Finnish Majors Arriving To Strike Alliances

Konecranes, a global player in the business of manufacture of cranes, is currently negotiating with the government to clinch the buy-out of a crane division in one of the public sector undertakings, said its CEO Stig G Gustavson.

Similarly Outokompu, the first state undertaking to be privatised, and now a global player is looking to make its entry into the Indian mining sector. Ahlstrom Corporation, a technology and paper company, is negotiating with J K Industries and Ballarpur Industries (among other paper manufacturers in the country) for a joint venture in the country. The joint venture is to be announced next month, officials said.

 

The 38 CEOs will be accompanying Finnish President Martti Ahtisaari on his first ever four-day state visit to India beginning November 24. While business issues will be the focus, the President will also discuss Indias stand on CTBT, an investment protection treaty and seek an update of the existing double taxation treaty.

Senior foreign department officials also disclosed that the President would also discuss Indias stand on the new issues to be discussed in the WTO meet in Singapore. Officials maintained that Finland was seeking multilateral rules for investment.

They also stressed that Finland was one of the very active members in the OECD. This body has been entrusted with the task of thrashing out a model multilateral agreement on investment (MAI). It will figure in the discussions in Singapore. But the MAI will be ready only in spring 1997, he said.

To ensure better cooperation among the industrial players in the two countries, the Confederation of Finnish Industry and Employers (CFIE) will sign an agreement in the presence of finance minister P Chidambaram. This will pave the way for setting up of the Joint Business Council, said Erik Forsman, director at CFIE.

According to him, Finnish industry had concentrated in niche activities to facilitate state-of-the-art technology build-up. Only can then these companies dissipate the technology globally. We have so far established 500 units abroad, he added.

Taking cue from the economic crisis which was triggered by the collapse of Soviet Union, Finnish firms have been seeking to access new markets. In their view, the post reform India offered a bright prospect, especially in infrastructure.

Finland is a highly industrialised country, with technological know-how and a good partner for India in industry, especially in capital goods and infrastructure. It is a first high-powered delegation under the aegis of a Finnish president to visit India, said Georg Ehrnrooth, president and CEO of Metra Corporation and chairman of the CFIE.