01.01.2010

Water and sewage system renovation creates business opportunities in Finland

Finnish municipalities are looking for expert companies to undertake pipe repairs and water treatment.

A large part of Finland’s water supply infrastructure was built 40–50 years ago, which means that in many areas these systems are fast approaching renovation age.

Finland’s capital Helsinki has 1200km of water pipes and 1800km of sewage pipes, with more than 100km of pipes dating back to the period from before the Second World War.

The City of Helsinki’s objective is to repair all the pre-1970 water pipes that were before the year 2030. The work will start with the oldest parts of the water and sewage network in the near future, which is a contract worth some tens of millions of euros.

There are currently only four companies in Finland who undertake major municipal contracts for water and system repairs: Aarsleff, KWH Pipe, Nordic Renovation Group and Eerola-yhtiöt. About one year ago Aarsleff was given the contract for renewing 1.8km of pipes in the Mellunmäki district of Helsinki at a cost of EUR 5.2 million, including taxes.

According Jukka Piekkari, Director of Helsinki Water, there are not enough companies in the water sector in Finland to undertake all the renovation work. “It would be good to see more competition in the sector,” says Piekkari, who is in charge of the municipality’s water services.

There are also new business prospects for companies specialising in water treatment. Demand for new technologies and services for drinking water and wastewater treatment is increasing at an accelerating rate as 2020 draws nearer. Total investments in infrastructure in Finland will probably amount to as much as EUR 3.9 billion. The current annual turnover of the Finnish water market is about EUR 3-4 billion.


Source: Taloussanomat