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Bright prospects based on solid history

Partnership spanning several decades bears fruit for Finnish companies in China

By WANG JINHUI | China Daily | Updated: 2024-10-30 09:27
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Finnish company Kone showcases its products at the World Elevator and Escalator Expo in Shanghai in July 2023. Photo provided to China Daily

Notable ventures

In recent years, the investment landscape between China and Finland has been marked by notable ventures, showcasing a commitment to long-term partnerships.

On Oct 18, the alkenyl succinic anhydride, or ASA, Phase III project of Kemira Chemicals (Nanjing), a wholly-owned factory of the Finnish company Kemira specializing in sustainable chemical solutions for water-intensive industries, commenced production in Nanjing Jiangbei New Material Science and Technology Park, Jiangsu province.

With a total investment of 75 million yuan ($10.52 million), this project will produce 12,000 metric tons of pulp and paper chemicals annually, with an expected added value of 150 million yuan.

Tao Lei, a member of the Party working committee of Jiangbei New Area, said that over the past decade, Kemira has made the factory one of the most modern production bases in the Asia-Pacific region.

He looks forward to Kemira fully leveraging its technology, management and product advantages to continue investing in the area.

Anu Vuori-Kiikeri, head of mission at Finland's consulate general in Shanghai, noted that China is a key market for Finnish companies, including Kemira, which are committed to introducing advanced technologies, stringent industry standards and sustainable development initiatives into the local market while expanding their business in China.

With increasing trade and investment, she hopes that both China and Finland can maintain a common environment and build a prosperous future together.

Nichlas Kavander, senior vice-president of commercial pulp and paper in the Asia-Pacific region at Kemira, stated that this third expansion reflects Kemira's commitment to the Chinese market. The new project's commissioning will enable Kemira to better meet customer needs, and the company will continue to invest in the paper market.

Founded in Finland in 1910, Kone entered China in 1996, evolving from a manufacturing factory to an industrial park that integrates research, development and manufacturing services.

It has two production bases in China, located in Kunshan in Suzhou city, Jiangsu province, and Nanxun district of Huzhou city, Zhejiang province, employing over 20,000 staff members in China. The Kunshan park is the largest production base of Kone globally, with products exported to over 100 countries and regions worldwide.

Currently, Kone's elevators transport over 1 billion passengers daily. By the end of the 2023 fiscal year, the cumulative shipment of equipment exceeded 1.5 million units, with maintenance units surpassing 600,000 units, according to the company.

China is Kone's largest single market globally, accounting for approximately 26 percent of its total global sales.

Philippe Delorme, president and CEO of Kone, mentioned in a recent interview with China Business Journal that over the past 30 years, the company has become an integral part of China's local economy and social development. Benefiting from China's immense market potential, Kone has also made contributions through investments, creating employment opportunities, and driving industry development.

Delorme noted that one distinctive feature of the Chinese market compared to others is its vast scale; and furthermore, innovation in all aspects of China is rapid, requiring quick responses to market changes. For example, it needs faster adoption of digital technology in services.

He also expressed great pride in the local Chinese team, who are well prepared to adapt to changing market demands.

Another typical example of the collaboration between Chinese and Finnish companies is in the shipping and logistics sectors.

Earlier this year, the Green Kemi vessel of China COSCO Shipping made its maiden voyage to Finland in the northern Finnish city of Kemi. Under the escort of this 68,000-ton multipurpose ice-class vessel with polar navigation, pulp mainly used for the production of household and packaging papers produced at the local factory of Finnish Metsa Group was shipped to the Chinese market.

In her address at the maiden voyage ceremony, Gui Yun, counselor in charge of economic and commercial affairs at the embassy of China in Finland, stated that the cooperation between COSCO Shipping and Metsa has effectively promoted the smooth flow of the supply chain and accelerated the development of pulp logistics, injecting new momentum into practical economic and trade cooperation between China and Finland.

Ismo Nousiainen, CEO of Metsa's subsidiary Metsa Fiber, noted that the cooperation with COSCO Shipping has provided an important logistics channel for the Kemi factory to reach the Chinese market.

With over 20 years of deep cultivation in the Chinese market and continuous capacity expansion, Nousiainen believes that the company will better serve Chinese customers in the future.

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