1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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 ( )
Key personnel came from South-Africa and Australia
Next project in Sambia
Local presence and early activity with reliable performance were rewarded

8. …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

9. Thank You for Your attention