NIHAK 2

TABLE OF CONTENTS

3 Leader 4 A joint force of five municipalities 5 VAU!HAUS opened doors for entrepreneurs 6 Business services ELME 13 8 Project activities 9 Project introduction: Sales is a king 10 The number of companies in the -Haapajärvi sub-region 12 Project introduction: Mine reuse 13 Project introduction: Elme Studio, a front runner 15 Keys to the future 16 Events around the year 17 Business in the sub-region 18 Finances and administration 19 Personnel

CALLIO 12

Nivala-Haapajärvi sub-region NIHAK Layout: Marika Elina Kaarlela/Gekkografia Cover image: Oliver Easton/Unsplash, Ari-Pekka Hihnala; other images NIHAK unless stated otherwise Print: Grano 2019 Annual report 3

Leader

Toni Krankkala POSITIVE DEVELOPMENT. The development of local Managing Director economy in the Nivala-Haapajärvi sub-region was strong in 2018 and the most pressing challenges are associated with skilful labour and internationalisation. A lot of new companies were established and businesses were making investments. The high activity level in com- merce was also evident in job creation, resulting in unem- VAU!HAUS 5 VAU!HAUS ployment being currently the lowest in North . A typical challenge for industrialised rural areas is the labour needed by growing companies. Creating education packages in a flexible manner to meet the needs of companies and communicating about them improves the availability of skilful labour in the region. Properly managed work-related immigration also arises as a viable option for solving labour challenges, as does the more efficient integration of foreign students living in the area into local business life. Work is becoming less tied to the place of residency, so some future employees of the companies in the area may be remote workers that live elsewhere and vice versa: a global company can hire expertise in our region that is able to work from here in an environment where recreation is easy and day-to-day life is trouble-free.

OUR REGION IS WELL-KNOWN for its dynamic metal and construction industries, but there are still only a few strong companies operating on international markets with their own products. Companies in the area export a lot of products indirectly, through their customers operating internationally. Internationalisation requires strong commitment, faith MATCH & REKRY 16 in one’s operations and a lot of time. Internationalisation can only be learned through experience. As a local development organisation, NIHAK actively works to promote labour availability and international business through new trials, as well as marketing the oppor- tunities in the sub-region to new potential companies and business partners. 4

A JOINT FORCE OF FIVE MUNICIPALITIES

As an entrepreneur, you will receive support for all phases of a business, from establishing the company to internationalisation and its eventual sale.

NIHAK serves individual companies, Projects for developing your business so that the vitality of the entire sub- Your company and its success is at the region will grow. The cooperation of heart of all of our operations. This also the five member municipalities of the applies to the projects that we carry association – Haapajärvi, Kärsämäki, out in cooperation with the munici- Nivala, Pyhäjärvi and Reisjärvi – pro- palities, companies and education and vides a better ability to offer free ser- development organisations, as well as vices to entrepreneurs than an indi- with other sub-regions. The projects vidual municipality could provide. develop management and leadership The joint effort of the municipalities skills, social media and e-commerce allows the company to receive more capabilities, quality, occupational safe- in-depth services, which go to the core ty and well-being, procurement and of business development and provide Lean skills, as well as sales, branding help with funding questions. and internationalisation expertise, NIHAK BUSINESS SERVICES among other areas. We implement Serving your business free of charge dozens of events that develop business Advice to get started We offer companies expert services. activities every year and hundreds of Companies are being established at As an entrepreneur, you will receive companies have participated in them. a steady pace in the municipalities help for all stages of a business. Our Everything starts with your business of Nivala-Haapajärvi. The highest service is always personal and we needs and maximising your resources. activity levels are in Nivala, where a will examine your business situation total of 50 companies were estab- in depth. The business concept, Is your company internationalising? lished last year. Jani Anttila estab- We have a low entry threshold. Con- lished Urheilupiste Anttila Oy in business plan, profitability analysis, March 2018. According to Anttila, funding – the content under the main tact us and our experts will identify the establishing the company was quick. headings is examined and the devel- requirements for internationalisation – I called NIHAK Business Ser- opment efforts focus on a method and provide their views on the steps vices and they had just analysed that best supports your business. The toward operating internationally. We the sports shop market in the local hands-on service our of our experts help with finding funding opportuni- area. We completed everything, from also includes the application proce- ties and establishing contacts and a the budget calculations and reve- dures for funding. We guide, counsel network in the target country. Through nue plans to funding applications, and work together to complete the national actors (e.g. Business ), together with Arto Junno. Establish- ing the company with expert advice necessary documents. we can apply for funding for your com- was efficient. The store premises pany for procuring expert services or were found quickly. opening a presence abroad through trade fair support, for example. Annual report 5

Vau!hausOPENED DOORS FOR ENTREPRENEURS

VAU!HAUS is a modern workspace intended for entrepreneurs. You only need grab your computer and phone, everything else is ready. An internet connection, workstations, a TV display that can be connected to your PC, printing and scanning capabilities, secure storage, a conference room, a kitchen, etc. VAU!HAUS is available for use for occasional needs such as meetings or as a longer term work- – This Pyhäjärvi VAU!HAUS workspace is perfect for us. We bring our own space. In addition, NIHAK’s expert business devel- laptops and phones. All other supplies are included in the service, says Virpi opment services are also available. Jaatinen (left), Chairman of Pyhäjärvi Entrepreneurs, Pekka Päivärinta (rear) So if you are an entrepreneur or just getting of PehuTec and entrepreneur Sirja Kähärä (right) from Kotihoiva Helmi. started as one and feel that it would be nice to leave your home to go to work and gain other entrepre- neurs as colleagues or engage in brainstorming with experts, VAU!HAUS is located in Nitek in Nivala, Woltti Business Centre in Pyhäjärvi and on Puisto- katu street in Haapajärvi. VAU!HAUS locations will also be launched in other localities early in 2019. 6

NIHAK is at your service and provides personal counselling and gives you the possibility to develop the internal functions of your company and grow a profitable business.

BUSINESS SERVICES – BRAINSTORMING, SUPPORT AND COOPERATION

Business services are offered by the EUR 2.8 million. Therefore, an aver- SERVICE REINFORCEMENTS entire organisation by working with age of EUR 75,000 was granted per flexibility across municipalities and company. The support and grants were Harri Jokela by always utilising the best available issued by the North Ostrobothnia ELY was selected as resources. Our strength is knowledge- Centre (15) and the Leader activity a new Business able personnel who have in-depth group (22). Services Manager know-how in business development. at NIHAK. Jokela The advisory services conducted by Peer support from micro core groups holds a Master’s business service managers support The service, which was originally op- degree in agricul- companies in their growth and devel- erated under the University of , ture and forestry and opment. The personal advisory ser- became a NIHAK service at the start is a doctoral candidate in vices are supplemented with projects of 2018 and was intended to make industrial engineering. He has worked where companies receive training, interaction between similarly sized at the University of Oulu Kerttu Saalasti development and research services, companies possible. Institute in Nivala since 2006. Jokela for instance. The strength of micro company started as Business Services Manager on 1 January 2018 at the Reisjärvi office. core groups is shared knowledge, Financial support for companies which you obtain through peer sup- Marika Kumpula Submitting the application documents port, brainstorming and development started as Business Services with appendices and calculations may steps implemented by others. The core Manager on 14 May seem like an impossible task, especially group is also your own marketing and 2018 at the Niva- for new entrepreneurs. The compre- sales channel due to networking. When la office. Kumpula hensive experience of our experts is awareness of your business is expanded has diverse expe- also available to help with this, with a through equally sized companies, you rience of working personal touch: based on a situation- will quickly learn that surprising coop- with SMEs and her al analysis and discussions, we will eration opportunities and methods will strong expertise, es- determine which organisation would be uncovered. pecially with the differ- be viable for applying for funds from, ent areas of financial manage- ment of businesses, is an excellent and on what grounds. addition to the expertise of NIHAK A total of 37 companies in our re- professionals. gion obtained funding in 2018. The total amount of granted funds was Annual report 7

FREE BUSINESS SERVICES: 2018

Developing DEVELOPMENT a business concept 34 PROJECTS

START EVENTS Establishing 110 a company P FUNCTIONS/ COMPANY-SPECIFIC 266 ACTIVITIES € Funding

YOUR MICRO COMPANY Business INTO development a core group If there are fewer than 10 employees Business transactions in your company and your revenue is below EUR 2 million, you can join the and change of ownership micro entrepreneur core group. In practice, operations are based on core group member meetings at each micro company in turn. The hosting Internationalisation company decides on the theme for each of the meetings, which convene in the Qservices evening. When you join the core group, you will notice that the companies are solving the same problems as you are regardless of the industries in which Micro company they operate. core group You can join the group by registering with Marika Kumpula, the core group coordinator. VAU!HAUS workspaces 8

PROJECT ACTIVITIES GENERATE KNOW-HOW AND LEVERAGE FOR DAILY BUSINESS

In addition to expert services, projects are an NIHAK PROJECTS IN 2018 important part of NIHAK’s activities. They pro- mote the development of business activities and n Creative solutions services, education and research, and develop n Sales is a King n Business Model Innovation and Internationalization of Process Industry internal processes within organisations. As with n Keys to competitiveness expert services, the activities are always carried n Establishing a solution incubator and accelerator out based on the needs of companies. Subject n SoloENTRE and Entrepreneurial culture matters have included, for example, the devel- n Europe Direct 2019 opment of sales and business expertise in edu- n Developing the network of subcontracting companies for mining expertise cation projects, improving internationalisation n NetXport – access the world together skills, development activities associated with n Pro Studio creating networks and improving the operational n Entrepreneurial progress together capacities of micro companies, 3D printing of n Modelling the Callio circular economy roadmap and the FutureMINE test environment metal, and various trials associated with reuse n Feasibility assessment of the Callio Pyhäjärvi Bioenergy terminal in mining environments. The ultimate goal is n KELPO – The path to work for the disabled improving the vitality and appeal of the entire n Partnership campus sub-region. n Developing tourism expertise in North Ostrobothnia n Launching a 3D production lab for metals Strength through cooperation n My Way NIHAK’s role in the projects is to provide funding n Oulu South Goes Global – Creating the international “invest in” operational model or be the main implementer or a contributor n Reuse of the underground infrastructure of the Pyhäsalmi mine in the projects. Several sub-regions, individ- n Efficient structures (TeRa) ual municipalities, the University of Oulu or n Efficiency through multi-method manufacturing – HYBRID educational institutions in the region, such as n Development of diversified biogas production JEDU or Centria, may participate in the pro- n Regional resource flows in North Ostrobothnia jects. The word “project” refers to training in n TYKY 50+ and development and research of business n Purifying biogas as traffic gas activities and services. n Development of welding seams and material inspection training Through projects, NIHAK creates further n Development of entrepreneurship education in North Ostrobothnia capacities for your company to develop its n Building production engineer RTI2015 operations. We are actively in contact with n Industrial internet to support business – TILT the entrepreneurs in the sub-region regarding n The evolving Meripohjola metal and machine shop industry timely development projects. We communicate n Rajaton about them using our own digital channels and n SoteYboost – The booster for social and health care entrepreneurs we also welcome any development suggestions. n Micro company growth foundation Annual report 9

Image: Heta Kenttämaa

PROJECT INTRODUCTION

HANKKEET VUONNA 2017

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According to serve as trainers• • •••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• in the shared workshops. •• •• •• •••••••••••••••••••••• Liimatainen, the project is ambitious. Centria, the business services of Raahe – We are aiming for a strong sales and Haapavesi-Siikalatva and NIHAK impulse in the companies in our area are participating in the project. 10 NIVALA-HAAPAJÄRVI SUB-REGION

Registered active companies and Registered new companies (2018)

NIVALA 759 KPLNivala +50

HAAPAJÄRVI 603 KPL +26+26 Haapajärvi

REISJÄRVI 222 KPL +16 +16 Annual report 11

2018

2,329 COMPANIES +132 new companies KÄRSÄMÄKI -102 closed companies 295 KPL +30 companies (net change) +18+18 DIRECT SUPPORT WAS GIVEN TO COMPANIES IN THE REGION TOTALLING EUR 2.8 MILLION, A TOTAL OF 37 DISBURSEMENTS. 603 KPL

+26+26 SUPPORT DISTRIBUTION: Haapajärvi PYHÄJÄRVI Haapajärvi, 8, 120,927 EUR 450 KPL Kärsämäki, 7, 726,993 EUR Nivala, 10, 1 197,912 EUR +22 +22 Pyhäjärvi, 8, 344,791 EUR Reisjärvi, 4, 416,520 EUR

Pyhäjärvi 4% Haapajärvi

26 % Kärsämäki

43 % Nivala

12 % Pyhäjärvi

15 % Reisjärvi 12

PROJECT INTRODUCTION

MINE REUSE

PYHÄJÄRVI has the deepest location known in Europe: the Pyhäsalmi mine with a depth of 1,445 metres. When the mine discontinues its operations at the end of 2019, over 100 km of tunnel networks including some large underground rooms will be available for use. One of the potential reuses of the mine is underground horticulture. In the project launched early in 2017, a test production environment was built at a depth of 660 metres to grow plants in two different departments.

ENTREPRENEUR PASI AINASOJA has developed the specialised horticulture in cooperation with the Natural Resourc- es Institute Finland and the Vocational Education Centre Jedu. – Ethical and natural prod- ucts that represent sustainable development are increasingly in high demand on international markets. Natural dyes that are less harmful to the environment, such as indigo, offer a good alternative to synthetic dyes. During the summers, we grow woad on the Aittoperä fields of Nivala. Woad is used to produce the indigo dye. Due to the conditions in the mine, we would make production year-round, says Ainasoja. – I have a lot of faith in my business idea and our products have already generated interest among strong brands. I am looking to network with companies that have values based on natural production and sustainable development. www.naturalindigo.fi Image: Jari Joutsenvaara Annual report 13

PROJECT INTRODUCTION

MINE REUSE

ELME Studio, a front runner

ELME Studio, located in Nivala, and is a people work with metal 3D printing The metal 3D printing community of research, education and at ELME Studio. business associated with production Knowledge of the industry is needed performed at ELME technologies. so that the companies in the area will A business service concept has remain at the forefront of metal 3D Studio creates unique been built at ELME Studio based on printing and are able to use competitive the know-how of experts. The ser- technology to respond to the quickly metal products vice is primarily for the metalworking evolving international markets. that cannot be and electromechanical companies in southern Oulu, to help with increasing www.elmestudio.fi produced using other their competitiveness through research, product development and education. technologies. These ELME Studio is located in the Industrial Park in Nivala and is a include internal walls, front runner in the 3D printing of metal. Significant research work is duct networks and being conducted with the metal 3D perforations, for example. printing equipment. The equipment is used to conduct demanding mate- rial tests associated with technology research and to perform test runs for local businesses. Approximately ten 14

NUMBER OF RESIDENTS IN NIHAK MUNICIPALITIES Change on previous year (2017)

9 % Haapajärvi 7,149 -102 10 % Kärsämäki 2,612 +1 Residents 38 % Nivala 10,732 -86 in total 18 % 28,482 Pyhäjärvi 5,247 -91

Reisjärvi 2,742 -71 25 %

UNEMPLOYMENT IN THE SUB-REGION 2017–2018

entire North Ostrobothnia NIHAK

16 % 14 %

12 % 10.8 % 10 % 8.6 % 8 %

6 %

MIGRATION 1990–2016

TOP 8 destination municipalities of people moving TOP 8 origin municipalities of people moving from the NIHAK region to the NIHAK region

Oulu 12.8 % Oulu 10.1 % Ylivieska 9.3 % Ylivieska 8.1 % Helsinki 6 % Helsinki 5.5 % Jyväskylä 5.5 % Haapavesi 4.6 % Kokkola 3.6 % Jyväskylä 3.3 % Tampere 3.3 % 3.1 % Haapavesi 3.3 % Kokkola 3.0 % Kuopio 3.2 % Kuopio 2.6 % Annual report 15

THE FUTURE LIES IN EDUCATION, INTERNATIONALISATION AND RELYING ON OUR STRENGTHS

Commerce in the Nivala-Haapajärvi sub-region has the capacity to grow, as strengths of the area include industrial companies seeking growth and internationalisation and high-quality educational institutions.

The positive momentum in the Niva- role of the local development company la-Haapajärvi sub-region, the cooper- and private employment agencies will The overall ation between industry and education become more important in facilitating situation institutions and faith in our strengths the cooperation. serve as a good foundation for the de- The overall situation in the region is in the region velopment efforts of the region. Un- positive and there is a lot of faith in the prejudiced and unconstrained thinking area’s ability to offer its residents good is good. in both student recruitment and the living conditions and an appropriate internationalisation of companies are operating environment for companies, key factors for the future. along with high-quality services. It has Although there are a lot of young become more difficult to acquire skilful people, the challenge for the region labour, which slows growth in some in- is negative population growth. The dustries. Therefore, it is also important University of Oulu (Kerttu Saalasti to rely on our strengths in the region Institute), Centria University of Ap- and municipalities. People increasingly plied Sciences and Vocational Edu- base their decisions on ethical values cation Centre Jedu are important in- and the quality of life outside work. stitutions for the development of the In order to balance a hectic career, region and their services support the people move to rural areas where a competitiveness of local industries. “slow pace” outside of working hours Being able to think ahead in organis- is possible, living costs are lower than ing education will be even more impor- in urban areas and people are able to tant in the future as the pace of change enjoy safe living. The Nivala-Haapajärvi accelerates in industrial life. The deep- sub-region is able to offer all of these. ening cooperation between education and industry will be highlighted and the 16

EVENTS AROUND THE YEAR

MATCH & REKRY EVENT exceeded INTERNATIONAL FORUM PROVIDES TOOLS expectations FOR INTERNATIONALISATION The entrepreneurs in the sub-region welcomed the event, The success of the Match & Rekry events which had a comprehensive panel of experts speaking about organised in the NIHAK region in late Jan- internationalisation. Tips were given on both groundwork uary - early February exceeded expecta- and practical procedures and different funding opportu- tions. NIHAK coordinated the meeting nities. Pro Estore Managing Director Tommi Löytynoja forum for companies and job-seekers. was interested in new ideas regarding internationalisation. Meeting and recruitment events for com- – The timing of the event was perfect. We intend to panies were organised together with the engage in international business. Sales is currently ana- entrepreneur associations operating in the localities. In addition to the entrepre- lysing how to access the European market, said Löytynoja. neur associations, cities/municipalities, schools, local newspapers and the Entre- preneurial Progress Together project par- ticipated in the events. There was a total PLEASE JOIN US FOR MORNING COFFEE of nearly 1,200 attendees at the events organised in four localities in 2018. FOR ENTREPRENEURS Together with local entrepreneurial associations, NIHAK regularly organised morning coffee events. The popular events each had a different current topic of interest. The Entrepreneur Morning Coffee events will continue to be brief information sessions lasting approximately an hour and held in the mornings from 8.00-9.00 a.m. Follow our postings on Facebook and on our website to see when the next morning coffee event is held near you. www.nihak.fi/tapahtumat Annual report 17

The central industries of the region are the metal and construction industries, cleantech and agriculture.

ECONOMIC DEVELOPMENT

New companies were established in the Agriculture and industries supporting Nivala-Haapajärvi sub-region, companies it are important to the vitality and econo- were actively investing and jobs were my of the area. An expected challenge at created. Unemployment in the region Pyhäjärvi is the major structural change dropped 2.1% from the previous year, caused by the Pyhäsalmi Mine discon- to 8.4% on average during 2018. This is tinuing mining in 2019. Investigation 2.4% lower than in the region in general of different opportunities for reusing and is currently the lowest of all sub-re- the mine was continued actively during gions in North Ostrobothnia. 2018 through several projects. A total of 132 new companies were Current investments in the area include established in the sub-region during the expansion of the Akkuser Oy battery 2018. The value of the direct support recycling facility, the new production facil- grants issued to companies in the area ity for Hero Mechanics Oy and the Rikitec remained good and at the same level as Oy spare part store in Nivala. The largest the previous year. In August-Septem- investments by companies in Kärsämäki ber 2018, NIHAK conducted a labour were the LujaBetoni Oy concrete station survey on the labour needs of compa- and the Finnsvala Oy plant and store. In nies in the area. Nearly every second addition, several production facility invest- respondent (48%) had experienced ments were made in the municipality: a difficulties in finding labour over the track repair shop for harvesters (Tmi Jori past two years. Laitila), the manufacture of construction The metal industry is largely contract elements (Rakennuspalvelu T. Karhu), the manufacturing and the manufacture of production of children’s clothing (NAPI- agricultural and forestry machinery. The KAS) and a new vehicle inspection station construction industry is primarily the (Kiuruveden Autokatsastus Oy). The new construction of wood and log homes, business centre Woltti opened its doors in doors and windows and the production Pyhäjärvi and passenger cruise operator of metal and concrete products. There Pyhäjärven Laivaristeilyt Oy began offering is also the manufacturing of glass tech- cruises on Lake Pyhäjärvi. In addition, nology products in the sub-region. In other local tourism companies actively particular, double-glazed window pro- developed their operations. Production duction serving door, window and house of the international TV drama series “The production plants has increased signif- White Wall” began in the Pyhäjärvi mine icantly in the area. The circular econo- area. The most significant investments in my is perceived as an interesting growth Reisjärvi were the investments made by industry and significant investments and Steel-Prisma Metallit Oy in production development efforts have been imple- machinery and ERP and the investment mented in the recycling and utilisation made by Bioactive Bone Substitutes Oy of alkaline batteries, for example. in developing their production environ-

Image: Satu Kangas-Viljamäki ment. 18

FINANCES AND ADMINISTRATION

FINANCES

The association’s financial period of 1 Janu- MEMBERS OF THE REGIONAL ary – 31 December 2018 resulted in a profit ADMINISTRATION BOARD IN 2018 of EUR 1,211.55. The balance sheet total was EUR 858,746.40, with total equity Board members of EUR 21,212.81 at the end of the period. Henrik Kiviniemi, Pyhäjärvi No significant changes are expected in the Esa Jussila, Kärsämäki operations or finances of the association Juha Uusivirta, Haapajärvi during 2019. Päivi Karikumpu, Nivala Raija Potila, Reisjärvi PROJECT FUNDING Mauri Tenkula, Haapajärvi Leena Vähäsöyrinki, Nivala Funding NIHAK operations consists of the Jukka Tikanmäki, Pyhäjärvi membership fees of the member munici- Esko Ristinen, Kärsämäki palities and the fees for business services. Jouni Tilli, Reisjärvi The costs of the development projects pro- duced by regional development services are Deputy members primarily to be covered by public project funding offered by the EU, which is sup- Jukka Lehtosaari, Pyhäjärvi plemented with funding from the regional Pekka Anttila, Kärsämäki development association. The develop- Teija Myllylä, Haapajärvi ment projects are an important part of Jarmo Vuolteenaho, Nivala regional development activities. They are Kaarlo , Reisjärvi able to significantly utilise the “leverage Maritta Niska, Haapajärvi effect” of internal funding in order to ben- efit the area. The funding collected from Eija-Riitta Niinikoski, Nivala municipalities through membership fees, Asko Kauranen, Pyhäjärvi which is used for regional development, Mika Autio, Kärsämäki is channelled by the Regional Administra- Antti Vedenpää, Reisjärvi tion Board. They accept funding proposals throughout the year. In 2018, member- ship fees paid by the municipalities in the sub-region totalled EUR 15.50/resident/ year. The Regional Administration Board convened seven times during 2018 Annual report 19 Personnel Nivala-Haapajärvi sub-region NIHAK r.y. [email protected]

Toni Krankkala Harri Jokela Arto Junno Marika Kumpula Managing Director Business Services Manager Business Services Manager Business Services Manager tel. +358 (0)50 327 7254 tel. +358 (0)50 304 9317 tel. +358 (0)44 445 7011 tel. +358 (0)46 5040 8480

Ari Alakangas Tuomas Anttila Timo Liimatainen Markku Mehtälä Export Specialist Project Manager Project Manager Project Manager tel. +358 (0)40 684 6400 tel. +358 (0)44 445 7007 tel. +358 (0)44 445 7001 tel. +358 (0)50 339 7723

Mirja Jaakola Sami Kaarto Anne-Mari Kukkola Mikko Niskanen Project Assistant Office Manager Chief Financial Officer Marketing Specialist tel. +358 (0)44 445 7228 tel. +358 (0)44 274 8827 tel. +358 (0)44 445 7002 tel. +358 (0)40 709 3203 NIHAK HELPS YOU TO DO BUSINESS www.nihak.fi