Business leaders from Minnesota and Finland admired the functional Scandinavian design of the Puustelli USA kitchens in Edina, but remodeling wasn't their main focus.
Minnesota, Finland strive to deepen economic ties
A Finnish delegation was in town this week celebrating the opening of the Puustelli kitchen showroom and meeting with economic development leaders.
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Minnesota is one of the states Finland has identified to increase its U.S. footprint. The Finnish delegation, with its U.S. hosts, on Thursday celebrated the opening of Puustelli's first U.S. assembly warehouse and new showroom in Edina as they worked to forge new partnerships.
"We realized about three years ago that to really build an ecosystem in the U.S., we have to work at the state level," said Antti Niemela, the Finland embassy's minister counselor of sustainable growth and commerce.
Besides Minnesota, Finland is targeting Colorado, Maine, Michigan and Washington. Gov. Tim Walz met Wednesday with Mika Koskinen, Finland's consul general and ambassador. In November, Walz led a trade mission to the U.K. and Finland.
Finland is not among Minnesota's largest 10 trading partners. Total trade between Minnesota and Finland was valued at $58 million in goods in 2020. Minnesota imported $39 million and exported $19 million to Finland. The largest trading partners for the state are Canada, China and Mexico.
Finnish business leaders from ABB Group, Unikie Inc. and Fortum energy utility said this week said they are looking at ways to partner with Minnesota businesses to share climate change mitigation innovation.
Minnesota and Finland have signed a joint letter of understanding focused on increasing cooperation in research and development of sustainable technologies to mitigate climate change, promote environmental remediation and advance green sustainable growth.
The Finns, who pay much more for imported fossil fuels, have a more energy-efficient economy and are committed to carbon neutrality by 2035 by developing a climate change-combating economy. Walz is targeting 2050 in his policies.
Russia's attack on Ukraine has accelerated Finland's efforts, as it applies to be part of NATO, to be on the forefront of sharing these technologies with European partners and others as they shift away from Russian gas, Koskinen said.
Already, Minnesota is home to U.S. operations of several Finnish companies, including Uponor, UPM and Trustmary.
Uponor's North American manufacturing operations, which produce products for home plumbing and radiant heating and cooling systems, have expanded several times and are all in Minnesota.
Steve Grove, commissioner of Minnesota's Department of Employment and Economic Development, wants Finnish companies like Uponor to continue investing here as competition intensifies from other states.
"If we're not assertive and rest on our laurels, we do that at our own peril," Grove said. "They provide a lot of jobs to Minnesota. Foreign-owned companies have invested $36 billion in capital in 2019 and 170,400 jobs."
The state's economy consists of about 2 million jobs.
Finnish and Minnesota business leaders see natural potential for much more engagement. The two have similarly sized populations, with lakes and forests dotting the landscape. Plus, they noted shared culture with many Finnish descendants here.
A Minnesota connection led to the launch of Puustelli USA in the Twin Cities.
Co-founders Mikko and Anna Juola were intrigued when a Minnesota family visited them in Finland and wanted to purchase a Puustelli kitchen. Anna Juola had been an au pair for the family. Soon after the purchase, the Minnesota family's neighbors also expressed interest in buying a kitchen system.
The Juolas saw an opportunity and moved to Minnesota to enter the American market, starting the U.S.-based company in 2014, Mikko Juola said.
"Because of the Nordic roots in Minnesota, it's more similar to Scandinavia so it's easier to get started in Minnesota," he said.
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