Fortum

Fortum wants to be the preferred supplier of innovative, versatile energy products and services. To achieve this, we need the trust of customers, employees and society. Fortum Corporation is an international energy group formed from the 1998 merger of two state-owned Finnish firms: Neste Oy, the nation's main oil and gas corporation, and Imatran Voima Oy, the state power company. Fortum has two primary subsidiaries: Fortum Oil and Gas Oy, which is involved in oil and gas exploration and production, petroleum refining and marketing, and the transmission, sale, and distribution of natural gas; and Fortum Power and Heat Oy, which generates, sells, transmits, and distributes power and heat, through the ownership and administration of hydroelectric, nuclear, and other power plants, as well as steam and heating plants. Other subsidiaries are involved in the operation and maintenance of power plants; in the design and construction of power plants, power transmission systems, and other power-related facilities; and in the production and marketing of chemicals, principally adhesive resins and industrial coatings. Though Fortum is a publicly traded company, the government of Finland maintains a 75.5 percent stake in the company. Before World War II, Finland had no oil refineries. The country was one of the few in Europe that imported all its oil and petroleum products from abroad. When World War II broke out in 1939, Finland was not prepared to cope with the problems that ensued. In September 1939, petrol rationing started in Finland. Fuel and lubricant oils were placed under the control of a special agency called PVa, from the Finnish words for fuel oil storage, under the guidance of the Ministry of Defense. The new agency was led by Colonel Väinö Vartiainen, who was later to play an important part in the early days of Neste. Dr. Albert Sundgren, Finland's only petrochemicals expert, was on the staff of PVa. Earlier he had advocated the establishment of an oil refinery in Finland. The storage caves in Naantali were named NKV, from the Finnish words for Naantali Central Storage. After the end of the war, work to complete the caves went on. Responsibility for the NKV project was transferred from the Ministry of Defense to the Ministry of Trade and Industry in June 1947. NKV became a limited company, Neste Oy, and its first general meeting was held on January 2, 1948. The state of Finland was registered as a shareholder with 207 shares, Oy Alkoholiliike Ab, the state-owned alcohol monopoly with 140 shares; and Imatran Voima, the state-owned power company, with three shares. In the articles of association of the company, it was stated that its purpose was to own and rent storage for liquid fuels and lubricants, and to act as importer, transporter, and manufacturer of these products, as well as trading in them. The beginnings of Neste (Finnish for "liquid") were not very auspicious. In the spring of 1948, Neste purchased an old tanker of 8,896 pennyweight (dwt) from Norway. The ship was a financial disaster. The caves also gave the company problems, when in July 1949 a dangerous fire broke out. The company was in financial difficulties. An agreement between Neste and the government was signed in October 1950, whereby Neste returned some of the less suitable storage space to the state for a remuneration of Fmk 150 million. Uolevi Raade, director in the early 1950s of the Department of Industry within the Ministry of Trade and Industry, had become aware of Sundgren's plans for an oil refinery. Raade perceived that a major plan of national importance was waiting for his imagination and will power, and he accepted the challenge. The fortunes of Neste began to change. Finland had traditionally relied on the services rendered by the major oil companies. They had a strong influence upon Finland's Department of Trade. They tried to make the refinery plans look unfavorable. Raade, however, was known for getting his way. He convinced the minist