Ladies and Gentlemen,

As a representative of the Norwegian Government, it is a great pleasure to take part in the opening of this new manganese plant here in Mo. The community of Mo i Rana has a strong industrial tradition. It has great competence and skills, not least within metals and alloys. Mo has for long been an important contributor to the industrial exports from Norway.

I am pleased, as Minister of Trade and Industry, to see that the Brazilian CVRD Group has chosen Norway and Mo as location for their expanded industrial activity in Europe. The industrial and economic ties between Brazil and Norway have increased during the last years. These fruitful links will increase and move to a new level through this direct investment project.

Foreign investment has for long played a central role in the development of Norwegian industry. It was important when the foundations for our process industry were laid early in the last century. It was important when Norway established the petroleum industry from the 1970s and onward. In a globalized economy, it is positive that capital and corporations from abroad will play an important role in the further development of our industry in a new century.

One of the major challenges we face in Norway is the need for growth in non-petroleum industries. We need to gradually reduce dependency on the petroleum sector. This is a major industrial policy challenge that implies a focus on innovation. The innovation challenge concerns both development of new enterprises and activities – as well as growth within existing industrial sectors. This investment project is a good example of industrial development based on an existing sector.

The Norwegian Government has as a central objective the creation of an efficient framework for industry and business. Through our policies in several areas, we seek to promote the competitiveness of business based in our country. Like other countries in the global economy, we have to compete for investments from both Norwegian and foreign investors. Our industry and our industrial communities can offer knowledge and experience. The Government can offer a sound business environment.

The importance of a responsible fiscal policy has been demonstrated during the last year. The high interest rate in Norway, together with a strong currency, is a major challenge for Norway’s exporting industry. There is a considerable pressure to use more of our petroleum revenue. The Government, with clear support from the organisations representing our export industries, has managed to limit the growth in public expenditures. Since adoption of the 2003 budget, Norges Bank has reduced its interest rates several times. The value of the krone has fallen since January, improving the competitive situation of our exporting industries.

With respect to wages, the responsibility lies with the industrial partners themselves. However, the Government has established co-operation with the social partners to achieve moderate wage increases.

Tax reductions will improve the working conditions for industry. A large part of the tax cuts of 19 billion kroner the last two years are directed towards business and industry. For the process industry, it has also been important to ensure that there still will be no tax on electrical power.

Simplification of laws and regulations are important for enterprises. A central objective is to reduce the administrative burden for firms. The Ministry of Trade and Industry has established an impact assessment unit for new rules and regulations. All reporting to public authorities can also be done electronically by next year.

Knowledge is a key to future competitiveness. This is the case for so-called traditional industries as well as for new business sectors. The Government supports business- and industry related research in various ways:

tax exemptions for research has been extended to all enterprises

funds for business related research through the Norwegian Research Council have increased

This year, the Government will also present a comprehensive action plan for innovation, where one of the goals is to increase co-operation between firms and research institutions.

Access to the large European internal market is secured through the EEA agreement. This area will be expanded strongly through accession of the new member countries in the EU. We are pleased that the talks between EFTA and the EU on the enlargement of the EEA has been successfully concluded this month. This is a central agreement for most of our exporting industries.

In conclusion, I would like to congratulate Mo i Rana and the CVRD Group with the new, modified production plant and I am certain that this partnership will be of great benefit for all involved parties in the years to come.

Thank you for your attention!