Kemi-Tornio region granted €4.2m to cope with Veitsiluoto closure

The government on Wednesday granted EUR 4.2 million in business aid authorisation to the Centre for Economic Development, Transport and the Environment (ELY Centre) of North Ostrobothnia to manage the sudden structural change in Kemi-Tornio, said the Ministry of Economic Affairs and Employment in a press release.

The funding will be allocated in particular to investment and development projects of SMEs that create new jobs in the region.

The funding will help the Kemi-Tornio area to minimise the regional economic impact following the closure of Stora Enso’s paper mill in Veitsiluoto.

Measures to support the employees and businesses due to the sudden structural change in the region were launched in April when the closure of the mill was announced.

A total of 670 employees of the forestry products company Stora Enso will lose their jobs in Finland as the company in April decided to close down its Veitsiluoto Pulp and Paper Mill in Kemi.

The planned closures would take place in the third quarter of 2021.

The Government is scheduled to decide on the regional development funding for Kemi-Tornio on 29 June, including the total amount that the region will receive to deal with the sudden structural change.

The Ministry of Economic Affairs and Employment already granted EUR 2.3 million to the ELY Centre of Lapland in April to help employment efforts in Kemi-Tornio.

“The news from Kemi-Tornio have been both negative and positive in recent years. This additional aid that the Government has now granted aims to generate new business and jobs in the area. The support will be allocated to business renewal, innovation and know-how and to improving skills for digitalisation and utilisation of technology,” said Minister of Economic Affairs Mika Lintilä.

In March, the Government allocated EUR 1.1 million to the Kemi-Tornio region after steel manufacturer Outokumpu Oyj announced it would reduce its operations there.