The Team Finland visit to Kazakhstan in April resulted in new contracts for Finnish companies – ”I greatly appreciate the opportunity to participate”
Yhteiskuvassa valtavasti osaamista ja kokemusta eri aloilta. A vast amount of expertise and experience from various fields in one picture.
The companies visited Almaty and Astana under the leadership of Minister Ville Tavio.
Text by Patrik Saarto, Photos by EastCham
Trade between Finland and Kazakhstan is once again a bit busier. Nearly 20 Finnish companies visited Kazakhstan from April 9th to 12th under the leadership of Finland’s Minister for Foreign Trade and Development Ville Tavio. The program included meetings with local companies in Almaty and a meeting of Kazakh-Finnish Intergovernmental Commission for Economic Cooperation in Astana.
– In Almaty, EastCham was responsible for organizing a roundtable meeting, to which we had invited significant local companies according to the sectors of Finnish companies. This way, companies were able to directly discuss with potential customers and partners, says Jaana Rekolainen, CEO of EastCham.
The roundtable meeting brought together Finnish offerings and Kazakhstani demand.
The palette of Finnish companies covered a wide range of Finnish expertise. The companies represented the mining industry, the energy sector, industry, construction, water expertise, education, forestry, and agricultural technology. There were both large corporations and SMEs, with a lot of experience in international trade. For some, Kazakhstan was already a familiar market.
– Several MoU agreements were signed during the Commission meeting in Astana. Companies gained new contacts and leads, with feedback indicating that some received dozens of new contacts, says Tarja Teittinen, Director of Services of EastCham.
“Some received dozens of new contacts.”
One of the signatories of the new agreements was the water project contractor Econet. The company has designed and implemented demanding water and wastewater treatment projects for industry and municipal actors in over 40 countries. In Central Asia, Econet strengthened its foothold last fall by establishing a subsidiary in Uzbekistan. In Kazakhstan, Econet is involved in projects and development initiatives.
Now, Econet has signed a partnership agreement with KazCenter, responsible for housing and communal services development in Kazakhstan. Kazakhstan is investing over two billion dollars in the coming years in a total of 69 new wastewater treatment plants.
– There is clearly demand for our expertise, and it seems that we know how to operate correctly in this challenging market. The partnership agreement we signed during the delegation trip in April opens up the possibility of long-term business and lays the foundation for potential establishment in Kazakhstan, says Mika Kärkkäinen, COO of Econet, to EastCham.
Mika Kärkkäinen, COO of Econet.
Contacts are made in official meetings and beyond
In the preparation of business meetings, the aim is to achieve the best possible match between Finnish offerings and local demand. Altyn Shakirkhanova, Head of EastCham in Kazakhstan and Senior Business Advisor, gathered potential client companies according to the profiles of Finnish companies for the roundtable meeting.
According to Shakirkhanova, the reputation of Finnish technology is high in Kazakhstan. Challenges include high logistics costs, exchange rate risks, and competition from China.
– Kazakhstani companies appreciate the Finnish technologies and have already been working with some Finnish companies. It’s worth to mention that the leading position in some sectors are fully recognized and it seems hard to find appropriate substitution at the same level of quality and expertise, says Shakirkhanova.
Tarja Teittinen, Director of Services of EastCham on the left. Altyn Shakirkhanova, Senior Business Advisor and Head of EastCham in Kazakhstan on the right.
According to Mika Kärkkäinen of Econet, many in Kazakhstan have an image of Finland as a country of clean nature and modern technology, the mystery, successes, and happiness of which are even mystified. There is concrete knowledge of Finland as well – Kanat Sharlapaev, the Minister of Industry and Construction of Kazakhstan, made an impression with his knowledge of Finnish companies during the trip.
According to Kärkkäinen, the best part of the trips are the personal contacts with both locals and fellow travelers, in both official and unofficial meetings. Official events provide facts and guidance. In the business meeting, companies found their counterparts and got follow-up tasks.
– I greatly appreciate the opportunity to participate in these official delegation trips, where there is a chance to meet decision-makers otherwise unreachable. When sitting with three local ministers, we are facing a great opportunity, says Kärkkäinen.
During the informal part, it’s time to build relationships, which form the basis of partnership. For example, Kärkkäinen mentions a director of a partner company who said he was a writer and gave Kärkkäinen’s son his latest fairy tale book with a dedication.
– I also greatly appreciate the opportunity to learn from large companies about how they present their offerings as global players. On the trip, there was a chance to hear presentations and discussions from experts in fields other than my own. This gives quite a motivational boost, he says.
“This gives quite a motivational boost.”
Face-to-face encounters and meetings are also the best part for Tanja Pylsy, Export Director of Agronic, a company manufacturing agricultural machinery.
– We made good contacts, and we’re currently working on results, Pylsy tells EastCham.
Agronic’s production consists of a wide range of agricultural machinery. In Kazakhstan, demand is strongly linked to sustainable growth in the agricultural sector.
– We believe we have good market opportunities. We have green technology solutions to offer, says Pylsy.
“We have good market opportunities.”
Tanja Pylsy, Export Director of Agronic.
The Team Finland visit ended successfully, and companies are now focused on the next steps. Personal relationships are extremely important in Kazakhstani business culture, which is why Shakirkhanova advises maintaining them now. In new meetings, Shakirkhanova recommends for companies providing as concrete information and references as possible about their products.
For Agronic, the work continues actively after the trip.
– The next business trip is already planned, reveals Pylsy.
EastCham Finland organized the Team Finland visit to Kazakhstan together with the Ministry for Foreign Affairs of Finland and the Embassy of Finland in Astana.
Starting from the left: Ambassador of Finland to Kazakhstan Soili Mäkeläinen-Buhanist, Minister for Foreign Trade and Development of Finland Ville Tavio, Mayor of Almaty Alisher Abdykadyrov and CEO of EastCham Finland Jaana Rekolainen.
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