HELSINKI, 18 October 2007 — CEOs and presidents of several Finnish companies have lauded the growth of the Saudi economy in the past several years, hoping to find areas of investment and future partnerships in the Kingdom in the midst of its investment boom.
In discussions held with the Saudi media in Helsinki recently, the executives pointed out that several of the Kingdom’s expansion projects such as new seaports, power plants, and the Kingdom’s landbridge, could be potential areas for investment.
The executives are part of a large business delegation that will be accompanying Finnish President Tarja Halonen in her first visit to Saudi Arabia in the next couple of days.
“Saudi Arabia is no longer just an exporter of energy,” Mikael Makinen, president and CEO of the Cargotec, said.
The executive described the upcoming visit as “a starting point” for business ventures between Saudi Arabia and Finland.
Saudi Arabia, he said, was one the countries in the region which is rapidly developing.
Cargotec, a Finnish public company, is a global leader in providing cargo handling solutions which are used in ships, ports, terminals, distribution centers and local transportation.
Its net sales in 2006 were 2.6 billion euros. The company has approximately 11,000 employees and operates in 160 countries. It currently represents 25 percent of cargo sales in the global market.
Makinen pointed that Saudi Arabia’s import demand was relatively strong, which on the long run meant more cargo handling. He also said the Kingdom was exporting a significant amount of containerized petrochemical exports to Asia. “The conversion of traditional break-bulk cargoes to containers is helping to boost box volumes,” he said.
Ole Johansson, president & CEO of Wartsila, a Finnish company which provides power plants solutions, ship machinery, and propulsion and maneuvering solutions, described the upcoming visit as a rich experience for both Saudis and Finnish businessmen.
“We come to Saudi Arabia with great expectations,” he said.
The executive pointed out that expansion in the Kingdom’s power plant industry began in 2000 and was ongoing. He also said his company was seeking “long-term commitments” in the Kingdom.
In 2006, the business volume of the Wartsila in Saudi Arabia was estimated at 85 million euros. Currently, more than 110 Wartsila power plants are operating in the Kingdom with a total output of 1,200 mega watts. The company’s main clients in the Kingdom are cement, paper, steel, and processing industries.
The company announced that it had been awarded a contract for the second phase of a power plant at a giant dairy farm project in the Kingdom. Contracted by the National Agriculture Development Company (NADC) in May 2007, the 13.7 MW plant extension is due to be put in operation in December 2008.
Kjell Forsen, president & CEO of Vaisala, a company which develops, manufactures and markets products and services for environmental and industrial measurement, said the visit to the Kingdom was “very important” to their company. “There are possibilities to expand our portfolios in Saudi Arabia,” he added.
Among the areas, the executive pointed out, that his company sought potential investment in is the Kingdom’s landbridge — the railroad that links the north with south and east with west.
Pinpointing when and where sandstorms can hit railways before they occur would be essential for the operation of trains in one of the Kingdom’s largest projects. Another area is investment in new airport facilities.
The company’s ultra sensitive equipment detects the amount of humidity, rain, and weather conditions which are operational in airports, defense enterprises, traffic control systems, and metrological industries.
The company has been in the Kingdom since 1960. Its net sales for 2006 were estimated at 220 million Euros. Its products are also used in over 100 countries.
Arto Juosila, group vice president of Konecranes, a Finnish company which provides standard lifting and heavy lifting services, said his company was also seeking the opportunity to invest in the Saudi landbridge project as well as in the expansions of the Jeddah and Dammam ports. The company’s equipment would be used in terminal yards and in ports.
“We have noticed clear changes of industrial trends in Saudi Arabia,” Juosila said.
The company intends to widen its joint ventures with its already existing partners in Saudi Arabia, mainly Yusuf Bin Kanoo & Co., Saudi Cranes and Steel Works Factory, and Al-Zamil Group.
“It’s better for us to locally manufacture rather than shipping,” he pointed out.
The company’s net sales for 2006 were estimated at 1,483 million euros.
