22:59 GMT +319 November 2018
Listen Live
    Finnish Flag

    Taking Care of Business: Finnish Firms Mull Moving Production to Russia

    © Flickr/ Iago Laz
    Europe
    Get short URL
    3241

    Finnish companies working in the Russian market are considering moving their production facilities to Russia, Finnish national broadcaster Yle wrote.

    With the depreciating ruble making Finnish-made products too expensive for Russian consumers, many Finch companies now face a dilemma whether to exit the Russian market or invest in local production, Yle reported.

    Russia’s weakened economy is thus giving the Finns a chance to slash expenses on workforce and materials, Yle added.

    “If you have a high-quality product which is going to be in good demand, then you should think about moving production to Russia,” the Finnish-Russian Chamber of Commerce’s deputy executive director Jaana Rekolainen said.

    Finland’s dairy group Valio and cereals maker Myllyn Paras earlier moved their production facilities to Russia, and many other firms are also showing a great deal of interest in the Russian market and are even setting up sister companies in Russia, Yle wrote.

    With nearly 3 billion dollars’ worth of direct Finnish investments, Russia is now the sixth largest recipient of Finnish investments abroad.

    According to the Finnish-Russian Chamber of Commerce and the Helsinki Business Hub investment agency, there are an estimated 650 Finnish companies now operating in Russia.

    Related:

    Finland's Dairy Giant Valio to Cut 320 Jobs Amid Russian Food Ban
    Tags:
    production facilities, Finnish companies, investments, Myllyn Paras, Finnish-Russian Chamber of Commerce, Valio, Helsinki Business Hub, Jaana Rekolainen, Finland
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik