1. Ecosystem of the Arctic Industry Kari Poikela, Kemin Digipolis Oy 72nd UBC Board Meeting Kemi, 25–27 February 2015

2. ARCTIC INNOVATIONS European High North PLANNED AND ONGOING ARCTIC INDUSTRIAL INVESTMENTS 2014-2020 145 billion € ARCTIC INDUSTRIAL INVESTMENTS

3. ARCTIC INNOVATIONS Publicity (2012) ● Inhabitants 60 099 ● Employment 23 810 ● Unemployment 3 902 ● Entrepreneurs / companies 3 300 ● Primary production 1,5 % ● Lower / basic degree graduates 62,2% 15yrs or older ● Higher degree graduates 20,2% 15yrs or older Kemi-Tornio region is located at the bottom of the Gulf of Bothnia, into which the region´s three great rivers – the Simo, Kemi and Tornio Rivers - descend. Good communications and the central location at the border with Oulu and Lapland provinces and adjacent to the frontier with Sweden in the West make the region an important logistic junction in the Barents region. Europe’s northmost centre of large- scale industry and its competence In Finland’s city-rating defined as strong, specialized industrial region Centre of chemical and mechanical forest industry as well as centre of steel- and metal industry Centre of wood/timber houses industry Centre of metal- and machine workshops turnover: forest industry 1,7 billion€ metal/steel: 1,4 billion€ 6 000 workplaces in industry Kemi-Tornio region is one of the most important Finnish regions in terms of industrial refinement and exports value. The region produces 80% of Lapland’s industrial production and creates 6% of Finland’s exports value. KEMI-TORNIO REGION

4. Kemin Digipolis Oy, established in 1993, is owned by the cities of Kemi & Tornio, the University of Oulu and municipalities of Simo, Keminmaa and Tervola 50 companies, 500 employees in technology park – Network of more than 160 industrial service businesses in Lapland, more elsewhere Development actions and services: Innovative environment especially for industrial service businesses New openings: 2008-2014 Expertise on Arctic conditions & Industry, novel wood constructions 2012- Ecosystem of the Arctic Industry - Innovation Platform Start-Up, Business Incubation, Business Growth, Invest In services 16 M€, 21 ongoing development projects, 584 companies and organisations SMART SPECIALISATION IN THE WORLD CLASS ARCTIC TESTING AND OPTIMIZED LIFE CYCLE COSTS IN INTERNATIONAL INDUSTRY AND TECHNOLOGY VALUE CHAINS ARCTIC INNOVATIONS DIGIPOLIS KEMI TECHNOLOGY PARK

5. Operational environment and unique innovation platform ARCTIC INNOVATIONS SMART SPECIALISATION IN THE WORLD CLASS ARCTIC TESTING AND OPTIMIZED LIFE CYCLE COSTS IN INTERNATIONAL INDUSTRY AND TECHNOLOGY VALUE CHAINS ECOSYSTEM OF THE ARCTIC INDUSTRY  1,3 Mt of by-products and waste streams (without veinstone)  State of the art sustainable process industrial base and logistic hub  Some World-class service providers!

6. Future potential vision 2014-2022: Towards circular economy  1,3 Mt of by-products and waste streams (veinstone) Higher value by-products, more market potential, demonstration pilot plants  Industrial ecosystem through symbiosis Less waste and use of virgin raw materials, symbiotic products with better qualities Decoupling and green growth  World-class optimized life cycle solutions and resource efficiency for the industry, globally! Novel eco-innovations,  Network of Companies, Authorities, Research, Education and Training Centres on sustainable raw materials management ARCTIC INNOVATIONS ECOSYSTEM OF THE ARCTIC INDUSTRY ARCTIC CONDITION TESTING POTENTIAL

7.  Turnover about 1 bil. €  Planned investments 7-8 bil. €  Employees needed 5600 (2022)  Signs of new, even larger deposits have been detected Critical factors in the future:  Skilled labour force  Funding  Environmental issues  Social license to operate ARCTIC INNOVATIONS MINING INDUSTRY AND ITS POTENTIAL IN LAPLAND INCREASED NEED OF ARCTIC CONDITION EXPERTISE

8. BAT, solutions and services BAT, solutions and services Arctic – industrial service companies for mining, process and eco-industries Modern Cluster of Arctic industries Commodities for the markets Recycling Substantive competence + Expertise on natural conditions = Successful industrial service business Substantive competence + Expertise on natural conditions = Successful industrial service business Universities, universities of applied sciences, sectoral research institutions Authority providing permits, licenses etc. New concepts Export Commercial potential Invest in New symbiosis products INTEREST: Minimising the amount of the waste Utilisation and commercialisation of sidestreams Communities Resource intelligent community Waste fractions R&D, solutions Driving forces: EU policy, waste framework directive, scarcity of natural resources, resource efficiency, decoupling, carbon footprint K ET Best practises Technology transfer Lifecycle solutions and services

9. Sweden Finland Norway Russia Kemi- Tornio RUUKKI SSAB BOLIDEN AITIK BOLIDEN SKELLEFTEÅ FIELDS BOLIDEN RÖNNSKÄR BOLIDEN KOKKOLA STORA ENSO SCA KAPPA STORA ENSO LKAB METSÄ GROUP OUTOKUMPU CHROME MINE KEMIRA AGNICO EAGLE NORTHLAND RESOURCES TALVIVAARA BILLERUD OUTOKUMPU STAINLESS NORDIC MINES SNØHVIT SHTOKMAN NORTHERN IRON RANA GRUBER FIRST QUANTUM Digipolis Kemi Technology Park is a business development environment, which is specialized in the interface knowledge of process and service industries. The annual production volume of the Northern Finland’s and Northern Sweden’s process industry is more than 33 Billion €. Digipolis region’s export is about 5 Billion €, which is about 8 % of the total export of Finland. Digipolis – Kemi Technology Park Tietokatu 6 FIN-94600 KEMI FINLAND www.digipolis.fi Kari.poikela@digipolis.fi +358 50 435 8283 LAPPLAND GOLDMINERS 200 km ARCTIC INNOVATIONS

10. Modern Cluster of Arctic industry – Sustainable utilisation of the arctic natural resources Model region to demonstrate EC new wave cluster policy: The region possesses the vast deposits of natural resources and pristine nature Lapland has potential to become one of the leading regions in the world in the sustainable exploitation of natural resources The region should focus on refining of Arctic natural resources in a socially and ecologically sustainable manner, combined with high value added generation from natural resources in the region Focus on to maintain the balance in the sustainable development ARCTIC INNOVATIONS

11. Modern Cluster of Arctic industry – Sustainable utilisation of the arctic natural resources The strong focus on circular economy and to accumulate the development of the emerging industries. Will be a mix of large-, medium-, and small scale industries and other actors, platforms and living lab arrangements with real-life pilot experiments The clustering concept will also utilise efficiently the international and global pipelines and will be a tool for the SMEs in Lapland to improve their performance. Eco-innovative, resource efficient and competitive solutions with high extent of value addition to modernise Arctic industries

12. Jaana Moona Design ja Studio Imagiar Lappset Group Taisto Saari / Stora Enso Lappset Group Kari Poikela Program Manager, Industrial Services Kemin Digipolis Oy Tietokatu 6 94600 KEMI mob. +358 50 435 8283 kari.poikela@digipolis.fi www.digipolis.fi Thank You!