OUT OF THE WOODS, INTO THE WORLD
Ask an American or a Frenchman how many Finnish brand names he knows and you will probably have him stumped. Unlike neighbouring Sweden, which boasts Volvo, Electrolux, Saab and AGA, Finland has no well-known flagship. But this anonymity belies the success of many Finnish companies, which, like the ice-breakers constructed in Helsinki's shipyards, are steadily and stealthily cutting their way into new markets, towing the country's financial system in their wake.
"There is a general trend towards internationalization, an international sales drive," said Jan-Henrik Kulp, finance director of paper maker Kaukas-Kymmene. For a country of just 4.9 million inhabitants, the only way for corporations to expand is overseas. Markku Talonen, president of medical equipment manufacturer Instrumentarium, explained: "We have very high domestic market share, maybe 50% in some areas. It is easy to say 'be bigger' but how can you be bigger than 50%?" Many companies are in a similar position.
Finnish companies have been actively pursuing acquisitions, particularly in Sweden. Over the last year, for example:
-- Outukumpu has acquired the Granges copper-smelting facilities from Electrolux;
--Kemira has obtained chemical plants in Holland from Esso and in the US from American Cyanamid;
--Nokia has bought Mohawk Data Sciences' subsidiaries in six European countries and 50% of Conrad Scholtz in Germany.