny”). Zvezdny is one of the biggest manufacturers of bake-off pizza and frozen dough in Russia. The bakery also manufactures pastries and fresh bread. Today four Russian bakeries belong to Fazer Group; 3 in St Petersburg and one in Moscow (Zvezdny). The bakeries joined forces and became one operative company as of March 2008. The name and the identity of the new company is Hlebny Dom.

Russian Brands for Russians

According to the latest review of business conditions in the construction industry prepared by the Confederation of Finnish Construction Industries, the situation for housing construction is rather gloomy due to bureaucracy and slow decision-making.

Output and Profitability The output of the construction business in 2008 was EUR 29.5 billion – housing construction accounting for EUR 24.1 billion (-1.4 percent from 2007), of which new buildings amounted to EUR 14.7 billion, while repair and maintenance came in at EUR 9.4 billion. Earth and water works output totalled EUR 5.5 billion (+5.2 percent from 2007), which included EUR 4 billion of investments; the share of maintenance was EUR 1.5 billion. The profitability of the construction industry companies worsened toward the end of last year as the sales of new apartments came to a standstill.

Outlook 2009). The comparable figures for building material industry are EUR 7.8 billion (EUR 7 billion in 2009) and exports of building material EUR 6.5 billion (EUR 6 billion in 2009). New contracts amounted to EUR 671 million. The development was positive in the Nordic countries and Russia, as well as other countries, apart from the Baltics.

The number of housing projects to be commenced in 2009 is expected to fall by 13 percent – there will be only 14,000 new projects this year – as the financing of housing projects is in difficulty. (Source: Confederation of Finnish Construction Industries)

International operations of the Finnish Construction industry by country in 2008

Employees

“P

anda’s vision is to be the most respected licorice brand in the world, recognised by both the consumers and retail when the topic of licorice is addressed,” Jorma Alanen, former Vice President in charge of exporting operations, told Business Finland in 2006. “In order to realise our vision, we must continue to increase our exports, but we must be patient and concentrate on setting long-term goals as we have done before,” Alanen states, adding that the company is not seeking a temporary sales spike from exports, but instead wants longevity from the foreign markets.

Global Candy The licorice culture around the world is rather versatile. For the Americans, licorice is preferably red, and the British have their very own brand of licorice. In the Netherlands, licorice covers also a whole spectrum of wine gum candy. “The definition of licorice varies from country to country. The Finnish version, soft and black licorice, is more rare out there. Outside Finland, this type of licorice is mostly manufactured in Australia

The construction business employed around 184,100 people in 2008. The figure is expected to decline to 160,000 in 2009 while the number of unemployed is expected to rise to 50,000 toward the end of the year.

and the USA,” Alanen says. The licorice Down Under seems to be the closest – taste-wise – to the Finnish product. But how did the rather exotic Panda bear come to symbolise the company in both name and image? Not exactly native to Finland, the Panda was drawn up by a graphic designer back in 1952. The bear was meant to grace only a chocolate bar wrapper, but instead, the company – known as SOK − eventually changed its name to Panda Chocolate Factory in 1961. Two years later the bear ventured abroad for the very first time, as a shipment of licorice was delivered to Paul Spiz in New York.

A D E Ahlstrom Glassfibre Oy P.O. Box 140, 48601 Kotka Tel.: +358 10 88811 Fax: +358 10 8882510 Email: glassfibre@ahlstrom.com Internet: www.ahlstrom.com Established: 1991 President: Pekka Helynranta Net sales: 117,9 million EUR (2007) Net profit: 0,004 million EUR (2007) Employees: 594 Main line of business: Mineral products

General

In 2006 Fazer had 3,500 bakery employees in Russia: 2,500 in the St. Petersburg area and 1,000 in Moscow. The employees are all Russian and the bakeries manufacture and sell their own local brands. However, the Fazer brand, which has been visible in Russia since the Soviet era, has not been forgotten either: “It is a part of our Group strategy to increase the visibility of the Fazer brand in Russia,” Brunow stated. “But we would never want to spoil a legendary brand such as the Hlebny Dom which was the only bakery that kept going through the siege of Leningrad during World War II and is clearly a part of the national heritage.”

Photo: Panda

I J K L

Ingman Ice Cream Oy Ab P.O. Box 33, 01151 Söderkulla Tel.: +358 9 27200500 Fax: +358 9 27200555 Internet: www.ingman.fi Established: 1988 President: Robert Ingman Net sales: 65,7 million EUR (2007) Net profit: 2,4 million EUR (2007) Employees: 539 Main line of business: Food products and beverages

Leaf Suomi Oy P.O. Box 406, 20101 Turku Tel.: +358 10 30341 Fax: +358 10 3034650 Internet: www.leaf.fi Established: 1998 President: David Nuutinen Net sales: 100,7 million EUR (2007) Net profit: -14,3 million EUR (2007) Employees: 252 Main line of business: Food products and beverages

Photo: Sini Pennanen

Food and Packaging

Huhtamäki Oyj Keilaranta 10, 02150 Espoo Tel.: +358 10 6867000 Fax: +358 10 6867992 Internet: www.huhtamaki.fi Established: 1941 President: Jukka Moisio Net sales: 106,8 million EUR (2007) Net profit: -22,8 million EUR (2007) Employees: 825 Main line of business: Pulp and paper products

Are Oy P.O. Box 160, 01611 Vantaa Tel.: +358 20 5305500 Fax: +358 20 5305600 Email: info@are.fi Internet: www.are.fi Established: 1994 President: Aki Puska Net sales: 186,7 million EUR (2007) Net profit: 1,4 million EUR (2007) Employees: 1424 Main line of business: Construction

B C

Best-Hall Oy Yhdystie 3-7, 68300 Kälviä Tel.: +358 6 832 5000 Fax: +358 6 835 0477 Internet: www.besthall.com Email: info@besthall.com Established: 1975 President: Leif Kempas Net sales: 30,5 million EUR (2007) Net profit: 2,1 million EUR (2007) Employees: 124 Main line of business: Construction Cembrit Oy P.o Box 46, 08681 Lohja Tel.: +358 19 28 761 Fax: +358 19 287 6451 Internet: www.cembrit.fi Email: info@cembrit.fi Established: 1991 President: Matti Tiivola Net sales: 27,8 million EUR (2007) Net profit: 0,2 million EUR (2007) Employees: 142 Main line of business: Construction materials

International Operations In 2008, the Finnish companies engaged in international construction business at a value of EUR 3.2 billion, a figure which is expected to drop to EUR 2.8 billion in

Cramo Finland Oy Kalliosolantie 2, 01740 Vantaa Tel.: +358 10 66110 Fax: +358 10 6611349 Email: info.fi@cramo.com Internet: www.cramo.fi Established: 2007 President: Tatu Hauhio Net sales: 61,1 million EUR (2007) Employees: 564 Main line of business: Renting and leasing services

Destia Oy P.O. Box 73, 00521 He Tel.: +358 20 44411 Fax: +358 20 4442297 Internet: www.destia Established: 2007 President: Jukka Laak Main line of business

E Hartikainen Oy P.O. Box 307, 80101 Jo Tel.: +358 20 7545510 Fax: +358 13 2683102 Internet: www.hartik Established: 1981 President: Arto Harti Net sales: 165,3 millio Net profit: 3,6 million Employees: 515 Main line of business

Eltel Networks Oy P.O. Box 50, 02611 Es Tel.: +358 20 411211 Fax: +358 20 4113200 Email: info.finland@e Internet: www.eltelne Established: 1998 President: Juha Luusu Net sales: 146,1 millio Employees: 1037 Main line of business

Fenestra Oy P.O. Box 75, 01721 Va Tel.: +358 10 5254000 Fax: +358 10 5254199 Email: info@fenestra. Internet: www.fenest Established: 1917 President: Kim Poulse Net sales: 127,8 millio Employees: 986 Main line of business

Finnlamelli Oy P.o Box 68, 62901 Ala Tel.: +358 6 557 0300 Fax: +358 6 557 0333 Internet: www.finnlam Email: finnlamelli@fin Established: 1995 President: Esko Rinta Net sales: 31 million E Net profit: 1,6 million Employees: 125 Main line of business

Finndomo Oy Äyritie 12, 01510 Van Tel: + 358 755 0400 Fax. + 358 755 0417 Email: info@finndom Internet: www.finndo

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P.O. Box 1060, 00016 KESKO Tel.: +358 0 105343 Fax: +358 0 105340199 Internet: www.anttila.fi Established: 1984 President: Matti Leminen Net sales: 558,7 million EUR (2007) Net profit: 1,4 million EUR (2007) Employees: 2045 Main line of business: Retail trade

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Business Estonia Purpuripolku 6 00420, Helsinki +358 9 42821015 tuotanto2@perhemediat.fi

The new Business Estonia offers a vast overview of Estonian business life and new business opportunities. The magazine will be published three times a year. In addition there will be special themed issues including current topics relating to the economy or politics.

istribution of Business Estonia is mainly done outside Estonia, for example through the country’s trade representations and chambers of commerce. Foreigners working and studying in Estonia and those visiting the country are also target groups. The total print run of each Business Estonia issue is 12,000, of which 2,000 are estimated to reach international journalists. Business Estonia articles can thus generate many new articles through this channel. Business Estonia articles are paid-for advertorials, which are done from companies’ own viewpoint. With Business Estonia you can secure high media atten-

Estonian Solution

Estonia

- Striving to become a true ''Nordic'' economy

Estonia’s president talks frankly about his country’s competitive advantage when it comes to logistics and high-tech creativity. He dreams of a truly knowledge-based economy that will lead to a higher quality of life for Estonians and people throughout the world. Text: Maris Hellrand Photos: Villu Kraan

tion. The magazine is also a visually welldesigned read with good-quality photographs and graphics. When it comes to content, interviews of top business leaders predominate. In each issue we have two or three main topics, which we cover in an interesting and varied way. With Business Estonia you can get your message out in the way which best suits you. You can contact us by e-mail or phone. We can then work out what kind of media solution is best for you to reach maximum visibility among our readers. Note also that you can include Business Estonia in your own distribution. We can even tailor-make a larger media package for you for two or more issues.

Today Skanska EMV is the oldest construction company in Estonia.”

Text: Maris Hellrand Photos: Villu Kraan / Eesti Energia

Maris Hellrand meets the Estonian company that boasts the world’s most comprehensive solution for processing oil shale.

Building Bridges to and in Estonia

Business Estonia 1/2010

open to growth

Text: Tiit Konsand Photos: Jaak Kadarik

Minister of Economic Affairs and Communications, Juhan Parts 14

Business Estonia 1/2010

128

Estonian pavilion at EXPO 2010 in Shanghai urges action to save the cities

Text: Tiit Konsand Photos: Jaak Kadarik /EAS

Business Estonia 1/2010

Uniprint has developed and grown from a single machine company set up in 1992 into a wellestablished printing firm in the Nordic countries.”

We are now building a new factory that is twice as efficient, environmentallyfriendly and that uses all the oil shale that it is possible to excavate,”

UNIPRINT Setting the bar for quality

Text: Tiit Konsand Photos: Jaak Kadarik

Business Estonia 1/2010

he private printing market first developed in Estonia with the establishment of cooperatives in 1987. As with other areas of industry, printing was short of cash, suffered from being behind the times technologically and lacked staff with up-to-date training. But between 1991 and 1993 printing houses came into their own and it was during this period that the sheet printing company Uniprint emerged. André Abner, Uniprint sales director, says the company went through a difficult time as it developed and grew from a single machine company set up in 1992 into a well-established printing firm in the Nordic countries. Uniprint and the web printing company Unipress, which was set up in 2003, are both part of UP Printing Group (UP),

- creating new energy

Business Estonia 1/2010

Eesti Energia CEO of Skanska EMV, Andres Aavik

Business Estonia 1/2010

Although you might not see it, the air you breathe at the Finnish Expo Pavilion, Kirnu, is conditioned by Halton, an ambitious Finnish company that is now focusing on the wellbeing business.

Text: Maris Hellrand Photos: Villu Kraan / Skanska

The Estonian economy has proved its ability to succeed. Flexibility and openness are the characteristics and pervading principles of Estonian economic policy. We are an ecountry with a favourable business climate and cost advantages, and open to growth. The objective of the Ministry of Economic Affairs and Communications is to create overall conditions for the growth in the competitiveness of the Estonian economy, and its balanced and vital development. It will aid this through the drafting and implementation of Estonian economic policy and by evaluating its outcome.

One of the largest and oldest construction companies in Estonia, Skanska EMV, is well known through its landmark projects and today also acts as a bridge bringing high ethical business standards and “green construction” know-how to Estonia.

Business Estonia 1/2010

Competitive Estonian economy

SKANSKA EMV

One aspect that investors have found very appealing is the country’s tax policy; Estonia has a flat tax rate and no corporate tax on reinvested profit.“

Business Estonia 1/2010

Uniprint sales director André Abner

CEO of Eesti Energia, Sandor Liive 45

Business Estonia 1/2010