According to the inquiry on industrial investments in Finland conducted by the Confederation of Finnish Industries EK in January 2010, forest industry shines as the brightest light in Finnish economy this year. While the investments of the whole manufacturing industries sector collapsed last year and will decrease this year by 4.9 percent, some fields of industry are going to increase their investments this year.

In relative terms, the textile and clothing industry will see the biggest increase in investments this year: 36.3 percent, bringing the total investments to 35 million euros. Expressed in euros, however, it is the forest industry that makes the biggest increase, 43 million euros and 11 percent, which makes a total of 438 million euros. With this sum it returns to the top position as the largest industry investing in Finland.

However, last year meant a collapse in investments for the whole manufacturing sector in Finland. The percentage drop was expressed in two figures, with the exception of the food and drink industries.

Here, too, the forest industry ranked first with a drop of 61.4 percent down to 395 million euros.

All in all, the investments of the whole manufacturing sector decreased from 4,049 million euros in 2008 to 2,413 million euros in 2009. Investments will continue to decrease this year by almost five percent across the whole sector. In addition to the forest and the textile and clothing industries, investments are expected to increase in the chemical and electronics industries.

In the energy industry – which was not included in the manufacturing industries in the inquiry – the figures are as if from another world. Investments in the supply of electricity, gas and water increased in 2009 by 46.2 percent, to 2,484 million euros. The forecast for this year is an increase of 5.2 percent.

Forest industry invests in new capacity as well
For the manufacturing industries as a whole, the most important reason for investments this year is the replacement of old capacity. In the forest industry 49 percent of the investments are made for this purpose.

Still, the forest industry is also increasing its capacity. As much as 17 percent of its investments will be made for this purpose. The share of rationalizing is 30 percent.

The predicted lack of demand, finances and profits were the main reasons why the forest industry avoided investments in 2009. As for this year, the significance of these constraints has decreased, while other reasons for not investing have not come up.

As to the number of employees in 2009, the whole manufacturing sector decreased both in Finland and abroad. The decrease in Finland was more than seven percent. The forest industry headcount went down by 12.4 percent to 48,200 persons.

The number of people employed abroad by the Finnish manufacturing sector decreased in 2009 by 3.9 percent, while the decrease in the forest industry was eight percent, to 48,700.

This brings the number of employees of the Finnish forest industry both in Finland and in other countries to practically the same level.

By Hannes Mäntyranta



Press release of the EK