More than 70 percent of Swedish companies that set up business abroad in 2001-2006 chose to expand within the EU. This is a higher percentage than other Nordic countries and the Netherlands. In Denmark, only 50 percent set up business in another EU country and many other companies chose the Asian market. These dynamics are also evolving among Swedish companies and which are – more than before moving their operations to Asian countries and to China in particular as well as to the new EU countries.

Companies are mainly moving their core business abroad. 90 percent of manufacturing companies are setting up their core business abroad. In Denmark, Finland and the Netherlands, the percentage is slightly lower (70 percent) than in Sweden. When companies set up support operations abroad, old EU countries are the most popular targets. Among service companies, the most common support operation to be moved is IT support.

The principal reason to set up abroad is to cut costs. Almost 60 percent of Swedish, Danish and Dutch companies consider reduced labour costs the most important reason for action.

The companies that participated in the survey agreed that the international sourcing generated by an expansion abroad was positive for the company’s competitiveness.

Emelie Ring, Editor