Current situation and future aspects of the Finnish metal industry ACFTU delegation visit 22.9.2009 Head of research department Jorma Antila

Finland in figures 2008 Population 5 326 000 Workforce 2 531 000 Gross domestic product 186,2 billion € GDP per inhabitant 35 041 € Export 44 % of GNP Metalli/Tutkimus/JA 22.9.2009

The development of the trade with China, The share of the import from China and export to China Source: National Board of customs Metalli/Tutkimus/JA 22.9.2009

Gross domestic product by industry, % Metalli/Tutkimus/JA 22.9.2009

Share of value added by industry, % Metalli/Tutkimus/JA 22.9.2009

Manufacture of basic metals Value added 2 billion € (2008) Personnel 15 800 Companies: Outokumpu Rautaruukki Ovako Componenta Metalli/Tutkimus/JA 22.9.2009

Manufacture of fabricated metal products Value added 3 billion € (2008) Personnel 48 300 Companies: Fiskars Rettig Metalli/Tutkimus/JA 22.9.2009

Manufacture of machinery and equipment Value added 5 billion € Personnel 67 600 Companies: Kone Metso Wärtsilä Konecranes Metalli/Tutkimus/JA 22.9.2009

Manufacture of electrical and optical equipment Value added 9 billion € Personnel 62 500 Companies: Nokia ABB Polar Suunto Vaisala Metalli/Tutkimus/JA 22.9.2009

Manufacture of transport equipment Value added 1 billion € Personnel 21 700 Companies: STX Finland Cruise Valmet Automotive Sisu Trucks Metalli/Tutkimus/JA 22.9.2009

Metalindustry total 2008 Value added 20 billion € , 11 % of GDP Personnel 215 900 About 70 % of production is exported Metalli/Tutkimus/JA 22.9.2009

The share of exports of Finnish metal industry by region, % Source: National Board of customs Metalli/Tutkimus/JA 22.9.2009

The main trading partnes for the Finnish metal industry, year 2008 The share of total export 2008, % Sweden 8,6 Germany 8,5 Netherlands 6,7 United States 6,6 Russia 6,3 United Kingdom 5,1 Italy 4,8 China 4,6 France 3,4 Euro zone 30,9 EU total 53,3 Source: National Board of customs Metalli/Tutkimus/JA 22.9.2009

Gross domestic product, volumes; Percentage change q/q-1 (SA) Source: Eurostat Metalli/Tutkimus/JA 22.9.2009

Metalli/Tutkimus/JA 22.9.2009

Value of exports in Metal industry monthly, Mill. euros Source: National Board of customs Metalli/Tutkimus/JA 22.9.2009

Annual change in turnover in metal industry and in manufacturing during 04/2009-06/2009, % Metalli/Tutkimus/JA 22.9.2009

Index of turnover in metal industry (2005=100), Trend latest observation 6/2009 Source: Statistics Finland Metalli/Tutkimus/JA 22.9.2009

Metal Metalli/Tutkimus/JA 22.9.2009

Metal Metalli/Tutkimus/JA 22.9.2009

Outlook for the Finnish metalindustry The present recession is caused by decline in foreing demand, it is not a problem of lost competitiveness The recovery will start when the international economy revives, which is expected to happen at the end of this year. Internatiobal recovery will be slow This year and also at least the first quarter of 2010 will be difficult for Finnish metalindustry About 30.000 metalworkers are laid off, most of them temporary and only for short periods There will be more lay offs during autumn and winter Finnish metalindustry will recover, but it takes time Metalli/Tutkimus/JA 22.9.2009