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ChileAmbassador Mika-Markus Leinonen Trade Commissioner Maria Ala-Kaila, Finpro
29/08/2017 2
1. PROFILE
2. KEY INDICATORS OF ECONOMY
3. CHILE AND FINLAND
4. BUSINESS ENVIRONMENT, LANGUAGE AND LABOUR FORCE
5. BUSINESS CULTURE AND ORGANIZATION STRUCTURES
6. “THE NORDIC COUNTRY OF LATIN AMERICA”
7. TELECOM OVERVIEW
8. BIOGAS
9. WATER SECTOR IN CHILE
10. CHILE – THE MINING SUPER POWER
CHILE
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Pioneer of free trade – 22 trade accords with 60 countries
Member of OECD since 2010
Produces over 30% of the copper in the world
Transparency Int´l list on corruption: rank 24 (2016)
World Bank Doing Business Index: rank 57 (2017)
Global Innovation Index: rank 46 (2017)
CHILE – KEY INDICATORS OF ECONOMY
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Population of 18,0 millions
Gross national product per person 23.478
USD (2017)
GNP increment prognosis 2018: 2,8%
Population of 18,0 millions
Gross national product per person 23.478
USD (2017)
GNP increment prognosis 2018: 2,8%
CHILE – FINLANDCHILE – FINLAND
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• Agreement on investment protection (1993)
• An agreement preventing double taxation is under
negotiation
• 20 Finnish companies in Chile, 80 companies have a
representative
• Finland’s 3. most important partner of trade in
Latin America
• Finland’s export consists mainly of machines and
equipment of mining and forest industries
• Next steps: CleanTech, energy, innovation,
education
• Team Finland in Chile: The Embassy, FINPRO,
Finnish Cultural Institute in Madrid and 4 honorary
consuls
CHILE –FINLAND
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Representatives of Finnish companies experience Chilean business environment as clear and
easy
According to researches Chile is the most business friendly country in Latin America
One can’t always get by with English
Finnish companies have had challenges finding skilled labour force
Big differencies in skills of labour force
CHILE – BUSINESS ENVIRONMENT, LANGUAGE AND LABOUR FORCE
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Chilean business culture is closest to Finnish in Latin America
Hierarchy seems to be higher than in Finland in Chilean organizations
Decision making takes place considerably higher compared to Finland
Chileans prefer written contracts, verbal agreements have less importance
Creating relations and networks plays a higher role in Chile than in Finland
Biggest difference is on concept of time
CHILE – BUSINESS CULTURE AND ORGANIZATION STRUCTURES
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CHILE ”THE NORDIC COUNTRY OF LATIN AMERICA"
Politically stable
Consistent economic policy
Friendly to business
Social interaction / keeping in
contact is key
Stepping stone to markets in
Latin America
Telecom overview
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Chile has a stellar business environment comparable to that
of many developed countries. In 2015 the entirety of the
Chilean information technology services sector was USD 2
billion.
67 % of the households have access to the Internet with 70 %
of the population calculated as users of Internet. However
there are over 24 million mobile phones in Chile.
Chileans are some of the most active users of social media in
the world. As an example 75 % of the mobile users use the
instant messaging service WhatsApp whereas the global
average is 40 %.
Telecommunications is an industry growing at an impressing
rate (Q3 7,3 %) in Chile and is becoming one of the most
investing industries.
Challenges in the market
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Economical
• High investments needed to match technological requirements
• Resources may have to be shared among several actors as research and academy will not have enough money to sustain by themselves the required infrastructural development
Technological
• High speed network proving high bandwidth and low latency
• High performance computing
• Massive data resources
Organizational
• Inclusiveness and capillarity to access shared resources
Chile´s development interests:
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• Public Safety Network
• ”Fibra Optica Austral” bidding -> Connecting Chilean
Patagonia region with rest of the country
• Submarine cable Chile – China
• Cyber Security
• Datacenters
Biogas
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Biogas market is a greenfield market, with huge growth
opportunities
• Few plants are in operation with poor performance.
• Customers wants solutions to eradicate the smell and
reduce cost generating gas from the waste and producing
electrical energy.
Market Size Biogas to Energy
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• Total Organic Waste Available 17,200 KTon/year produced
by Agro, Fish and Food Industries (excluded Landfills and
Restaurants).
• Organic Waste anaerobic digestion produced Biogas, a
natural resource to supply either, thermal energy, Electrical
energy or Diesel (ULSD).
• Electric Power equivalent 1,050 Mwe
• Total Investment estimate 3,500 KUSD/Mwe
• Target Market (2016 – 2021) 150 Mwe
• Target Market Investment estimate 525 MUSD(2016 –
2021)
Water Sector in Chile
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• Chile has some of the largest water reserves in the southern zone.
• It counts with 200 nautical miles, 101 watersheds, 1 251 rivers,
almost 13 000 lakes and lagoons and approx. 24 000 glaciers.
• When considering the entire Chilean territory, the volume of water
coming from the precipitation is 53 000 m3 per person per year,
surpassing 8 times the world average and 25 times the minimum that
is required for the sustainable development.
• However, water is distributed very irregularly in the territory, due to
the diversity of climate and geography.
- The North of the country is extremely dry, with less than 500 m3 / inhabitant / year
- In the South the water is very abundant, surpassing 160 000 m3 / inhabitant / year
• 90% of the water in Chile is, until this day, privately owned due to the
privatization that started in 1981.
Challenges of access and water
quality in the country
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• The North: contamination of water with waste from the mining industry harms rural and
indigenous communities and the population living in the region
• The Center-South: intensive use of water for industrial agriculture and the
contamination of river basins by mining and forestall companies
• In the South: concentration of water ownership in large energy-generating companies
for the installation of hydroelectric mega-centrals
• Throughout the country: conflicts with health companies, due to the high costs of
drinking water and poor treatment of wastewater
All these situations have a common origin: the concentration of water ownership in
Chile, supported by the institutional framework and the current regulations.
Chile – The Mining Super Power
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• Chile is currently one of the main mining powers in the world, having big reserves of copper,
lithium, iodine, gold, silver, molybdenum, and natural nitrates among other metallic and non-
metallic minerals throughout its territory.
• Thanks to a large amount of copper resources (28% of the world´s copper reserves),
progressive legislation and a healthy investment environment, Chile has become the copper
mining capital of the world, producing over 1/3 of the global copper output.
• The total production of copper 5,433 KTMF, representing 31.8% of the world total in 2012.
• The impact of mining on the Chilean economy is significant.
• 13.0% of national GDP, and 59.7% of total exports from Chile, providing 14% of national
income.
• Mining investment in Chile is expected to reach US$112 billion by 2025, of which, $86.7 billion
will be spent on copper mining, $21.7 billion on gold and silver mining, and $3.6 billion on iron
and industrial minerals mining.
High Demand in Mining; a channel for
Finnish Technologies Offering
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• Equipment and technologies on demand
• Equipment that requires regular replacement: Cranes and screening
machines, Crushers, Grinders, Off-road trucks (240-440 tons), Cabbed
trucks chassis (+50 tons), parts for rock cutters, 360-degree revolving
excavators
• Environmental system solutions, Water treatment, Water desalination, Air
pollution abatement, Mine closure, Carbon footprint reduction, Cleantech
• Underground mining technology services, Wear-resistant materials
More info:
• Mika-Markus Leinonen
• Mika-
• Maria Ala-Kaila
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Chile - Business OpportunitiesTeam Finland roadshow, 28 - 31 August 2017
Mika-Markus Leinonen, Ambassador
Maria Ala-Kaila, Trade Commissioner
