Finnish enterprises look east

Finnish enterprises in 2015 had business activities through 4,880 affiliates in 140 countries, according to Statistics Finland.

The number of personnel of the enterprises working abroad in that year was 478,160, concentrated most in Europe and Asia, showing a slight contraction from that in 2014.

The investments of Finnish affiliates grew from 2014 to EUR 4.2 billion and the most significant investment destination was China.

Manufacturing accumulated 63 per cent of the Finnish enterprises’ foreign turnover.

The data have been accumulated from the report “Finnish affiliates abroad 2015” published by Statistics Finland.

The Finnish affiliates abroad employed the largest number of personnel in EU countries – altogether 217,640 persons.

Measured by the number of employees, the most significant industries in EU countries were the machinery and metal with nearly 39,980 employees and wholesale and retail trade with good 31,540 employees.

Affiliates in Asia and Oceania were the second most significant employer with 116,570 employees. In Asia and Oceania the biggest employers among manufacturing industries were the electrical and electronics industry with 46,170 persons, and the machinery and metal industry with 38,320 persons. As in the previous year, Sweden was the most significant employer country of Finnish affiliates abroad with 57,070 employees.

Finnish affiliates abroad invested nearly EUR 4.2 billion gross into their tangible goods. Sixty-two per cent of the investments were made in Europe and 26 per cent in Asia and Oceania. Globally, the manufacturing industry was the most significant investment target for Finnish enterprises abroad, amounting to nearly EUR 2.5 billion.

Affiliates in the paper industry invested EUR 447 million in EU countries and EUR 633 million in Asia and Oceania. The chemical industry became the most significant investment target for American affiliates, being EUR 118 million in North America and EUR 52 million in Central and South America. Of the individual countries, the highest investment of EUR 755 million was made in China.

The combined total turnover of Finnish affiliates located abroad amounted to close on EUR 134.2 billion. The figure describes unconsolidated turnover, in other words, it includes, for instance, intra-group trade.

Nearly half of the turnover was generated in EU countries and 19 per cent in Asia and Oceania. Among the affiliated industries located in EU countries, the highest turnover of EUR 13.8 billion was generated in the paper industry, followed by EUR 12.3 billion in wholesale and retail trade.

In terms of turnover, the electronics and electrical industry was the most significant in Asia and Oceania earning 8.2 billion euros. Globally, the manufacturing industry generated the highest turnover of EUR 84.5 billion for Finnish enterprises, followed by wholesale and retail trade fetching EUR 24.4 billion. Examined by country, the highest turnover of EUR 25.5 billion was accumulated in Sweden.