Investments Giant investment in Finland: EUR 400 million plant to be built in Vantaa with Chinese money – Finland’s NATO membership emerges in negotiations

Silicon wafers manufacturer Okmetic announced on Wednesday that it will build a new factory of more than 40,000 square meters in Koivuhaka, Vantaa. The value of the investment is almost EUR 400 million.

Okmetic estimates that the investment will more than double the company’s production capacity and turnover and bring more than 500 new jobs to Vantaa. The new factory will be built on the same site in Koivuhaka, where the company’s factory, completed in 1997, is located.

Silicon wafers are being made into microcircuits, which have been in short supply since the coronavirus pandemic escalated in the spring of 2020. Roughly 400 of Okmetic’s new jobs are in factory production and 100 employees.

“With the investment, we anticipate the growth of the semiconductor industry market. Our customers are many of the largest semiconductor companies around the world. Our silicon wafers are being used the most in the automotive industry, as cars are increasingly becoming computers that require a lot of electronic components, ”says the CEO. Kai Seikku.

According to him, the new plant will strengthen Okmetic’s market position and improve the conditions for business development in Finland.

Company estimates that the semiconductor market will continue to grow, breaking the $ 600 billion mark for the first time this year.

The growth of the semiconductor industry is being driven by fifth-generation (5g) mobile phone technology, the Internet of Things and self-driving vehicles.

“This is a high value-added production that aims for an EBITDA margin of over 40% over a long period of time. In Finland, labor costs are not very low, but in the end the investment was decided by Finnish engineering expertise, which offers us important added value, ”says Seikku.

Construction of the plant will begin at the end of this year and is scheduled to be in production use in 2025.

Okmetic has been owned since 2016 by the Chinese National Silicon Industry Group.

About investing When deciding, the Chinese owner also raised Finland’s security policy.

“Never before in my business have I had to talk about Finnish security policy in connection with an investment decision. The Chinese owner was concerned about security and Finland’s country risk, but seemed to welcome Finland’s likely accession to NATO, as there is no threat of war here in the future. ”

Okmeticin Last year, the turnover was EUR 128 million and the company employs about 600 people. Over the past five years, the company has invested more than EUR 100 million in increasing the production capacity of the Vantaa silicon wafer plant.

“Investment is also a European effort towards stronger self-sufficiency in the semiconductor value chain. However, our main focus is on the international market, ”says CEO Seikku.