An EU-funded regional project is supporting the competitiveness and growth of small and medium-sized service businesses in industry and mining in Lapland, Finland. The aim is to promote the sustainable refining of natural resources and recovered secondary raw materials through multi-discipline cooperation ‘clusters’ of businesses. The achievements of the project include developing Arctic industry and a circular economy-friendly cluster, which have promoted several sustainable pilots in the region.
Sustainability, competitiveness and business growth in industry and mining in Lapland
- 25 May 2018
Arctic industry and circular economy cluster further developed in the ABC project brings together all Laplander large-scale industry players – including process and mining industries and the energy sector. The needs and challenges of these industries fostered responses from almost 200 Lappish industry and mining service companies, which are in the core development focus of the project. The progress created in the project has enabled the establishment of a centre for the industrial circular economy and the bioeconomy, first of the kind in Finland, in city of Kemi. A network of companies and other stakeholders form the ecosystem of different industrial value chains – the clusters and the centre glues them together to enhance the sustainable circular development.
The project is run by the development company Digipolis. In its early stages, project managers interviewed the large scale industry enterprises (LSEs) in the region in order to understand their business needs. More recently they met with small and medium sized businesses (SMEs) in industry and mining sectors too. The project has organised several workshops, joint exhibitions and field trips for groups of enterprises, presenting opportunities to learn and network.
These activities have created associations between companies, in which the wastes or by-products of one company will become the raw materials for another. This process is called industrial symbiosis. Its activities generate a large amount of revenue in the region - one cluster based in the Kemi-Tornio region alone accounts for EUR 700 million annually. Industrial symbiosis contributes to a circular economy, which promotes sustainable activities such as the reuse of industrial materials.
Ripe with potential
The ecosystem of Arctic industry, which is core to the Kemi-Tornio region’s circular economy innovation platform, is the world’s most northerly hub for bio, mining and metal industries; it has vast deposits of natural resources. These industries create excess by-products and residues. The project promotes the benefits of re-using these excess materials, which are used in other industries in the region. The materials can be re-used in many activities including agriculture and road construction, landscaping and to seal layers on landfill sites.
Lapland has the potential to become one of the leading regions in the sustainable exploitation of natural resources. There have been more than 300 meetings with companies in the region since this project was conceived. Over 30 companies are running sustainability pilots as a result of these meetings while another 70 more are participating in development activities, which focus on cooperation between emerging industries. The project is still ongoing and has created 15 jobs so far. There are plans to create 25 additional positions before it finishes.
A model for sustainability and monitoring progress
The cluster based in the neighbouring towns of Kemi and Torino has been highlighted as a model concept for sustainable development by the Finnish innovation think-tank Sitra and the Nordic Council of Ministers. Sitra promotes education in the industrial circular economy activity on a national level.
It has named the Kemi-Tornio cluster as one of the key projects of the national road map to develop a circular economy. Kemi-Tornio’s innovative activities are responsible for 80 % of Lapland’s industrial production. A modern biorefinery could possibly be built in Kemi in 2020. This would take by-products and residues from other industries. It is estimated that wood and leftover materials from the forest industry could be converted into 200 000 tonnes of biofuel each year.
The European Cluster Observatory (ECO) and the European Secretariat for Cluster Analysis (ESCA) has helped the project to develop its cluster activities. There has also been deep cooperation with Lappish industrial and mining service companies. It is aligned with Lapland’s Arctic Specialisation Programme to boost competitiveness and innovation in the region.
Total investment and EU funding
Total investment for the project “Arctic Business Concept (ABC) - An arctic cluster of mining and industry service businesses” is EUR 1 622 657, with the EU’s European Regional Development Fund contributing EUR 1 215 776 through the Sustainable growth and jobs 2014-20 – Structural Funds programme of Finland (ERDF).