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Arctic Match - Market
Opportunities for Finnish
Arctic Know How
in Russia
The Arctic Match
Russian Government has accepted
National Arctic Strategy valid until 2020.
Many challenges identified in ...
Key Drivers of the Russian Arctic Opportunity
Main investment and development
targets related to Russian Arctic Strategy:
...
Financing Russian Arctic Development
Announced annual
investments into
Russian arctic
development around
5.6 billion Euros...
Consumer Potential of Arctic Region
• 2,3 million consumers with higher average income in comparison
with Central Russia
–...
Russian Offshore and Maritime Industry
Value Chain is the Key to Right Clients
12/05/2014 6© Finpro
Subcontractors
to main...
Examples of the Client Needs at the Maritime
Market
12/05/2014 7© Finpro
Technologies and
equipment for
efficient ship rep...
Example 1: Gas driven tankers and infrastructure
• Gas driven tankers and ice-breakers are obligatory in
Europe starting 2...
Example 2: Murmansk Arctic Shipyard
In April 2014 Rosneft officially announced the Arctic Shipyard
complex to be establish...
Russian Mining and Minerals Value Chain
is the Key to the Right Clients
12/05/2014 10© Finpro
Subcontractors to
main contr...
Examples of the Client Needs in the Mining and
Minerals Industry
12/05/2014 11© Finpro
Equipment and
technologies for
recy...
Example 1: Proposed Investments in 2014
Kovdor GOK ( Eurochem)
Eurochem to invest around 90 ml. euro
• Crushing factory re...
Example 2: Proposed Investments in 2014
Kolskaya GMK (Norilsk Nickel)
Norilsk Nickel to invest around 35 ml. euro
• Enrich...
Example 3: Proposed Investments in 2014
Olcon (Severstal)
Olcon to invest around 28 ml. euro
• new conveyor system
• ore c...
New Industry Specific Arctic Centres Offering
Know How and Co-operation Potential
Krylov Research and Scientific Institute...
Krylov Arctic Center – Possible Information
Channel of Finnish Offering
”… by the way, last year (2013) was unsuccessful
r...
Miilux Abrasion Resistant Steel Centre
provides services to the metal, mining
and rock industries as well as
earthwork and...
Miilux is a family business belonging to the Miilukangas Group.
Miilux Abrasion Resistant Steel Centre provides services t...
Target country for the export partner group was specified to
Russia. The operations in the export partner group started wi...
EU-rahoitus, Horisontti 2020,
pk-instrumentti
Kasvun pohjustaminen
TEM/ELY- keskus: kehittämispalvelu, 1200 €/pv, tuki 75 ...
Follow us on social
media and visit our
website www.finpro.fi
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Finpro Market Opportunity Day_Opportunities for Finnish Arctic Know How in Russia

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Transcript of "Finpro Market Opportunity Day_Opportunities for Finnish Arctic Know How in Russia"

  1. 1. Arctic Match - Market Opportunities for Finnish Arctic Know How in Russia
  2. 2. The Arctic Match Russian Government has accepted National Arctic Strategy valid until 2020. Many challenges identified in Russian strategy match with the Finnish companies' competences and offering especially in offshore, maritime and mining industries. Finpro helps you to seize these business opportunities. Our trade center network in Russia with offices in Moscow, St. Petersburg and Murmansk offers local expertise and connections that ensure your successful foothold at the Russian arctic market. 12/05/2014 © Finpro 2
  3. 3. Key Drivers of the Russian Arctic Opportunity Main investment and development targets related to Russian Arctic Strategy: • Oil, gas and mineral industry Base of Russia`s export and state income. • Northern Sea Route (NSR) facilitating exports (of oil, gas and minerals) 5/12/2014 3© Finpro graph: Proceedings Magazine, July 2013 Shipping via NSR from Murmansk to Japan 49% faster than via Suez canal. Data Source: Murmansk Shipping Company
  4. 4. Financing Russian Arctic Development Announced annual investments into Russian arctic development around 5.6 billion Euros. 12/05/2014 4© Finpro 12,721,2 Around 34 Billion Euros 2014-2020 Federal and Regional budget Private investments and loans Source: nvpress.ru/economy/6878
  5. 5. Consumer Potential of Arctic Region • 2,3 million consumers with higher average income in comparison with Central Russia – Murmansk region: average salary in 2013 ca. 808€ vs St.Peterbourg where average salary ca. 757€ 1 • These potential consumers have basic needs e.g in - FMCG - Clothing - Hobby related products - Home renovation, decoration • Most of the goods should be suitable for arctic conditions • ICT solutions and services required to provide all the services announced by the RF Government 1) http://www.mojazarplata.ru/main/zarabotok/srednjaja-zarplata/2013 5/12/2014 5© Finpro
  6. 6. Russian Offshore and Maritime Industry Value Chain is the Key to Right Clients 12/05/2014 6© Finpro Subcontractors to main contractors (many) Main contractor, usually one large local company End customer, often the same as lisence holder Lisence holder for oil & gaz field development e.g. Rosneft, Gazprom • Subcontractors to main contractors and in some cases main contractor offering turnkey solutions are in most cases the right clients. • Russian industry specific engineering companies and Russian industry specific design companies are Important opinion makers though not buyers.
  7. 7. Examples of the Client Needs at the Maritime Market 12/05/2014 7© Finpro Technologies and equipment for efficient ship repair services along NSR Lack of competence in human resources e.g. in emergency and rescue operations Needs generated by modernization of existing ports and building new Search and rescue centers, equipment, and technologies Energy-efficient technologies for oil and gas field development Navigation infrastructure for the NSR Data centers and telecommunication infrastructure Arctic ecology safety infrastructure Energy efficient solutions
  8. 8. Example 1: Gas driven tankers and infrastructure • Gas driven tankers and ice-breakers are obligatory in Europe starting 2015. Russia is preparing for the change. • Russian tanker operating companies need gas tankers and related infrastructure for example - gas bunker bases - new types of engines that require re-fuelling less frequently than in 7-10 days 12/05/2014 8© Finpro
  9. 9. Example 2: Murmansk Arctic Shipyard In April 2014 Rosneft officially announced the Arctic Shipyard complex to be established in Murmansk starting 2014. • The main target is to ensure efficient and up-to-date service and maintenance work for vessels operating around artic • The complex includes service yards ( assembling, repair, upgrade) and construction yard ( platforms for oil rigs) • One of the main challenges is lack of qualified personnel so the company will put much effort in innovative and efficient technologies 5/12/2014 9© Finpro
  10. 10. Russian Mining and Minerals Value Chain is the Key to the Right Clients 12/05/2014 10© Finpro Subcontractors to main contractors (many) Main contractor (usually one) End customer (often same as lisence holder) or operator of mineral source if different than lisence holder Lisence holder for mineral source development e.g. Eurochem, Norilsknikel, Phosagro, Barrick Gold Canada • Subcontractors to main contractors and in some cases main contractor offering turnkey solutions are in most cases the right clients. • Russian industry specific engineering companies and Russian industry specific design companies are Important opinion makers though not buyers.
  11. 11. Examples of the Client Needs in the Mining and Minerals Industry 12/05/2014 11© Finpro Equipment and technologies for recycling ore waste Energy-efficient mining processes for large mining groups Easy and fast to install housing modules with low energy-consumption High quality service and maintenance of heavy machinery Wide range of materials and equipment for residential and none residential buildings Environment safety know-how, technologies and equipment for arctic conditions
  12. 12. Example 1: Proposed Investments in 2014 Kovdor GOK ( Eurochem) Eurochem to invest around 90 ml. euro • Crushing factory reconstruction • Enriching complex reconstruction • New mining machinery ( crushers, mills, special transport) 12/05/2014 12© Finpro
  13. 13. Example 2: Proposed Investments in 2014 Kolskaya GMK (Norilsk Nickel) Norilsk Nickel to invest around 35 ml. euro • Enriching plant modernization • Development of mineral resource bases • New purifying station for industrial waters • Construction of crushing complexes • Reconstruction of crushing unit ( enriching factory) • Reconstruction of melting production • Ecology projects 12/05/2014 13© Finpro
  14. 14. Example 3: Proposed Investments in 2014 Olcon (Severstal) Olcon to invest around 28 ml. euro • new conveyor system • ore concentrate drying equipment purchase • up-to-date factory equipment purchase • ecology solutions • energy-efficency 12/05/2014 14© Finpro
  15. 15. New Industry Specific Arctic Centres Offering Know How and Co-operation Potential Krylov Research and Scientific Institute in St. Peterbourg: • Arctic shipbuilding, engineering and design • Voluntary certification of materials and technologies for Russian Arctic Marine Fleet Central Institute in St. Peterbourg: • Arctic shipbuiding, engineering and design • Infrastructure solutions for the Arctic Training center at Transas company in St. Peterbourg: • Simulation training for Arctic conditions • Software solutions for Russian oil and gas industry Rosneft & ExxonMobil in Moscow, St. Peterbourg, Murmansk: • Research and development of technologies for Arctic operations • Training center Arctic shipyard in Murmansk (in progress): • Proposed base for construction of Arctic fleet 12/05/2014 15© Finpro
  16. 16. Krylov Arctic Center – Possible Information Channel of Finnish Offering ”… by the way, last year (2013) was unsuccessful regarding investments budget – from allocated 4.5 bl. rubles(ca. 90 ml. euro), we managed to spend only 3.5 bl. rubles ( ca. 70 ml. euro)” General Director, Igor Melik-Gaikasov, interview to Kovdorgok.ru, 29.01.2014 • There is a significant lack of knowledge of Finnish solutions in Russia. In many cases Russian companies lack information and contacts of Finnish suppliers. • Krylov Arctic Center has suggested Finpro to establish a working group which can provide data and information both for Russian and Finnish companies. – This might be a channel for Finnish SMEs to promote their offering in Russia 12/05/2014 16© Finpro
  17. 17. Miilux Abrasion Resistant Steel Centre provides services to the metal, mining and rock industries as well as earthwork and mechanical engineering companies in Finland and abroad. Company participated in Human Protection and Search & Rescue Technologies (SAR) Finland Export Partner Group. Pekka Miilukangas, Managing Director, Miilux Finpro’s export partner group succeeded just perfect for us and we have been able to reach our targets. Already during the second year of export partner group, we have signed some export deals. So far we have achieved export sales worth of nearly 1 million euros from Russia.
  18. 18. Miilux is a family business belonging to the Miilukangas Group. Miilux Abrasion Resistant Steel Centre provides services to the metal, mining and rock industries as well as earthwork and mechanical engineering companies in Finland and abroad. Miilux was established in 2000 and its annual hardening capacity is 32,000 tons per year. Miilux has approximately 45 employees and its turnover in 2011 was about 19.3 million euros. Miilux wanted to grow their business and find new export markets abroad. Company also needed to strengthen its presence in existing scattered markets. Miilux decided to participate in Finpro’s export partner group, which consisted of Finnish SME’s manufacturing products for Human Protection and SAR Technologies. Export partner group started its operations in 2010 and at present has its third operation year.
  19. 19. Target country for the export partner group was specified to Russia. The operations in the export partner group started with market research phase during which the clientele, competitive situation, local manufacturing and required certificates were analyzed. This was followed by Miilux business visits in Russia after which the company received the first requests for quotations. As a result of export partner group Miilux has achieved export sales of nearly 1 million euros from Russia in 2011 and 2012. Company has recognized business opportunities and established its presence in new markets. Already during the second year of export partner group Miilux signed the first export deals. Cooperation with Miilux continues in countries worldwide in which growth customers have been identified.
  20. 20. EU-rahoitus, Horisontti 2020, pk-instrumentti Kasvun pohjustaminen TEM/ELY- keskus: kehittämispalvelu, 1200 €/pv, tuki 75 % Tekes: Kansainvälisen kasvun suunnittelu • Alle 6-vuotias pieni yritys, tuki max. 75 % • Yli 6-vuotias kasvuyritys, tuki max. 50 % Valmiuksien kehittäminen ELY-keskus: yhteishankintakoulutus, tuki max. 70 % Tekes: Organisaation, prosessin ja johtamisen kehitys, tuki max.50 % Tutkimus ja kehitys Tekes: Tutkimus ja kehitys, max. 50 %, laina max. 70% Kansainvälisen kasvun suunnittelu ja aloitus ELY-keskus: kehittämisavustus (1.7.2014 alkaen), tuki max. 50 % TEM: vientiverkosto 1-3 v, yritysten lukumäärä 4-6, tuki 0-65 % Finnvera/UM: avustus pk-yritysten kv. hankkeisiin Venäjällä, tuki 50 % Finnpartnership: liikekumppanuustuki, tuki 50-70 % pk-yritykset, isot yritykset 30-50 % Finnvera: takuut ja lainatKasvun ja viennin rahoittaminen Tavoite Top 5 joukossa Euroopassa, valmisteluvaihe I tuki 100 %, vaihe II tuki 87,5 % Finnfund: osakepääomasijoituksia, investointilainoja, takauksia, jne. 1,2 2 1,2 1,2 1,2 1,2 1,2 1,2 1 palkka- ja 2 matkakuluja Julkiset rahoitusinstrumentit kansainvälisen liiketoiminnan rakentamiseen
  21. 21. Follow us on social media and visit our website www.finpro.fi
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