Elematic Oy’s 50th-anniversary celebration

14.06.2011 12:20

Deputy Speaker of Parliament Johannes Koskinen

 at the Kalastajatorppa Hotel in Helsinki

on 26 June 2009

Ladies and gentlemen,

It is an honour for me to bring greetings to this celebration from the Finnish state. Finland is a small economy that is dependent on exports. The prosperity of our society is largely up to companies like Elematic. For this reason the state gladly celebrates such a fine company’s success and long life.

Last year exports accounted for half of Finland’s GDP at constant prices. The global economic crisis therefore affects us strongly. Domestic purchasing power is growing, but falling employment will keep the rise in real income quite small. The significance of domestic demand in fighting the recession is smaller than that of exports.

Growth in foreign trade came to a halt last autumn and turned sharply down at the beginning of this year. Our exports will fall by about one-fifth this year. The World Trade Organization estimates that global trade will shrink by about ten per cent.

In a recession it is normal for selfishness to grow. National interests must also guide economic policy in Finland. I am not speaking for protectionism but against it. It is not in our national interest to concentrate solely on our own welfare in Finland or even Europe. It is in Finland’s interest for things to go well in other parts of the world, too. In this case foreign companies and consumers can afford to buy Finnish products and services.

With the recession the WTO has tried to beef up its activities as the watchdog of trade policy. The organization is trying to get its member countries to follow the agreed line with the help of information and peer pressure. If this line slips, it has means to reconcile disputes. Up to now no one has resorted to broad-scale and intensive protectionism, but I hope that the WTO will stick to the slightly higher profile that it has chosen. This is in the interests of the European Union and Finland. It is also in the interests of companies like Elematic and their workers.

In the global division of labour, Finland competes for its share of export markets with high expertise and specialization. Elematic exports over 90 per cent of its production. It has found its own special niche: precast concrete machinery and equipment and their maintenance. And it has dared to specialize in its strengths. It does not compete on price but on quality. Elematic does not compete by focusing on quantity but by investing in product development and innovations.

In a certain way Elematic is symbolic of Finland. We are not a big actor in international trade, but we hold our own among bigger actors. Next year it looks like the global economy will turn upward. When we come out of this recession, we will do so with the help of exports, thanks to companies like Elematic.

With these thoughts I bring greetings from the Finnish state to this audience and congratulate Elematic and its skilled personnel on reaching the 50-year mark. I wish you all the best!