Kemijoki Oy – We Assisted Kemijoki Oy in Transforming its Operational Model

We advised Kemijoki Oy in the transformation of its operational model between 2013 and 2014. In the new operational model, the company sources a significant part of its activities from contractual partners, including the operation and maintenance of hydroelectric power plants, environmental work and work based on legal obligations, financial administration, legal affairs and IT services. The outsourcing of these major functions in a short time makes Kemijoki’s project one of the most important operational transformations in the Finnish industry in the recent years.

‘The cooperation between our organisation, Castrén & Snellman and our other advisors was expert, open-minded and efficient, which enabled us to successfully manage a demanding change process. One of the guarantees of this shared success was that we entered into dialogue with the various stakeholders in a responsible and proactive way. Together with Castrén & Snellman, we established new contractual practices and administrative principles, which will serve as the basis for the implementation of Kemijoki’s new operational model as a purchasing and expert organisation,’ says Tuomas Timonen, Kemijoki’s Managing Director.

The purpose of the transfers of business was to allow Kemijoki to purchase the services that support its core business in an easy, cost-effective manner. In addition, Kemijoki wanted to ensure that it could fulfil its corporate responsibility towards its employees, its environment and the inhabitants of its operating area also in the partnership model.

Castrén & Snellman assisted Kemijoki in putting the services out to tender, in the contract negotiations with the service providers, in co-operation procedures and in the questions related to tax and competition law.

Kemijoki is Finland’s most important producer of hydropower and regulating energy and the country’s foremost purchaser and expert of hydropower. The company owns twenty hydroelectric power plants with a total capacity of over 1,100 MW. It generates approximately a third of Finland’s hydropower.