Turku Concern’s Subsidiaries and Wholly-Owned Subsidiaries

OWNERSHIP POLICY OF THE CITY OF TURKU 2016–2020

Ownership policy is the city’s instrument for strategic management, with which it aims to promote systematic functioning, keeping the value of assets, and consistency in decision-making in the Turku concern.

Operations and finances of the City of Turku concern – basic information of the Turku concern

At the beginning of 2017, the Turku concern had 57 subsidiaries. Municipal wholly-owned subsidiaries refer to the entities where the municipality alone, or together with the other entities of the municipal concern, have authority. The most important and significant ones of them have been named as strategic entities at the City (24 in total at the beginning of 2017, and they are presented more precisely by business areas and companies below.)

The City of Turku also has a considerable number of so-called associated companies (share 20 - 50 %). A wholly-owned associated company is a company where the municipality, alone or together with other entities belonging to the municipal concern, have a considerable share and significant influence.  Some of the wholly-owned associated communities have been named as strategic entities, even though the city does not have authority in them.

Furthermore, the city has numerous other ownerships (share max. 20 %), most of which are minority holdings in e.g. small housing and joint-stock property companies.

The City concern is managed and supervised by the City Board, but it has delegated a part of its jurisdiction to the Concern Section, whose responsibility is to take care of defining and monitoring the operational and economic objectives of the entities defined as strategic entities. The Section also monitors that the operational policies of these entities are consistent with the City’s objectives. The Concern Section uses the Mayor’s demonstration to prepare the naming of the governing body members for the strategic entities and works as the Nomination Committee for the administrations’ strategic entities.

Find more information of the consolidated financial statement and the concern supervision and risk management in the City’s financial statement of 2016 (pdf, page 27).

Listed below are the business areas that belong to the City concern and have been named as the City’s strategic entities.

Business areas

Housing and property business
Economy and competence business
Energy and infrastructure business
Tourism and cultural business
Production business

 
Housing and property business

The objective of housing business is to take care of a sufficient rental housing stock in the City of Turku region.

Property business solutions can be used to improve the financial position of the City or to indirectly produce added value related to e.g. social, cultural and industrial policies.

 
Economy and competence business

The City develops businesses by creating good conditions for business practices and participates in competitive activity only in a limited manner. Operations by companies with industrial policy are practiced in cooperation witn the region’s universities, utilising their resources and know-how in business activity and creating jobs.

 
Energy and infrastructure business

Due to social objectives and regulation of the market, the companies managing a special task for the City have to remain under the City’s private ownership or authority. Local, so-called natural monopolies which are based on the infrastructure, or monopolies similar to those, include district heating, electricity distribution, district cooling, water, and sewerage system operations, and the production of service water and the processing of sewage.

 
Tourism and cultural business

The companies produce services to the City, City concern, and City region in their own fields. The City accumulates added value as an indirect benefit, such as high-class culture and tourism income to economic life.

 
Production business

Production business companies have been founded to manage a task that is either productional or one that supports the City’s basic services, and apart from Turku urban transport, they function in the market on the grounds of business economics. Business activity of companies is aimed to be expanded, and they participate in competitive biddings arranged by the City and the subsidiaries.

Monopoly-like business – Water supply companies