The High Coast Investment Magazine

Page 1

A gre at l ocation for big data

The heart of forestry THE EMERGE OF A WORLD CLASS TOURIST DESTINATION


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CONTENT 4-5

Editorial – Welcome to The High Coast of Sweden

6-7 8-9

The High Coast of Sweden – A presentation

Business friendly – The High Coast means business 10-11

Company portrait – SCA

12

Business friendly – Best country for business

13

Business friendly – Top class business climate 14-15

16-17

Company portrait – Permobil

Business friendly – Stability and taxation 18-19

20-21

Infrastructure – The infrastructure of the High Coast 22-23

24-25 26-27

Company portrait – Stringo

Infrastructure – Logistics park

Resources and know-how – Highly skilled

Resources and know-how – Examples of talented people in the High Coast 28

Innovation – Innovation and product development 29

30-31

Innovation – Remote Tower Services Innovation – Project research and development

32-33

Company portrait – Processum

34-35

Invest in bioeconomy

36-37

Invest in bioeconomy

38-39

Invest in ICT & data centers

40-41 42-43 44-45

Invest in tourism & hospitality

Invest in tourism & hospitality – Examples of investments

46-47 48 49

Business case – Hamre

Climate & environment – Sustainable businesses Climate & environment – Electricity generation

Climate & environment – Wind-powered energy production 50-51

Quality of life – Living in the High Coast

This magazine is published by High Coast Invest highcoastinvest.com Helena Elfvendal Head of Communications +46 (0)70 380 14 17 Production Devocy Communication ︱ devocy.com

content


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the high coast of sweden

The High Coast at a glance POPUL ATION

ARE A

LANGUAGE

CURRENCY

Hej! 246,023

21,683.8 km2

Swedish

Swedish krona

(SEK)

TI M E

CET +1

COUNT Y Västernorrlands län COUNTRY Sweden (Capital: Stockholm) MUNICIPALITIES Härnösand, Kramfors, Sollefteå, Sundsvall, Timrå, Ånge, Örnsköldsvik Sweden has been a member of the European Union since 1995.


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editorial

WELCOME TO

It is the people of our region who have built the High Coast of Sweden into the leading industrial area that it is today. Our natural resources of wood and water have through the ages sparked ideas that have turned into world-leading industries, providing the region with jobs and wealth. Many of these industries are still investing and growing in the region. For example, you can read more about the world-renowned pulp and paper manufacturer SCA’s ongoing 800 million euro project on pages 10-11. New ideas and visions are still embraced and given the opportunity to grow in the region. A solar concentrator with a unique ability to generate renewable energy and underwear made out of wood from the High Coast forests are just two of the inno-

vative business ideas that have recently had their big breakthroughs in their respective markets. More on them on pages 46-47. What all of these companies have in common – both long-standing industries and new start-ups – is that they realize that the High Coast is the place to be. The raw materials, the infrastructure, and the industrial clusters are all to be found here, as well as a competent, loyal work force known for its process-oriented mindset. But the High Coast is not only about work. Our amazing natural landscape, listed by UNSECO as a world heritage site, and our high quality of life make this a great place to call home. Get inspired by Jimmy Yoshio Shibata’s story on page 50. He moved here from Japan in 2011 and enjoys life to the

fullest – combining work, family life, and his passion for surfing. This magazine is your guide to the fantastic business region that I represent, and hopefully it will also be an inspiration for your next business venture. The High Coast and I welcome you with open arms,

gunnar holmgren, governor of Västernorrland

ph oto: elin s v ensso n

DEAR READER,

The High Coast of Sweden


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editorial

ph oto: pawel m a ro nsk i, a lltid m a rk n a dsby r å

HIGH COAST INVEST

At Your Service! Are you thinking about setting up a business in the High Coast region? Then you should not miss out on the free services offered by High Coast Invest!

• • • • • • •

H I G H C OA S T I N V E S T is an investment promotion agency offering services to companies and people who want to invest in the High Coast region. At High Coast Invest, your personal investment advisor will assist you with hands-on tasks, as well as provide relevant analyses and investigations to research your business opportunities. All services are tailored to your needs and are free of charge.

Please contact High Coast Invest to discuss your ideas, goals, and needs!

Personal investment advisors Detecting the right investment opportunities Connecting with the right networks and business partners Identifying the perfect site for your project Information and analyses relevant to your business project Practical assistance in setting up a base in the High Coast Reinvestment and business growth services

highcoastinvest.com

Member of Business Sweden’s Regional Network


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Ten thousand years of glacial rebound. Ten thousand years of new panoramas.

the high coast of sweden


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the high coast of sweden

Along the coast in the northeast part of Sweden runs the world’s highest coastline – the High Coast of Sweden. The region offers unique evidence of how the land rose in the wake of each ice age, in a process known as uplift or glacial rebound. The High Coast is an outdoor destination for people from all over the world. Visitors come here to unwind and soak up the natural scenery, aromas and culture at a leisurely pace, or to get their pulses racing with an adventurous activity. Whatever their reasons for visiting, one thing is certain – the stunning views leave tourists breathless. T H E H I G H C O A S T under went record-breaking uplift after its inland ice sheet melted. This is one of the primary reasons why the area was designated as a natural world heritage site by UNESCO at the turn of the Millennium. The world record was measured at the top of Skule Mountain, where the coastline has risen a full 286 meters higher than the current sea level. The coastline is now rising at a rate of about 8 millimeters per year - in other words, the High Coast just keeps getting higher! Here you’ll find soaring caldera mountains, vast fields of pebbles, isolated bays, and giant, rounded boulders scarred with glacial striations. These natural formations are unlike any others in the world, and provide unique evidence of how the land rose following each ice age. There are enticing natural wonders both high and low: from Mjältön, Sweden’s highest island, which juts a full 236 meters above the waves, to the deepest point of the Bothnian Sea, Ulvö­ djupet, which bottoms out at 293 meters below sea level. The High Coast has been inhabited for at least 7,000 years, and its cultural heritage includes many fascinating traces of our ancestors. The region’s landmarks range from Stone Age settlements and catch pits, Bronze Age cairns, and Iron Age

burial mounds to contemporary homes and tourist attractions. TH E H I G H COA S T of Sweden’s is a source of well-being for residents and visitors alike. Few places are so densely packed with the essence of Swedish natural splendor. In the High Coast region, the vast expanse of the sea laps at the shores of the archipelagos, and steep mountains pierce deep, dark forests, river landscapes and grazing land. In fact, the region is home to nearly 130 nature reserves of various types, as well as to the entirety of Skuleskogen National Park. In this wild and road-free national park, visitors can discover spectacular traces of glacial rebound, as well as vast expanses of untouched woodland and the Naturum High Coast exploratorium and visitor center. At the center of the park lies Skule Mountain, an imposing peak that attracts many visitors. Europe’s largest Via Ferrata Centre also beckons hikers to the mountain; its comprises numerous trails of varying levels of difficulty. There is a cable car that ascends to the summit throughout the summer, as well as in the winter, when the ski slopes are open. T H E A R C H I P E L AG O I N C L U D E S some

of Sweden’s most beautiful and picturesque islands, such as Ulvön and Trysunda. The

Skag and Högbonden lighthouses are also popular with visitors, as is the rolling countryside that runs the entire length of a coastline dotted with authentic fishing villages. The archipelago can be explored with the help of the regular ferry services, via charter or extended cruises, or in the privacy of one’s own boat. Other notable natural attractions include the numerous rivers that wind their way through peaceful valleys. The largest of these pristine waterways is the river Ångermanälven, famous for its excellent salmon fishing and for its geological significance; its riverbanks formed as a result of glacial rebound. Yet the most fascinating spot along the river is one of the largest rock carving sites in all of Northern Europe. Here, more than 2,000 images describe life in the region during the Neolithic and Late Bronze Ages. More and more people are realizing what a special place the High Coast truly is. Swedes in particular now give the region the credit it so well deserves, and in recent years the region has received many awards. When a jury assembled by the Swedish Society for Nature Conversation asked the public to select 2017’s Most Beautiful Natural Destination in Sweden, the High Coast was voted number 1 in the country.

THE HIGH COAST – A WORLD HERITAGE SITE AND TOURIST DESTINATION The term “The High Coast” was coined in the early 1970’s. The region received its new name in connection with a 1974 survey conducted by the High Coast Committee on behalf of the Västernorrland County Administrative Board. In 2000, the region was designated a UNESCO World Heritage Site, and in 2006 this status was extended to include the Kvarken Archipelago in Österbotten, on the Finnish side of the Bothnian Sea. The High Coast is now one of Sweden’s fastest growing tourist destinations.


high coast invest [ 8 ] TO P E GE RM XPOR T AN Y N MAR ORW KET AY T S F O R HE NET THE REG HER LAN ION DS T HE U S THE UK FR ANC

E CHINA DENMARK

JA PA N FI N L A N D

The High Coast means business The High Coast of Sweden is a region with a great industrial history and a long tradition of celebrating entrepreneurship. As a part of Sweden, the best country for doing business according to Forbes magazine, the High Coast offers a stable and fertile ground for new business projects as well as established companies to grow and thrive.

first class ecosystem of suppliers The High Coast is home to a wealth of suppliers providing logistics solutions, service, a strong labor force, and specialized products. The High Coast’s industrial players are known for setting high standards when it comes to efficiency, the handling of raw materials, and the quality of their finished products. The companies that supply these industries with products and services are therefor also obliged to hold themselves to the same superior standard of quality. In complex projects, such as the construction of SCA’s new biorefinery (read more about this endeavor on pages 10-11), there are several suppliers of great caliber to find in the region. For example, Valmet is one of the primary suppliers to SCA’s new plant; Eurocon has handled the project’s detail engineering and PEAB is responsible on the civil engineering end.

Worldwide delivery! Sweden has a history of open trade and is dependent on exports and trade, and the High Coast is no exception. The large industries in the region have stood strong for centuries thanks to exports and trade with other countries. For example, Örnsköldsvik (one of the municipalities in the region) exports 6 times more per capita than the rest of Sweden combined. Some 75% of what is produced here is exported to other countries.

Largest industries in the region • Pulp and paper • Sawn Wood & Timber Products • Advanced manufacturing • Tourism & Hospitality • E-government • Banking & Insurance

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business friendly

Incentives

Largest multinational companies in the region: • • • • • • • • • • • •

SCA (Sweden) Valmet (Finland) Metsä Board (Finland) BAE Systems (The UK) AkzoNobel (The Netherlands) Aditya Birla (India) Mondi Dynäs (Austria) Bucher Emhart Glass (Switzerland) Permobil (Sweden) Andritz (Austria) Bosch Rexroth (Germany) Sanmina (The US)

The High Coast of Sweden offers a wealth of financial incentives for investors. These regional development incentives are aimed at stimulating economic growth and achieving balanced regional development. The investing company can choose to receive financial support for either establishment costs or labor costs. The size of the grant is determined by the type of investment, the company size, and the location in which the company will be operating. Support for establishment costs can be granted for assets associated with the investment. An amount corresponding to 10–35% of the investment cost can be granted. Support for labor costs can be granted if the company is planning to increase its staff as a result of the initial investment. An amount corresponding to 10–35% of the wage costs over a two-year period can be granted.

As an investor in the High Coast you may also be entitled to: • Tax relief for foreign key staff • Regional transportation grants • Discounts for companies with R&D staff P L E A S E C O N TAC T High Coast Invest to learn more about these incentives and to discuss which grants may be applicable to your particular investment. highcoastinvest.com


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Major investment in world-leading mill SCA’s Östrand pulp mill, a kraft pulp mill located in Timrå, is currently benefiting from one of the biggest industrial investments ever seen in Sweden. Over EUR 800 million is being invested in a brand new fiber line – with the aim of utilizing as much of the potential yield from each tree as possible. Project Helios, named after the Greek sun god, aims to become the brightest star in global pulp production.

S C A I S A FO R E S T RY company that owns 2.6

million hectares of forest in northern Sweden. This is almost equivalent in size to the whole of Belgium. With trees as its raw material, SCA produces wood products, pulp, kraftliner, printing paper, green electricity and district heating. The decision to build the Östrand pulp mill was made way back when the company was first established in 1929. The site was a strategic choice – it had sawmills, a water supply and forest raw materials. The same logic still applies today. “The aim was to attach value to all components from the forest: pines, thinning pines and chips. A mill was then built that could make use of all the raw material. We still attach value to the forest today by making use of all parts of the trees,” says Ingela Ekebro, General Director for Project Helios. P R O J E C T H E L I O S I N V O LV E S building a new, larger and more efficient mill parallel to the current facility. This will double Östrand’s

capacity from 430,000 tons to 900,000 tons and give the facility the biggest production line for bleached softwood kraft pulp in the world. “The objectives we have been working towards are to have good-quality products, a strong environmental profile, an effective and resource-efficient mill, and an excellent working environment,” says Ingela Ekebro. S U S TA I N A B I LIT Y I S S U E S I N particular are an area in which SCA’s pulp mill in Östrand has long been a global leader. They were among the first in the world to use wood powder to fire a lime kiln, and the second mill in the world to use ozone as a bleaching chemical in the process. When it comes to new technology, they have been fast and bold. “Someone has to dare to test new technology and do the legwork, and we have been at the forefront. You don’t get to a certain level and then quit; it’s a continuous process. The new mill will give us an even stronger environmental profile,” says Ingela Ekebro.

company portrait


ph oto: m ich a el en g m a n

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company portrait

T H E E U R 8 0 0 M I L L I O N construction project is expected to be completed and commissioned in June 2018 – and to date the work is both on time and on budget. Ingela Ekebro and her 150-strong project management organization are ensuring that everything goes according to plan. In addition to proximity to forest raw materials and other resources, the strong processing industry tradition in the region means that there is a plentiful supply of well-trained and skilled labor. According to Ingela, that is a key factor in SCA’s success. “It is definitely an advantage when recruiting. And we have built up a partnership with Mid Sweden University and the expertise available there to develop both processes and products. I see the potential to develop a biorefinery linked to this mill in the future.” T H E C U R R E N T P R O C E S S uses half of the

tree to produce a variety of products, while the other half goes to generate energy in one form or another. Consequently, significant research resources are being devoted to investigating what can be created from that remaining half. SCA has pilot plants working on this, with one project involving creating biofuel from lignin and other potential sources. “In principle, anything that is made from oil can also be made from wood. I have no idea of the timescale for that right now. But we are working on a broad front on potential technologies and it will be possible to make products from the other half as well,” says Ingela Ekebro.


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SWEDEN

business friendly

Best Country for Business! W H E N S W E D E N W A S ranked as the Best country for

RANKED: S W EDEN BEST COUNTRY FOR D O I N G B U S I N E S S 2 017 [1]

#1 MOST COMPETITIVE ECONOMY IN THE W O R L D 2 016 [ 2 ]

S E T T ING UP A B U S INE S S IN S W EDEN IS E A S Y A ND S T R A IGH T F OR WA R D • Transparent system • Low level of bureaucracy • No restrictions on foreign ownership or need for Swedish partners • No restrictions on foreign ownership operations

#1

MOST RESPECTED ‘MADE IN’ LABELS 2 017 [ 3 ]

#5 G L O B A L C O M P E T I T I V ENESS INDEX 2 016 - 2 017 [ 4 ]

#6 SOURCES [1] Forbes magazine [2] Global Sustainable Competitiveness Index [3] Statista [4] World Economic Forum [5] The Good Country

THE GOOD COUNTRY I N D E X 1.1 [ 5 ]

#1

doing business in 2017 by Forbes magazine, most Swedes were excited and proud, but not surprised. Sweden had been climbing the charts in this context for the past two decades and finally landed on top. This was, of course, by no means a coincidence – the Swedish government and business organizations have long been, and still are, working devotedly to make life easier for entrepreneurs. The improved business climate is the result of strategic deregulation and reforms, but also tax cuts and budgetary self-restraint. The latter has kept Sweden afloat and the employment rate high through a time of financial instability in the surrounding world.

Sweden is one of the most international economies in the world. Foreign owned companies employ 25% of the Swedish workforce and stand for 45% of Swedish exports and 36% of the private R&D spendings in Sweden. Valuable brands Sweden stands out as the nation with the most valuable brands in the Nordics. Out of the top 20 brands considered most valuable in the Nordic region, 11 are Swedish. The Swedish brands IKEA and H&M are the two brands that are ranked the most valuable of all Nordic brands. Four Swedish banks are among the top 20, which consolidates Sweden’s position as the biggest and most important economy among the Nordics. Sweden’s industrial prowess is also obvious in the top 20 rankings of Volvo, Scania, and Skanska. The High Coast brand SCA is ranked at #31.

Sweden is the biggest economy in the Nordics, and the Nordics are the 12th largest economy in the world.


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business friendly

Top class business climate Politicians in the High Coast of Sweden always prioritize entrepreneurship. Their visions and goals are all about making it easy to start and run businesses. Active efforts to facilitate start-ups are initiated right from the top political levels. This is especially apparent in the warm welcome and top-class service that investors enjoy. S W E D E N I S R A N K E D ninth in

the world for easiest country in the world to do business in, according to the World Bank Group report Doing Business 2017. And in the High Coast of Sweden, conditions are excellent for businesses to establish. Thanks to the services provided by its municipalities and the investment promotion agency High Coast Invest, it is relatively straightforward for businesses to apply for permits and authorizations, find premises, and to network with other local businesses. Proof of the excellent level of service in the region is Timrå municipality’s sixth placing in the Confederation of Swedish Enterprise’s ranking of municipalities that provide the best service to businesses.

“We want to do everything we can to make it as easy as possible for all business operators. In many respects, it’s about listening to the needs of businesses and having dialog with them. This helps us to create better foundations for a good business climate. Our focus is to make this a place where businesses want to operate and grow,” says Ewa Lindstrand, Chair of the Executive Board of Timrå municipality. A B U S I N E S S T H AT locates to the

High Coast of Sweden can expect open arms, the best help, and streamlined establishment processes. Of course there are rules that must be followed, but it does not have to be complicated. Ewa Lindstrand stresses that they work

in a variety of ways to simplify things. “We always ensure that newly established businesses get to meet a key official who coordinates the establishment process. This can include everything from coordinating which officers need to be involved and which government agencies need to be contacted, to providing help with permits and authorizations. For example, we have a rule that all building permit applications from businesses go to the head of the queue,” says Ewa Lindstrand and concludes: “We are agile and keen for everything to flow as smoothly as possible. We can open many doors and create the very best conditions for running a business here.”


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company portrait

RIK ARD RĂ–NN

ph oto: per m o b il

World class, user-focused products It all started 50 years ago with a stroke of genius and a small business based in the High Coast of Sweden. Today Permobil has operations in 70 countries and is one of the world’s leading manufacturers of products for advanced rehabilitation. The company applies its wealth of knowledge, technical expertise, and understanding of user needs to create products that make everyday life easier for people with disabilities.


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“Permobil was one of the first companies ever to manufacture power wheelchairs. Yet the true key to our success has been our focus on helping power wheelchair users to achieve better quality of life. Our focus is not on merely producing standard wheelchairs. Instead, we manufacture power wheelchairs that are customized to suit the unique needs of each individual user. We combine our user focused philosophy with cutting-edge technology and product development to create attractive products,” explains Rikard Rönn, President of Business Unit Power Products. V I S I T O R S T O P E R M O B I L’ S site in the High Coast are met by dedicated employees who love to talk about user needs and new technology. The company’s combination of commitment and expertise has yielded impressive results. Time and time again, Permobil has shown the world that when it comes to technical solutions, its products stand head and shoulders above the rest. One example of the company’s innovative approach is Permobil’s development of alternative methods for controlling and steering power wheelchairs. Rather than using his/her hands, the user can instead steer with another body part, such as the chin.

O N I T S PAT H T O international success, Permobil has consistently employed intelligent and innovative technological solutions and has always remained focused on the user. The company’s founder, Dr. Per Uddén, had no ambitions for commercial success when he first sketched his idea for an electrically-powered wheelchair. His goal was simply to create better living conditions for his patients. He believed that “every disabled person has the right to have his or her handicap compensated as far as possible by aids with the same technical standard as those we all use in our everyday lives.” Per Uddén’s words still inspire the company’s many employees. “We are a completely different company today than we were when we first started out. Now we’re a global enterprise that has grown enormously, and we’ve recruited hundreds of new employees. But there’s still a relevant reason to keep our product development and production division for power wheelchairs here in Timrå - because this is where it all began. We’re reminded every day that we’re here to help improve people’s lives,” says Rikard Rönn. B U S I N E S S U N I T P O W E R Products launches about one major new product per year, and every time it does so, the technology gets smarter and the user-fo-

company portrait

cused solutions get even better. Rikard Rönn believes that there are several particularly great opportunities for implementing new technology: “We also strive to prevent negative complications that can affect power wheelchair users. For example, many users develop pressure sores. Looking at that issue, we can see how technology can help to tell the user that it’s time to change his or her sitting position, in order to avoid developing a sore. There’s great potential for developing a technical solution that helps the individual user - but which can also save the health care system money.” R I K A R D RÖ N N emphasizes that Permobil

is always interested in making smart new investments. A few years ago, the company acquired two US based companies, ROHO and TiLite, to strategically complement its existing business operations. Although Rikard Rönn is keeping mum about the details of the company’s future investment plans, this makes him all the more eager to discuss Permobil’s developing markets. “We will continue to grow, and see great potential for expansion in Asia, especially China. We’ve scarcely scratched the surface there, but I’m confident that in about 10 years’ time, China will be one of our largest markets.”


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weden

Stability is the ‘S’ in Sweden. Whether you look at the country from a political, an economic, or a geographical perspective, you will find that Sweden is one of the most stable nations in the world. S W E D E N I S A S TA B L E country with a

peaceful attitude. Corruption is low and the political system is standing strong. Since the early 1800s, Sweden has remained neutral in times of war. Instead, focus has been on the commitment to human rights, public service, and sustainability, which have made Sweden a respected leader in international affairs. During the recent economic instability around the world, Sweden has had little turmoil. There is a sound banking system, and the public finances are strong. There is also stability due to Sweden’s favorable geographical location, and natural disasters and extreme weather are extremely rare. In the High Coast region, industries also enjoy a very low risk of power failures thanks to the powerful and stable power grid. SOURCES [1] April 6, 2016 [2] Fund For Peace [3] Regional Political Risk Index [4] United Nations University, Institute for Environment and Human Safety [5] U.S. News & World Report Best Countries Ranking [6] Reporters Without Borders [7] INFORM [8] Transparency International [9] Gloabal democracy ranking

business friendly

PRESS FREEDOM I N D E X 2 017 [ 6 ]

TRADING ECONOMICS C R E D I T R AT I N G S C O R E [1]

99

out of

100

F R A G I L E S TAT E S I N D E X 2 017 [ 2 ]

# 174 / 17 8 I N F O R M R I S K I N D E X 2 017 [ 7 ] Sweden is ranked the 5th least fragile state.

LOWEST POLITICAL RISK IN W E S T E R N E U R O P E 2 017 [ 3 ]

#2 WORLD RISK I N D E X 2 016 [ 4 ]

# 162 / 17 1

Sweden is ranked #9 among states with the lowest disaster risk.

M O S T T R A N S PA R E N T C O U N T R I E S 2 017 [ 5 ]

#5

# 181/ 191 Sweden is ranked as #10 among states with the lowest risk of human­itarian crises and disasters.

CORRUPTION PERCEPT I O N S I N D E X 2 016 [ 8 ]

#4 GLOBAL DEMOCRACY R A N K I N G 2 015 [ 9 ]

#3


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With a corporate tax rate of 22 % and overall favorable tax legislation with many perks for foreign companies, Sweden can offer a tax regime that is highly competitive compared to international standards.

Enjoy one of Europe’s most attractive taxation systems D O YO U T H I N K that Sweden equals high

taxes? Think again! The corporate tax rate of 22% is low compared to international standards, and there is no license tax or local corporate tax payable. Added to that, the tax structure is characterized by transparency and efficiency, and it is consciously designed to meet the needs of international investors and companies looking to set up a business in Sweden. The tax climate is especially beneficial for companies that set up a subsidiary, a holding company, or a branch in Sweden. There are tax exemptions on capital gains and intra-group dividends, no thin-capitalization rules, no withholding tax on interest payments, and no or low withholding tax on dividends. Together with other advantageous legislation, this has made Sweden one of the most attractive corporate taxation systems in Europe.

Tax relief for foreign key staff To encourage highly skilled people, such as executives, experts, and researchers, from other countries to come and work in Sweden, they are offered income tax relief during their first three years here. The pur-

pose is to make it easier to attract experts and other key personnel from abroad. Employees qualifying for the tax relief are only taxed on 75% of their income during this period while the remaining 25% is tax free. This also implies a financial incentive to employers because the employer’s tax contribution is also based solely on 75% of the total income during the same period.

8 A DVA N TAGE S OF S W EDEN’S TA X AT ION SYS T EM • • • • • • •

Corporate tax rate of 22% No regional or local corporate tax Interests are fully deductible Tax allocation reserves No thin-capitalization rules No withholding taxes on interests No stamp tax or capital duties on share capital

business friendly


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company portrait

Creating the power to move cars Stringo is a family company that cares about its roots but that is also expanding to become a global enterprise. Thanks to a unique product and a targeted marketing campaign, many major car manufacturers now use the company’s vehicle mover. A S A C O M P A N Y , Stringo has a single focus: to develop and manufacture the world’s best vehicle mover. When it comes to serving its niche market, Stringo is head and shoulders above the rest. While competing brands exist, no other company devotes all its energy exclusively to the manufacture of vehicle movers. “For us, it all started when my father noticed what a hard time a client had when it was necessary to move cars around the showroom,” says Nina Thelin, CEO of Stringo. “It took three men and a lot of time. He thought there should be an easier way to go about it. And that’s how it all began.” S T R I N G O WA S F O U N D E D in the mid

1980s by Nina’s father, Göran Fahlén. Initially, the company served as a mechanical subcontractor for the region’s industries and as a supplier of industrial doors and steel structures. But by the end of the 1980s, Stringo had already developed its first vehicle mover – a unique product that Göran was certain would fill a void in the market. But interest from the major Swedish car showrooms was tepid at first. The product received a much needed boost when Audi and BMW each bought a Stringo. It was 1993. Since then, the company has enjoyed steady growth until a few years ago, when the market finally opened its eyes to the product’s potential and sales took off.

“Dad can be so stubborn about certain things, but in a good way,” smiles Nina Thelin. “He was so sure Stringo would succeed. And I’ve probably inherited some of his tenacity. Just like our employees, we’re also very driven and have a real love for our product. It’s taken many years of hard work to get where we are today – a global company whose headquarters are where its heart is, right here in the High Coast.” F O R S T R I N G O , a conscious effort to market and develop its product led to more orders. Every machine that leaves the factory in Nyland is customized to the client’s unique set of needs. Lead times are short, and the company enjoys a close relationship with its customers and dealers. The company values these strengths. However, it has also chosen to focus on increasing its presence in the global marketplace in a manner that allows it to retain its close contact with its clients, even if they are on the other side of the world. “We’re now in an intensive development phase; we’re devoting considerable resources to strengthening our R&D team and to reviewing the entire quality chain,” explains Nina Thelin. “At the same time, we have opened a subsidiary in the United States and continue to evaluate our global sales channels. It’s very exciting, but also challenging, because we want to ensure that we build the company in the right

way as we endeavor to meet the demand of our customers. For example, it’s very important for me to find the right people, the right skills – ones we can grow with. It makes me very happy when I’m successful in that respect.” I N R E C E N T Y E A R S , Stringo has grown from 14 employees to 25, four of which work at the company’s Detroit offices. The product is world leading and the company is experiencing some growing pains – but everyone is doing their best to work out the kinks. Challenges aside, nothing will dissuade Stringo from its mission to continue to develop and prosper. “Although we have a huge head start in the market, it’s important that we never get too comfortable,” says Nina Thelin. “It’s not in my nature to do so, either; my passion lies in continually improving and developing our business together with our staff. Today we deliver our Stringos to very different sorts of clients, but they all have the same basic need: to move cars in a smooth and efficient manner. That’s true of everyone from automotive industry manufacturer test labs, design centers and Crash Centers to smaller customers such as showrooms, car museums and private collectors of valuable cars. Our product is truly our passion and we intend to continue to develop it for many years to come.”


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company portrait

“A LT H O U G H W E H AV E A HUGE HEAD START IN THE M A R K ET, IT ’ S I M P ORTA N T THAT WE NEVER GET TOO COMFORTABLE,” nina thelin


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infrastructure

UMEÅ

ÖRNSKÖLDSVIK

SOLLEFTEÅ

KRAMFORS

HÄRNÖSAND

ÅNGE

TIMRÅ

INTERNATIONAL AIRPORT REGIONAL AIRPORT WITH INTERNATIONAL FLIGHTS

SUNDSVALL

INTERMODAL TERMINAL OIL PORT INDUSTRIAL PORT CEMENT TERMINAL OTHER PORT EUROPEAN ROUTE NATIONAL ROAD PRIMARY COUNTY ROADS SECONDARY & TERTIARY COUNTY ROADS RAILROAD


high coast invest [ 21 ]

Infrastructure T H E H I G H C OA S T industries ship their goods to all parts

of the world. Large volumes of goods also pass through the region on their way from the ore mines and the big industries in the north out to the rest of the world. This has put a high demand on the region’s infrastructure, and today the region has a highly developed and well-maintained network of roads, railroads, ports, and airports, all of which are tailored for the easy and efficient flow of goods and materials.

TIMELINESS OF SHIPMENTS I N T H E E U 2 016 [1]

LOGISTICS PERFORMANCE I N D E X 2 016 [ 2 ]

Getting here From the three High Coast airports, it is less than an hour’s flight to Stockholm Arlanda airport, where you can catch direct flights to more than 180 destinations worldwide, including New York, Hong Kong, Addis Ababa, Moscow, and Dubai.

#3 SOURCES [1] The World Bank logistics performance Index [2] The World Bank

infrastructure


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ill us tr at io n: su nd sv al o ll gi st ikp ar k

BIG PLANS!

T H E R E I S G R E AT pressure on goods

going in and out of the High Coast region. Companies are investing and expanding their operations, and the rate of housing construction is like never before. In order to satisfy the increased demand for transport, the Port of Sundsvall is being developed into a logistics park with a container port, a combiterminal and logistics areas. “The logistics park offers several benefits. It enjoys a strategic location that allows optimum interconnection of maritime, road and rail traffic. Its location also makes it a safe place for handling hazardous goods,” says Sven Magnusson, CEO of Sundsvall Logistics Park, who goes on to explain about the environmental benefits of the park. “The East Coast Line will be converted

infrastructure

Logistics park to benefit the business sector and the environment The High Coast of Sweden is to gain a brand new logistics park with combiterminal and logistics, storage and development areas. The park will create new opportunities for both existing and newly-established companies, and also bring substantial environmental benefits. to double track in connection with the new logistics park and this will further increase the scope for rail traffic. In addition to having cleaner transport, we are also investing in natural gas. There are plans to build a biogas facility close to the logistics park to live up to requirements for more eco-friendly fuel,” says Sven Magnusson. T H E L O G I S T I C S PA R K project is aiming

to benefit both the environment and local companies, and hence, logistics areas are available for companies to rent. This gives companies good scope to both opt for sustainable transport and streamline their logistics. “There will be 60,000 m2 of logistics space for rent and we plan to double that

in order to meet increased demand. This scheme offers companies the chance to secure a strategic location,” says Sven Magnusson. TH E LO G I S TI C S PA R K will be completed by 2021. Sven Magnusson can see it becoming a new international hub. “The location of the logistics park offers great potential for becoming a transport hub between Norway and the Baltic. With the capacity of the deep-water harbor we can handle goods transport by boat from the Baltic, and with rail links between the logistics park and Trondheim in Norway transport will be both sustainable and cost-effective.”


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infrastructure

Electricity

The High Coast is located in an area where a large part of Swedish electrical power is generated. Less than half of the electricity that is produced in the region is consumed here. The main portion of the power generated is fed to the national grid and supplies the southern parts of the country. The many energy intense industries in the region have led to a highly developed power grid where the close proximity to the source of energy production ensures a strong and reliable power supply. The large hydropower plants and many wind farms generate 98% of the power produced in the region, and green electricity is therefore a given. Still, electricity prices are low compared to countries with higher use of fossil fuel sources like Germany, China, and the US.

98% green electricity Fresh Water

There is an abundant supply of fresh water in the High Coast region. Therefore, establishing industries that use large volumes of water in their processes in this area is definitely a good idea. Whether you are using fresh water as an input in manufacturing or for cooling of the facilities, the water supply will cover your needs.

Connectivity

High Internet speed is taken for granted in the High Coast. The fiber network is well developed, even in remote places. Internationally, Sweden is ranked as a highly connected country; Internet and computer usage per capita is the highest in the world, and the country has the 3rd fastest average connection speed. NETWORKED READINESS I N D E X 2 016 [1 ]

#3

I N T E R N E T U S A G E 2 015 [ 2 ]

AV E R A G E C O N N E C T I O N S P E E D Q1 2 017 [ 3 ]

#3

Did you k now…

…that the Swedish national electrical grid is among the most reliable and stable in the world?

SOURCES [1] The World Economic Forum [2] The Networked Readiness Index [3] Akamai’s State of the Internet Report

E.ON...

...is one of the large electri­city providers in the region. E.ON also offers a technical infrastructure for energy supply and provides energy-intensive industries with services within design, construction and management.


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resources and know-how

Having competent and committed employees is key to running a successful business. In the High Coast region, you will find a well educated and loyal work force with excellent English skills. T H E AVA I L A B I L I T Y O F skilled labour is high in Sweden. Swedes are known for being well educated, and some 46% of the population between 25 and 34 years of age has completed tertiary education, and Swedish children are expected to spend an average of 18 years in school. In Sweden in general, and in the High Coast area in particular, there is also a tradition of commitment to the employer. Employees tend to stay for a long time with their employers compared to other countries and regions. They also tend to become more engaged in the company or the organization they work for and take responsibility for its success. In addition to their high efficiency in completing the tasks handed to them, Swedish workers are known for being process oriented and for understanding their role in the greater picture of their organization. Due to the great many industries with a long tradition in the High Coast region, more than 12% of the working population in the region are employed within manufacturing or extraction. In recent years, IT has also become an important employment sector as well as tourism and hospitality. Thanks to our universities and vocational colleges that have

captured this trend and started programs to meet the demands in the labor market, it is also becoming easier for employers within these sectors to find employees in the region with the right knowledge and experience.

Impressive English skills Swedes in general have excellent English skills. In the EF English Proficiency Index 2017, Sweden was ranked number 3 out of 72 countries. Sweden scored 72 points, well above the index average of 53.5. The European Survey of Language Competences (ESLC) also shows that Swedish ninth graders have as good English competence as Maltese children of the same age, even though English is one of the official languages of Malta. One reason for the advanced English skills is that English is being taught in Swedish schools from early ages. There is also a high consumption of American and British media and popular culture, and there is no strong tradition of dubbing movies or TV shows into Swedish. This means that most Swedes are regularly exposed to English from very early childhood.


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A bou t S w eden:

resources and know-how

SCHOOLING E X P E C TA N C Y

1 8 YE AR S ENGLISH PROFICIENCY I N D E X 2 017 [ 3 ]

BEST COUNTRIES FOR E D U C AT I O N 2 017 [1]

2016 2015 2014 2013 2012

#3 #1 #3 #1 #1

STRONGEST INTELLECTUAL C A P I TA L 2 016 [ 4 ]

Did you k now‌ ‌that the costs per employee are often lower in Sweden compared to other European countries? The gross salaries combined with the employer contributions for senior programmers, account managers, and engineers, for example, are lower in Sweden than in Germany, Belgium, and Switzerland. At High Coast Invest, we can assist you with tailored comparisons of costs between relevant countries for key roles in your company.

THE GLOBAL GENDER GAP INDEX [2]

#2

#4 Sweden has the smallest gender gap in enrollment in tertiary education and the smallest gender gap in literacy rates. Sweden also has the highest percentage of women among professional and technical workers.

Persons in science and technology occupations make up over 40% of the Swedish labor force.

SOURCES [1] U.S. News & World Report Best Countries Ranking [2] World Economic Forum [3] EF [4] The Global Sustainable Competitiveness Index


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resources and know-how

IN THE HIGH COAST Valmet develops and delivers technology, automation and services within the pulp, paper and energy industry. Most recently, the company has elected to focus its business development on the conversion of biomass into sustainable products such as biofuels and biochemicals. M AT T I A S E R I X O N , Sales Manager in the Biomass Conversions department, is fueled by a passion to develop both his company and himself. At the same time, he works to ensure a sustainable world for his daughter. xxxx

Tell us about yourself. “I’m 47 years old and live in a village outside of Härnösand with my wife Annika, my 12-year-old daughter Elin, and our three dogs. I’ve been working at Valmet for 20 years.“

What role does your work play in your life? “My job is very important to me. I spend much of my waking hours on the job, and it’s important to me that I enjoy what I do and feel motivated when I head off for work in the morning.” Age 47 Lives in Härnösand Job title Sales Manager – Biomass Conversions Works at Valmet in Sundsbruk

What’s the best thing about your job? “That Valmet is a global enterprise. Those of us at the Sundsvall branch enjoy a lot of international interaction. It’s not unusual for me to communicate orally or in writing with several different continents in a single day.”

How does the region in which your company is situated contribute to the success of your work? “The High Coast’s excellent infrastructure and communication networks mean that the world is at our fingertips. The forest industry has a strong foothold in the High Coast, thanks to both our university and the large companies that operate here. It presents excellent opportunities for collaboration, and that potential extends all the way down the region’s coast. There’s a real ‘brain trust’ assembled here in the High Coast, and that’s really a great asset when it comes to the area’s continued development.”


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J O H A N N A E R I K S S O N holds a Master of Science degree in chemistry and works as a research and development engineer at Domsjö Fabriker in Örnsköldsvik. Her work primarily revolves around cellulose molecules and their uses. The aim is to find as many innovative uses as possible for this incredible natural material, which is derived from wood. “It is a fascinating molecule with a lot of possibilities.”

xxxx

Tell us about yourself. “I’m a happy, open, and social person. I enjoy challenges and solving problems; I’m ambitious and am constantly striving to develop myself and my skills. One of the great things about my job is that it never ceases to present me with new opportunities for development.”

What role does your work play in your life? “I really enjoy working. You can’t do it 24-7, but it’s an important part of life. And I like that my job offers opportunities for personal development – by allowing me to travel or lecture, for example.”

Why did you choose to live and work here in the High Coast region? “In the first year of my studies in technical chemistry, we went on a class field trip to Domsjö Fabriker. They gave us a presentation about the work they were doing with cellulose and among other things they talked about how Domsjö’s cellulose had been implemented to produce a material used in the construction of spacecraft. That really opened my eyes to the possibilities of cellulose.” Age 30 Lives in Domsjö Job title Research and development engineer. Works at The Domsjö Fabriker biorefinery.

resources and know-how

M I C H E L L E F O R S S is an event producer at Verkställande Byrån in Örnsköldsvik, an event production company based in the High Coast region. Michelle has seen the High Coast’s tourism industry grow in leaps and bounds, and the region’s rapid development inspires her to work even harder. “The High Coast really is an incredibly wonderful place. I believe that the region has the potential to become an absolutely world-class tourist destination, and I want to help make that happen.”

xxxx

What role does your work play in your life? “I love my job. It’s a big part of who I am as a person, and it’s become more like a life style than a career. Looking back at the person I was three or four years ago, I can see how much I’ve grown. I’m stronger and more self-confident. That motivates me to work even harder.”

Why did you choose to live and work here in the High Coast region? “I was born and raised here, so it really is home to me. So much has happened in the four years since I started my job – that’s why I want to stay here and continue working in this industry. We’re moving forward at an incredible pace; lots of people believe in the High Coast, and so do I.”

How does the reg­ion in which your company is situated contribute to the success of your work? “The region presents me with enormous opportunities in terms of developing my career, because it’s quite a small community. Everyone knows each other; we collaborate closely and all work together to help make things happen. There are many different companies working to develop the region, but at the end of the day we all want the same thing: for everyone to have a fantastic experience here in the High Coast.”

Age 22 Lives in Örnsköldsvik Job title Event producer Works at Verkställande Byrån


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Innovation and product development

innovation

MADE IN SWEDEN

Industrial innovation and product development have made Sweden famous around the world. Have you ever had an ultrasound or lit a match? If so, you have a Swede to thank for it. The High Coast indu­stries have long been at the forefront of creating new products and solutions within their field. Here you can find interesting collaboration opportunities and the right talent to boost your level of innovation. T R A D I T I O N A L LY, S W E D E N ’ S inno-

vative contribution has stemmed from industrial engineering. Swedes are known for being creative and open minded as well as skilled engineers, and this combination of traits has proven to be highly successful for turning ideas into top-quality products. The pacemaker, the propeller, the three-point seat belt, and the refrigerator are just a few examples of this. In recent years, Sweden has also become known as a hotbed for tech innovation. Companies like Spotify, Klarna, Skype, and King are gaining fans from around the world with their smart and disruptive products. In the High Coast region, the forestry industry has developed products, services, and processes that are used by virtually all pulp and paper industries around the world. The concentration of demonstration and pilot plants that have won international recognition is unique to the region, and representatives from many forestry manufacturing industries from around the world have come here to develop products and processes together with the companies that are based here. Advantageous collaborations between

academics and businesses in the region have also resulted in many creative ideas and technical solutions. A couple of examples of this are the use of infrared cameras for evaluating urban development and the implementation of sensors in water wells that rapidly detect oil emissions. The disruptive thinking and creativity of the region is also shown by the fact that we are frequent patent applicants, and our rate of 20.8 patent applications per 100,000 inhabitants ranks us as one of the most productive counties in Sweden in terms of intellectual property.

A popular test market Sweden has become a popular test market for global brands. Coca Cola, Microsoft, Samsung, Ericsson, and Adidas are only a few examples of world-leading companies that have turned to the Swedish market when trying out new products. ”Sweden is a very technologically savvy market. Swedes tend to be at the leading edge of adopting new technology. That’s not lost on me. We want to continue to drive forward.” - Steve Ballmer – Managing Director, Microsoft.

S W EDEN ICT DEVELOPMENT I N D E X 2 016 [1 ]

#7

E U R O P E A N I N N O VAT I O N S C O R E B O A R D 2 017 [ 2 ]

#1

In the EU

G L O B A L I N N O VAT I O N I N D E X 2 017 [ 3 ]

#2

B L O O M B E R G I N N O VAT I O N I N D E X 2 017 [ 4 ]

#2

SOURCES [1] International Telecommunication Union [2] European Commission [3] Cornell University, INSEAD, and WIPO [4] Bloomberg


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innovation

ph oto: s t efa n k a l m

The world’s first remote air traffic control system The High Coast now possesses the world’s first fully remote air traffic control system. All take-offs and landings at Örnsköldsvik Airport and Sundsvall Timrå Airport are now controlled remotely. Thanks to advanced technology, this method of air traffic control is not only a more cost effective alternative than traditional systems, but safer as well. I N A P R I L 2 0 1 5 , LFV (The Swedish Civil Aviation Administration) and Saab Digital Air Traffic Solutions made digital history with the launch of their Remote Tower Services (RTS). They successfully conducted the first-ever landing via a remote controlled tower. The aircraft landed at Örnsköldsvik Airport, but the air traffic controllers who guided its descent were stationed in a remote tower approximately 160 km away. After many years of testing, the new system was not only approved and certified, it was finally operational. R T S I S A service that makes it possible

to use computer displays to route air traffic remotely. Instead of the human eye, air traffic is monitored using cameras and sensors from the local control tower. This information is then transmitted to the air traffic controllers’ computer screens. Frank Olofsson, CEO at the Sundsvall Timrå Airport, says RTS has no downside.

“For us, the remote air traffic control system is a more affordable and safer alternative. With a normal air traffic control tower, you may encounter problems such as fog, backlighting, or darkness. But the cameras are unaffected by these issues and can provide us with a clear picture at all times,” enthuses Frank Olofsson. He continues: “Another advantage is that no matter the time of day, we can open up for traffic within an hour’s notice because the air traffic control tower is remotely manned around the clock. That means we can quickly accommodate air ambulance and rescue services flights, for example.” R T S H A S AT T R A C T E D great interest

around the world, and Sundsvall Timrå Airport has received an enormous amount of attention. In recent years, the airport has hosted many interested visitors who wish to learn more about the system. “Representatives from foreign airports

and ANS-P (air navigation service providers) from China, the United States and Russia have visited us to see how we work. All in all, we’ve received 4,000 visitors from 40 countries. In addition, media such as the BBC, the New York Times and the Wall Street Journal have come here to report on RTS.” S W E D E N WA S T H E first country to step

into the future with RTS, and Frank Olofsson is convinced that more will follow suit. The odds of this happening are good, because other airports can benefit from both the system and the experience that LFV gained while conducting the pilot project here in the High Coast. “Getting this sort of system up and running takes a very long time. Now Sweden has a head start when it comes to developing the service further, because here it’s already been certified and is fully operational,” explains Frank Olofsson.


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innovation

Smarter products through collaboration SMART is a unique project in which Mid Sweden University has partnered with companies and other industry players in the High Coast region. Together, the project participants are working to create new business opportunities within the Internet of Things that can benefit both industry and society. “ O U R R E S E A R C H H A S shown us that there is great potential to find smart system solutions that can be applied to all sorts of activities. That’s one of the reasons why we started the project. Another reason is that this region abounds with workers who are not just gifted IT specialists, but who are also highly driven and willing to be at the forefront of the development of the Internet of Things,” says Mattias O’Nils, a professor at Mid Sweden University’s Department of Electronics Design. He adds: “This project constitutes a concerted effort to incorporate technology into the business sector as well as society.” E AC H PA R T O F the project is based on

what each respective company is interested in developing. One of the companies participating in the project is Bosch Rexroth Mellansel, which manufactures hydraulic systems. The company hopes to find a solution that makes it possible to wirelessly receive energy generated by hydraulic motors. So-called energy harvesting represents a smarter energy alternative to connecting to the power grid or using an

electrical cord or batteries. Digital technology makes it possible to create a simple, cheap and maintenance-free method for measuring temperature, pressure and rotation speed. “Another example is the power wheelchair manufacturer Permobil. Together with that company, we are looking into developing driverless control systems for power wheelchairs by using advanced technology that incorporates sensors and cameras. In practice, this allows the wheelchair to follow the person who is walking alongside it, which means that the person guiding the wheelchair does not need to position himself behind it. A great advantage to such a steering mechanism is that it makes it easier for the person controlling the wheelchair and the person who is sitting in it to have a good dialogue with each other,” elaborates Mattias O’Nils. H E E X P L A I N S T H AT the SMART proj-

ect aims to inspire, to increase knowledge and to develop new products and efficient solutions. The technology necessary to accomplish these goals already exists, and the

collaboration paves the way for finding new ways to optimize its implementation. For the companies participating in SMART, the project offers an excellent opportunity to come up with attractive new product solutions. Many companies realize the project’s potential and don’t want to miss out on the chance to benefit from the undertaking. “Since the project started, many companies have demonstrated an enormous interest in participating. Today, we work with 56 companies and other industry players,” says Mattias O’Nils, who is also convinced that the next major innovative breakthrough will be made in the High Coast.

THE SMART PROJECT SMART is a project at Mid Sweden University. 56 companies are involved in the project, and so far nearly 2,000 people have participated in various project activities. The project focuses on developing smart systems in the areas of efficient production, smart communities, and the surveillance of large areas. SMART is partly financed by the European Regional Development Fund.


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innovation

Research and Development S W E D E N H A S A S TRO N G reputation for its

impressive investments and accomplishments within R&D. Nationally, almost 14.5 billion EUR were spent on R&D in 2015. In relation to GDP, this makes Sweden number 4 in the world when comparing the nations’ R&D investments. In the High Coast, the strongest players within R&D are independent research institutes, the research centers at the big industries, and, of course, Mid Sweden University.

Testbed Sweden There are over 100 testbeds in Sweden, and Sweden is seen as an international hotspot for cutting-edge research and innovation. At a time when testbeds and pilot plants are becoming increasingly essential for developing products and services, Sweden’s government is taking measures to make sure that Sweden retains its place as a leader within R&D. As a part of this effort, Mikael Damberg, the minister of Enterprise and Innovation, is launching Testbed Sweden, a national coordinating function for the testbeds and pilot plants in Sweden. The High Coast region excels internationally with testbeds and demonstration plants in the fields of energy, wood pulp, biofuels, and environmentally friendly chemicals.

Universities Mid Sweden University At Mid Sweden University, most of the research is conducted in cooperation with the surrounding society. In addition to top academic quality, the university aims for its research to be of high relevance to the local community. There is also a close and natural link between education and research. The research groups and projects cover a wide variety of subjects, from technology to tourism. However, the research within sensor-based services is one of the university’s most prominent flagships.

Umeå University Umeå University, located just north of the High Coast, is the 5th largest university in Sweden. The research at Umeå University is known for being innovative and forward thinking and extends over a wide range of disciplines and scientific fields. Many of the researchers are among the elite, both nationally and internationally. Plant and Forest Biotechnology and Industrial Design are two leading fields. Umeå Institute of Design is ranked #1 among European and US universities by the Red Dot Institute 2016. #5 in Europe for learning – 2016

Swedish University of Agricultural Sciences The Swedish University of Agricultural Sciences is a world-class university in the fields of environmental and life sciences. The university develops knowledge about how to use land and water resources in a sustainable manner. The faculty of Forest Sciences is located in Umeå, directly north of the High Coast. #1 in Forestry 2017 (out of 26,000+ degree-granting institutions of higher education worldwide) - Center for World University Rankings (CWUR) 2017

S W EDEN U 21 R A N K I N G O F N AT I O N A L H I G H E R E D U C AT I O N S Y S T E M S 2 017 [1 ]

#5

T O TA L E X P E N D I T U R E O N R & D C O M PA R E D T O G D P 2 017 [ 2 ]

#4

EUROPEAN COUNTRIES WITH THE LARGEST NUMBER OF R&D PERSONNEL AS A SHARE OF T H E L A B O R F O R C E 2 017 [ 3 ]

#4

LARGEST NUMBER OF I N T E R N AT I O N A L PAT E N T A P P L I C AT I O N S P E R M I L L I O N I N H A B I TA N T S 2 016 [ 4 ]

#2

SOURCES [1] Universitas [2] Euromonitor [3] Eurostat [4] Groth & Co


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company portrait

A hub for knowledge and innovation In an age overshadowed by the imminent threat of global warming, as people increasingly realize the importance of replacing oil with fossil-free options, Processum has emerged as a major player. Processum has become a hub for research into the potential of using biorefineries to transform forest-based raw materials. This important actor facilitates collaboration between academics and researchers, companies and public-sector entities in the quest for sustainable alternatives.

T H E D O M S J Ö development area is located in the northernmost reaches of the High Coast region. A diverse cross section of industries has already been based in the area for a century: a pulp mill, chemical plant, chlorate factory and energy production facilities to name just a few. At first glance, that list might not conjure images of companies engaged in committed environmental work, but appearances can be deceiving. The development area is now a well-established and internationally renowned ecosystem that supports a thriving forest-based biorefinery. Government representatives, researchers, and business leaders from around the world flock to the High Coast to learn more about innovations that could change and improve our planet’s future by making it more environmentally sustainable. Processum is one of the primary driving forces behind that effort. It leads and supports research development and innovation related to forest-based biorefining. I N T H E 1 4 Y E A R S since Processum was

founded, the organization has gone from being a local technology park to becoming the hub of a cluster of biorefineries, and is now involved in both cross-industry

and international collaborations. There are now 27 people working in the organization. Thanks to its merger with RISE, Sweden’s largest research institute, Processum also has access to another 2,000 colleagues throughout Sweden. “I’m impressed by how skilled and committed our employees are,” says Magnus Hallberg, the CEO of Processum. “As our brand has gotten stronger and we’ve started focusing on the issue of climate change, it’s become easier to find great new hires. People who are very dedicated to protecting the environment and to advancing biorefining come to us and want to be a part of the business.” OV E R T H E Y E A R S , Processum and its partners have built an impressive pilot equipment park that continues to grow. The pilot projects being carried out make it possible to upscale processes involved in biorefining - from the laboratory scale to nearly a full scale level in some cases. The Biorefinery Demo Plant is a largescale demonstration plant. The plant provides the necessary conditions to develop and verifying the processes for producing green chemicals, fuels and materials. The demonstration plant is operated by SEKAB,

which also developed it. It opened in 2004 as a national facility for the development of ethanol from wood and other lignocellulosic biomass, but is now used for a wide range of experimental biorefining endeavors. E U R O P E ’ S F I R S T P I L O T facility for the production of crystalline nanocellulose, CNC, has also been constructed in the area. CNC may prove to be a significant material with a wide range of applications. It is strong and lightweight, and has numerous exciting properties. For example, the material may have medical applications; it could be used to direct drugs to predetermined sites in the body. It can also add entirely new properties to the consistency of paint and food, or be used in the production of strong and lightweight vibration dampening and heat insulating materials. T H E W E LL - D E V E LO P E D pilot park contributes significantly to the development area’s attractiveness. “In many ways, our location is really unique,” says Magnus Hallberg. “Collaboration across company boundaries works well here, and has done so for decades. Several of the companies in the Domsjö development area have teamed up to build


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company portrait

E X A MP L E S OF P RO JEC T S W I T HIN P ROCE S S UM Protein for fish feed Put in very simple terms, researchers on this project succeeded in producing proteins from commercial pulp industry residual products that can be used as fish feed. In 2014, the project was awarded second place in the annual EARTO Innovation Prize competition, and was the first Swedish research and development project ever to win that prize. Green liquor dregs as a cover material Thanks to a fruitful collaboration between Processum, Luleå University and several private companies, green liquor sludge, a byproduct of pulp mill production that had previously been considered to be mere waste, can now be mixed with till and used

an advanced and integrated biorefinery that is already producing biogas, biofuel, green chemicals, dispersants, textile cellulose, and much more. This is the perfect place for us.” Thanks to its expertise and its wellequipped pilot park, Processum can take on assignments from individual parties and also act as a partner in research projects both large and small. Several projects that started out on the laboratory level have already been developed into commercial products. P R O C E S S U M ’ S P L A N S F O R the future

are even more ambitious. The organization is heading up a preliminary study known as the Flagship Biorefinery. The aim of the project is to demonstrate how a large scale biorefinery based on sustainable Swedish forestry can contribute to development of the bioeconomy to which we all aspire. The study is supported by 13 businesses from a variety of relevant backgrounds, ranging from forest owners to forestry,

chemical and retail companies. The goal is to develop a facility at which all production is energy self-sufficient and resource usage is maximized - a facility which will not only produce one million tons of textile cellulose, but will also be capable of producing other products such as green chemicals, biofuels, lignosulfonates, protein products and biogas. “Our forests will play an important role in the necessary transition to a sustainable society,” predicts Magnus Hallberg. “Ever since Processum was founded in 2003, our motto has been that everything that can be done with oil, we can do better with forest-based raw materials. And it feels like that’s more true today than ever before. A number of biorefinery technologies are now ready for industrial scale-up, and within a few years I hope to see a lot of what we’re doing come to fruition in the form of fullscale biorefineries. And when that happens, why not build them here?”

as a cover material for mine waste. The method entered into full scale implementation in the summer of 2017. Forest based methanol In a collaborative project between Valmet, Metsä Board and Processum new technology has been developed that makes it possible to distill methanol from pulp mill stripper off gas (SOG). Methanol is normally produced in large-scale processes in which it is derived by combining natural gas or coal and water vapor. The new technology makes it possible to instead distill forest-based methanol while also helping pulp mills to reduce their emissions.


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SCA, Mondi, Metsä, AkzoNobel, and Aditya Birla are a few of the well-known companies that have substantial business operations in the High Coast region.

invest in bioeconomy

The High Coast is the home of top international­­ suppliers of equipment and services for the process industries, as well as specialized engineering, maintenance, and workshop companies that serve both regional and global industry players.

The heart of forestry “In the High Coast of Sweden, companies linked to the forest industry will find all the prerequisites for success. Above all, we mustn’t forget our opportunities when it comes to taking advantage of the knowledge and innovation that exists within the regional forest cluster. Whether you need help with evaluating your material, optimizing your processes or finding ways to substitute oil in your products with sustainable alternatives, you can find the expertise you need right here," says Johan Eurenius, Senior Investment Advisor and Bioeconomy expert at High Coast Invest.

Sweden is the third largest exporter of sawn timber in the world.

World-leading R&D cluster

An abundant supply of natural resources such as wood, fresh water and energy.

An outstanding infrastructure tailor-made for transporting large volumes of biomaterials.


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Cutting edge forestry leads the way into a bright and greener future The digital age has taken its toll on the forest industry, due in particular to a decline in demand for newsprint and office paper. But the industry players see new possibilities for using the great High Coast forests, and these opportunities may even contribute to saving the planet.

W H E N T H E S TA K E H O L D E R S in the High Coast forestry

industry realized that the world was moving towards a paper-free society, they decided not to let the intricate and well developed ecosystem that has evolved around their industries go to waste. They shared a strong belief in the wood’s value as a raw material and they were willing to invest time and effort in finding new ways to use it. “We’ve invested a lot of effort in finding new application areas for Swedish wood, especially as a renewable resource, says Johan Eurenius. For example, wood or other renewable materials can serve as a substitute for oil. This will have a great impact - not only on the forest industry, but on the climate and our environment. The High Coast bioeconomy clusters are leading this development of substituting oil-based products for wood-based ones,” explains Johan Eurenius. Significant R&D investments have been made both nationally and regionally, and private and public stakeholders are working side-by-side to achieve Sweden’s ambition of being a leading player in the transition towards a wider use of renewable forest materials. ”Our business climate is wide open, and there’s a real spirit of cooperation here in the High Coast, says Johan Eurenius. We welcome more industry players who want to play a part in the development and take advantage of the broad expertise and innovation that our cluster presents.”

pro ce ssu m , ph oto: j o n a s fo r sb erg

World class research centers The High Coast region is home to several world class research centers, such as RISE Processum, MoRe Research, Valmet Fiber Technology Center, SCA Research and SEKAB E-Technology. From a global perspective, it is also one of the regions with the highest concentration of open demonstration and pilot plants within the forest industry.

invest in bioeconomy


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invest in bioeconomy

Wood construction – one of the keys to a climate friendly society Wood construction is both environmentally friendly and cost effective. As more and more people discover the benefits of using wood-based construction materials, the demand for wooden houses is also increasing. In the High Coast, companies that want to invest in wood construction will find all the prerequisites for success. The region has it all: the raw material, the knowledge, and the infrastructure, as well as proximity to key markets.

G L O B A L LY , T H E C O N S T R U C T I O N

sector accounts for up to 30% of annual greenhouse gas emissions and therefore has an important role to play in the fight against climate change. “Building with wood is part of the solution, because wood is the only renewable construction material” explains Bengt Aldén, Process leader at BioBusiness Arena. “Compared to buildings made of concrete or steel, wooden buildings reduce CO2 emissions by 50% or more”. T O DAY, M O R E A N D more industry players around the world are choosing to build with wood, and not just because of the positive environmental effects. The construction projects have a short installation time since the building blocks are prefabricated and are easy to install. Wooden structures also weigh much less than comparable structures made of brick or concrete, which facilitates both transport and the actual construction process. Furthermore, wood-constructed buildings

are lighter than those based on other construction materials. This makes it possible to add vertical additions to existing structures. This makes wood an ideal material for densifying cities. The material is also a good alternative when it comes to the health and safety aspects of construction. “Contrary to what many people assume, wooden buildings can actually be more fire resistant than concrete and steel,” says Bengt Aldén. “Wood constructions can also be earthquake-proofed, because the material can handle vibrations better.” M A N Y C O M PA N I E S A R E now looking to Sweden and the High Coast region to establish themselves in the wooden house market. Sweden is the third largest exporter of sawn timber in the world, and the largest exporter and second largest producer of sawn softwood in Europe. Thanks to sustainable forest management, high quality and reliable deliveries, Swedish timber and wood-derived products hold a strong

position in many markets. A large portion of the Swedish wood industry is located in the High Coast, and the region offers good access to high quality raw materials in the form of spruce and pine. There is also a skilled workforce and a well-developed infrastructure for the further processing and export of timber and wood-derived products. In addition to this well-developed industrial ecosystem, the High Coast is also close to lucrative markets. There is high growth and a major capacity shortage in the Swedish and Nordic markets for wood construction. “We are still at the very beginning of an upward trend in wood construction”, Bengt Aldén continues. “A few years ago, wood construction was mainly limited to freestanding houses, but today more and more apartment blocks and higher buildings are being built out of wood. In Norway there is a 14-story building, and in Sweden buildings as tall as 17 and 19 stories are currently being built.”


invest in bioeconomy

ph oto: u h lin m edi a

high coast invest [ 37 ]

Greener houses from Skidstahus Wooden house manufacturer Skidstahus is building houses like never before. With the raw material for construction right on their doorstep and an environmental focus, they are delivering houses that are sustainable and stylish. At Skidstahus, caring for the environment is as obvious as meeting the customer’s housing needs.

BIOBUSINESS ARENA BioBusiness Arena coordinates a network that consists of some 30 companies and organizations within the bioeconomy sector in the High Coast region. Through promoting innovation in sustainable products and services, they strive to advance a more resource-efficient economy that is reliant on renewable forestry-based raw materials.

I T ’ S O B V I O U S , T O O , when you visit Skidstahus that Sweden is thriving. Most Swedes have jobs, are earning money, and are willing to spend. There is also a housing shortage and in a society that has become far more conscious about interior design, the home has now become a status symbol. Building houses is better business than ever. “Each house we build is unique. Today, people want to create something all on their own, and that’s why we let our customers make a lot of their own choices and impact how their houses will look,” explains Leif Svanholm, CEO at Skidstahus. For Leif Svanholm and his co-workers, sustainability and a long-term perspective are obvious. Unlike many other consumer products, houses from Skidstahus need to last for more than 100 years. That in itself makes huge demands on materials and building technologies. “We’ve been building houses since the 1950s and have a proven product and technologies. All the timber comes from forests in our vicinity and the material is thoroughly tested to comply with environmental standards,” says Leif Svanholm and goes on to talk about the benefits of operating in a way that is as environment-friendly as possible. “Clearly, one of our drivers is that we want to leave this world in a good state for our children and our grandchildren. But there are also economic incentives for minimizing transport and recycling materials from the production process. We recover everything from gypsum and wood to plastic. Even the waste from mineral wool insulation is recovered to become loose fill insulation,” concludes Leif Svanholm.


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invest in ict and data centers

Driving advances in cutting edge ICT The High Coast region has all the necessary prerequisites for helping ICT companies to thrive - from smart industries and startup-friendly conditions to universities that supply the region with a well-qualified workforce. T H E S TAT E - R U N agencies located in the High Coast municipality of Sundsvall (such as the Swedish Companies Registration Office, the National Board of Student Aid and the IT department of the Swedish Social Insurance Agency), boast well-developed IT and have helped to establish the High Coast as an ICT region. Sweden is a global leader in the digitalization of government services, and the state-run agencies in Sundsvall are just a few of the leading players that have fueled this development. The region’s advanced manufacturing industries are also renowned for their innovative approach to ICT, and are driving impressive developments in the field. These future-minded companies are at the forefront of the development and implementation of modern IT solutions into industrial processes. For example, Bosch Rexroth Mellansel has both increased efficiency and reduced costs by using digital production processes. For many years now, Bosch Rexroth has been developing products that are specially customized to suit the needs of Industry 4.0. The company is also a major player in driving the development of so-called smart factories – both in its own production facilities and those of its customers.

A S T H E H I G H C OA S T has grown into a strong region for ICT, more entrepreneurs working in that field have flocked to the area. The regional startup scene has also blossomed over the last couple of years, thanks to startup hubs such as Great Space, Biz Maker, and the SCA and IBM Accelerator. “This is an ideal region in which to establish digital businesses,” says Jesper Johansson, co-founder of Great Space. “The region offers the best opportunities, because the IT industry here is so strong. Per capita, a huge percentage of people here work with IT, and at the same time there’s a steady influx of students from Mid Sweden University’s extensive range of ICT education programs.” All the startups at Great Space have an international focus. They also share a high level of IT expertise and a wealth of creative ideas. “Great Space helps startups to accelerate their growth and to take their ideas to the next level. For example, a company might have a prototype but need financial support and advice in order to move ahead with its development. Through our network, they get access to both,” explains Jesper Johansson.

Did you k now… •

Sweden has ranked among the top three countries in the annual Global Innovation Index for five years in a row.

Spotify, Skype, Gizmo, AXIS, Truecaller, QlikTech, MySQL, Unibet, King, Tobii and iZettle were all founded in Sweden.

Intel, Google, Apple, Huawei, Arm, Microsoft, TechMahindra, Motorola, Oracle, Sun, Sony, Samsung, EA, Facebook, Nokia and Mediatek have based R&D centers in Sweden.


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A great location for big data Sweden is emerging as a prime destination for data centers and the High Coast offers a wide range of competitive sites. “I would say that Sweden in general, and the High Coast in particular, has all the right conditions to attract companies that want to base their data center facilities in a green, safe and cost-effective environment. This is evidenced by the fact that Facebook and Amazon have chosen to establish data centers in Sweden, and more are on the way,” asserts Mikael Aamisepp, Director of Investment at High Coast Invest. T O B E G I N W I T H , Sweden boasts one of the world’s strongest and most stable power grids. In the High Coast, the availability of electricity is especially good, because much of Sweden’s power production takes place in the region. Electricity costs are among the lowest in Europe, and the electricity produced in the High Coast is also 98% green. In addition, the region offers a strong and extensive fiber network, in which only 10% of the existing fiber is currently being used. The cold climate is also a big bonus, because data center servers generate heat and need to be cooled down. Cooling a facility artificially requires copious amounts of energy, which is of course reflected in the electricity bills. “Yes, it’s true! In most contexts, our climate probably would not be described as ideal, but in this particular case it really is,” confirms Mikael Aamisepp with a laugh. B U T W H AT T R U LY makes the region stand out, according

to Mikael Aamisepp, is the wide range of high quality sites. “These sites indeed offer something for everyone, and range from super-secure caverns to 500,000 m2 plots of industrially zoned land. All the sites are well-connected and super-powered. We realized early on that the way we humans live our digitized lives demands a solid digital infrastructure in which data centers play a vital role. We see a steadily increasing demand for large-scale data centers, which should preferably be located in close proximity to green energy production centers. Our job is to guide businesses to the environment that’s right for them,” concludes Mikael Aamisepp.

invest in ict and data centers


business case

ph oto: b erg sl ag sb ild a b

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A promising power hub for data centers

Data centers are high-tech, energy-hungry and cooling-intensive facilities; their construction and operation demand special prerequisites. When it comes to housing these giants of modern industry, few places are better suited than northern Sweden. A particularly ideal place is the Hamre area of SollefteĂĽ Municipality, whose 50 acres are ripe for development.


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business case

A N N A - S O F I A K U L L U V A A R A , the Municipal Chief Executive of Sollefteå, explains that Hamre is primed for the establishment of electricity-intensive businesses, especially data centers. “In terms of buildable land and planning, we are fully prepared. Many players in the municipal government have organized themselves around this goal; they are looking forward to developing the area in this direction and are doing an incredibly good job. We’re rolling up our sleeves and working hard, to accomplish our goals,” enthuses Anna-Sofia Kulluvaara. W H E N I T C O M E S to sites best suited to serving these establishments, Hamre has been deemed the most promising location in the region for large-scale establishments. The land on which to build is flat and the area is very close to a large transformer station with a direct link to the Swedish power grid. “In terms of infrastructure, Hamre has it all – fiber-optic internet, a strong power grid, and railway lines. The area is also municipally owned, which means we have control over what happens in the area,” explains Kulluvaara. H A M R E I S W E L L positioned in the High

Coast region, and features well-developed transport links such as Höga Kusten Airport. Stockholm is just an hour away by plane. The climate is classified as subarctic. The winters are long and usually very cold, and the summers are mild: perfect conditions for a facility with high cooling demands. In Hamre’s case, the nearby Faxälven river offers additional cooling opportunities. A power plant is also located along the river. It is one of a total of 26 hydropower plants in Sollefteå, of which more than half are classified as major power plants.

ph oto: hig h coa s t m edi a

“Sollefteå has been nicknamed the ‘powerful’ municipality. We’re the second largest hydropower producing municipality, and are number one in the country when it comes to wind power production. Our locally based traditional and green power producers offer ideal conditions for electricity-intensive business operations,” asserts Anna-Sofia Kulluvaara. Hamre boasts an impressive potential power supply of 500 megawatts, five times more than the total electricity consumption in Västerås, Sweden’s fifth largest city. H I S T O R I C A L LY, H A M R E W A S primarily

used for agricultural production. However, in the 1970s it was transformed into an industrial area which initially included a brake band factory. The fact that the site is now ready for further conversion demonstrates Sollefteå Municipality’s passionate interest in economic development. “Hamre started out as farmland and evolved into an industrial area. Now it’s ready to step into the Information Age. Our officials, politicians and even our residents all understand the enormous potential of the IT industry when it comes to growing and developing as a municipality,” concludes Anna-Sofia Kulluvaara.


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invest in tourism

The High Coast of Sweden has become a recognized name in the tourism industry, and interest in its potential is substantial. At the same time, the High Coast remains a new and developing tourist destination, where every major investment will receive plenty of positive attention and will often be the first of its kind. “In addition to our unique natural scenery and the opportunities it provides for outdoor adventure, we have an incredibly extensive offering of tourist attractions,” enthuses Peter Holmqvist, CEO of the High Coast Destination Management Organization. When the High Coast of Sweden was designated a World Heritage Site at the turn of the Millennium, this honor was based largely on its unique natural scenery and on the record-breaking glacial rebound that occurred following the melting of the inland ice sheet. Since then, great strides have been made in the destination development of the region. One of the goals is to make the High Coast a competitive, world-class tourist destination

by the year 2025. In so doing, several further investments in the tourism branch, such as hotels and activities, will be necessary. “Here, visitors from all over the world have the opportunity to experience authentic, unspoiled Swedish nature, with its forests, seas, and mountains. We know that our unique outdoor life fulfills all the dreams and wishes of nature lovers from places such as Germany, Finland, and the Netherlands, who like to stay active but also need a place to recharge and energize themselves in order to better face their daily lives. So when we look beyond Sweden’s borders, we focus primarily on these markets,” says Peter Holmqvist.

Did you k now… ...The overnight stays in the High Coast region increased by 55% from 2010-2016.


[ 43 ] high coast invest

invest in tourism & hospitality

T he High Coa s t need s ne w ho t el s

THE HIGH COAST has never been as hot as it is right now. Tourism is increasing, and visitors are staying for a record-breaking number of nights. In the past, tourists usually only spent a single night in the High Coast region; now the average stay is three nights. Meanwhile, the proportion of foreign visitors is steadily increasing, and now accounts for a fifth of all overnight stays. “More and more now, the tourist season is extending beyond the summer and winter months to cover the entire year,” says Peter Holmqvist. “For example, this year we’re launching Fire Week. Running from October 30-November 5, the week will feature daytime and nighttime activities that all have some sort of connection with fire; crackling bonfires, fiery fall colors, warm meetings and exciting flavors. The only limits are those of our entrepreneurs’ imaginations.”

100% 90% 80% 70% 60%

2023

2022

2021

2019

2018

2017

2016

2015

2014

40%

2020

50%

2013

At the same time, you’ll be inspired by the people you meet. The value of their unpretentious and warm character cannot be overstated. Many visitors actually come to the High Coast specifically because they want to interact with other people in an environment that reflects their own values of social and environmental responsibility. Nature has served as the foundation for a wide range of outdoor recreational activities in the High Coast. In turn, outdoor life is laying the groundwork for a variety of activities, adventures and events. The range of activities is constantly increasing, with everything from beaver or seal safaris and dog sled and kayak rentals to rafting, long rides, snowshoe hiking, downhill skiing and tracking, but still there is much more left to be done. For those who want to create packages where the adventure is enhanced by taste experiences, there are all the right conditions. Mjälloms Flatbread, Hernö Gin and Box Whiskey win awards for their high-quality and attractively designed products, and the talented chefs at local restaurants have helped to put the region on the culinary map. All this is to say nothing of the region’s most famous foodstuff - fermented herring!

2012

IN THE HIG H COAST , you’ll find the serenity of the North.

This diagram shows three different scenarios that demonstrate how the increase in overnight stays will affect the room occupancy rate on an annual basis. Because accommodation capacity should theoretically increase to match demand, the current tipping point is set at 60%. If the average room occupancy rate reaches 75%, there will be a lack of capacity.

SCENARIO 1 Room occupancy is below 60% and the existing and projected accommodation capacity is sufficient to meet demand.

SCENARIO 2 Room occupancy levels are projected to pass the 60% tipping point in 2019. New establishments are necessary in order to avoid insufficient capacity in the early 2020s.

SCENARIO 3 In 2017, the average room occupancy rate already surpasses 60%, and new establishments are required to avoid a serious shortage of accommodation capacity. T H E C U R R E N T S I T U AT I O N indicates that the High Coast is already straddling Scenarios 2 and 3 and that there is ample room in the hotel market for new establishments to accommodate the booming influx of tourists.


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invest in tourism & hospitality

F ur t her in v e s t men t at Ho t el l H a l l s ta berge t The bookings are pouring in at Hotell Hallstaberget in Sollefteå. Since the new owners took over a few years ago they have invested time and resources in expanding and renovating the property. However, demand is still outstripping supply and so they are continuing to invest. “We are now adding a further two floors to the hotel. We experience constant demand for rooms throughout the year from tourists, conference guests and weekend travelers. There is huge demand for rooms and we often have to turn down booking requests. Encouraged by this high occupancy rate we want to invest further,” explains Björn Norman, part-owner and hotel manager at Hotell Hallstaberget.

In v e s t men t y iel d s re t urn f or Ulvö ho t el l On the island of Ulvön, a popular tourist destination in the High Coast archipelago, stands Ulvö hotell. Its owners have invested heavily in refurbishment and expansion. And today these efforts are yielding excellent results, giving them belief in further growth in the future. Consequently, they want to continue to invest and develop the business. “We have belief in the High Coast and Ulvön and therefore we have chosen to invest here. It is a special place boasting a unique location and great possibilities,” explains Jennie Marcusson Sundström, CEO at Ulvö hotell, adding: “In the space of just a few years we have increased sales by several hundred percent. This increase is due to our investment in the hotel. But naturally also to all the combined forces that have developed and invested in Ulvön in a variety of ways.”


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Cruise t h at l ef t p eop l e wa n t ing more In the summer of 2016, Birka Cruises conducted three cruises through the magnificent archipelago of the High Coast of Sweden. It was the very first time a cruise company included the High Coast’s inner archipelago in one of their cruises. It was a huge hit. At the start of each cruise, the M/S Birka anchored in the Port of Härnösand in the morning. The passengers were then given the opportunity to experience the High Coast through excursions organized in the region. In the evening, the journey continued northward through the varied archipelago. After the first season, Birka announced that customer ratings of the cruise were the highest the company has measured to date. For the summer of 2017, the company expanded their offering to four cruises. These were sold out within just a few days – faster than even Birka had expected.

invest in tourism & hospitality


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climate & environment

Climate & Environment S W E D E S A R E K N OW N for being environmentally

conscious consumers. They are aware of the effect their consumption has on the environment, and they want to marginalize the footprint they leave on the planet. About 7 out of 10 of them want to buy from companies that work on limiting climate change, and many are willing to pay more for products or services from such companies. As a result of this, Swedish companies have become world leaders when it comes to developing eco-friendly products and manufacturing processes. Swedes are confident that an environmentally friendly lifestyle does not necessarily mean that you have to lower your living standard. And this assumption seems to be true. In recent years, Sweden has actually managed to reduce CO2 emissions while increasing its GDP. Between 1993 and 2014, Sweden’s GDP grew by 66% and energy production nearly doubled. During the same period, CO2 emissions were reduced by 24%.

S D G I N D E X 2 016 [1 ]

#1 Sweden is considered the best-positioned country in the world to meet the UN’s Sustainable Development Goals

C O U N T R Y S U S TA I N A B I L I T Y R A N K I N G 2 017 [ 2 ]

#1 GLOBAL CLEAN TECH I N N O VAT I O N I N D E X 2 017 [ 3 ]

#3

The sun as a brilliant source of energy Absolicon has taken on the challenge to change the world’s energy supply from fossil fuels to renewable energy. With its unique concentrating solar thermal collector technology, Absolicon is demonstrating that renewable energy is not only a more sustainable option. It is also cheaper.

SOURCES [1] BertelsmannStiftung and Suitable Development Solutions network [2] Robecosam [3] WWF and Cleantech Group

J O A K I M B Y S T R Ö M is the founder,

co-owner and CEO of listed company Absolicon. According to him, helping the environment is at the root of Absolicon’s operations. The company grew out of a personal dilemma about how best to contribute to sustainable energy supply, and a frustration that international climate negotiations were proceeding so slowly. “I have always been interested in concentrated solar energy, right from childhood. When I later began calculating its efficiency, I realized that if you could

really get it to work, we would have a superior renewable energy source. And also the cheapest. There was already research in the area, but we needed to put all the puzzle pieces together and commercialize the solution,” says Joakim Byström. Today, Absolicon sells concentrating solar thermal collectors that efficiently extract energy from the sun’s rays. Solar thermal collectors are a product for which demand is rising among multinational corporations as sustainability requirements on them increase. Many businesses want to transition to zero CO2 emissions and stop using oil and gas in their operations. “I believe that solar energy is the future, and that many others will follow the large multinational corporations and transition to renewable energy. It is easy to install solar thermal collectors, and the energy itself is cheap. In comparison with oil for example, our solar energy is around one quarter of the cost.”


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the high coast of sweden

Underwear from the forest Origin and traceability are key aspects of their business concept and with it, Allvar Underwear is pioneering environmentally aware products. They are challenging the fashion and cotton industries by producing stylish, comfortable underwear made of cellulose from the forests of the High Coast of Sweden. NIKLAS G IL M ARK , founder and Business Director

of Allvar Underwear, stresses that concern for the environment is fundamental to Allvar’s products. With them, the company wants to give consumers a genuine alternative that does not impact the environment negatively. “It all started when I read about how to manufacture textiles from bamboo. The idea then grew that it ought to be possible to do the same thing with Sweden’s forests. After many experiments, we found a completely new textile material of good quality and with a great feel. This resulted in underwear made of viscose originating from cellulose and our forests,” says Niklas Gilmark. All stages of Allvar Underwear’s production chain are sustainable. The trees used come from FSC-certified

forests in the High Coast region, which means that their management meets international sustainability requirements. In order to utilize the forest’s resources optimally, the company uses trees that are not suitable for other kinds of manufacture. “At Domsjö Fabriker, the raw material is separated into fractions to obtain the cellulose. There is no waste because the other parts of the tree are used to produce other products. Then the cellulose is turned into viscose,” says Niklas Gilmark and adds: “It’s important for us to be able to verify that the viscose in all our underwear has come from Swedish wood. We want our customers to feel confident about where our products come from. We also want to be the real deal with our consumers, standing for quality and awareness.”


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the high coast of sweden

Renewable energy at low cost THE HIGH COAST OF SWEDEN

Electricity generation

UNITED KINGDOM

75%

The High Coast of Sweden

GERMANY

28%

USA

CHINA

72%

74%

15%

85%

Electricity price SOURCE Electricity prices are for industrial consumers and are derived from Eurostat, the U.S. Department of Energy, and the report “A comparison of U.S. & China Electricity Costs” (Biggins Lacy Shapiro & Co and Tractus). The data for electricity generation are for 2016 and are derived from respective government sources, except for China where the China Energy Portal was used as the source.

UNITED KINGDOM

0,1520 Eur/kWh

GERMANY

0,1493 Eur/kWh

CHINA

0,1057 Eur/kWh

USA

0,0595 Eur/kWh

SWEDEN

0,0590 Eur/kWh


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the high coast of sweden

Wind and storms transform into green energy In recent years, the number of wind farms in Sweden has increased sharply. Such a development is to be expected; more and more people are demanding renewable energy. Due to the region’s favorable conditions, the Statkraft company has chosen to build wind farms in the High Coast. S T A T K R A F T P R O D U C E S electricity

from hydroelectric and wind-powered sources. They are Europe’s largest producer of renewable energy and Sweden’s fourth-largest electricity producer. The High Coast is currently home to four wind farms. Jakob Norström, CEO of Statkraft Sweden, has noticed that there is a clear demand for wind-powered energy production. “Naturally, our business decisions are affected by the political incentives that are available from both the EU and the Swedish state, which are intended to help us cope with the transition to 100 percent renewable energy. In addition, an ever-increasing number of companies are demanding more of themselves when it comes to sourcing and using renewable energy. We’re seeing that big industrial customers, data centers and global companies now make environmentally conscious choices when it comes to their energy providers, and they want to exclusively use renewable energy. It’s

definitely the part of the market that has seen the most growth.” W H E N S TAT K R A F T I D E N T I F I E S and

evaluates the optimal location for a wind farm, its list of demands is long. Obviously, the site must be well-situated in relation to the wind, but there are also other important aspects in their decision-making process. “A good connection to the power grid is a must, and the grid itself must be strong. The location must also present the opportunity to find skilled employees to run the farm, and we have stringent requirements when it comes to both infrastructure and logistics. We also rely on having a good working relationship with each municipality,” elucidates Jakob Norström. He adds: “Our cooperation with the municipalities in the High Coast have gone very smoothly. They have proven to be both constructive and pragmatic and have demonstrated that they fully understand the kind of expertise

that we look for when hiring new workers.” O N E E X A M P LE O F the good will that has been demonstrated by the municipalities in the region is the fact education in the field of wind power is now readily available nearby. The majority of Statkraft’s staff who now work in the High Coast graduated from the local training program. Jakob Norström believes that after a sharp increase in building wind farms in recent years, the industry is taking a short pause in constructing new sites. At the same time, he is confident that wind power production will continue to increase in the coming years. “There is great potential for wind power in Sweden, because its production is based in hydropower. In point of fact, wind and hydro power complement and balance each other beautifully. Land-based wind farms are also currently the most cost-effective power producers in which to invest. “


high coast invest [ 50 ]

quality of life

He moved to the High Coast from Japan to give his children a better future A meltdown at a nuclear power plant in Japan and a surf board manu­facturer in Härnösand, Sweden – one might easily think­­that these two things have nothing to do with one another. Yet in the extraordinary life of Jimmy Shibata, they are very much intercon­nected! This is a story about passion, family, and the quest for a better life. I N 2 0 1 1 , A V I O L E N T earthquake shook

Japan – and a devastating tsunami followed in its wake. Shortly thereafter, the Fukushima nuclear power plant suffered a catastrophic systems failure; as a result, radioactive material leaked into the surrounding sea and air. Then and there, the Shibata family made a decision that would forever change the course of their lives. For the good of their children, they chose to move to Sweden, where Jimmy had grown up and attended school. “I had been living in Japan for 18 years, and really had no idea what to expect upon returning to Sweden. But I still hoped that we would be better off here – and looking back on the last several years, I can say that we truly are. Swedish culture is much more focused on allowing people to live their lives as they see fit, in a way that makes them happy. Excellent schools and other strong societal support mechanisms help make that kind of a life possible for everyone who lives here.”

J I M M Y I S A dedicated surfer. He describes

surfing as his life’s greatest passion, and says he sometimes has trouble thinking or talking about anything else. It’s no surprise that upon arriving in Härnösand and the High Coast region, he immediately felt at home. On a stormy autumn day when the wind gusts in from the southeast, you may just be able to make out a tiny, black-clad figure riding the waves toward Smitingen beach in Härnösand. Jimmy now surfs the tides of life on boards he crafted himself. “It’s a great place to surf, and the sea is so close that I was hooked right away. The town itself is really nice, too – it’s right on the water. My wife Noriko and I both knew immediately that this was where we wanted to live.” I N T H E W I N T E R T I M E , the pair enjoy going snowboarding together – often on Vårdkasberget mountain, right in the middle of town. Overall, they find that Härnösand’s beautiful natural surroundings are its greatest asset. “For me, quality of life has to do with being close to nature and having the freedom to do what you love. Here in Härnösand,

we’re close to both the sea and the mountains. And compared to Japan, life in Sweden is much more relaxed; people here can enjoy their lives more fully.” I N A D D I T I O N T O being a surfer himself, Jimmy has been building surfboards for many years. By the time he arrived in Sweden, he already had 10 years of experience under his belt. Although he knew it would take time, he was determined to continue developing his craft here in his new hometown. He attended courses on entrepreneurship and starting a business, and eventually founded his own brand, High Coast Surf Designs. One of the advantages of being self-employed is that it gives Jimmy the freedom (when the conditions are just right) to leave his workshop for a few hours and head out to chase the waves. “That’s why I’m self-employed. You give up other kinds of professional security, but I’ve chosen this lifestyle because it allows me to surf. I also want my kids to feel free to do what they want with their lives, and I’m thrilled to see how happy they are here in Sweden.”


high coast invest [ 51 ]

A S A U N E S CO World Heritage Site voted the most beautiful place in Sweden, the High Coast offers you a great place to get your mind off work. How about hiking or skiing through the stunning landscape accompanied by the quietness of unspoiled nature? Or, if you are more adventurous, enjoy activities like rock climbing, trail running, hunting, and surfing. You can also fill your evenings with cultural events, shopping, or fine dining based on local specialties.

The Good Country Index 1.1 #1

T HE H I G H COAST

[1 ]

#1 Prosperity & Equality #1 Health & Wellbeing #3 Culture

Voted by the Swedes themselves in a vote held by the magazine Sveriges natur (Swedish Nature), which is published by the Swedish Society for Nature Conservation.

#4

T he S w e d i s h W e l fa r e Model is world r e n o w ne d. A m o n g o t he r t hin g s , i t e n s u r e s :

COUNTRY FOR PERSONAL S A F E T Y 2 017 [ 3 ]

COUNTRY FOR E N V I R O N M E N TA L Q U A L I T Y 2 017 [ 4 ]

A better life According to the OECD Better Life Index, Sweden performs very well and ranks above the average in almost all dimensions measured, including environmental quality, civic engagement, education and skills, work-life balance, health status, subjective well-being, jobs and earnings, housing, personal safety, and social connections.

Most beautiful place in Sweden

T R A N S PA R E N C Y I N T E R N AT I O N A L’ S C O R R U P T I O N P E R C E P T I O N S I N D E X 2 016 [ 2 ]

The right of public access The right of public access means that you are free to roam the Swedish landscape both on land and water, even where it is privately owned. You may, for example, hike, ski, go berry-picking, and even find a spot to pitch your tent for a couple of nights. When enjoying this right, you are, of course, expected to show caution and consideration towards nature, wildlife, landowners, and other people.

quality of life

#2

• Free daycare. • Free healthcare. • F ree education at public schools as well as private schools from elementary school to high school. • Free education at all universities.

SOURCE [1] The Good Country [2] Transparency International [3]Social Progress Index, Social Progress Imperative [4] Social Progress Index, Social Progress Imperative


High Coast Invest is an investment promotion agency located at the heart of northern Sweden. As a member of Business Sweden’s regional network, our purpose is to attract foreign investments to our region. High Coast Invest was founded when our stakeholders decided to team up in a joint effort to promote the amazing strengths and assets of our region. They all know that the High Coast of Sweden has a huge potential to grow as a business region and now we are spreading the word.

h i g h c o a s t i n v e s t. c o m

Member of Business Sweden’s Regional Network


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