Foreign owned companies in Skåne An overview of international firms operating in Skåne

Sweden Skåne, south of

Foreign owned companies in Skåne 1 Introduction

ith a population of over 1.2 million, Skåne is of R&D expenditure (nearly 5% of GDP), much of this W home to 13 percent of Sweden’s population, investment originating from business, and is home to and one of Sweden’s most densely populated regions. the largest concentration of highly educated people Skåne occupies a strategic location at the gateway to in Northern Europe. OECD concludes that Skåne is northern Europe, forming together with the greater Co- without a doubt well placed to become one of OECD’s penhagen area one of Europe’s most dynamic regions most competitive regions. Its strong innovation poten- – the Öresund Region. The region crosses the Öresund tial and young labour force provide a sound base from Sound and, since 2000, the two sides of the region are which to engage with the global economy of the future.1 connected with a fixed link between Copenhagen and Malmö – the Öresund Bridge. This report The strategic position of the region, close to This report presents the number of foreign-owned and the rest of Northern Europe, and access to the large companies in Skåne, the number of people employed in international airport of Kastrup, via the Öresund Bridge, these companies, company size and their geographical and two of Sweden’s three largest ports, Skåne is highly and sector specific distribution. The analysis is based on accessible to international markets. national statistics gathered from Statistics Sweden, fo- In a recent in-depth study of Skåne by the OECD, cusing on foreign-owned employment locations, mea- it labels the region as a world-class “knowledge and ning that one parent company could be represented technology hub”, distinguished as one of the most inno- more than one time given that the company is present vative regions in Europe. Skåne has high educational in multiple locations in the region. Please visit attainments overall and boasts a significant degree investinskane.com for an exhausitve list.

1 OECD (2012), OECD Territorial Reviews: Skåne, Sweden 2012, OECD Publishing.

OECD concludes that Skåne is without a doubt well placed to become one of OECD’s most competitive regions.

2 Foreign owned companies in Skåne Skåne’s work for sustainable development is well-known throughout the world and has been awarded numerous prestigious prizes. The residential area Västra Ham- nen, shown in the picture above with the famous Turning Torso building by the spanish architect Santiago Calatrava, is one of the most enivronmentally adjusted resi- dential areas in the world, powered by 100 percent renewable locally produced energy. Thousands of representatives from cities and firms visits Västra Hamnen each year to learn from the the innovative ideas used in creating this unique district of Malmö. Foto: Martin Olsson.

Sweden Skåne, south of Sweden

Foreign owned companies in Skåne 3 Foreign-owned companies in Skåne

DIAGRAM 1. NUMBER OF FOREIGN-OWNED EMPLOYMENT LOCATIONS IN SKÅNE 2011.

There are now over 3700 foreign-owned employment locations in Skåne representing more than 40 countries – a number that continues to increase.

4000 Number of employment locations Employment locations

3500

3000

2500 Year 2004 2005 2006 2007 2008 2009 2010 2011

As Diagram 1 illustrates, the number of foreign-owned several hundreds of people (see chart below). Among employment locations, meaning where a company em- these, the Finnish IT service company Tieto established ploys staff, has in Skåne steadily grown during the past six new employment locations in , , 8 years. There are now over 3700 foreign-owned em- , Malmö, and . ployment locations in Skåne – a number that continues As this report will show, there are more than 40 to increase. The growth in employment locations was countries represented in the region, with the close-by 35 % between 2004 and 2011. neighbor Denmark as the largest investor. Companies Especially steep upwards is the curve between 2010 range from all industries, from the most dominant re- and 2011. During this time, numerous large companies tail industry and business services, to life sciences, en- established employment locations in Skåne, employing ergy and IT/telecom. (Source: Tillväxtanalys 2005–2012)

4 Foreign owned companies in Skåne Foreign owned companies in Skåne 5 DIAGRAM 2. NUMBER OF PEOPLE EMPLOYED IN FOREIGN-OWNED EMPLOYMENT LOCATIONS 2011.

The number of employees working at foreign-owned employment locations in Skåne has increased with 19%, well above the national average

100000 Number of employees Employees

80000

60000 Year 2004 2005 2006 2007 2008 2009 2010 2011

Skåne is one of the most important business regions in during which employment at foreign-owned employ- Sweden, together with the capital region (Stockholm) ment locations increased with over 2700 people or 3.5 and Västra Götaland (Gothenburg region). Diagram % compared to the previous year. During that same 2 shows that the number of employees working at time, employment at foreign-owned employment loca- foreign-owned employment locations in Skåne has tions in Stockholm increased with 2.1 % while they de- increased from around 68000 in 2004 to 81000 in 2011; creased with –4,5 % in Västra Götaland. The increase in an increase with 19 % which is above both the Swedish employees is also strong during 2011, and one example average of 16 %, and Västra Götaland which expe- is the Austrian furniture company XXXLutz, which grew rienced an increase of 8 %. from 10 to 154 employees between 2010 and 2011. An especially successful year in Skåne was 2009, (Source: Tillväxtanalys 2005-2012)

6 Foreign owned companies in Skåne Foreign owned companies in Skåne 7 DIAGRAM 3 THE SIZE OF FOREIGN-OWNED EMPLOYMENT LOCATIONS IN SKÅNE 2011 – IN TERMS OF NUMBER OF EMPLOYEES.

Small and medium sized employment locations dominates the business landscape in Skåne for foreign-owned firms

0 2 % 3 % 1–4 5 % 5–9 10–19 20–49 50–99 100–199 200–499 12 % 26 %

13 %

16 % 24 %

In order to gain an understanding of the size of foreign- Tetra Pak in Lund. Other large companies with 500 to owned employment locations in Skåne, they have been 999 employees are DSBFirst (Denmark) and ISS Facility categorized into different groups depending on the Services (Denmark), both located in Malmö. number of people they employ. Taken together, the ma- (Source: Statistics Sweden 2012) jority of foreign-owned employment locations in Skåne are solo enterprises or micro companies with less than 10 employees. In total there are 2711 foreign-owned employment locations of this kind in Skåne. There is one foreign-owned employment location employing 1000-1499 people in Skåne; Dutch-owned

8 Foreign owned companies in Skåne 0 2 % 3 % 1–4 5 % 5–9 10–19 20–49 50–99 100–199 200–499 12 % 26 %

13 %

16 % 24 %

Foreign owned companies in Skåne 9 DIAGRAM 4 THE SIZE OF FOREIGN-OWNED EMPLOYMENT LOCATIONS IN SUB-REGIONS IN SKÅNE – IN TERMS OF NUMBER OF EMPLOYEES 2011.

Most foreign-owned employment locations is found in the South-West corner of Skåne

Number of companies 100

80

60

Number of companies 200 40

20 150 4a: Helsingborg

Number of employees 0 0 1–4 5–9 10–19 20–49 50–99 100–199 200–499 500–999 100

4b: Kristianstad 50

Number of companies Number of employees 35 0 0 1–4 5–9 10–19 20–49 50–99 100–199 200–499 500–999 30

25 Number of companies 600 20

500 15 4c: Malmö/Lund 400 10

5 300 Number of employees 0 0 1–4 5–9 10–19 20–49 50–99 100–199 200–499 500–999 200

100 4d: Simrishamn

Number of employees 0 0 1–4 5–9 10–19 20–49 50–99 100–199 200–499 500–999

Municipalities included in each sub-region: The four Diagrams 4a–4d illustrate on a more detailed 4a: North-West , Båstad, Helsingborg, Höganäs, Klip- level how many foreign-owned employment locations pan, , Svalöv, Åstorp, Ängelholm, Örkelljunga there are in each sub-region in terms of number of em- 4b: North-East Bromölla, Hässleholm, Hörby, ployees. In accordance with trends shown in a previous Kristianstad, , , Östra Göinge diagram (3), solo and micro enterprises dominate, with 4c: South-West Burlöv, Eslöv, Höör, Kävlinge, , few or very few larger employment locations. In all Lund, Malmö, , , sub-regions (Diagram 4a, 4b, and 4d) except the South- , Trelleborg, West, the largest category is employment locations 4d: South-East Simrishamn, Sjöbo, , Ystad with 1-4 employees, while solo enterprises dominate in the South-West (Diagram 4c).

10 Foreign owned companies in Skåne TABLE 1 FOREIGN-OWNED EMPLOYMENT LOCATIONS AND INDUSTRY CLUSTERS IN SKÅNE 2011.

Rank Cluster Number of employment locations Share 1 Retail 573 16,7 % 2 Real Estates 424 12,3 % 3 Other Wholesale Trade 383 11,1 % 4 Business Services 372 10,8 % 5 Construction Industry 356 10,4 % 6 IT/Telecom 173 5,0 % 7 Logistics 144 4,2 % 8 Life Science 143 4,2 % 9 Tourism, Events and Sports 114 3,3 % 10 Food 112 3,3 % 11 Finance and Insurance 107 3,1 % 12 Creative/Copyright Industries 76 2,2 % 13 Other Manufacturing and Extraction 70 2,0 % 14 Manufacturing Industry 67 1,9 % 15 Energy 63 1,8 % 16 Other Private Services for Individuals 54 1,6 % 17 Textile Industry 38 1,1 % 18 Education 37 1,1 % 19 Unknown 34 1,0 % 20 Agriculture, Forestry and Fishing 33 1,0 % 21 Research and Development 23 0,7 % 22 Water, Sewerage, Waste management and Remediation Activities 17 0,5 % 23 Paper/Pulp Industries 10 0,3 % 24 Wood Products/Furniture 6 0,2 % 25 Vehicles 5 0,1 % 26 Steel/Metal Industries 4 0,1 %

Five industries dominate among foreign-owned em- could be part of retail or wholesale trade are categori- ployment locations in Skåne: retail (16,7 %), real estate zed into construction if they trade construction mate- (12,3 %), wholesale trade (11,1 %), business services rials (like Beijer Byggmaterial and Cramo). The biggest (10,8 %) and construction (10,4 %). Clothing (such as employment locations in business services are Danish Lindex, Dressmann, Gant and Jack&Jones) and electro- ISS Faciity Services and American Manpower. nics (Elgiganten, Expert and Phonehouse) constitute a (Source: Statistics Sweden 2012, Invest in Skåne 2012) large part of retail companies. Some companies that

Foreign owned companies in Skåne 11 TABLE 2 FOREIGN OWNED COMPANIES REPRESENTED IN SKÅNE.

7 5 98 303 4 511 1 38 8 240 194 222 13 17 76 141 2 15 92 2 2 1111 175 15 22 2 1 8 42 6 20 2 4 1 4 31 8 1 12 4 3 1 2 1 1

2 5

5

3

Rank Country Number of companies Rank Country Number of companies 1 Denmark 511 28 South Africa 5 2 Norway 303 29 Bahamas 4 3 Great Britain 240 30 Bermuda 4 4 Germany 222 31 Estonia 4 5 Netherlands 194 32 Netherlands Antilles 4 6 USA 175 33 India 3 7 Luxembourg 141 34 New Zealand 3 8 Finland 98 35 Israel 2 9 92 36 Liechtenstein 2 10 Switzerland 76 37 Panama 2 11 Cyprus 42 38 Portugal 2 12 Ireland 38 39 Samoa 2 13 Saudi Arabia 31 40 Slovakia 2 14 Italy 22 41 Slovenia 2 15 Japan 20 42 Hungary 2 16 Belgium 17 43 Bosnia 17 Spain 15 and Herzegovina 1 18 Austria 15 44 Bulgaria 1 19 Jersey 13 45 Greece 1 20 Virgin Islands 12 46 Croatia 1 21 Hong Kong 8 47 Kuwait 1 22 Malta 8 48 Latvia 1 23 Poland 8 49 Malaysia 1 24 Iceland 7 50 Mali 1 25 China 6 51 Mexico 1 26 Australia 5 52 Serbia 1 27 Canada 5 53 Singapore 1

As can be seen in Table 2, a handful of countries have a Sweden’s other neighbor Norway also has a strong particularly strong presence in the Skåne region. Den- presence in the region. Norwegian companies can mainly mark is by far the most established owner-country, be found within retail, real estate and logistics. Examples followed by Norway, Great Britain and Germany. of employment locations are Bring and Malmö Aviation. Danish companies predominate in industries such British employment locations are primarily active in bu- as retail, real estate and wholesale trade. The biggest siness services, followed by real estates and retail, with companies are DSBFirst and ISS Facility Services, both companies such as Trygg Hansa Insurances and CGI (fd located in Malmö. Logica).

12 Foreign owned companies in Skåne DIAGRAM 5 TOP 10 COUNTRIES REPRESENTED WITHIN SUB-REGIONS IN SKÅNE 2011.

Denmark, France, Norway and Germany are among the top owner-countries for foreign firms operating in Skåne

80 Number of employment locations

70

60

50

200 Number of employment locations 40

30

150 20

10 Helsingborg 100 0 Countries

Denmark 50 500 Number of employment locations Finland France Kristianstad Germany Countries 0 Great Britain Luxembourg 25 Number of employment locations 400 Norway 500 Number of employment locations Switzerland 20 the Netherlands 400 USA 15 300 300 Malmö/Lund 10

200 5

200 100 0 Countries

0 Countries Simrishamn

100

0 Countries

Diagram 5 shows how the employment locations of the Denmark is the dominating owner-country, with many 10 most represented countries are distributed within employment locations in the trade intensive South- Skåne. Most owner-countries choose to establish in the West where, in addition, the distance to Denmark is South-West; the economic engine of Skåne. The num- short due to the Øresund bridge linking together ber of job opportunities here amount to over a quarter Malmö with Copenhagen. of a million – more than twice as many as in the North- (Source: Statistics Sweden 2012) West with the second biggest labor market in Skåne.

Foreign owned companies in Skåne 13 DIAGRAM 6 ESTABLISHMENT STRUCTURE OF FOREIGN-OWNED EMPLOYMENT LOCATIONS IN SKÅNE 2011.

Most foreign-owned employment locations in Skåne comes through purchase/aquisition or new establishments

Fusion/Merger Purchase/Acquisition Joint Venture New Establishments Unknown

2 % 23 %

36 %

35 % 4 %

To demonstrate how foreign countries have entered the in 2006, and the Swedish fashion company Lindex that market in Skåne, Diagram 6 shows how 1 948 of the was bought by the Finnish listed company Stockmann foreign owned employment locations have established in 2007. Acquisitions like these have a clear impact on themselves in Skåne. As can be seen, most foreign-ow- statistics since these companies have several employ- ned employment locations have come to exist through ment locations. Only a small share, 4 %, enters the purchase/acquisition or through new establishments. market through joint ventures. Examples of acquisitions are the Norwegian company (Source: Tillväxtanalys 2012) Posten Norge (later named Bring) that bought Citymail

14 Foreign owned companies in Skåne Foreign owned companies in Skåne 15 FOREIGN-OWNED EMPLOYMENT LOCATIONS: DISTRIBUTION OF INDUSTRIES2 WITHIN SUB-REGIONS IN SKÅNE.

Wholesale and retail trade dominates the distribution of foreign-owned employment locations in Skåne

Wholesale and retail trade; repair of motor vehicles and motorcycles Manufacturing Construction 1 %1 % 1 % 2 % 1 % 1 % 2 % Electricity, gas, steam and air conditioning supply 3 % Agriculture, forestry and fishing Unknown Mining and quarrying 5 % Water supply; sewerage, waste management and remediation activities

12 % 5 %

15 %

81 % 72 %

Wholesale and retail trade Manufacturing Construction Electricity, gas, steam and air conditioning supply Agriculture, forestry and fishing Unknown Mining and quarrying Water supply; sewerage, waste management and remediation activities

1 % 1 % 3 % 1 %1 %1 %

7 % 6 % 13 %

88 % 77 %

2 Based on SNI 2007 (Source: Statistics Sweden 2012)

16 Foreign owned companies in Skåne Foreign owned companies in Skåne 17 Invest in Skåne – facilitating your business success

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18 Foreign owned companies in Skåne One of the largest investments in research infrastructure in Europe is now taking place in Skåne with the construction of the European Spallation Source (ESS) and the MAX IV Laboratory in Lund. The two research facilities will attract over 6000 scientist annually to the region and be used by high-tech firms within a number of sectors as a vital part of their internal R&D and future competitiveness. Foto: ESS.

Foto framsida: Lasse Davidsson. Foto: Fotobyrån Apelöga (s 2, 5, 7, 9, 15 & 17) Grafisk form: Caroline Bjurman Holgersson Tryck: Holmbergs, januari 2013.

Foreign owned companies in Skåne 19 investinskane.com

20 Foreign owned companies in Skåne