Creating new business in Central Karelia

Central Karelia is emerging from the economic recession by attracting new businesses and creating new jobs. Through the “Creating New Business in Central Karelia” project companies are being helped to strengthen their investment and development activities in order to ensure their future.

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The Puhos 2013 Project is attracting new companies from the energy and environment sectors. The Puhos 2013 Project is attracting new companies from the energy and environment sectors.

" The ultimate goal of these projects is to attract companies to the region and create new jobs. As of 2013, we have been in contact with 431 companies and have put 140 people back to work. "

Antti Suhonen, Project Manager, Puhos 2013

Targeted companies are actively planning to establish themselves in the sub-region and committed to hiring the laid off workforce. The project also provides support to those companies who are still operating and planning on hiring new workforce. 

Trickledown effect

Based on the “Creating New Business in Central Karelia” project’s success, several other projects emerged. The Puhos 2013 project aims to develop the Puhos industrial estate, which became nearly vacant following the recession, into a modern hub generating new business, jobs and tax revenues for the benefit of all of Central Karelia. The project has a particular focus on the energy and environment sectors, including new energy production facilities and recycling centres.

In support of the Puhos 2013 project, the Akseli project is dedicated to ensuring the availability of a competent workforce for businesses in Central Karelia and to promote the employment of local residents. The project works with companies to study specific workforce needs to arrange training. The project also provides training for unemployed persons, with the aim of providing the necessary skills to improve their employability.

When the global economic crisis struck in 2008, the Central Karelia region was hit particularly hard. Industry and businesses closed up shop and unemployment skyrocketed from 12.4 % to 17.6 % – leading the government to declare the area a region of sudden structural change. Thanks to the project cluster for structural change, more than 150 new jobs have now been created in the region.

Total investment and EU funding

Total investment for the project “Structural Change in Central Karelia project cluster: creating new business in Central Karelia, Puhos 2013 and Akseli” is EUR 1 200 000, with EUR 705 000 coming from the EU’s European Regional Development Fund through the Operational Programme “Eastern Finland”, priority axis 2 “Promotion of innovation activity and networking, and reinforcing knowledge structures”, for the 2007 – 2013 programming period.

Draft date

30/09/2014