Cinia Group signed a letter of intent with a group of institutional investors and representatives of the cities of Hanko and Raasepori in Finland to build a new endpoint from the recently opened C-Lion1 submarine cable system, directly connecting Central and Northern Europe.
Budget estimate for the planned cable branching project is in the range of 10 million Euros, of which 3 million will be invested by a group of institutional investors based in the Hanko region. The final investment decisions and the final cooperation agreement are scheduled to be completed during the fall of 2016.
According to the letter of intent, investments of 0.5 million Euro each will be made by Tammisaaren Energia, Karjaan Puhelin, and Osuuspankki Raasepori. N3M Group will invest 0.25 million Euros, and investments of 0.1 million Euros will be made by Forcit, Port of Hanko, Tammisaaren Säästöpankki, Björn Siggberg, and Olof Exell.
Cable branch to Hanko carries strategic importance to Cinia
The new submarine cable branch and endpoint in Finland complements the existing route to the main cable. The new routing opportunity particularly benefits data traffic from the western parts of the Nordics with an additional access to the C-Lion1 cable system.
“Signing the letter of intent is a marvelous example of regional cooperation,” said Ari-Jussi Knaapila, CEO, Cinia Group. “This is a strong positive signal that enables us to immediately start planning the new branch.”
Based on preliminary plans, the Hanko cable branch will be ready for acceptance tests in the second half of 2017, which would suggest commercial availability in early 2018.
Positive signal for regional businesses
“The main goal of the regional institutional investors and cities committed in the cable branch project is to directly connect the Hankoniemi peninsula with the international C-Lion1 submarine cable,” said Henrik Ekblom, CEO, Karjaan Puhelin. “The connection will play a key role in developing the region into a significant hub of international data traffic between Frankfurt, Stockholm, and Helsinki.”
“The connection will improve the region’s competitiveness in the eyes of data center operators and other growing industries,” said Frank Hoverfelt, CEO, Tammisaaren Energia. “As a result, regional businesses will have new opportunities to grow and develop their operations.”
“The joint project is again a testimony to the excellent cooperation between the cities of Hanko and Raasepori and the regional trade and industry,” said Lars Björklöf, CEO, Osuuspankki Raasepori. “The future of the region looks very bright.”
Cities of Hanko and Raasepori join in to support regional trade and industry
The remaining part of the estimated project budget, slightly less than 1 million Euros, is planned to be covered with debt and a financial guarantee by the cities of Hanko and Raasepori. Both cities will discuss and decide on their participation first in City Boards and then in City Councils by the fall 2016.
“The Hanko branch from the C-Lion1 submarine cable lays the foundation for attracting completely new and modern industrial operation in the region,” commented Denis Strandell, Mayor, City of Hanko. “The connection is vitally important for jobs and regional development.”
“New infrastructure will significantly improve the competitiveness of the region,” said Tom Simola, Mayor, City of Raasepori. “Improving the capabilities of regional trade and industry is a priority for our cities, as profitable businesses are the basis for regional government as well.”