Chemical industry snapshot
A great economic impact
With revenues of 鈧�36.4 billion in 2022 and 鈧�17.7 billion of exports in 2022, the chemical industry is Finland鈥檚 second largest export sector. It provided 22% of the manufacturing sector’s output and 22% of the exports of goods.
Striving for innovation and carbon neutral chemistry
The chemical industry in Finland has set an ambitious goal. Our aim is to achieve carbon neutrality and a net positive impact on nature in our industry in Finland by the year 2045. Read more:
Finnish chemical companies drive and create growth through the introduction of new, innovative products and services. And the sector has become relatively more important as other industries, such as electronics and forest products, have declined.鈥�
Ranging from oil re铿乶ing to cosmetics
Output of the Finnish chemical industry ranges from chemicals and chemicals products, oil re铿乶ing, pharmaceuticals, plastics and rubber products, paints and coatings, to detergents and cosmetics. Basic chemicals include water treatment chemicals, fertilizers, titanium dioxide and polyole铿乶s. Finnish companies are leaders, for example, in renewable diesel as well as in pulp & paper chemicals.鈥�
Underpinning other sectors
Chemicals are a vital enabler of other Finnish industrial sectors, notably machinery and metal products, electronics, and pulp and paper.鈥�
Clustering in the south and west
The Finnish chemical industry directly employs 34,100 people. There are major chemical clusters in Southern and Western Finland, in Porvoo (oil re铿乶ing and petrochemicals), and the Turku area (pharmaceuticals, oil re铿乶ing), while a high-tech chemical cluster is found up on the west coast at Kokkola.鈥�
Investing in renewal
R&D spending is around 鈧�320-420 million per year. In total, considering replacement investment to the machinery as well, the chemical industry鈥檚 investments were 鈧�1,2 billion in 2022.鈥疧ne of the main drivers of the investments is to provide carbon-free electricity.
How are we doing?
Strengths
- Well-educated and highly skilled labour force鈥�
- Good collaboration with universities鈥�
- Very good research and university structure. Good physical and social infrastructure鈥�
- Operational e铿僣iency and safety鈥�
- Ability to satisfy sophisticated consumer demands鈥�
- 厂辫别肠颈补濒颈蝉补迟颈辞苍鈥�&苍产蝉辫;
- Strong mining industry potential, especially in the battery value chain鈥�
- Well-planned infrastructure, clean energy production with competitive energy price supporting new industrial investments and development of hydrogen economy
- Strong background in development of technologies and solutions for digitalisation
- Location next to Arctic sea routes, knowledge of the Arctic鈥�
- Small and compact market for testing鈥�
- Positive public attitude towards the industry鈥�
Challenges
- High logistics prices鈥�
- Location on the Northern edge of Europe鈥�
- Lack of road connection to Central Europe/reliance on sea transport鈥�
- Strong reliance on imported raw materials
- Pressure to increase taxes and fees due to public sector 铿乶ancial de铿乧it鈥� 鈥�
Our contribution to a competitive Europe
Developing sustainability
The continuously developing Responsible Care sustainability programme has successfully guided the voluntary development work within companies in the chemical industry in Finland for 33 years. The programme covers 80% of the production within the Finnish chemical industry. The Responsible Care programme includes indicators e.g. for safety and well-being, carbon neutrality and circular economy at industry level.
Read more from website
The chemical industry in Finland strives for nature positive carbon neutrality by both reducing carbon footprint and increasing handprint. In practice this means reducing our own carbon footprint, that is, our greenhouse gas emissions. The impact is 4-5 times greater by increasing our handprint through products and solutions that reduce the customer鈥檚 emissions. New raw materials, new technologies, and circular economy will play an important role. Our national Transition Pathway includes building blocks of a successful Green and Digital Transition for chemical industry in Finland.
As an enabler of all other industrial sectors, the chemical industry is highly integrated into other sectors, and smart specialisation is a natural way for a small country such as Finland to compete and succeed amid global competition.鈥�
Going green
Low-emission and renewable fuels, water treatment, circular economy solutions including closed-loop industrial processes and use of waste- based raw materials all o铿er growth opportunities.鈥�
