Government grants EUR 2 million to Kemi-Tornio to manage sudden structural change – Total funding EUR 12.75 million

On 29 June 2021, the Government granted EUR 2 million to the Regional Council of Lapland for the development of the Kemi-Tornio region. In all, the Government has allocated EUR 12.75 million to the area to manage the sudden structural change caused by the closure of the Veitsiluoto paper mill in Kemi.

The sudden structural change measures were launched immediately after Stora Enso announced its plan to close the paper mill in April. Local operators and the Ministry of Economic Affairs and Employment quickly formed a group to assess the situation and to formulate an action plan to re-employ the workers and promote the vitality of the region. 

Summary of funding from the Ministry of Economic Affairs and Employment: 

• Employment appropriations, EUR 2.55 million (decision by the Ministry of Economic Affairs and Employment)
• National business aid authorisation, EUR 4.2 million (Government session on 23 June 2021) 
• Business aid authorisation from the European Regional Development Fund, EUR 4 million (decision by the Ministry of Economic Affairs and Employment)
• National business aid authorisation, EUR 2 million (Government session on 29 June 2021) 

A development plan by local operators in Lapland presents ways to create new jobs to replace the lost ones as quickly as possible, and to thereby minimise the negative effects of the mill’s closure. 

According to the plan, new jobs will be created through investments in the industrial circular economy, basic industry and tourism as well as the commerce and services sectors. Support from the State will be allocated to promote business renewal, innovation and skills. In addition, part of the funding will support capabilities in green transition, digitalisation and utilisation of technology. These measures will strengthen entrepreneurship and the creation of start-ups. Individual and social support are important in the early stages of a sudden structural change. Later, individual employment, training and retraining solutions also gain in significance.

Inquiries:
Jenny Hasu, Special Adviser to the Minister of Economic Affairs, tel. +358 40 658 3510
Timo Nevaranta, Special Adviser to the Minister of Employment, tel. +358 50 574 1430 050 574 1430
Marjukka Aarnio, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 29 504 7150