Revolutionizing the Path to Establishing New Production Companies in Denmark
In the intricate process of setting up a new production company, there are several crucial factors to consider, such as connecting to the electricity grid, obtaining building permits, and managing wastewater disposal. These are just a few of the elements that need to be in place before even breaking ground on a new factory.
The Time-Consuming Preparatory Work
The preparatory work involved in preparing for the groundbreaking of a new factory can be incredibly time-consuming. In fact, it may require contacting up to 20 different authorities. This extensive process can take up to three years, assuming there are no complaints along the way. This lengthy timeline was highlighted by Morten Bødskov, the Social Democratic Minister for Business.
Introducing a Red Carpet for Production Companies
In a warehouse at Meliora Bio, surrounded by large straw bales, Minister Bødskov presented the government’s proposal for a red carpet for production in Denmark. This initiative aims to streamline the establishment of new, especially green, production companies.
- Companies will be assigned a contact person to guide them through the often opaque web of authorities and approval processes.
A Gateway for Selected Production Companies
Not all production companies will have access to the "one-stop-shop" that the government refers to as the common authority entrance. This opportunity is primarily intended for green production companies from both Denmark and abroad, including those involved in producing components for wind energy, CO2 capture and storage, hydrogen, and those covered by EU regulations on net-zero technologies.
- Companies seeking to expand or establish production that meets specific criteria, including those wishing to locate in designated industrial parks, can also benefit.
The Fierce Competition for Danish Production Companies
Minister Bødskov emphasized the intense competition for customers and jobs that Danish production companies face. Winning this battle is crucial for Denmark, as falling behind could mean losing the fight for jobs.
- The minister stressed the importance of ensuring that companies working with green technologies have easier access to establishing themselves in Denmark or smoother processing when expanding existing facilities.
Speed Equals Money
Bigadan, a biogas producer with facilities across Denmark, hopes to benefit from the streamlined processes. Their experiences with prolonged administrative procedures have highlighted the loss of value for both the company and society when necessary permits are delayed.
- CEO Henrik Vestergaard Laursen emphasized the significant financial impact of these delays, which can amount to millions in lost opportunities.
Industry Support for Easier Establishment
Dansk Industri, the industry’s interest organization, welcomes the government’s efforts to simplify the establishment or expansion of production companies in Denmark. They recognize that many companies face obstacles due to excessively long processing times.
- Political Director Morten Høyer emphasized the potential consequences of these delays, including companies abandoning projects or relocating them abroad, resulting in lost growth and jobs in Denmark.
Government’s Vision for Streamlined Processes
Recognizing the critical importance of speed for production companies, the government aims to limit processing times to a maximum of 18 months for expansions, with hopes that a single entrance point will facilitate this goal.
- In addition to reducing the number of authorities companies must engage with, the government plans to designate five industrial parks across Denmark, ensuring easy and convenient establishment for production companies in these areas.
In Conclusion
The government’s initiative to simplify the establishment and expansion of production companies, particularly those focusing on green technologies, is a significant step towards fostering growth and creating job opportunities in Denmark. By reducing bureaucratic hurdles and streamlining processes, this initiative aims to attract and retain businesses, ultimately driving economic development and sustainability in the country.