Invest in Mikkeli

- City of opportunities -

Welcome to Mikkeli

CleantechFresh airExcellent connectionsThe friendliest atmosphere for entrepreneurship in the country (measured 2013)

• Population 55.000 residents• Location: eastern Finland, 200 km from

Helsinki• Est. 1838• Administrative and educational centre of

Eastern Finland• Inspiring business environment and

highly developed infrastructure• Forest and timber

• Metal, technology industry

• ICT

• Food products

• Tourism

Key features, Mikkeli I (pdf attached)

• The city offers companies good plots and premises• Competitive energy and salary costs (medium wage of a metal

employee around 11 €/h)• country’s most efficient publicly funded business services.• The most attractive business support rate in Finland (35 % for

investments, 50 % - 80 % for other development)• Educated and committed work force• Ca 4500 professionals in 600 companies in the employment area

Mikkeli key features II (pdf attached)

Mikkeli key features III (pdf attached)EDUCATION• Vocational school• Metal professionals: welders, assemblers, thin sheet metal workers• Traditional education and apprenticeship

• Polytechnic high school• Engineers

• Adult education• Metal professionals• Thin sheet metal workers• Welders

DISTANCES• Helsinki 225 km• EU-Russia border 130 km• St Petersburg 300 km• 4. Kotka (port) 160 km• 5. Stockholm 680 km

Mikkeli key features IV (pdf attached)

Miktech Oy• Innovation and technology Centre• Founded in year 1985• Owners:

City of Mikkeli (51 %) Private companies (41 %)Universities (8 %)

• Mission: promoting innovations and helping companies grow• Turnover 2,5 M€• Employees 20• Profound knowledge of Russian business and culture• Help in getting funding and premises

Business support and aid in Mikkeli

• Pellos plywood mills of UPM-Kymmene Oyj, one of the world’s largest companies in its field• Savcor Group (forestry logistics and solar energy)• Mölnlycke Health Care (hospital equipment)• OR Group (wooden product• ENSTO Finland Oy (electrical systems)• Ahlstrom Glassfibre Oy (glass-fibre reinforcements)• Versowood Group (producer of sawn timber)• Rejlers (engineering consultancy services)• Helprint (gravure printing plant)• Tens of metal processing SMEs

Largest industrial companies in Mikkeli

o degree of industrialization 20% (share of employment)o proximity to Russian boarder (130 km)o proximity to next larger Russian city: St Petersburg 300 kmo proximity to Helsinki 220 km: train, car, bus, avion (airport 70 km)o proximity (km) to sheet metal supplier Bierkühl 700 m o proximity (km) to powder coater Bierkühl 700 mo proximity (km) to 2nd sheet metal supplier Pelaser 65 km o costs of production site: 6-8 €/m2 + maintenance costso average salary of metal worker ~ 11 €/ho urban catchment: there is a large reserve of employees, and the

vocational school is very cooperative in educational taskso access to funding: easy to get public fundingo amount of funding: 35 % to investments of SMEs (best possible support

in Finland), other costs up to 80 %, e.g. training of personnel

Key facts of Mikkeli

- Height ca 5 m- Office space 200 m2- Building surface 1258 m2- Built in 1991- Repair works 2008- Oil-heating, air-heating pumps- Automated ventilation- Heat recovery- Can be easily divided to different

working spaces- Rent: 8 €/m2 (+ taxes)- The tenant takes care of the

electricity, heating, water and maintenance of the court yard

PRODUCTION SPACE, Nostajantie 8, MIKKELI- Alternative I- Currently empty

FACADE, Nostajantie 8

Place for the other lift-door if needed

- Lift door , height 4 m- Building in excellent

condition- Large, asphalted yard,

easy to drive- Owner: Oy Lifa Air Ltd

Office

PREMISES, Nostajantie 8- Hall - Office/meeting room 1 - Office/meeting room 2

- Equipped with sauna and two showers

PRODUCTION SPACE, Nostajantie 8- Alternative I- Currently empty

- Automatic ventilation machinery room

- Oil consumption ca 10.500 €/year- Electricity costs ca 4000 €/year

PRODUCTION SPACE, Nostajantie 8

Building technic

- Distance from premises Nostajankatu 1: 500 m

- 6 employees at 7/2014- 4 kw laser, table 1500 x 3000 mm- Powder coating chamber

Subcontractor #1, Bierkühl Oy

Laser cutting and punching

Subcontractor #1, Bierkühl Oy

Powder painting chamber

- Possibility to invest for a larger chamber, if needed- Bierkühl wants to know more about the production/cooperation:

sizes, weights, materials

Other subcontractors in Mikkeli region

Miketek Oy

- Punching machines - Sheet metal works- 20 emloyees- Location 500 m from the

premises nr 1

Pelaser Oy

- 2 x 4 kW lasers- Water cutting- Sheet metal works- Delivers the parts coated in accordance

with customer’s needs- 20 emloyees- Location 65 km / 35 min from the

premises

FSP Oy

- Finnish Steel Painting- Powder coating- 20 emloyees- Location 50 km / 30 min from th premises

PRODUCTION SPACE, Oravinkatu 8, Mikkeli

Alternative- Currently in use- Ca 1000 m2- 500 + 300 m2 can be divided in short

notice- Height 6 m- Bridge crane- Possibility to build more space- Distance from Bierkühl 7 km- Rent ca 6 €/m2- + energy, electricity costs- Owner: Arimet Oy

Alternative- Currently unfinished space- Ca 1000 m2- Works to be completed in sort schedule- Height 6 m- Distance from Bierkühl 3 km- Rent 6-8 €/m2- + energy, electricity costs- Owner: Maamerkki Oy

PRODUCTION SPACE, Timpurinkatu 7, Mikkeli

Alternative - building up new premises in Mikkeli

- by public organization Naistinki Oy- by private company, for instance, FH Invest Ltd- Cost estimate by private company for new premises:1. Production facilities

If 500 - 1000 m2 1.150 € / m2If > 1000 m2 - 1.120 € / m2

2. Office facilities, round 200 m2 1.350 € / m23. Warm storage facilities, over 500 m2 1.000 € / m24. Cold storage facilities, over 500 m2 800 € / m25. Cold storage facilities, foundation on pillars, walls sheet metal 600 € / m26. Outdoor transport area 100 € / m27. Lawn area and planting 50 € / m28. Fences and gates, 1 hectare site 50.000 €

400m fences, 2 electrical gates

Building with turnkey solution. Financing as the building proceeds. Mutual financial guarantees, with normal procedure.

PRODUCTION SPACE

-two specialists working in Russia operations at Miktech Oy on daily basis-close co-operation with Russian technology parks, universities and technology oriented companies in St. Petersburg area, Karelia and Moscow-highlevel connections also to other Russian regions-own office in St. Petersburg-Assistance in partner, dealer and / or subcontractor search in Mikkeli, South Savo region or more widely in Finland, EU and Russia, including, for instance, preliminary inquiries for offers -Consulting for applying for public financing (national and international), venture capital and private investments money-Consulting for applying and administering of RD-projects and other projects-Practical consulting in questions related to business environment in Finland and Russia-Start up center services and coaching (business plan, profit and loss account)-Consulting in internationalization, modernization and development-Tailor-made consulting based on the needs of the client

Know-how in Russia operations and in business consulting

-support of Finnish companies to Russian market, the value of offers to Russian clients approximately 1,2 million Eur this year (2014)-10 active Russian companies as clients in establishing their company to Mikkeli-3 Russian firms with Finnish business ID already -several upcoming leads from Russia in starting their business in Mikkeli-know-how and long experience on projects with Russians on different topics -organization of goaching on systematic development of SME’s for Russian and Finnish companies, organized 5 times, Globtech I - V

References of Russia operations

Possible partner for logistic terminal in Russia:Logistic and Customs Terminal ”Scandinavia”in Vyborg, Leningrad region in Russia

- Located nearby to Finnish-Russian border, distance 30 to 40 km from border crossing points Vaalimaa Torfyanovka) and Nuijamaa (Brusnichnoe)

- The customs and logistics terminal includes: • outdoor area designed for use as a temporary storage warehouse, it accommodates 100 commercial vehicles. • adjacent to the open ground area of customs control zones (NTA), accommodates 210 freight vehicles. • Covered storage space, usable area of 1600 m2 (refrigerators, room for items with special storage conditions) • platform for deploying mobile inspection and the inspection of the complex (MIDK)

Recommendation for phase 2