Cooperation Network Project of Karelia and North Ostrobothnia
Funded by Euregio Karelia Neighbourhood Programme 2001-2006

Objective of the project

The project was to promote the prerequisites of small and medium-sized enterprises in North Ostrobothnia to launch cooperation in the regions of Karelian Republic and Northwest Russia. The activities were divided into three focus areas, which were cooperation between mining cities, promoting subcontracting activities, and promoting wood trade.

Main activities

• Completing a study related to the mining industry regarding cooperation opportunities with companies in the Republic of Karelia in the construction industry, • Establishment of a machine shop that manufactures tin plate profiling machines in Pyhäjärvi in reference to subcontracting, • Researching the market for the company’s products, arranging sales into Russia, • Arrangement of an orientation visit to the Republic of Karelia for Finnish entrepreneurs in the IT industry and visits for IT industry experts from Petrozavodsk State University to Finnish companies and project organisations, • Producing a report on the timber resources in the Arkhangelsk region and their suitability for the needs of Finnish counterparts, the possibilities of importing wood to Finland together with raw material, and on transport costs and funding arrangements, • Arrangement of eight trips to the Arkhangelsk region for Finnish wood industry companies.

Achievements

Implementing the section related to mining was delayed due to a change in the ownership of Pyhäsalmi mine and the planned mining cooperation with Russians was unsuccessful. The new Canadian owner of the mine was not interested in cooperation with Russians. The construction stone sites in Karelia, the companies in the construction stone industry in the Republic of Karelia and their interest in cooperation with Finns were assessed during the project. In addition, the study examined what type of cooperation would be possible between the professionals and companies in the Republic of Karelia and North Karelia. In reference to subcontracting, a machine shop that manufactures profiling machines was established in Pyhäjärvi as a pilot project. In addition, the market for the company's products was researched and sales into Russia were arranged. The original goals related to subcontracting in the IT industry were not reached due to changes on the market that occurred during the time-frame between the funding application and the final funding decision. The cooperation activities were however successful in initiating cooperation between Petrozavodsk State University and Stone Oy in Nivala. As a result of the trips, several quotations regarding the delivery of wood raw material were obtained and trade agreements signed. Wood imports were started using trial shipments. By utilising the project’s specialist services, one company under Finnish ownership was established in Russia.