New Business Model between Kainuu and Karelian wood industries (KA407)
Funded by Karelia ENPI 2007-2013
Objective of the project
The objective of the project was to develop a new business model promoting direct cross-border cooperation and trade in the forest industry as well as sustainable energy solutions.
• Developing a production basis in wood processing and house construction sectors. • Creating an interaction model and its development between firms. • Increasing business volume amongst Kainuu’s and Karelia’s wood product branch companies by developing cooperation between these businesses in production, marketing and sales, particularly with regard to accessing export markets.
The production network was not developed the way it was planned, because the customs and logistics do not allow the networks to operate cost-effectively. However, even if the permanent production of networks did not come out the way initially planned, international markets were developed and strengthened. The cooperation between the Finnish and Russian associates and marketing under the joint marketing brand NordicDom was a huge achievement. Without the project and the cooperation between the companies, none of the associates would ever have exhibited at the fair and had access to the Moscower market. Through the exhibition and the work that was done before and after that, a big network in Moscow promoting NordicDom, including a sales agent, an architectural studio and a construction company were gathered together. The project resulted in a huge learning process in "understanding each other" and removing the obstacles of cross-border cooperation, which stem from the cultural differences and difference in management and negotiation styles. Furthermore, the amount of know-how in technologies, processing wood and building houses, which was transferred from one to another, is considerable. Generally, the project's results have been in some cases not as good as expected and in some cases a lot better than expected. The results would have been better, if the economic situation of the associates had been better and they could have invested more time, money and effort to the project.
Duration2012-10-05 - 2014-09-30
Total Budget / Programme funding540 000 € / 486 000 €
Lead partnerKainuun Etu Oy
Lead partner web-site
PartnersAdministration of the Kostomuksha County
The Town Hall of Kalevala