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Background information for new company establishment June 2017

.se Table of contents

Introduction 3 2.4 Description of the regional labor market, number of employed etc 15 Regional information 3. Logistics/infrastructure 16 1.1 Major industrial clusters in our region 4 3.1 Road transport 16 1.2  A selection of industrial reference cases in 3.2 Rail routes and accompanying logistics centers 17 our region, including contact information 6 3.3 National and international airports 18 1.3 The 10 largest employers in our region 6 3.4 Water/sewage, including water 19 1.4 The region from an overarching attractiveness and quality of life perspective 7 3.5 Power infrastructure 20 1.5 Opportunities for regional project financing 3.6  District heating/district cooling ­­­ and support for company establishment on (as a consumer and supplier) 20 the proposed site 8 4. Permits process for new company establishment 21 1.6 Permission process for industrial operations 4.1 Example of timeframe for a permissions process requiring permits from the Land and in which the Land and environment courts assess environment courts 10 environmentally hazardous operations 21 1.7 General public support for a company establishment 10 Site specific information

2. The labor market 11 5. Specific site information 22 2.1 Employable population in the principal 6. Ownership 22 recruitment area 11 7. Site acquisition and building commencement 22 2.2 The proportion of the workforce that is educated, including the distribution across different 8. Site information 22 educational levels, in the surrounding area 11 9. Infrastructure 23 2.3 Current university and educational programs 10. Power infrastructure 24 (eg. university, schools, post high school courses, regional R&D activities etc 11 11. Water 24 12. Sewage 25

Appendices 25 3 3

+ 3 300 active companies. WE CREATE + Good education and courses. + Good transport connections to the rest of the world via SYNERGIES the E16, E4, railway lines, Port of Gävle, Arlanda and regional airports. AND 1+1 = 3, + International meeting place. More than 130 ­national­ities are represented within the population. OR EVEN MORE + A strong innovation climate. More than 700 people from all corners of the world work with research and development in Sandviken. In terms of patents per It’s normal for a town and a region to show off in an capita, this is one of the most innovative introduction such as this - about how good, fantastic and in the world. unique everything is! But is anything in Sandviken really unique? + Industrial sector competence and professional knowledge have been Sandviken’s strengths for many years. There are 290 municipalities in our country and – hand on heart – many can also offer undisturbed nature, lakes + Sandviken is home to large international groups and and close proximity to outdoor recreation and a thriving new-thinking small companies, consultants with key cultural scene. Many can also combine attractive housing expertise and motivated entrepreneurs. close to the countryside and town, without traffic jams. + Short lines of communication. If we look even further afield, there are also other regions + Strong investment appetite. Sandviken is growing and countries that have a long industrial tradition, – both in terms of number of inhabitants and geo­ world-leading business climate, leading edge research and graphically. unique efforts related to future clean energy.

It’s only when we bring together our unique combi­ nations – to create the best conditions for sites for future A LIFESTYLE WITH SYNERGIES business establishment – that we really become unique. + ­A community with strong building blocks that together We offer a whole that is greater than the sum of its parts, become something greater. and a future synergised for your needs. + Places that enable people, ideas, activities and trends to A SITE WITH SYNERGIES meet and together become something stronger. + A large area of land. + Low cost of housing and living. + The land area is square-shaped. + Outdoor recreation with skiing, boating, swimming, fishing, hunting, cycling, walking … + The land is owned by the . + Sports - from recreational to elite teams in ice hockey, + Located with a direct connection to the E16 once the football and bandy. new exit is complete. + All kinds of culture and entertainment with arenas and + Massive electric power supply is possible. stages for small and large events, and with food and + Water for industrial processing is available. hospitality of the highest class. + We are an industrial municipality, which means + Nearby blooming countryside with forests, mountains ­positive views on new company establishments. and water. + Located in the heart of the country’s center for + Thriving city. future energy with biofuel, wind power, hydrogen and an electric highway. This is what we call ­Sandviken Pure Power. See the film! We make each other better!

A BUSINESS CLIMATE WITH SYNERGIES 4

Regional information

The Sandviken/Gävle region encompasses Gästrikland, SEK 2 million per day, and with the rest of Bergslagen, Hälsingland, with direct proximity to , and Gävleborg included, the amount invested is ­, Mälardalen, Bergslagen and East Dalarna. around SEK 10 million per day. That puts the region at One third of ’s population and just over a third the top in terms of industrial investment. of Sweden’s companies are located within a radius of ­ 2 hours. That means 3.3 million inhabitants and 400 000 is used to receiving visits from companies. overseas companies. Sandvik alone receives more than 10 000 visits per year. Consequently, Sandviken offers This is one of the most heavily invested regions in terms an organization and level of hospitality that can ­handle of capital investments in industrial sectors. Sandvik frequent international visits and make the visitor’s invests approximately SEK 4 million per day in its site ­experience even better. in Sandviken, Billerud-Korsnäs in Gävle invests around

1. Business sector structure

1.1 Major industrial clusters in our region.

Major clusters Other clusters Steel and process industries: Sandvik (Sandviken), Maintenance: Veolia (Skinnskatteberg, ) and SSAB (Borlänge), Ovako (), Outokumpu Bilfinger (Gävle, Avesta, Borlänge). ­(Avesta), Stainless AB (Fagersta). Industrial services: Triple Steelix, FindIT, Fiber Paper and pulp: Artic paper (), Stora Enso Optic Valley (today part of RISE/Acreo), Future (, Kvarnsveden, Skutskär), Billerud- Korsnäs Position X, Automation Region, Robotdalen, High (Gävle), Holmen/Iggesund (Iggesund). Voltage Valley. Wind power: Vestas and others, one of Europe’s Industrial IT: (Sandviken). largest land-based wind parks (Jädraås). Hydraulics: (). Tunnplåt och materialteknik: (Sandviken/­ Borlänge). SMEs: A couple of thousand companies provide products and services to the industrial sector.

Additional information

Traditional heavy manufacturing industries with The well-established heavy industrial sector has resulted high pace of investment. in a predominance of large global companies being the major employers in the region. ­The region is a world leading steel cluster that, through collaboration with other industrial clusters and networks, Steel and process cluster enables competitive advantage and growth in the region. The steel and process industries form the basis of the The region has been dominated by heavy manufacturing ­region’s business sector structure. Bergslagen and west industries for almost 200 years. This includes the steel Gästrikland are home to what is probably the world’s and process industries in Bergslagen and the forest and leading steel cluster with Sandvik, SSAB, Ovako and paper industries along Gävleborg’s coast. The region also Outokumpu. Collectively these industries have a turn­ has a well-established wind power sector that is creating over of around 20 billion SEK, employ approximately one of Europe’s largest land-based wind parks, located 75 000 people internationally, and around 12 000 in around 30 minutes north of Sandviken. the region.­ The region’s steel industry is strengthened by 4 5

some 700 sub-contractors based in Bergslagen that can innovations and ”Start-Up” companies during their develop and provide growth opportunities outside the development phase. region, due to the demand from the steel industry. • Triple Steelix is a regional development effort to make the successful steel industry even stronger Paper manufacturing cluster through efficient­ cooperation between businesses, the ­community and research in the region. Triple Steelix The paper sector is another major industrial manu- encompasses some 200 small and medium-sized facturing sector in the region with Artic paper in companies in fourteen municipalities in Dalarna, Grycksbo, and Stora Enso in both Fors and Kvarnsveden. Västmanland and Gävleborg. One example project Several paper mills are located along the Gävleborg coast involves cooperation between the steel industry, Triple including Stora Enso in Skutskär and Billerud-Korsnäs in Steelix, the University of Gävle, Dalarna’s Industrial Gävle and Holmen/Iggesund. Development Center (IUC) and the municipality of Wind power Sandviken to increase the effectiveness of the industrial maintenance sector and ensure the highest possible The demand for renewable energy has meant an increa- quality of maintenance services. se in wind parks in the world. According to Vattenfall, wind power will provide fourteen per cent of all energy • FindIT is a powerful project to further develop ­consumed in the EU by 2020. Much research and deve- an industrial IT center of excellence at Sandbacka lopment is being carried out into increasing the efficiency Science Park to increase the competitive advantage of of wind turbines. the region’s industrial sector and small and medium-­ sized companies, as well as support the growth of One of Europe’s largest land based wind parks, with new companies,­ products and methods. The steering 66 wind turbines, is located just 30 minutes north of committee includes the IT leaders of the large steel ­Sandviken, in Jädraås. The turbines are estimated to and process industries and heads of academia from the generate 572 GWh per year, which equates to domestic University in Gävle. electricity for 114 000 homes. Companies such as Vestas from have set-up operations there. • Future Position X in Gävle is Europe’s leading cluster

Maintenance companies

Veolia and Bilfinger, two international industrial main- tenance companies, have set up operations in the region and provide their services to industries here, along with around a hundred regional suppliers. Other clusters of significance in the region include industrial IT in Sandviken, hydraulics in Hudiksvall Every year, FindIT organizes the IT forum at Sandbacka Park and sheet metal and material technologies in Sandviken/ in Sandviken. All the small, medium and large companies in the Borlänge. region gather here to discuss, collaborate and learn the latest about digitalization in the industrial sector. The region is home to a couple of thousand SMEs who ­provide products and services to the industrial sector. organization for geographic information. It leads A total­ of 80 – 90% of the region’s companies are research and innovation projects and helps companies ­micro-companies with fewer than 9 employees, which is in and organizations to break into new markets. line with the national average. • Fiber Optic Valley in Hudiksvall carries out research Collaboration to develop industries and companies and development projects within the broadband Significant clusters supporting the industrial sector and cable technology fields. They support and lead – in conjunction with academia, businesses and local projects by bringing together the needs of the business ­municipalities – strengthen the regional business environ- ­community with the expertise of researchers. ment through research and development projects. • High Voltage Valley in leads strategic • Sandbacka Science Park – The technology park is research and innovation projects, and also shorter the hub of regional innovation focused on industrial ­demand-driven industrial-related projects within IT and material technologies. They work together electric power technology. with Movexum, a regional incubator, to support 6

1.2 A selection of industrial reference cases in our region, including contact information Sandvik Materials Technology: Midroc Electro AB: CEO Petra Einarsson (quote in additional CEO Mikael Westlund +46 (0)10-4707874 or ­ ­infor­mation), tel. +46 (0)70 2662660; +46 (0)70-1801170. Lena Berg, ABB AB: Vice President Strategy and Communication, Project Manager Anders Eldblom, ­Sandviken, +46 (0)26-26 31 11, tel. +46 (0)73 0724040. [email protected] BillerudKorsnäs: Magnus Kangas, Site manager, Gävle, +46­ (0)26-15 10 00, [email protected]

Additional information

”As the leader of one of the largest companies in the country, based in ­Sandviken, I envisage a successful future cooperation with you. There is a ­tradition of industrial development here, combined with world-leading research. We have the most patents per capita in the world, more than 600 employees within R&D, and we are planning for an open research and ­innovation center together with the local municipality, which I’d be happy to tell you more about. We also have a lot of experience attracting talent from all around the world, which we could collaborate on.”

Petra Einarsson, CEO Sandvik Materials Technology

1.3 The 10 largest employers in our region: No. Company Nature of business Employees 1 Gävle municipality Municipal operations 7925 2 Gävleborg regional council Regional public functions 6500 3 Sandvik AB (Sandviken) Iron and steel plant 6000 4 Sandviken municipality Municipal operations 3525 5 SSAB (Borlänge) Iron and steel plant 2000 6 BillerudKorsnäs (Gävle) Paper industry 1527 7 Ovako Sweden AB (Hofors) Iron and steel plant 1501 8 Iggesund Paperboard AB Paper industry 1051 9 Outokumpu (Avesta) Iron and steel plant 700 10 Svenska fönster AB () Window production 685

Additional information

The region also has a large number of innovative and people employed in Gävleborg county and Dalarna mature companies that provide industrial services and county, predominantly within the municipalities and product development, such as IT, maintenance, HR and county councils. A number of state authorities have been electronics for the manufacturing sector and companies re-located to the region including Lantmäteriet (Swedish in other sectors. Mapping and Land Registration Authority) in Gävle and Trafikverket (Swedish Transport Authority) in Borlänge. The public sector employs 33% of the total 256 723 6 7

The leading company in the region is Sandvik AB in expertise such as IT, digital and maintenance services to Sandviken, which employs just over 10 000 people in the industrial manufacturing sector. Sweden and 47 000 people internationally, and has a turnover of around 100 billion SEK. The industrial estate There are around 70 000 companies in the region, large in Sandviken is Sweden’s second largest industrial estate at and small. Many of them have supplied the industrial almost 3 million m2. manufacturing sector for decades. Many of the smaller companies, for example Begner Agenturer AB in , Companies such as Midroc AB and Syntronic in Krylbo Elektra in Avesta and MK3D in Sandviken ­Sandviken have developed their own products and have used their innovative capabilities to develop skills services, and today have an international market. Other and ­maturity further, and are now successful leading global companies including IBM, Fujitsu and Veolia have ­companies within the fields of digitalization, industrial set up in the region and in Sandviken, where they supply IT, vibration­ and data analysis and 3D.

Some 6 000 people work at and alongside Sandvik’s industrial estateby the lake Storsjön in central Sandviken.

1.4 The region from an overarching attractiveness and quality of life perspective

• The Gävle-Sandviken area is the most densely • Hunting with easy access to hunting grounds and populated area in the region. an abundance of game. • Close to nature and the countryside. • Shopping in cities and shopping centers with a • Relatively low housing prices. wide range of goods. • Well-established educational system. • Plenty of opportunity for boating and swimming with Gävle on the coast and Sandviken located • Plots of land are comparatively large and are by the lake Storsjön. often well located. • Close to Uppsala and Stockholm. • Outdoor recreation and sport opportunities in well-established facilities and in natural • Close to the world via Arlanda international surroundings. Airport. • Thriving cultural scene with theatres, a concert hall and more.

Additional information

The Gävle/Sandviken area is the region’s most densely attractive nature within a few minutes’ car or bus ride populated area, with around 140 000 of the entire region’s (a few more minutes by bike or on foot). total of 285 000 inhabitants. It has bustling towns and 8

Being able to live in the countryside, but still in town Within a half hour journey, all levels of education is a well-known characteristic of our region, especially are available as part of a well-established educational around the towns of Gävle and Sandviken. For anyone system (see 2.3 below), and the region’s major tourist with an interest in outdoor activities, culture, sports, attractions Kungsberget and Högbo Bruk. Within the boating, hunting, shopping and food, for example, same ­timeframe, one can also move from the quietness everything is close at hand in summer or winter. Gävle is of undisturbed nature to cultural centers and concert located on the coast and Sandviken by the lake Storsjön, halls. The cultural scene is ranked by the inhabitants for those who like boating or swimming. Owning your them­selves as the best in the country! (SCB Customer own apartment or house has a completely different price Satisfaction Index 2016). And there are also elite football, tag than in the capital, and plots of land are more afford- ice hockey and bandy teams. able and are often in excellent locations. The international Sandviken Commuting Sandviken is used to receiving visits from companies The express train to Arlanda airport takes an hour from overseas. Sandvik alone receives more than 10 000 Gävle central station, and the airport offers flights all visits per year. They also work with many international over the world. An additional 20 minutes by train gets recruitments. Today there are more than 130 nationalities one to Stockholm and everything that the capital has to represented. The English school with more than 1 200 offer. Employees can also easily commute from Falun and students is located 20 minutes away, and all this in a town Uppsala. with the most patents per capita in the world.

Sandviken offers a comfortable life, with everything from skiing, out- door recreation and one of Sweden’s best MTB arenas, to great food and good schools. All this right next to nature’s peace and quiet.

1.5 Opportunities for regional project financing and support for company establishment on the proposed site Gävle and Sandviken are not part of any support • education at university level area. This means that only SME companies have • adaptation of high-school education the right to apply for smaller amounts of support. • support for adult vocational education The region can contribute to the supply of skills in • procurement of job market training the following way: • identification of existing competence in the region • large proportion of available labor • competence searches across the EU • existing tried-and-tested forms of cooperation for different educational levels 8 9

Additional information

Gävleborg county has very well-developed collaboration ­responsible for collaboration. The relevant people around skills supply. will be connected to the project group. Courses are adapted based on an inventory of which courses 1. The region has the largest available labor capacity. that will produce the skills needed by business. At the end of 2016, over 25 600 people were looking If additions or specializations to the courses are for work through Arbetsförmedlingen (the Swedish needed, this is raised with the course managers. employment authority). Modification and collaboration. If the necessary 2. When business needs are announced, there are university courses don’t exist with the University tried-and-tested forms of cooperation for different in Gävle’s offerings, the option to modify courses educational levels ready to be employed. Existing and of alternatively collaborate with surrounding functioning lines of communication and cooperation universities is assessed. Uppsala University is the for activating efforts are listed in a) – f) below. nearest educational institute, an hour’s car journey (45 minutes by train), with almost 41 500 a) A project group of representatives for the parties registered students. involved is established to manage how access to relevant skills will be ensured. The project Contact with students. The business community group is activated once the investor presents their can easily get into contact with people studying at ­competence needs and volumes. the University of Gävle. There is also an extensive program for companies to be able to connect to b) Matching of skills. Arbetsförmedlingen carries people from Gävleborg who are studying at other out an initial matching of where the available schools of higher education and universities. It is skills are. Our Supercross database is used to possible to tailor such programs. identify existing skills and where they are in the region. e) ) Vocational college education. To the extent that business skill needs at vocational college c) Collaboration for additional needs. If the level do not exist, action needs to be initiative right competences are lacking in the region, well ahead of when the skills are needed. What there is national cooperation to find them. If is distinctive­ about vocational colleges is that the right skills are still not found, efforts are the companies and organizations linked to the switched to ­Arbetsförmedlingen’s portal for ­courses are active in terms of planning and Work life ­Mobility – Eures. A European advisor ­implementation of the education. is connected­ to the project group to enable a ­Europe-wide scanning for skills. f) High school education. High school education can be adapted to suit the needs of the business­ d) University level education. The University community by setting up new or adapting of Gävle has people in each faculty that are existing­ courses. 10

1.6 Permissions process for industrial operations requiring permits from­ the Land and environment courts

Experience

The area in question is not subject to any strict municipal or county regulations that may impact a new ­company establishment.

Additional information

Similar to all regions in Sweden, our region follows 2. In both cases, the process starts with consultation ­national rules that apply to everyone. between the company, county council and municipal council. The premises are of such a size that the space should be able to be planned appropriately, with good placement 3. It is difficult to say how long the permission of buildings and distribution of production processes, ­process takes. A very rough estimate is that it takes to limit the impact on the surrounding areas. ­approx­imately 9 months to be granted an environ­mental permit, irrespective of county. Referral authorities Until specific information is received about raw mate- ­(Remissmyndigheterna) may have an impact the process r­ials and components used, expected volumes, as well as by ­providing their statement within the specified amount information about the production process, the following of time. We can help with this latter point. applies:

1. Permits may be required from the Land and environ- 4. Our experience indicates that the area in question is ment courts as well as the Environmental permit office not subject to any stricter municipal or county council (Miljöprövningsdelegationen), depending on the raw regulations that could impact a company establishment. materials and components used and the production process. ” We have a good relationship with the county council, we meet continuously a number of times per year, and we agree on most issues. We last applied for new permits in accordance with environmental regulations in 2002. It’s the Land and environment courts that grant permits for our business, not the county council. In the permissions process it was largely Naturvårdverket (Swedish Environmental Protection Agency) that placed demands on us. During the entire 2000s there are only a few cases where we have appealed the county council’s decision in the environmental courts”.”

Bas Vennix, Head of Environment, Healt & Safety, Sandvik Materials Technology.

1.7 General public support for a company establishment

Our assessment is that there will be great support ­region and there is a high level of company loyalty. from the general public. The Tuna 3:1 site has previously been considered Large-scale production is seen as a positive asset in for a new industrial company establishment. the region. Sandviken is a modern industrial municipality with a The labor force mostly prefers to stay within the long industrial history and tradition. 10 11

2. The labor market

2.1 Employable population in the principal recruitment area, including related trends

Around 310 000 people live within a radius of 50 km, and 750 000 live within a radius of 100 km.

Additional information

The region has a growing population with Gävle and the country, provides good conditions for future skills Sandviken being fast growing municipalities. This, provision. 3.3 million people can be reached within a together with the largest proportion of available labor in commuting radius of 2 hours.

2.2 The proportion of the workforce that is educated, including the distribution across different educational levels, in the surrounding area (in percentages)

Proportion of highly educated (at least 3 years post two years post High School education increased Highe School education) amongst those employed in to 41,7% the Gävle region (day population) increased to 21,1% Proportion of lower educated (max two year High in 2014. School education) 37,2%. Proportion of the employed population with at least a 3 year High School education, and a maximum of

2.3 Current university and educational programs (eg. university, schools, post high school courses, regional R&D activities etc)

Universities ­collaboration with Harvard, Oxford, Cambridge and Massachusetts Institute of Technology (MIT). – Dalarna’s University in Falun/Borlänge: relevant industry-related courses, materials technology, Lower education other engineering courses, finance, teacher-­ – Göranssonska school: technology High School training etc. college with a 3-year industrial technology – University of Gävle: relevant industry-related program.­ courses, industrial finance, machine technology, – Gävle has had an English school for 14 years environmental technology, regular engineering which has 1 200 students in years 3 to 9. courses, finance, teacher-training etc. ­Education is conducted partly in English.

Vocational college courses Research center – Dalarna’s University in Falun/Borlänge: industrial maintenance programme CLIP University in Gävle: courses focused on new – Sandviken’s vocational college: programmes industrialization, logistics methodologies, innovative in Automation, industrial technology and CNC, production solutions. 12

Additional information

Education in the region Cambridge and MIT. Students are given the opportunity The region has two universities with relevant to learn using top, modern equipment and develop the ­industrial-related courses, as well as courses in finance, right skills for the industrial sector jobs of the future. teacher-training and so on. 60 000 students are educated within an hour by car (colleges/universities in Gävle, Existing vocational colleges in the region: focus­ Uppsala, Falun/Borlänge and ). areas, number of students, employers and ­professional roles after graduation Dalarna’s university in Falun/Borlänge offers materials, technology and other engineering courses. Gävleborg vocational college gathers all the munici­ palities within the region, together with the University The University of Gävle offers industrial finance, machine, of Gävle, in order to develop vocational college courses technology and environmental technology and the regular for future and current labor market needs, by cooperating engineering courses. The University of Gävle currently with all the relevant parties from the educational as well has around 15 000 registered students. as business communities. A well-established vocational college course focused on In terms of established vocational courses, there are automation, industrial technology and CNC is offered in already around 20 to choose from. Sandviken, and one focused on industrial maintenance is offered in Borlänge. Courses centered on the industrial sector exist in: ­Sandviken including the high-class Workshop technician and Maintenance technician courses; in Nordanstig with The University of Gävle – project Human Lean Operations technician and Process operator courses; and in Gävle and Hudiksvall with IT and GIS courses. CLIP (see above) has established a ”Human Lean Center­ The vocational colleges in Sandviken, Borlänge and (HLC)” at the university aimed at being a resource for Avesta are cooperating on a shared maintenance course ­companies and organizations in their improvement efforts. targeted at the region’s process industries. All vocational Companies like Sandvik and Fagersta Stainless have trained college courses are adapted to business needs and for the teams and leadership groups in Lean. HCL has received wider most part, students find employment in theirrespective ­ attention and there is currently contact and cooperation with fields of study. The largest employers are naturally Scania, Volvo, Chalmers, amongst others. within the process industry led by Sandvik, Ovako, ­BillerudKorsnäs, Stora Enso and Holmen/Iggesund, but The University of Gävle – cooling of steel in the 27 000 SMEs in the region also employ students after production­ graduation.

A testbed for testing a new technique for cooling steel, Possibilities for tailoring a vocational course for known as PinJet, has been created at the University of operators within advanced process technology (for Gävle. This is a research project in cooperation with example) Sandvik in Sandviken, Linköping’s University and Triple Steelix. There is plenty of opportunity to tailor vocational courses within the region. The vocational college system is well-coordinated and industrial courses are available Courses and research in Sandviken at Sandviken, Gävle and Nordanstig, amongst others. The organization “Företagsutbildarna” is an education/­ Haas Technical Education Center training company established by businesses, including Sandvik, and municipalities in the region. Företags­ Sandviken’s vocational programs are focused on utbildarna creates tailor-made courses that meet the ­automation, industrial technology and CNC. Borlänge needs of industry. Haas Technical Education Centre in has courses focused on industrial maintenance. Our Sandviken is part of an international network of 102 ­vocational education is of a very high quality and is a education ­centers in Europe, and a further 120 centers in Haas Technical Education Center – one of four such North and South America. Via this network it’s possible education providers in Sweden and one of 80 in the to tailor courses in Europe or America as needed, if fo- world. This is one of an exclusive international group reign personnel need to be trained before they start work of education providers together with Harvard, Oxford, in the factory. 12 13

Lower education International research center One of the biggest R&D initiatives is the collaborative Those seeking education in the region have many work related to a new highly specialized, international­ options, both public and private schools, from primary/ ­research center focused on metallurgical materials­ playschool up to high school level. technology. The research center in Sandviken is ­internationally attractive, and more than 700 researchers Gävle has had an English school for 14 years which has will work and have access to an advanced laboratory 1 200 students from year 3 to year 9. ­environment, equipment and other active researchers in the metallurgical materials technology field. Entre­ Göranssonska school is an investment from Sandvik,­ preneurs and SMEs have the opportunity to test and ­together with the local municipality. It is a 3-year develop their products, services and business ideas in ­technical college with 192 students (16-18 years) cooperation with global parties. There will be a clear ­following an industrial technology program. The connection to the innovation center at Sandbacka Science program is adapted to the individuals and customers, Park in ­Sandviken and the regional incubator, Movexum. targeted at technology companies in the region focused on ­production technology and automation. The school Sandvik – a world-leader in 3D printing R&D has been voted the best college in Sweden several times. Sandvik is not only a steel industry with traditional Sandviken’s Technical colleges are certified Technical ­materials research. Sandvik in Sandviken is a world-­ colleges. leader in research and development of additive manu- facturing/3D printing and cutting processes. Sandvik Additive Manufacturing Center and Sandvik Coromant’s Research intensive Sandviken productivity and visitor center are two innovative centers Sandviken is one of the most innovative municipalities for research and development, in which innovation, with the most patents per capita in the world, and has technology and research meet to drive progress within one of Europe’s most research-dense populations, with these areas on a global market. International meetings more than 600 active researchers, predominantly within and hospitality are part of every day activities and there is metallurgical materials technology and additive manu- a continuous international exchange of knowledge, which facturing/3D printing (see below). is spread to the region’s innovative industries and SME companies. 14

Electric highway – lorries on the electric highway Steel industry research school

The E16 Electric highway project involves collaboration The steel industry’s research school, where a handful of between Region Gävleborg, Scania and Siemens. This is postgraduates and others work, was established in 2016 at the location of the world’s first electric highway for heavy Sandbacka’s Science Park. Research focuses on materials goods vehicles on public roads. The project will examine research, logistics and supply chains, and is operated in the conditions needed to expand the electric highway as partnership with the steel industry in Bergslagen, Triple far out as Yilport Port of Gävle. Steelix, the University of Dalarna and the University of Gävle (CLIP). This will enable transport, from factories to the port and other loading areas, to be able to move in a unique environmentally friendly way. Gamification – games as a tool within other ­industries

Industrial Gamification is one of the most interesting CLIP projects ongoing at FindIT in Sandviken. Gamification CLIP is center of excellence within the University of is defined as ”the use of gaming mechanisms within Gävle, focused on the requirements, needs and problems businesses that traditionally have nothing to do with of new industrialization. CLIP offers knowledge about gaming – for example the industrial, trade, IT, transport logistical methodologies and innovative production or education sectors”. solutions, predominantly to regional businesses. CLIP has around 20 researchers across a range of research fields. CLIP is also active within the ”Transport Science Center” currently being established in the region. The intention is to gather competence and knowledge within the fields of logistics and transport, and thereby support the development and competitive advantage of the ­region’s different stakeholders in this area. 14 15

2.4 Description of the regional labor market, number of employed etc

COMMUTING EDUCATIONAL LEVEL Stockholm/Uppsala: In 2015, 3 933 commuters Proportion of highly-educated people aged 20-64 per day to, and 2 082 per day from Stockholm/ years is 18,5%. Uppsala. PUBLIC SERVICES Other significant commuting is to/from the Söderhamn­ region and Falun/Borlänge region. Gävle hospital: emergency care and specialist care, hospital library and hospital chapel. Within the region, between Gävle and Sandviken, as well as between Gävle and Älvkarleby. Education providers and academic institutions: see 2.3 above Other public services: see the various ­municipality websites.

Additional information

Commuting Level of education The region has good transport communications both The proportion of the Gävleborg region population that within and outside the region. The region has accounted is well-educated (at least three years after High School) for the largest relative growth in inward commuting is on a par with several of the labor market areas that to the Stockholm/Uppsala region since the turn of the border the Stockholm/Uppsala regions. ­century. Inversely, commuter traffic from Stockholm/ Public services Uppsala is of great significance for skills supply, not least for the University of Gävle and the regional hospital. Gävle hospital provides emergency and specialist care, In 2015, 3 933 workers commuted to the Stockholm/ mostly for the residents of Gävleborg county and Uppsala region, while 2 082 commuted in the ­opposite northern . The hospital provides all fields of ­direction every day. Other significant commuting specialist care including surgery, orthopaedics, medicine flows are to/from the Söderhamn region and the and intensive care. Falun/­Borlänge region.­ Within the region, most people ­commute between Gävle and Sandviken. 16

3. Logistics/infrastructure

3.1 Road transport

E16: Gävle – Oslo – Londonderry, Northern Ireland carriageways with central barrier, good coverage of E4: Haparanda–Luleå–Skellefteå–Umeå–­ the inland regions. Örnsköldsvik–Sundsvall–Gävle–Uppsala–Arlanda­ –­ Electronic Highway along the E16 west of Stockholm–Södertälje–Norrköping–Linköping–­ ­Sandviken, may be extended out to the Port of Gävle. Jönköping–Helsingborg. The electronic highway is used today to transport Main roads 50, 56, 68, 80 and 83: feeder roads to heavy goods from the industries in Borlänge to the industries as well as the E4 and E16, partially 3 lane port via Sandviken.

Additional information

The region is an industrial region and has been so for located on the western edge of Sandviken. The highway is many years. Since our industrial sector has long been a research and development investment from Scania and strongly production-oriented, the region has very Siemens in cooperation with the Gävleborg region. It was expansive infrastructure with a road network stretching opened in 2016 and will be of great benefit to the region’s in all directions to be able to supply the industrial sector transport, and above all, it will provide a unique environ- with raw materials and enable outbound delivery of final mentally friendly mode of transportation, using battery products. technology, amongst others, to transport goods between the Port of Gävle and our logistics centers in the region. Sandviken has good infrastructure and a good logistics location along the E16 and close to the E4. It is also a Sweden’s fourth hydrogen fuelling station hub in the European transport network TEN-T and the Scandinavian-Mediterranean Core Network Corridor. On 6 December 2016, Sweden’s fourth hydrogen fuelling station was inaugurated at Göransson Arena in The emission-free alternatives initiatives taken in the ­Sandviken. The entire manufacturing process is green. region (electric highway, fuel cells and biofuel) have made Hydrogen is produced with the help of electrolysis from Sandviken/Gävle a leading region in Sweden in terms of electricity that comes from the wind park in Jädraås. technology and development of environmentally friendly Thanks to the hydrogen pipeline that goes from AGA transport. The University of Gävle carries out ­research to Sandvik’s industrial estate, the hydrogen reaches the into sustainable logistics, putting the region even more ­refuelling station with no transportation whatsoever. firmly on the map as an environmentally friendly There are efforts underway at Sandvik to introduce ­logistics and transport alternative. hydrogen-fuelled trucks and transportation vehicles to make production more environmentally friendly. The E16 connects the ports in Oslo and Gävle and ­constitutes the country’s only larger horizontal trans- port corridor. The E16 passes right next to the site in ­Sandviken. It is only 30 minutes to Yilport Gävle ­Container terminal, one of Sweden’s 10 strategic ports and the largest container port on the east coast.

On the E4, the car journey to Arlanda International Airport takes only 90 minutes, and to Stockholm only 120 minutes. Refuel with hydrogen in Sandviken!

Biofuel facility The major roads 50, 56, 68, 80 and 83 form the larger national roads in the region. They are to some extent Gästrike Ekogas is currently building the world’s largest 3-lane roads with a central barrier, and they provide horizontal thermophilic plug flow plant for dry fermentation good coverage of the interior of the country as well as in Forsbacka five kilometres west of Sandviken. The biogas act as feeder roads to industry and the larger European that will be produced there comes mainly from household highways. and garden waste, that can be used as vehicle fuel, and/or as a high-nutrient fertiliser that farmers can use instead of the The first electric highwayin the world for HGVs is fertiliser that is used today. 16 17

3.2 Rail routes and accompanying logistics centers

Norra stambanan (Northern Main Line) (Gävle– Ostkustbanan (East coast line) (Stockholm–­ Storvik–Ånge): Storvik junction, distance to Port of Arlanda–Gävle– Sundsvall): combi-terminal Gävle 43 km or 40 minutes, mainly freight transport ­Stockholm Nord, shuttle train from northern (approximately 200 trains per day), stuffing and ­Germany; Yilport Container terminal in Gävle, transhipment. ­warehousing, stuffing and stripping of containers. Bergslagsbanan (Bergslags line) (Gävle–Falun– Borlänge– Kil–Göteborg): Borlänge state railyard, distance to the Port of Gävle 116 km or 105 min, freight transport to/from Port of .

Additional information

Railways towards the Port of Gothenburg. Three main lines pass through the region and through The combi-terminal in the Port of Gävle has direct ­Sandviken: connections (1.5 hour transportation time) with the state – Ostkustbanan (Stockholm–Arlanda–Gävle–­ combi-terminal Stockholm Nord in Rosersberg. The Sundsvall) connection is via double rails on the Ostkustbana (East – Norra stambanan (Gävle–Storvik–Ånge) coast line) from the quay at Port of Gävle. In other words, – Bergslagsbanan (Gävle–Falun–Borlänge–Kil–­ conditions for environmentally friendly transportation to Göteborg). and from Stockholm/Mälardalen are exceptionally good. Today the combi-terminal is served by trains from Yilport These provide good coverage of heavier and long-distance container terminal in Gävle, and a shuttle train from transportation to/from the region’s industries. northern Germany. Yilport Container terminal, Fredriksskans Terminals ­combi-terminal and Combi-terminal Granudden, Storvik is the only junction in the region that is part of are located directly at the port. The bulk terminal the Trans-European transport system that connects 325 handles raw materials and components and supply goods coastal ports in Europe. for the manufacturing industries as well as project cargo where requirements on lifting capacity and intermediate Storvik is located 30 minutes from the Port of Gävle and storage space are high. A number of large warehouses are 200 trains pass through the junction per day. Storvik located directly at the quays. There are also large spaces has a rail area with potential for development for stuffing near the quays for intermediate storage of goods. and transhipment. Plans are in place to renovate the ­surrounding area into a smaller logistics/combi-terminal. Logistics Borlänge is located 60 minutes to the west of Storvik. The railway can be adapted at the station in Storvik It contains one of Sweden’s national railyards and is an to the required conditions. Storvik is very suitable as a important junction for all southbound transportation, transhipment center and for stuffing of goods. 18

3.3 National and international airports Arlanda International Airport: distance of 160 km or 90 mins. Dala Airport Borlänge: distance 80 km or 75 mins, predominantly domestic flights, some international departures.

Port of Gävle 30 km, 20 min

Dala Airport 80 km, 75 min

The region has two airports within a short distance: Arlanda­ International­ ­Airport outside of ­Stockholm, and Dala Airport in Borlänge. The distance to these by car is 90 minutes and 75 minutes Arlanda 167 km, ­respectively. Borlänge airport predominantly has domestic 90 min flights but also some inter­ national departures.

Additional information

The majority of production output from the region is The Port of Gävle alone today has the capacity to receive exported, which has led to the region having several ports shipd of about 42 metres in breadth and 240 meters in that are used specifically for delivering products to the length, as well as a draught of 12.2 metres. Today this world. means ships with a load capacity of around 100 000 tons. The Port of Gävleis the largest port in the region, and The port is growing rapidly and has recently been the port that we presume would be the export shipping ­expanded by around 300 000 m2 in new quays and land port for your products, as well as the future importing area for goods handling. port for any raw materials. The port is the third largest Terminals container port in Sweden, and the largest container port on the east coast. It is always passable and free of ice in Yilport Gävle Container terminal has an annual winter. In the unlikely event that an alternative is needed, ­capacity of 300 000 TEU. Together with the operator of there are another 13 industrial ports along the region’s the container terminal, the Port of Gävle is scoping out a coast of differing sizes and capacity. 18 19

new container terminal that will have a capacity of lorry and rail. Today around 10 trains and some 1 000 500 000 TEU by 2018 and 700 000 TEU by 2020. lorries are processed per day, which, together with the ships that arrive, processes 5 000 000 tons per year. A wide variety of products that are not loaded into ­containers pass through the Bulk terminal, such as In the future, we will offer usage of the new electric ­lumber, coal, ore, road salt, paper pulp and kaolin clay. ­highway between Gävle and Sandviken (see page 14.) Wind turbines are now also a common cargo. It is also possible to fuel transport vehicles with biofuel Greenfield terminal, next to the newly built 200 metre or fuel cells (hydrogen). long quay, is where containers and bulk goods are loaded and unloaded. There is further expansion in progress, Logistics center with a longer quay, more space and new cranes. There is a larger logistics center within the Port of In the Granudden and Fredriksskans combi-terminals, Gävle area where organizations connected to the port goods are moved from vehicle to train, or from rail to ­operations are located. One example is a recycling road. ­company. Warehousing, stuffing and stripping of ­containers takes place here.

Transportation

Transportation to and from the port is usually by both

3.4 Water/sewage, including water

The municipality is used to managing the needs of For a specific explanation of the situation at the industry. site, see the information under 11. Water and 12. Sewage,­ pages 24 and 25.

Additional information - Water/sewage, including water.

The municipality is familiar with managing the needs of industry. There are several possibilities for accessing water. For a specific explanation of the situation at the site: see the specific information about the site on page 22. 20

3.5 Power infrastructure

Infrastructure is in place. • SVKs power network (Norrland and Forsmark), • 93 hydropower stations (in the region), Stackbo connection point with a permitted ­production >2 500 GWh. withdrawal of 300 MW to the area in question. • vindkraft, > 570 GWh (efter planerad utbyggnad • Good coverage of “green electricity”. > 4 000 GWh). • CHPs, production > 1 500 GWh electricity.

Additional information

The region is well supplied by its own-generated electricity, southwards in SVK’s power grid, allowing an opportunity and is a large provider of hydropower with 93 hydropower for connection to these pathways. stations of varying sizes, which generate > 2 500 GWh. There is plenty of green energy produced in the north Wind power is being rapidly expanded and the largest which the region can tap into. With sufficient advanced operating wind park in Sweden is located in , warning for the permit processes, we believe we can offer the neighboring municipality to the north. The 66 wind excellent (perhaps unique) security of supply of green turbines (over 175 metres high) generated > 570 GWh in regenerative electricity power. 2016. There are plans for more wind turbines, that, once at full production, will generate > 4 000 GWh of wind power There is also a direct connection in the region to the in the region. ­nuclear power station in Forsmark, as a back-up.

There are also a number of CHPs facilities that One of the best national connection points is located produce > 1 500 GWh of electricity. in Stackbo, in between Gävle and Sandviken. There is ­currently a permitted available withdrawal of 300 MW The region is the transit region for almost all hydro from here as a potential supply to the site. and wind power generated in northern Sweden sent

3.6 District heating/district cooling (as a consumer and supplier)

Infrastructure is in place.

Additional information

There is the opportunity to use district heating/district to the district heading grid and pre-sold energy amounts cooling as the region’s municipalities generate or use it, to 225 GWh during a normal year. The production and have district heating plants and grids in operation. effects are distributed during the year as illustrated in the Delivery from and to Sandviken Energi’s district power diagram. grid in Sandviken. Domestic fuel is used for heat generation in Sandviken: Sandviken Energi AB generates and distributes district peat, woodchips, sawdust, bio pellets, etc. Fossil fuels, heating via a culvert grid to the majority of central such as oil and gas, are used to a very limited extent. Sandviken. There are 2 500 customer premises connected 20 21

Production of district heating for Sandviken’s To supply residual heat into the district power grid, there ­densely populated area takes place at the power is a specific temperature requirement for every point in plant in Björksätra. time, as shown in the diagram below. Compensation for heat supplied to the district power grid is discussed from The plant is about to receive a significant investment case to case. in new production areas, bringing an opportunity for ­collaboration with prospective residual heat suppliers.

4. Permits process for new company establishment

4.1 Example of timeframe for a permissions process in which the Land and environment courts assess environmentally hazardous operations

Environmentally hazardous activities are assessed The planning division of the various municipalities­ by the Land and environment courts. is the supervisory authority for environmentally Land and environment court of Östersund’s hazardous activities. highest supreme court for the region, 9 – 12 months The county council is the supervisory body for any (time taken). hydro activities. Environmental permits office of council’s supreme court for the region. Example Environmental permits office of Gävleborg county Assessment of Gävle Energi’s district cooling plant council’s supreme court for the region, locally, 6 – 9 in 2012/2013. months (time taken).

Additional information

Example of a permissions process for a about environmental impact due to increased ­manufacturing process. scope (company provided new materials).

One example is Gävle district cooling, in which the 2013 – 03: Information/remiss från MMD (efter att planning division in Gävle is the supervisory authority ­bolaget lämnad in tillståndsansökan till over the plant and the county council over the hydro MMD) activities. These activities were also assessed by the Land March 2013: Information/referral from Land and and environment courts. environment courts (once company had filed its permit application with Land and environ- Timeline ment courts.) June 2012: Consultation (called by the company) May 2013: Main negotiations Land and environment July 2012: County council rules no significant courts. environmental impact. June 2013: Court grants permit Land and environment December 2012: County council takes new decision courts. 22

Specific site information 5. Specific site information 5.1 Site name/designation Sandviken Tuna 3:1 5.2 Nearest urban area Sandviken 5.3 Address (include coordinates for the site) The site has no address, as the land has not been sub-divided. The coordinates have been taken from the World Geodetic System: 84 (WGS 84) Latitude 60.635389 Longitude 16.740699

6. Ownership and market price 6.1 The site is available on the market Yes. 6.2 Acquisition terms suggested for the site (purchase, rent, lease etc) Purchase. 6.3 Current ownership structure for the site Publicly owned (Sandviken municipality) 6.4 Contact information to current site owner Ann-Katrin Sundelius +46730781121 [email protected]

7. Site acquisition and building commencement

7.1 Acquisition process for the site 1) Decision to sell the site is taken by the municipal board. 2) Parties sign a purchase agreement. 3) Purchase agreement must be approved by the ­council. Any appeals must be received by the Property courts within three weeks of the decision date.

7.2 Today the site has been designated for 32 hectares of land have been allocated for industrial ­industrial activities. activities. A further 200 hectares are in the ­planning phase and are estimated to be ready by winter 2017/2018.

7.3 Processes/permits that need to be in place Building permission: max 10 weeks excluding any before building commences on the site. time for appeals (within 3 weeks of the decision). Water rights for cooling water from an external ­source: processing approx 1 year. Land ordinance and sub-division: approx 2 months including appeals time.

8. Site information

8.1 Size of proposed site (total and usable area). Total 232 hectares, usable area approx 220 hectares.

8.2 Location and general shape of the site Approx 1.5 km from central Sandviken. Rectangular shape, situated at around 10m above sea-level. 8.3 Height restrictions for constructions on the site The highest building height on the current detail planned space is 27m; chimneys may be erected up to 40m. 22 23

8.4 Current structures on the site A forest vehicle road through the site. The site ­otherwise has no buildings.

8.5 Any easements or obstacles on the site No easements on the site with the exception of (e.g. high-voltage power lines, buildings) ­Sandviken Energi AB having an easement to drive on the road. This will be removed during the detailed ­planning work. There are no buildings in the area. High-voltage power lines exist in the eastern part of the site. (see appendix 13.1)

8.6 Site topography On the existing detailed plan the ground rises from +20 at Järbovägen in the east to +35 and +42 in the west, on a stretch of about 700m. See map 13.2 on page 26.

8.7 Distance to, as well as type of, housing/ The nearest houses are at Norrsätra: apartment housing area from the site block (8 storeys), distance approx. 1 km in a southerly ­direction.

8.8 Type of soil of the site The area is primarily composed of moraine soil.

8.9 Current areas of usage for the site Forestry, the municipality is the owner of the forest.

8.10 Previous areas of usage Overgrown forest land.

8.11 Adjacent and surrounding areas of usage, A shopping area south of the site is currently being and tenants planned. The quarry situated to the west of the site is owned by Svevia. Road 272 (Järbovägen) adjoins in the east, and there is forest land owned by the municipality in the north and west of the property. Distance to the closest water protection area is approx. 2 km.

8.12 Potential synergies with nearby businesses, Sandviken Energi AB can provide district heating. e.g. usage of residual heating Sandviken Energi AB is open to discussions about residual heating from the factory.

9. Infrastructure

9.1 Existing road conditions to the site Existing forest vehicle road that connects to the site. The site adjoins road 272 (Järbovägen).

9.2 Existing railway conditions on the site Björksätra approx. 2 km from the site: a siding in to Sandviken Energi that can be used as an on and off-loading point. Storvik station: distance of 15 km or 10 mins from the site, 35 km or 30 mins from the Port of Gävle, 3.5 km to the E16 and 500m to road 68, railway junc- tion for Norra stambanan and Godsstråket (Freight line) through Bergslagen, approx 100 freight trains per day. (See also 3.2 on page 17.) 24

9.3 Closest road of European standard E16: new entrance and exit planned for construction during 2018, meaning a distance of 500m. E4: distance approx 25 km or 15 minutes.

9.4 Nearest national/international commercial Dala Airport (Borlänge): distance 80 km or 75 airport minutes. Stockholm Arlanda Airport: distance 167 km or 90 minutes.

10. Power infrastructure

10.1 Electricity distributor for the site. Vattenfall Eldistribution AB. 10.2 Ledningskapacitet (kV) Power line capacity (kV)

10.3 Distance to the closest located Substation In place (70/20 kV station). Stackbo, distance approx 15 km.

10.4 Access to active effect in the shortterm Approx. 70 MW at 130 kV and approx. 15 MW at (2020, MW) 70 kV, timeframe for a new 130 kV station is 12-24 months. For 70 kV there is a station in place.

10.5 Access to active effect in the long-term 300 MW, requires a new line to be set up ­alongside existing lines between the site and the 400/130 kV transformation station at Stackbo.

11. Water

11.1 Access to communal water Yes.

11.2 Available capacity today, communal water Sandviken Energi water AB is open to discussing (m3/h) requirements.

11.3 Estimated access to water from either streams The estimated water availability from Jädraån or ground water (m3/h) (Jädra River) is 28 800 m3/h.

11.4 Suitable water source in terms of quality, flow Jädraån (Jädra River): watershed/basin area and seasonal variation 893 km2, 70 % of which is forest lands, the average flow at the mouth is 10 m3/s. High natural values.

11.5 Distance to water source 1,8 km.

11.6 Any limitations or difficulties with the proposed For withdrawals of volumes of up to 600 m3/day, water usage. an application to the county council is sufficient. For withdrawals of volumes of more than 600 m3/day, an application must be made to the Land and environment courts. No particular natural protected areas nearby.

11.7 Summary status of proposed water recipient Receipt of purified process and cooling water to the for receipt of purified process and cooling water recipient will depend on how much needs to water. be returned and at which temperature. 24 25

12. Sewage

12.1 Access to communal sewers Yes.

12.2 Name and placement of relevant Hedåsens treatment plant approx 2.5 km from treatment plant the site.

12.3 Capacity in the existing treatment plant 30 000 p.e.

12.4 Current available capacity in the treatment Any communal cooling water should be processed plant for water equivalent to domestic locally. wastewater. Leftover water from a clean water source can be returned to the source. Domestic water for approx. 3 000 employees ­presents no problem, communal water that is used as cooling water must be processed locally, i.e. by the customer.

13 APPENDICES

13.1 INFRASTRUCTURE MAP 26

13.2 SITE TOPOGRAPHY

13.3 PLANNED DEVELOPMENT OF STORVIK’S LOADING CENTER AND LOGISTICS AREA. 26 27

13.4 32 HECTARES OF ALLOCATED INDUSTRIAL LAND OF 232 HECTARES ”We look forward to continuing to work with you on your establishment here in Sandviken municipality. We have put together a good implementation team to respond to your needs as fully as possible.”

Peter Kärnström / Chair of the municipal council

Heavy traffic that runs daily between Borlänge and the Port of Gävle, charged en route at the Electric Highway just outside Sandviken.