Lahti’s strong environmental brand is now attracting responsible businesses.

Brand is a concept familiar from the world of marketing, and its meaning can be explained like this: a buyer wants to buy a product bearing the brand name – even if another brand was just as good, and perhaps even cheaper. Images matter.

Lahti’s environmental brand is not based on images, but on comparable facts. Companies want to invest in the region after having carefully reviewed various indicators. So, let’s head out to where it is best, by many a measure, to do profitable business that will be in demand in the future.

Lahti-based ceramic substitute for bathrooms

Woodio, a manufacturer of ecological bathroom fixtures, is investing around seven million euros in a new factory in Lahti to ensure that their production capacity can meet their growth and internationalisation targets.

Woodio’s innovation, a 100% waterproof wood composite, is a more environmentally friendly alternative to high carbon footprint materials such as ceramics in bathrooms and other interior spaces. The new solutions appeal to renovators and builders alike.

Woodio’s production staff was able to move from the Konala pilot plant in Helsinki to the Syväoja industrial estate in Jokimaa in early May. The factory was started up with the current staff. When operating at full capacity, the number of employees at the factory will increase to around fifty, says CEO Terja Koskenoja.

– We found the best solution for our company in Lahti. We considered a wide range of alternatives all over Finland, but Lahti was ultimately the obvious choice because of its pro-business attitude. Good support services for relocation and proximity to the Helsinki metropolitan area were among the great advantages of Lahti, Koskenoja says.

The positive spirit of cooperation between the different operators in the city and the genuine willingness to make it possible for Woodio to settle in by finding the most suitable solution for the factory facility made a big impression. One of these operators was Lahti Region Development LADEC, whose Head of Client Management for Relocation Services Marian Vainiomäki is highly praised by Koskenoja.

– I don’t think we would be here without her. Marian kept her finger on the pulse, finding the best solution among both existing properties and new building opportunities, and seamlessly managing the communication between the different players. It was an energetic and friendly partnership from start to finish.

Thanks are also due to the City of Lahti, which has helped employees who have moved from elsewhere to their new home town with housing and spouses’ jobs, among other things. Koskenoja hopes that the business-friendly atmosphere will persist and that all operators in the region will actively tip each other off about potential partners and available projects.

Ren-Gas, another green transition company coming to Lahti, found such a good partner in the city that it was easy for them to make the ultimate decision to relocate.

Towards carbon neutrality with renewable fuels

Nordic Ren-Gas is currently planning a modern Power-to-Gas plant in Lahti. Lahti Energia is a perfect partner for the innovative enterprise.

Starting in 2028, the plant will produce renewable synthetic methane, hydrogen, and CO2-free district heat generated using waste heat. The plant will be part of the production and distribution chain of clean P2X gas fuels for heavy transport. Ren-Gas is also part of the Lahti GEM network, which is the electric transport cluster in the Lahti region.

The planned location of the plant is on the Urasa site, in the immediate vicinity of the Kymijärvi power plant. The final engineering design of the project and the updating of the environmental permit decision are currently underway.

– The willingness of Lahti Energia to actively participate in the development of the hydrogen sector and its highly ambitious targets to minimise emissions from heat generation have made our plans possible. The waste heat generated in our process can be used to produce carbon dioxide-free district heat, says Ren-Gas Project Development Manager Antti Ruismäki.

Since its establishment in 2021, Ren-Gas’ strategy has included working together with Finnish energy companies. Lahti as the site of the plant and Lahti Energia were among their first partnerships.

Lahti Energia is not a first-timer in such innovative cooperation. Together with Hartwall, they have built a biogas plant at a beverage factory, which is also a good example of circular economy. The mash from the beer brewing process is used in biogas production, and the remaining nutrient-rich material is sent to fields to grow more barley, the raw material for beer.

Emissions reductions for heavy transport

Critical factors for Ren-Gas were the availability of bio-based carbon dioxide and sufficient electricity connections, as well as a district heating system that could make use of the carbon dioxide-free heat generated at the plant.

According to Ruismäki, the plot found in Lahti near the power plants of Kymijärvi lake is perfectly situated to meet these criteria.

In addition, a natural gas transmission network runs right next to the plant site, into which the produced renewable e-methane can be fed. Ren-Gas is also working on other production plant projects in different parts of Finland. Lahti will be the second production plant to open after Tampere.

– In Lahti, we will be able to benefit from the lessons learned with the first plant. The Lahti plant will be twice as big as the Tampere plant, which means it will produce double the amount of hydrogen and renewable e-methane, Ruismäki says.

The use of renewable e-methane will reduce emissions in sectors such as heavy road traffic and maritime transport. The industry is new, and designing and building the first plants is expensive. Public support is also needed to genuinely drive the shift towards zero emission fuels.

The Lahti project has received a 28-million-euro energy grant from the Ministry of Economic Affairs and Employment. Funds have also been received from the first ever EU hydrogen auction.

– 132 projects from the EU region took part in the auction, of which seven were approved for funding. Our Lahti project was the most competitive project in the entire EU-wide auction, meaning it needs the least support to produce renewable fuels to replace fossil fuels.

According to Ruismäki, Lahti Energia’s ambitious targets for emission reductions in heat production are an excellent basis for partnership and also an important demonstration of the values shared by the partners. Naturally, the project also needs support from the city, which it has indeed received.

– Lahti is the European Green Capital 2021, which I think is a clear indication of the city’s willingness to promote environmental issues, such as green transition projects. The decision to locate in green Lahti was thus an easy one, and cooperation with the city has worked out extremely well, Ruismäki says.

Ren-Gas deals directly with the city in matters such as planning and building permits, but also indirectly in many other ways. For example, the city has helped with the practical arrangements for public meetings taking place in connection with the environmental impact assessment (EIA) process.

New opportunities for established companies too

The decisions by Woodio and Ren-Gas to locate in Lahti, which have greatly delighted the locals, are not coincidences, but the fruits of persistent work efforts that can now be enjoyed in full.

According to Elina Laavi, Director of Vitality for the City of Lahti, the mutual benefits of economic policy and environmental objectives are now being realised in Lahti.

– Woodio’s plans for strong growth will create jobs, but also offer opportunities for existing businesses in the region to become part of the company’s value chains. Ren-Gas, on the other hand, enables new kinds of industrial symbioses in addition to its own process. The project will inject a strong boost to the development of the circular energy economy in Lahti, Laavi rejoices.

Laavi is not at all surprised to hear about the excellent service Woodio has received at LADEC. She knows that this is a finely tuned location service, where interested companies receive first-class support for their decision to come to the Lahti region.

– There is close cooperation between the planning department, the business premise provider Spatium, the business advisory and relocation service provider LADEC, and the city and local universities. University partnerships provide businesses with high-quality research, development, and innovation opportunities. Whatever the customer’s problem, our universities are likely to be able to help, promises Laavi.

The location of Lahti, the local university, and the sustainability mindset are all strong attractors in the world of business. The city is just the right size to meet the needs of businesses without the different players becoming siloed.

Carbon-neutral Lahti 2028, waste-free Lahti 2050

New things are happening in Lahti all the time now, as new companies arrive in the city. However, the Director of Vitality wants to point out that many companies that have been operating in the region for a long time are also genuine pioneers of sustainable growth.

For example, Isku is an exception in its sector, producing furniture without a separate environmental permit, as its operations are certified as non-toxic and generating low emissions. Kempower, part of the family-owned Kemppi Group, is an internationally renowned driver of electric transport. Among established Lahti-based companies, Stalatube for example has continuously developed its products in a more environmentally friendly direction.

– Food industry companies on the other hand can rely on the clean, high-quality raw materials available in our environment, which are in high demand on the market, and develop new innovative products based on them, Laavi continues.

The City of Lahti will be the first carbon neutral city in Finland in 2028, when the Ren-Gas investment is carried through. According to Elina Laavi, the strength of the sustainable growth business lies in meeting future challenges, even if the activity were not yet directly reflected in for instance emissions measurements.

The Woodio investment for its part is an excellent example of sustainable business, which also contributes to the achievement of the sustainability goals of the City of Lahti. Lahti is aiming for zero waste by 2050. Given this, it is circular economy companies exactly like Woodio that are very welcome to get established in Lahti.

– We welcome all kinds of enterprises to the Lahti region with whom we can work together through the Climate Partnership Network and the EU Cities Mission. Lahti wants to find companies that add value in many directions and also complement the Lahti region ecosystems with their competencies.

Finland set to become a green growth success story

The Confederation of Finnish Industries (EK) wants to make Finland into a pioneer of the green transition. Ulla Heinonen, Director of Green Growth at EK, is responsible for finding ways to make Finland and its different regions as attractive as possible for environmentally sustainable investments and the circular economy.

According to Heinonen, key considerations here are the consistency and long-term persistence of regulation and policymaking.

– An operating environment that is attractive to economic activity features solid basic infrastructure and zoning necessary for economic activity. In addition, companies need skilled employees and partners to build new ecosystems, Heinonen concludes.

One recent example of relocation was seen in July, when Fazer announced the construction of a new chocolate factory in Lahti.

A Clean transition chocolate factory to be built in Lahti

Fazer’s investment of around 400 million euros will not only create jobs and bring in tax revenue to Lahti, but will also establish environmentally friendly industry in the area. The factory represents sustainable development in its field and has received financial support from the Business Finland clean transition investment programme.

– Lahti’s logistical placement and its role as Finland’s leading environmental city are significant strengths, says Christoph Vitzthum, President and CEO of Fazer Group.

The new factory will be carbon neutral in terms of its own energy use thanks to electrification and extensive energy recycling. New technologies increase the efficiency of raw material use and significantly reduce manufacturing waste.

The factory will apply for the BREEAM environmental certification, one of the most prestigious environmental certifications for buildings in the world. Fazer has also created a green financing framework that allows the company to take advantage of various forms of green financing.

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