Author: Jarkko Heikura
Industrial Planning – How to Deliver an Industrial Project Successfully?
Industrial construction projects are inherently complex. They bring together production requirements, technical solutions, environmental considerations, regulatory processes, and increasingly, sustainability requirements in Finland.
Today, a project’s social acceptance can also determine its success. Finland has seen this in public debates around data centers and mining projects, where environmental and societal impacts have influenced investment decisions.
With the new Finnish Building Act effective from January 2025 and the EU Taxonomy Regulation in play, industrial investments now require more rigorous preparation. These regulations affect schedules, documentation requirements, and even access to financing – which is why they must be considered from the earliest project stages.
How can you ensure your industrial investment project in Finland proceeds smoothly and responsibly? The answer lies in the Front-End-Loading (FEL) model, which breaks the project into clear, structured phases before execution.
Front-End-Loading (FEL) – A Clear Path to Investment Success
The FEL model helps all stakeholders understand where the project currently stands, what needs to happen next, and when the final investment decision can be made with confidence.
A typical investment project in Finland proceeds through these phases:
1. Concept Development – Exploring the Options
- Evaluate the commercial and technical potential
- Identify project alternatives and define the scope
- Map risks and prepare a permitting strategy
- Assess site options and logistics
At this stage, Environmental Impact Assessment (EIA) and local zoning processes can begin if required. The outcome is a clear understanding of which concept best supports the investment.
2. Pre-Design – Validating Feasibility
- Select and optimize the preferred concept
- Confirm site choice and boundary conditions
- Advance permitting and refining schedules
- Prepare a budget-level cost estimate and preliminary timeline
- Specify key equipment and request budgetary quotations
- Assess operating costs and conduct a deeper risk analysis
This phase also involves progressing environmental studies and permit preparations – including EIA, fire safety documentation, and building permit drafts. A communication plan for external stakeholders is prepared, and public communications can start as appropriate.
3. Basic Design – Moving Towards the Investment Decision
- Final concept selected and commercial feasibility validated with technical and financial studies
- Building, process, and access layouts completed
- Building and environmental permits largely in place
- Binding quotations from key equipment suppliers and contractors
- Select the execution model (e.g., EPC, split contracts, project management) and define schedule and phasing
- Refined cost estimate (e.g. ±10%) and a prepared investment proposal
- Constructability, safety, and cybersecurity analyses completed
At the end of this phase, the Final Investment Decision (FID) is made, after which the project moves to detailed design, procurement, and construction.
External stakeholder communication continues according to the plan to maintain transparency and social acceptance.
Would you like to discuss industrial planning with a professional? Book a lunch meeting with Jarkko!
Building Permits, Environmental Permits, and the New Finnish Building Act
The new Building Act introduces stricter requirements for industrial projects in Finland, particularly regarding digitalization and information management. Effective from the beginning of 2025, the Act aims to modernize construction regulations, improve data management, and strengthen the consideration of sustainable development in projects. It replaced the former Land Use and Building Act and set higher demands for digitalization and documentation in industrial construction.
In practice, this means that building plans must be submitted electronically in a machine-readable Building Information Model (BIM) format. Designers are required to hold higher qualifications, and environmental as well as climate impact assessments play a more central role than before. The reform is intended to make permitting processes more transparent, consistent, and efficient, while also raising quality and accountability standards.
A building permit application typically includes a site plan, architectural, structural, and electrical designs, energy efficiency studies, and fire safety reports. You can find more information about the new Building Act here:
- All plans must be submitted electronically in a machine-readable Building Information Model (BIM) format
- Designers must meet higher competence requirements and produce more detailed documentation
- Environmental and climate impact assessments are now core elements of permit applications
EU Taxonomy and Sustainability
The EU Taxonomy is a classification system for sustainable finance designed to direct investments toward projects that are environmentally and socially sustainable. In practice, the taxonomy defines which types of projects can be considered environmentally sustainable and are therefore more likely to secure financing. Its impact is already visible in many industrial projects, particularly through funding, but also in project design and execution. Explore our earlier article on the EU Taxonomy and related EU directives here:
- Energy efficiency and emissions in design and operations
- Circular economy principles and material selection
- Biodiversity and water system impacts
- Documented proof that the project meets sustainability criteria
Key Takeaways – Preparation and the Right Partner Matter
Using the FEL-based preparation model makes industrial investments in Finland predictable, compliant, and lower-risk. When anticipation, coordinated design, and sustainability go hand in hand, the project is far more likely to succeed.
Despro brings the expertise and experience to guide your investment from concept and permitting to a fully operational production facility – efficiently, responsibly, and with confidence.
FAQ – Frequently Asked Questions
The new Building Act, which entered into force at the beginning of 2025, introduced stricter requirements for industrial projects, particularly regarding digitalization and information management. Building plans must be submitted electronically in a machine-readable Building Information Model (BIM) format, designers are required to meet higher qualification standards, and environmental and climate assessments now play a more central role. These changes improve transparency and quality in projects, while also emphasizing the importance of careful preparation.
The Front-End Loading (FEL) model is a step-by-step process used to prepare an industrial project before execution. It divides the project into three phases: concept development, pre-design, and basic design. In each phase, costs, risks, and permitting requirements are refined to ensure that the final investment decision is made on a solid foundation. The FEL model helps reduce risks and ensures that the project progresses in a controlled and structured way.
EU:n taksonomia on kestävän rahoituksen luokittelujärjestelmä, joka ohjaa investointeja kohti ympäristön kannalta kestäviä hankkeita. Käytännössä tämä tarkoittaa, että rahoituksen saaminen voi edellyttää esimerkiksi energiatehokkuuden parantamista, materiaalien kiertotalousperiaatteiden huomioimista ja ympäristövaikutusten todentamista. Teollisuushankkeissa taksonomia näkyy erityisesti rahoitusneuvotteluissa ja vastuullisuusraportoinnissa.
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Jarkko Heikura has a long background and experience in the industry. She can create a customized service according to the needs.