Invest in Finland

185 foreign-owned companies started business operations in Finland in 2005

21/02/2006

Figures released by Invest in Finland show that 185 new foreign-owned companies started business operations in Finland in 2005, ten per cent more than in 2004. Acquisitions in 2005 totalled 109, and there were 76 greenfield investments, a clear change compared to the situation in recent years when the number of greenfields grew steadily and also outnumbered acquisitions. The total number of production facilities established was 36.

In terms of the countries from which companies investing in Finland were based, no significant change in this aspect of the investment pattern took place in 2005, with the top five countries being: Sweden (53 companies), the USA (23), the UK (16), Germany (12) and Denmark (11). Nine investing companies came from Japan, from Norway and from The Netherlands, eight came from Estonia, and six from Russia. The business sectors that attracted most interest were Trade & Services and Information and Communications Technology.

Levels of FDI are rising world-wide

According to Invest in Finland, developments in foreign direct investment (FDI) in Finland reflect global trends. After several years in which levels of FDI remained stable, they have now started to rise world-wide. As the total number of greenfield investments has fallen, the increase is being fuelled by company acquisitions. Investors are interested in locations in the new EU Member States, Africa and Asia, while greenfield investments continue in China and India. In 2005, the growth in international investment directed towards China appears to have levelled off.

Commenting on the figures, Tuomo Airaksinen, Invest in Finland’s CEO, said ”Competition between countries for FDI has become harder. The highest levels of growth achieved in Europe have been in the new EU Member States in eastern-central Europe. The increase in international investment by UK-based companies last year was unusually large because of several major acquisitions.”

Commenting on Finland’s situation, Mr Airaksinen said “The number of companies operating in the Trade and Services sector indicates that Finland is an interesting market area. This is undoubtedly connected with Finland’s strong position as a centre for business in northern Europe.”