Oulu Investor Guide for Trade and Services 2012

Dynamic Economic Centre in Northern Scandinavia

The Growing International City of Oulu is Worth Investing In!

Fast-growing Commerce and Services Sector

A dynamic economic centre in Northern Scandinavia, with plenty of potential for growth, Oulu is located at the heart of the extensive market area of the Barents Region. Oulu is one of the fastest growing urban areas in Finland, in the immediate vicinity of Sweden and Norway to the west, and Russia to the east.

Oulu is surrounded by an international market area that serves circa one million consumers and tourists. Thanks to flight connections to a wide variety of destinations, access is easy to the rest of Europe and the metropolises of the world.

City CentreGalleria and Pallas blocks open for investment

Updating the city plans of two major blocks in the city centre of Oulu, Galleria and Pallas, will be opening up major private and public investment opportunities.

The city plans have been approved in March 2012, after which construction will progress stagewise in several blocks at once. This will create a lively new cluster of housing, offices, commercial premises and other services, with shopping centres and roof gardens. Maintenance and parking facilities will be located underground, which will enable variety in street-level design and attractive shopping courtyards within the blocks.

Site in figures:• Construction period: 2012–• Land area: 5 ha• Floor area (residential): 25,000 floor sq.m• Floor area (commercial): 50,000 floor sq.m• Residents: 500• Jobs: 1,200

• Source: Arkkitehtitoimisto Laatio Oy

Kivisydän Underground Parking for 900 Vehicles

Investment by the City offers major opportunity for private investment

A modern, spacious and accessible parking facility with 900 spaces will be built in the bedrock deep under the city centre of Oulu. Oulun Pysäköinti Oy is developing Kivisydän (‘Heart of Stone’) as a high-quality parking garage whose functionality, usability and attractiveness is the best that Finland can offer. The facility will have two two-way access ramps. In addition to parking spaces, the facility will have a maintenance accessway, maintenance facilities for the city blocks above, and a civil defence shelter. An investment of EUR 73 million by the City of Oulu will create more than 1,000 jobs and open up opportunities for private investment totalling EUR 300 million. Construction is scheduled to start in February 2012 with the selection of the contractor, and the facility is scheduled for completion at the beginning of 2015.

Site in figures:• Construction period: 2012-2014• Land area: 140 000 sq.m• 900 parking spaces • Air-raid shelter 3000 sq.m

Rotuaari Invariably Growing Shopping Street

The Pedestrian Street Rotuaari Reaches 2 ha Land Area The renovation of the Rotuaari pedestrian street is continuing in 2012 in the Stockmann block on Kirkkokatu and on Kauppurienkatu. The first stage, Rotuaarinaukio square, was completed in 2011. The new outdoor stage and defrosting system are in operation. The renovation will improve the general appearance of the street and keep its high-quality paving free of snow; it will be fully accessible, with improved lighting and street furniture.

Site in figures:• Construction period: 2011-2012• Land area: 2 ha

Raksila - Travel CentreTravel Centre to link passenger terminals

A Travel Centre linking the rail and bus stations of Oulu underground will offer a modern setting for businesses, offices and housing in the city centre. The rail terminal will be located on the ground floor at the northern end of the Travel Centre. The flats will be in six-storey blocks, from the 2nd floor upwards, and they will have roof gardens above the commercial premises. The commercial premises will be on the ground and 1st floors and on the 1st basement level.

The Travel Centre will have a total of 21,700 sq.m of floor area, of which about 10,000 sq.m will be commercial space. There will be about 400 parking spaces underground under the city block and Rautatienkatu. The contractor, Lemminkäinen, will be launching the worksite in spring 2012, and the new Travel Centre will be ready to welcome passengers in 2014.

Site in figures:• Construction period: 2012–2014• Land area: 7,600 sq.m• Floor area (residential): 9,000 sq.m• Floor area (commercial): 12,700 sq.m • Residents: 150• Jobs: 250

• Source: Arkdesign, Arkkitehtuuritoimisto Juha Paldanius Oy

The core of Hiukkavaara: the practical RadioCity

RadioCity, a development with about 3,600 new flats, will become the core of Hiukkavaara, an energy-efficient project with a northern identity and integrated wireless technology. This core will create a modern and sustainable mix of housing, municipal services, private services and jobs. The core will be surrounded by urban low-rise residential housing. The urban planning is geared towards walking, cycling and public transport.

Site in figures:• Construction period: 2015–• Land area: 270 ha• Floor area (residential): 330,000 floor sq.m• Floor area (commercial): 25,000 floor sq.m• Residents: 6,300• Jobs: 900

Pioneer in community housing and a creative era

Oulu will be given its third regional centre, large but densely built, when the old barracks of the Pohja Brigade are redeveloped. Hiukkavaara is the most significant area of future construction in Oulu. It is planned to have a residential district varied in structure but consisting mostly of low-rise housing, and also regional-centre services, business premises and jobs. Sustainable development and an original approach are the design guidelines. Connections across Oulujoki river to the south will be improved for cyclists and pedestrians, and a new road bridge will be built to Poikkimaantie. The bridge construction is scheduled to start in 2013.

Site in figures:• Construction period: 2012–• Location: 7 km east of the city centre• Land area: 1,500 ha• Floor area (residential):

1,100,000 floor sq.m• Floor area (commercial): 25,000 floor sq.m• Residents: 20,000• Jobs: 1,800

Hiukkavaara Residential LivingLab for 20 000 Modern Citypeople

Airport Flight Hub of Northern Scandinavia

Oulu Airport has evolved into a hub of international standard

Several international airlines operate between Oulu and European cities daily. With the completion of the expansion of Oulu Airport, the number of direct international flight connections and thereby of passengers will increase further. Connections to other parts of Finland are also excellent. A flight to Oulu from Helsinki, the capital of Finland, takes no longer than an hour. There are several flights a day, and trains run around the clock.

Site in figures:• Location:15kmsouthofthecitycentre• Newterminalopened9/2011• Floorarea:6450sq.m• Passagers2011:1million• Gates:17• Gatetubes:4

Toppilansalmi Waterfront Nautical Living

Ranta-Toppila –A modern application of the traditional Finnish wood-built town

A residential district smaller in scale than the existing Meri-Toppila high-rise district but complementing it is being planned for the Ranta-Toppila area, adjacent to the small craft marina being built. In addition to the marina and water sports centre, a marine centre providing cultural experiences from boat building to summer theatre and concerts will be built. Ranta-Toppila will link Meri-Toppila more closely to the waterfront and the services of the city centre.

Site in figures:• Constructionperiod:2015–• Location:4kmnorthwestofthecitycentre• Landarea:25ha• Floorarea(residential):40,000floorsq.m• Residents:1,000• Marinecentre:5,000floorsq.m

Land uplift compensates for effects of global warming at Toppilansalmi

The former harbour area of Oulu is being developed into a high-rise residential district adjacent to the romantic villas on the sea shore. With good transport connections to the city centre, Toppilansalmi became nationally known as the site of the housing fair in 2005, and it is rapidly growing into a modern city district with a wide range of services. The shore area of the inlet is being developed as an urban waterfront with high environmental values, plenty of activities and planned for pedestrians and cyclists. A maritime flavour is lent by recreational services, the marina capable of accommodating cruisers, a marine hobby centre and even a boat-building facility. The buildings dating from the time of the harbour will be preserved. The centrally located park will diversify the environmental profile of the district, providing an original touch.

Site in figures:• Construction period: 2010-• Location: 3 km northwest of the city centre• Land area: 44 ha• Floor area (residential): 216,000 floor sq.m• Floor area (commercial): 44,000 floor sq.m• Residents: 5,400• Jobs: 600

• Source: M3 Architects Ltd

Lipporanta Healthly City Housing at River Side

Traffic arrangements will free up about 3 hectares of land in Länsi-Tuira, in the immediate vicinity of the city centre.

Parts of the waterfront linking the city centre of Oulu with adjacent districts will be freed up through traffic arrangements in Tuira. The plan is to build a wellbeing centre in the area, with high-rise housing, sheltered housing, supporting services and premises for businesses in the wellbeing and health technology sectors. The development is being managed by Cor Group Oy, which has signed a co-operation and quality agreement with the City of Oulu. Most of the housing will consist of eight-storey blocks of flats and a landmark building that will function as a terminus for the extensive street vistas. The development will dovetail with the existing high-rise housing in the Tuira area but will differ from it stylistically in a positive way.

Site in figures:• Construction period: 2013–• Location: 2 km northwest of the city centre • Land area: 3 ha• Floor area (residential): 40,000 floor sq.m• Floor area (commercial): 6,500 floor sq.m• Residents: 850• Jobs: 180

• Source: Arkkitehtuuritoimisto Seppo Valjus Oy

Huge Business Opportunities Awaiting

The Oulu area is investing millions of euros in commerce and services. The city centre with its services is being rapidly developed to meet the growing needs of the economy, residents, and tourists. Development is being promoted with efficient use of land, planning, and construction.

Large industrial investments are also to take place in the near future, and they will attract new Finnish and international businesses to the area.Total investments of over EUR 100 billion have been planned for Northern Scandinavia and Russia, and in the near future, EUR 15 billion will be invested in areas such as mining, energy, and construction in the Northern Finland alone. All these investments offer huge business potential for commerce and services as well.

New Commercial City Centre Rising Up

Oulu trade and tourism will offer plenty of new business opportunities in the near future. The city centre of Oulu is soon entering a new commercial era as the centre will be completely reconstructed. Thousands of square metres of new business premises are being built to meet the needs of the growing city.

Both the residents of Oulu and tourists want to enjoy shopping and spending time in the city centre. The new Oulu has a demand for department stores, special stores, cafés, restaurants, and numerous other services. The inner sections of the six central commercial blocks in the city centre will be complete with business, office, and housing units. Covered passages provide comfortable transfer between blocks.

Smooth goods and service traffic from underground facilities to the buildings and streets is ensured with lifts. Flats and offices will be built to promote living and working in the city centre.

Giving Momentum to Electronic Commerce

Oulu is known for strong technological expertise, which also gives impetus to e-commerce. Soon to be home to Vercco, a know-how and logistics centre for e-commerce, the city is one of the leaders of the development of electronic commerce.

Oulu RegionWhole Country

Households’ Income in Oulu Region and in Finland1995-2009

Disposable Income per Household, median (€)30 000

27 500

25 000

22 500

20 000

17 500

15 000

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The Logistics Hub Oulu

Serving as a logistics hub in Northern Scandinavia, Oulu provides access to an extensive market area from around the world. Diverse international logistics connections promote the growth and success of commercial life.

Oulu is located by the main thoroughfares in Finland. Road connections are good to various parts of Northern Scandinavia, and the extensive railroad network is actively developed to meet the logistics needs of commercial life and tourism. Located on the shore of the Baltic Sea, Oulu also has a busy cargo port.

Welfare with Purchasing Power

The fastest growing of the Finnish cities, Oulu has purchasing power and demand for a wide variety of services. The Oulu area has approximately 230,000 inhabitants, with another 270,000 people living less than an hour away from the city. The population of Oulu is estimated to increase steadily to nearly 275,000 people in 20 years.

Oulu is an active, youthful city that looks boldly forward. The average age of the city’s highly educated population is only 34.5 years. Since approximately one third of the residents of Oulu are aged between 25 and 44 years, Oulu will have plenty of purchasing power and skilled professionals also in future.

The number of households in the Oulu area is a little over 100,000. The income of the households has risen steadily over the last 15 years, and at the end of 2009, the average income in Oulu was EUR 29,000. This is slightly higher than the national average.

The prediction of population in Oulu and its catchment area

Oulu area

2010 228 704

2015 244 162

2020 256 705

2025 266 598

2030 274 347

2035 280 469

2040 285 450

Change 2010-2030 (%) 20

Change 2010-2040 (%) 25

The age distribution in Oulu area 31.12.2010 Oulu area

The whole population 228 591

0-6 24 614

7-14 23 627

15-24 32 659

25-44 65 313

45-64 54 929

65-74 15 335

75-84 9 195

85- 2 919

The employment development within Oulu and its catchment area

Oulu area

Jobs 2001 83 840

Jobs 2005 89 507

Jobs 2007 94 244

Jobs 2008 95 992

Growth % 2001-2008 14%

Household size 2010 Oulu area

All households 102 357

Average size 2,2

Population gender

Whole population

Men % Women %

Oulu area 228 591 113 825 49,8 114 766 50,2

FACTS & FIGURES

Affluent Commercial Life

Oulu is a regional commercial centre. It has been estimated that by 2030, the purchasing power in Oulu will have risen by approximately EUR 855 million, to a total of EUR 2 billion. The development of purchasing power is, naturally, linked to the development of the population and of private consumption.

More business premises will be built for the needs of both grocery businesses and special commerce. Special commerce, in particular, will grow as consumers’ needs become more and more diverse.

Highly Educated Young Professionals

Oulu is a city of young, highly educated professionals who have top skills – both nationally and globally. Approximately one third of the inhabitants have a university degree and first-rate language skills. The educational opportunities in the area are excellent, from intermediate schools to institutions of higher learning.

The occupational structure in Oulu is dominated by the service trade: three out of four employees work in the service sector, making Oulu home to a great deal of skilled service professionals. The majority of them work in information services, technical services, education, and health services. The total number of people in the regional labour market is over 100,000, creating huge potential.

Steady Growth Despite Economic Fluctuation

Despite economic fluctuation, the combined turnover of companies in the Oulu region has increased since mid-2009. The number of employees in companies has also increased steadily: since 2010, employment figures in companies in Oulu have been significantly greater than the average employment figures in the whole country, and the employment level is now nearing the peak level of 2008.

In the service sector, social and health care services have long been the most rapidly growing field in Oulu. The turnover for companies offering accommodation, catering, or restaurant services or services to households has also increased steadily in the Oulu area.

In recent years, the information and communication business has also grown significantly.

Turnover of Trade in Oulu Region and in FinlandIndex 2006 = 100

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Oulu RegionFinland

Turnover of Accommodation and Cateringin Oulu Region and in FinlandIndex 2006 = 100

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Oulu RegionFinland

Personnel of Trade and of all Sectors in Oulu RegionIndex 2006 = 100

115

110

105

100

95

90

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TradeAll Sectors

FACTS & FIGURES

Home for Successful Businesses

Oulu is a great environment for business, innovation, and development. Internationally recognised technological know-how, diverse research and education activities, proximity of valuable natural resources, a young population, advanced services and a progressive infrastructure make Oulu a great investment.

With strong will, common goals and an atmosphere favourable to companies, Oulu looks forward with confidence.

In 20 years, Oulu has become one of the world’s most significant centres of know-how in wireless and mobile technologies. Now the top technology developed in Oulu is being successfully used in new markets and industries, including services, bio-economy, energy applications, and environmental applications.

Leading the Way

Oulu is a centre of creativity and special technological know-how. There are hundreds of ICT businesses and research organisations in the region, offering the latest solutions that can also benefit forefront commerce and services.

The growing and continuously developing city of Oulu has great demand for functional services and new experiences. Join us in the creation of success stories on commerce and services. The best places go fast!

Agriculture3,7%

Manufacturing18,6%

Construction7,4%

Trade, Accommodationand Catering

14,7%Transportation

and Storage6,4%

Other Market Services25%

Public Administrationand Service

24,2%

Division of Employees by Industry, Finland

Agriculture1,7%

Manufacturing14,8%

Construction8,3%

Trade, Accommodationand Catering

13%

Transportation and Storage

5,5%

Other Market Services29,2%

Public Administrationand Service

27,4%

Division of Employees by Industry, Oulu

FACTS & FIGURES

Further InformationWhether you are a private person or a representative of a company or an organisation, do not hesitate to contact BusinessOulu to learn more about investment and business opportunities in Oulu. Our services are free, and we guarantee confidentiality for all your communications.

Matti KarhulaCity Planning ManagerTechnical Centre, Department of City Planning, City of OuluMobile: +358 44 703 2410 matti.karhula@ouka.fiwww.ouka.fi

Jyrki KemppainenKey Account Director, Trade & Services, Travel and LogicticsBusinessOuluMobile: +358 44 499 3296jyrki.kemppainen@businessoulu.comwww.businessoulu.com

Pauliina Pikkujämsä Marketing ManagerBusinessOuluMobile: +358 40 743 4362 pauliina.pikkujamsa@businessoulu.comwww.businessoulu.com