Electronic manufacturing services in Finland This CBI fact sheet aims to introduce electronic manufacturing service (EMS) providers from developing countries (DCs) to the electronic manufacturing service market in Finland. It is a medium-sized market in the EU; Finnish production accounted for about 5-10% of total EU EMS production in 2008. The best trade channel for DC exporters is to partner with local EMS providers.
Market characteristics - EMS1
• Finland is a small market for electronic assemblies in the EU. It is the
sixteenth largest, behind Austria and Ireland, but ahead of Portugal and
Estonia. Apparent demand in 2010 totalled €1.1 billion, after an annual
decline of 19% in the period 2007-2010.
• Finland is a small producer of electronic assemblies in the EU. It is the
thirteenth largest, behind Denmark, but ahead of Spain and Romania.
Production in 2010 totalled €968 million, after an annual decline of 11% in the
period 2007-2010.
• Finland accounted for 5.0-10% of EU EMS production in 2008, or equivalent
to around €1.5-3.0 billion of industry turnover. Historically, EMS production in
Finland has been highly dependent on the outsourcing strategy of the
country’s leading electronic equipment producer, Nokia. However, since
2009, when Nokia reduced the subcontracting activities to EMS providers, the
role of Nokia in Finnish EMS production has been limited.
• As a result of the presence of Nokia in the country, a major competence of
the domestic EMS industry is communication electronics. This dependency
on Nokia was also a major reason for Elcoteq’s (Finland’s largest EMS
provider) bankruptcy in October 2011, as Nokia switched to cheaper Asian
suppliers a few years ago. Even though the Nokia sales show a massive
decline, Finland is still known for a free climate for technical innovation, as
Nokia used to both lead and swallow up technical innovation.
• Communication electronics remain important in the Finnish EMS industry.
Other competences of the Finnish EMS providers lie in industrial automation,
measuring equipment and medical electronics. EMS in Finland can now be
best characterised by low volume high mix production.
• Finland is home to several large and medium-sized EMS providers. Foreign
multinational providers operating in the country include Partnertech (complex
mechatronic systems), Foxconn (computer, communication and consumer
electronics), Flextronics (industrial, aerospace, medical and industrial),
Sanmina-SCI (communications, computer, automotive, medical and defence)
and Enics (industrial and medical). In addition, it is home to Scanfil
(communications; ranks 38th in the world), Incap (equipment in energy
1 Electronic assemblies are used as an indication for EMS.
Electronic manufacturing services in Finland
Source: CBI Market Information Database - www.cbi.eu • Contact: [email protected]
• www.cbi.eu/disclaimer • Publication date: 09.12.2011 • Compiled for CBI by Facts Figures Future in
collaboration with Mr. Guenther P. Fandrich.
efficiency; ranks 8th
in Scandinavia), Darekon (medical and industrial
electronics; has a facility in Poland) and PKC Group (medical and industrial).
• Relocation to lower cost countries has been an important on-going trend in
Finland where the phenomenon is known as ‘Chinese syndrome’. Not
surprisingly, Asia is an important location, chosen by Nokia, Incap, Perlos
and Aspocomp, to name but a few. The on-going price war in some market
segments (mainly communication electronics) has been the main driver of
production relocation. In addition to Asia, another important destination of
electronics high volume low mix production is the Baltic region.
• As a result of large drops in imports of electronic assemblies in 2007 and
2009 (-47% and -31% respectively), in the period 2006-2010 imports declined
by 18% per year, which was a higher decline than the development in the EU
on average. The year 2010 was marked by high growth (26%) and imports
amounted to €300 million in that year.
• Imports from developing countries (DCs) totalled €56 million in 2010. They
dropped faster than total imports in the period under review, thus the share
declined (from 36 to 19%).
• China accounted for 94% of all imports coming from DCs. China was followed
by Thailand (2.5%), Croatia (1.0%), India (0.7%), Malaysia (0.5%), Mexico
(0.3%), Brazil (0.2%) and the Philippines (0.2%). Of the main DC suppliers,
only Croatia experienced growth (+82% per year).
• Labour costs for electronic assembly activities in Finland are among the
highest in the EU.
Market characteristics - electronics
• The Finnish electronic equipment market is the fifteenth largest in Europe.
Demand in 2009 totalled €72 billion (ZVEI, 2010). The market declined
sharply (by 16%) in 2009. The market started to recover slowly in the second
half of 2010 (2010 on average demand declined by about 2%) and is
expected to keep growing slightly in 2011 and 2012.
• Electronics is regarded as a key driver of the Finnish economy due to its
significant contribution to the country’s industrial exports. Finland is an
important producer of communication electronics, including digital
transmission systems, exchangers, mobile phones, subsets, amplifiers and
antennas.
• Beside Nokia, a leading supplier of communication technology and one of the
largest EU’s electronics group, Finland is also home to electronic equipment
producers from other sectors. They not only represent key buyers of EMS,
but are also main investors in technology. Examples are Datex Ohmeda
(medical) and Vaisala (measure electronics). Other examples of main
companies that make use of EMS services are ABB, Kone, Metso, RAY, Te
Switch and Vacon. All these companies need EMS for the industrial
electronics segment.
• In contrast to production activities, Finnish electronics and technology
companies are increasingly concentrating their R&D activities in Finland. The
country has a strong base of highly specialised technological institutions,
which are strongly connected to electronics companies. The industry invests
a lot in R&D, with a current focus on nanotechnology.
For more information on buyer requirements, trends, trade structure and prices,
please refer to the modules concerning the EMS market in general.
Trade channels and finding trading partners The best prospects for DC EMS providers are Finnish EMS providers that
subcontract some of their production activities, because it does not fit in with their
other EMS activities. Reasons for subcontracting can be the volume or the type of
Electronic manufacturing services in Finland
Source: CBI Market Information Database - www.cbi.eu • Contact: [email protected]
• www.cbi.eu/disclaimer • Publication date: 09.12.2011 • Compiled for CBI by Facts Figures Future in
collaboration with Mr. Guenther P. Fandrich.
product. DC EMS providers should explore which Finnish EMS providers don't
have a global manufacturing strategy yet, since these companies may still be
looking for cooperation partners. The best way to approach them is visit or
participate at trade fairs in Finland, or at the EU’s leading electronics fair
Electronica (http://www.electronica.de), which is held in Munich, Germany every
even year (November). The Internet is a valuable source to find prospects. Useful
websites are:
• Alihankinta - http://www.alihankinta.fi - subcontracting fair, including EMS.
Select English language, go to ‘Exhibitors 2012’, select ‘Product Groups’,
and look at the electronic section. Held in in Tampere annually in September.
• Association of Suppliers of Electronic Components and Measuring Equipment
- http://www.elkomit.fi - go to ‘Jäsenet’ for a list of members.
• Finnish Foreign Trade Agents’ Federation - http://www.agenttiliitto.fi -
association of commercial agents, importers and distributors. Choose the
English version and click on ‘Partners’ to find companies by product groups.
• Luettelomedia - http://www.luettelomedia.fi - Finnish company directory;
search with ‘Electronics and components’.
• Sopimusvalmistus - http://www.expomark.fi - subcontracting fair, including
EMS, held in Oulu every even year (May).
• Subcontractor - http://www.easyfairs.com - manufacturing trade fair, including
the IT sector, held in Helsinki yearly (March).
• Tekniikka - http://www.jklpaviljonki.fi/tekniikka2010 - fair for automation and
production technology, held in Jyväskylä every even year (October).
Interesting players Finland hosts several EMS providers. Examples are:
• Aspocomp - http://www.aspocomp.com - EMS provider that produces HDI,
RF applications, metal-back heatsink PCBs.
• Enics - http://www.enics.com - EMS provider, headquartered in Switzerland.
• Incap - http://www.incap.fi - EMS provider.
• Mariachi - http://www.mariachi.fi - EMS provider that is specialised in medical
electronics.
• Mitron - http://www.mitron.fi - designs and produces electronics for
information and security systems in transport.
• MLB - http://www.mlb.fi - EMS provider.
• PKC - http://www.pkcgroup.com - EMS provider.
• Scanfil - http://www.scanfilems.fi/eng - EMS provider.
• Sirico - http://www.sirico.fi - EMS provider.
Other useful sources
• Doing business in Finland - http://www.kwintessential.co.uk/resources/global-
etiquette/finland-country-profile.html.
• EETimes - http://www.electronics-eetimes.com - monthly electronics
magazine, European edition.
• Federation of Finnish Technology Industries -
http://www.teknologiateollisuus.fi - provides useful market information on the
electronics and other technological sectors.
• Finnpartnership - http://www.finnpartnership.com - promotes trade with DCs.
Register for free to use their matchmaking service. Also publishes information
on exporting to Finland.
• Prosessori - http://www.prosessori.fi - monthly online electronics magazine.
• Tekniikka & Talous - http://www.tekniikkatalous.fi - weekly technology and
economy magazine.
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