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This CBI fact sheet aims to introduce electronic manufacturing service (EMS) providers from developing countries (DCs) to the electronic manufacturing service market in Finland. It is a medium-sized market in the EU; Finnish production accounted for about 5-10% of total EU EMS production in 2008. The best trade channel for DC exporters is to partner with local EMS providers.
Market characteristics - EMS
Finland is a small market for electronic assemblies in the EU. It is the sixteenth largest, behind Austria and Ireland, but ahead of Portugal and Estonia. Apparent demand in 2010 totalled 1.1 billion, after an annual decline of 19% in the period 2007-2010. Finland is a small producer of electronic assemblies in the EU. It is the thirteenth largest, behind Denmark, but ahead of Spain and Romania. Production in 2010 totalled 968 million, after an annual decline of 11% in the period 2007-2010. Finland accounted for 5.0-10% of EU EMS production in 2008, or equivalent to around 1.5-3.0 billion of industry turnover. Historically, EMS production in Finland has been highly dependent on the outsourcing strategy of the countrys leading electronic equipment producer, Nokia. However, since 2009, when Nokia reduced the subcontracting activities to EMS providers, the role of Nokia in Finnish EMS production has been limited. As a result of the presence of Nokia in the country, a major competence of the domestic EMS industry is communication electronics. This dependency on Nokia was also a major reason for Elcoteqs (Finlands largest EMS provider) bankruptcy in October 2011, as Nokia switched to cheaper Asian suppliers a few years ago. Even though the Nokia sales show a massive decline, Finland is still known for a free climate for technical innovation, as Nokia used to both lead and swallow up technical innovation. Communication electronics remain important in the Finnish EMS industry. Other competences of the Finnish EMS providers lie in industrial automation, measuring equipment and medical electronics. EMS in Finland can now be best characterised by low volume high mix production. Finland is home to several large and medium-sized EMS providers. Foreign multinational providers operating in the country include Partnertech (complex mechatronic systems), Foxconn (computer, communication and consumer electronics), Flextronics (industrial, aerospace, medical and industrial), Sanmina-SCI (communications, computer, automotive, medical and defence) and Enics (industrial and medical). In addition, it is home to Scanfil (communications; ranks 38th in the world), Incap (equipment in energy Electronic assemblies are used as an indication for EMS.
efficiency; ranks 8 in Scandinavia), Darekon (medical and industrial electronics; has a facility in Poland) and PKC Group (medical and industrial). Relocation to lower cost countries has been an important on-going trend in Finland where the phenomenon is known as Chinese syndrome. Not surprisingly, Asia is an important location, chosen by Nokia, Incap, Perlos and Aspocomp, to name but a few. The on-going price war in some market segments (mainly communication electronics) has been the main driver of production relocation. In addition to Asia, another important destination of electronics high volume low mix production is the Baltic region. As a result of large drops in imports of electronic assemblies in 2007 and 2009 (-47% and -31% respectively), in the period 2006-2010 imports declined by 18% per year, which was a higher decline than the development in the EU on average. The year 2010 was marked by high growth (26%) and imports amounted to 300 million in that year. Imports from developing countries (DCs) totalled 56 million in 2010. They dropped faster than total imports in the period under review, thus the share declined (from 36 to 19%). China accounted for 94% of all imports coming from DCs. China was followed by Thailand (2.5%), Croatia (1.0%), India (0.7%), Malaysia (0.5%), Mexico (0.3%), Brazil (0.2%) and the Philippines (0.2%). Of the main DC suppliers, only Croatia experienced growth (+82% per year). Labour costs for electronic assembly activities in Finland are among the highest in the EU.
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product. DC EMS providers should explore which Finnish EMS providers don't have a global manufacturing strategy yet, since these companies may still be looking for cooperation partners. The best way to approach them is visit or participate at trade fairs in Finland, or at the EUs leading electronics fair Electronica (http://www.electronica.de), which is held in Munich, Germany every even year (November). The Internet is a valuable source to find prospects. Useful websites are: Alihankinta - http://www.alihankinta.fi - subcontracting fair, including EMS. Select English language, go to Exhibitors 2012, select Product Groups, and look at the electronic section. Held in in Tampere annually in September. Association of Suppliers of Electronic Components and Measuring Equipment - http://www.elkomit.fi - go to Jsenet for a list of members. Finnish Foreign Trade Agents Federation - http://www.agenttiliitto.fi association of commercial agents, importers and distributors. Choose the English version and click on Partners to find companies by product groups. Luettelomedia - http://www.luettelomedia.fi - Finnish company directory; search with Electronics and components. Sopimusvalmistus - http://www.expomark.fi - subcontracting fair, including EMS, held in Oulu every even year (May). Subcontractor - http://www.easyfairs.com - manufacturing trade fair, including the IT sector, held in Helsinki yearly (March). Tekniikka - http://www.jklpaviljonki.fi/tekniikka2010 - fair for automation and production technology, held in Jyvskyl every even year (October).
Interesting players
Finland hosts several EMS providers. Examples are: Aspocomp - http://www.aspocomp.com - EMS provider that produces HDI, RF applications, metal-back heatsink PCBs. Enics - http://www.enics.com - EMS provider, headquartered in Switzerland. Incap - http://www.incap.fi - EMS provider. Mariachi - http://www.mariachi.fi - EMS provider that is specialised in medical electronics. Mitron - http://www.mitron.fi - designs and produces electronics for information and security systems in transport. MLB - http://www.mlb.fi - EMS provider. PKC - http://www.pkcgroup.com - EMS provider. Scanfil - http://www.scanfilems.fi/eng - EMS provider. Sirico - http://www.sirico.fi - EMS provider.
Source: CBI Market Information Database - www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer Publication date: 09.12.2011 Compiled for CBI by Facts Figures Future in collaboration with Mr. Guenther P. Fandrich.