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Finland Other Industries
Several smaller sectors contributed significantly to
industrial output. Food processing--concentrating on dairy
products, baked goods, and preserved meats--grew during
the
postwar period, as rapid urbanization heightened reliance
on
processed foods. Indeed, as late as 1970 food processing
was the
largest sector in terms of gross value of production (but
in
terms of value added, food processing ranked only third
that
year, behind wood and metal processing). Nevertheless,
during the
1970s and the 1980s, food processing suffered a relative
decline.
In the 1980s, the food industry undertook an ambitious
research program aimed at foreign markets. Finnish firms
hoped to
develop special foods for the cafeterias of hospitals,
mines, and
oil rigs as well as to develop delicacies, such as fresh
berries
and fresh-water fish. New technologies, such as plant and
animal
genetics, freeze-drying, irradiation, aseptic production,
and
methods to limit food oxidation, promised to improve the
attractiveness of Finnish products. Another export was
highly
automated equipment for bakeries, dairies, and
slaughterhouses.
Although Finland's high production costs limited exports
of
staple foodstuffs, observers believed that the industry
could
expect to sell special products in Europe and in North
America.
Finland's chemical industry, established at the time of
independence, had come a long way by its seventieth
anniversary
in 1987. By the late 1980s, the sector ranked fourth after
wood,
metal, and food processing. Oil refining accounted for
about half
the gross value of chemical production, followed by
fertilizers,
plastics, fibers, rubber products, and other chemicals.
Two
large, state-owned firms controlled more than half of
chemical
production. Neste, established in 1948, was the only
oil-refining
enterprise. Its chemical operations had grown out of
refining,
while its rival, the Kemira Group, had developed interests
in
many products, including fertilizers, paints, fibers, and
industrial chemicals. During the 1980s, both companies had
purchased production facilities abroad in an attempt to
remain on
top in an international market that suffered from
overcapacity in
many basic product lines.
Construction, which accounted for almost 10 percent of
GDP in
1950, declined to less than 8 percent of GDP during the
postwar
period, as the country completed its transportation and
energy
infrastructure and established heavy industry. In the
short term,
construction activities depended on the overall health of
the
economy. Thus, new building slumped from 1984 to late 1986
because of a recession and because many industries
invested more
in new machines than in new buildings. Residential
construction
was also slow in the mid-1980s, but it responded to
financial
stimuli after 1985. By late 1986, both commercial and
domestic
building were on the rise, increasing by an estimated 3
percent
in 1987. Finland also exported construction services,
especially
to the Third World and to the Soviet Union, usually to
complement
exports of machine goods. The industry was able to offer
clients
all types of planning, engineering, and building services
for
turnkey factories.
Textiles and ready-made clothing, two of the country's
oldest
industries, concentrated on cotton, wool, and knitted
goods.
During the postwar period, this sector had declined in
relation
to other industries; however, in the 1980s, Finland still
produced high-quality fabrics and fashions for export,
especially
to Europe. Likewise, Finnish fur and leather designs had
carved
out export markets in the developed countries.
Data as of December 1988
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