Debate: Sweden should do more to attract investment

We are facing a new wave of industrialization - if we take advantage of Sweden's unique opportunities for rapidly growing electricity-intensive industries. But Sweden needs to work hard to attract these international industrial establishments. We urge the government to give more authorities clearer directives to work to attract international industrial establishments to Sweden, we write together with a number of debaters jointly on SvD Debatt.

We represent businesses that see on a daily basis how large international companies are looking for locations for the establishment of new electricity-intensive industry. Thanks to Sweden's green electricity and high industrial competence, we are well positioned in the competition. The potential is huge: it involves billions of euros in investment, thousands of new jobs and a whole new export potential for Sweden. It is also a question of a greener, more energy-efficient and more sustainable industry for the whole world.

Sweden has a world-class energy mix with the highest share of renewable electricity in the EU. We have a long and successful industrial tradition and a stable infrastructure. We have a strong organizational culture and a well-functioning cooperation between the social partners. Our industries have been internationally competitive for more than a century, which has taught us to constantly develop and streamline our work. The fact that we also have a stable climate and society for long-term investment rarely needs to be said. It is already well known.

Sweden already enjoys great success in the electricity-intensive industry born out of digitalization. We are internationally recognized when it comes to data centers, thanks to the establishment of global companies such as Facebook, Amazon Web Services (AWS) and Google, which recently confirmed land purchases in Avesta. Business Sweden and the Boston Consulting Group (BCG) noted this development in a thorough analysis in 2016, and just 18 months later, BCG raised the forecast further. The impact of data centers on the Swedish economy in 2025 is now estimated at SEK 52 billion and a total of 30 000 jobs.

In the automotive industry, global climate targets have significantly increased the pace of change. Electrification is not only a matter of innovation, but also a matter of compliance for both companies and governments. Several major cities have set an end date for diesel cars, which has greatly increased the global automotive industry's demand for battery manufacturing. Battery factories are creating thousands of new jobs, and Sweden has every chance of being an attractive option for international companies. If we stay ahead.

It doesn't stop at data centers and battery factories. New processes to develop bio-based chemicals and value-added materials like carbon fiber are high on the global agenda. Sweden is in a leading position because most of what is currently produced from oil can be made with renewable energy using forests as raw materials. Another growing electricity-intensive area is hydrogen production through electrolysis of water.

Competition is fierce. Apple and Facebook are already building data centers in Denmark, and Google has bought land there for the same purpose. With LG Chem investing SEK 3.1 billion in Europe's largest battery factory for electric vehicles in Poland and Samsung investing SEK 2.8 billion in its battery factory in Hungary, Sweden is not even on the list. We can and should be. The Swedish company Northvolt expects to make a total investment in its battery factory of around SEK 40 billion and create up to 3,000 jobs in Sweden, with research activities established in Västerås and manufacturing in Skellefteå - consider the opportunities in the international establishments. We need to make Sweden an obvious option in the very early stages of the establishment process for electricity-intensive industries. We have identified two important ways to get there.

We need a permitting and processing procedure that is as efficient and predictable as our industrial expertise and electricity generation. These are few but very large projects, with very little tolerance for delays and uncertainty. We need to be settled faster than today, within current legislation and without compromising our environmental ambitions. County administrative boards have a major role to play here in their permit assessments.

We need a higher degree of cooperation across government agencies to promote investment. The government is currently formulating the letters of appropriation that govern the work of Swedish government agencies. Some of them contain wording on export issues, while nothing is said about working to promote foreign investment in Sweden. Our call to the government is therefore to give more relevant authorities, such as Svenska Kraftnät, the Swedish Transport Administration and Lantmäteriet, directives to work proactively for strategic industrial establishments in Sweden.

The establishment of new international electricity-intensive industries has great potential. Sweden must be a world leader and an attractive alternative, every time.

Ulrika Cederskog Sundling Vice President & Head of Investment Promotion, Business Sweden
Fredrik Lind Senior Partner & Managing Director, Boston Consulting Group
Erik Brandsma Director General, Swedish Energy Agency
Pernilla Winnhed CEO, Energiföretagen
Svante Axelsson National Coordinator, Fossil Free Sweden
Marie Nilsson President, IF Metall
David Mothander Association Director, IT & Telecom Companies
Ulrika Lindstrand President, Swedish Society of Engineers
Klas Wåhlberg CEO, Teknikföretagen