Caruna grows by acquiring Lapin Sähköverkko Oy

Caruna grows by acquiring Lapin Sähköverkko Oy

Caruna acquires Lapin Sähköverkko Oy and the electricity distribution network it operates of Kemijoki Oy. The high voltage network, which is under acquisition, will expand Caruna’s distribution network in Lapland, where Caruna already owns distribution network. The new business acquisition expands Caruna’s existing network with 150 kilometres of high voltage network in the areas of Kemijärvi, Rovaniemi and Sodankylä.

Caruna has extensive experience in the use, maintenance and development of high voltage networks, which is why the acquired network will become a natural part of Caruna’s business activity.

- Electricity network business is core business for Caruna and we have over 100 years of solid experience in the field. It is fantastic that we are now growing in Lapland where we already conduct business. We focus on electricity distribution and we will continue to develop this core business activity of ours in the future. We are currently running investment programmes worth hundreds of millions in euros and we aim to secure that our electricity network continues to serve future needs in all our network areas, says Ari Koponen Managing Director at Caruna.

The new acquisition means that a total of 150-kilometres of high voltage network along Kemijoki and Kitinen is transferred to Caruna. Six 110 kV and two 220 kV primary substations and four main grid connectors are included in the acquisition. The acquisition does not include staff transfers.

- We will get to maintain a network which is already well maintained and in good technical condition. Caruna’s current professional team specialising in high voltage networks will carry the responsibility for the maintenance of the new network. We wish to maintain and develop the network in co-operation so that it continues to serve the clients of Lapin Sähköverkko Oy in the best possible way, Koponen concludes.

Selling the electricity network is a natural adaption of Kemijoki Oy’s renewed business model, as it will enable stronger focus on the company’s core business.

- Out of all the potential buyers, we chose the best one. Caruna is focused on electricity distribution and possess the expertise and the necessary resources in regards of maintenance and usage. Kemijoki Oy will, according to its strategy continue to focus on operating as hydropower purchaser and expert organisation, says Tuomas Timonen, Managing Director at Kemijoki Oy.

Caruna
Communications

Caruna is the largest company in Finland dedicated to the distribution of electricity. It provides power to 650,000 private and corporate customers in South, Southwest and West Finland, as well as in the city of Joensuu, the sub-region of Koillismaa, Lapland and the Satakunta region. Caruna employs approximately 310 employees and contracts directly 1,800 additional workers all over Finland. Caruna is investing heavily in the construction of a weatherproof network and, in addition, invests about MEUR 150 annually in the development of its electrical network. Caruna is owned by the Finnish employment pension companies Keva (12.5%) and Elo (7.5%) and by international investors in infrastructure, First State Investments (40%) and Borealis Infrastructure (40%). For more information: www.caruna.fi

Kemijoki Oy is the most important producer of hydropower in Finland. The company owns 20 hydropower plants, 16 of which are located at the Kemijoki watercourse area, two at River Lieksanjoki and two at River Kymijoki. In addition, Kemijoki Oy regulates the reservoirs in Lokka and Porttipahta as well as Lake Kemijärvi and Lake Olkkajärvi. The total output of Kemijoki’s power plants is over 1,100 MW. During 2014, the company’s hydropower plants produced a total of 4,126 GWh of electricity, representing approximately a third of the hydropower electricity produced in Finland. More information: www.kemijoki.fi

Lapin Sähköverkko Oy is Kemijoki Oy’s wholly owned subsidiary. The company specialises in business pertaining to electrical power networks – to the extent set out in the Electricity Market Act. Lapin Sähköverkko Oy has leased the 110 kV area network from Kemijoki Oy. There are four customers in the area network at ten connecting locations. The network comprises three power lines totaling 116 kilometres and four electric stations. In 2014 the total amount of electricity production and consumption in the area network was 483 GWh. The company had a turnover of EUR 2.3 million in 2014.

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