Jussi yli-niemi, Lapland Chamber of commerce, Member of the Board Arctic Industry Maintenance and Subcontracting - Opportunities and Challenges Jussi yli-niemi, Lapland Chamber of commerce, Member of the Board

Strong Industrial Tradition Strong industrial tradition based on forest industry and metals and mining Significant share of total value of national export both in Finland and Sweden Major Employers both directly and indirectly

Trends in Industrial Maintenace as Opportunity and Challenge (1/2) Out-sourcing and sub-contracting has been a long term trend in Factories Demand has created opportunity to local service providers Flexibility and high competence to serve local industry exist Replacement type investments to capacity increase and rationalization have opened new opportunities with major equipment suppliers Enables expanding with known Clients to next projects and new market areas References on experience and competence to find new Customers

Trends in Industrial Maintenace as Opportunity and Challenge (2/2) Intence Annual Maintenance stops require high capacity in short period of time Increased seasonal capacity peaks Balancing capacity between the peeks to keep the competent personnel Maintaining cost effectiveness and flexibility Risk of becoming too dependent on a large Customer Investment projects are an opportunity to find new Customers and Market Areas Local contacts help to enter new market areas

Trends in Major Investment Projects as Opportunity and Challenge In-house project organiztions are lighter and rely more on consulting and sub-contracting Foreign investor and organization involvement / ownership in several major investment projects Projects are often ”one-of”-type for investors and their key personnel Local contacts and competences are essential Less contractors with large and well defined scope Alliances accepted and preferred References are very important Contract management role increasingly important

Major investment projects with strong foreign participation The Investor and Main Supplier may not have prior experience on local conditions and service providers Several Bioproduct projects announced and under way: Kaidi, Ajos Kemi Boreal Bioref, Kemijärvi Kaicell, Paltamo Fennovoima, Hanhikivi NPP1 RAOS as main supplier Major Windparks in Sweden Various international companies

First Quantum Ltd in Kevitsa The Investor and Main Supplier may not have prior experience on local conditions and service providers First Quantum in Kevitsa, Finland (2010-2012) Key personnel came from South-Africa and Australia Next project in Sambia Local presence and early activity with reliable performance were rewarded

…But there is much more to come… Estimated Investments in Barents Region 2016-2020 Investment (m€) Lappland 3.246 Northern Ostrobothnia 11.716 Kainuu 1.210 Norrbotten 8.495 Västerbotten 4.045 Nord Norge 12.465 Murmansk-Area 2.635 Arkangel-Area 5.925 Business Segment Est’d Investment (milj €) Base Industry 5.193 Minerals & Mining 11.716 Oil & Gas 5.850 Hydro Power 1.835 Wind Power 7.100 Nuclear Power 8.000 Power Grid 950 Commerce 2.570 Turism 885 Roads & Infrastructure 9.421 Government Investment 2.630 Source : Lapland Chamber of Commerce

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