China Harbour starts second Finnish project as Kotka review finds labour abuses

Chinese contractor China Harbour Engineering Company (CHEC) has begun work as the main contractor on a data centre project in Kouvola, its second construction contract in Finland. Yle reports that serious labour problems were found at the company’s project in nearby Kotka, prompting promises of tighter oversight at the new site.

Singapore-based Nova Complex is building the data centre in the Kymin Ruukki area of Kuusankoski, where the site includes former factory buildings owned by forest company UPM. Foundation work began in spring and summer, and piling is now under way.

About 30 people are currently working at the site, according to Jari Suomela, a site manager at consulting company Sitowise. He expects several dozen workers, and at most 100, during the project’s busiest phase early next year. Nova Complex had said in the spring that hundreds of workers would arrive by late summer or autumn.

CHEC said the current subcontractors are all Finnish, but it cannot yet estimate the maximum workforce or say whether foreign workers will be involved. Project manager Lin Tao said staffing will depend on the client’s investment and construction plans. Nova Complex says construction work will be carried out by Finnish workers, while CHEC is responsible for project management and site supervision. More partners are expected to join as the project advances.

Labour problems at Kotka site

CHEC is also the main contractor at a battery materials factory under construction in Kotka. A review published last Friday by Finnish Minerals Group, a state-owned co-owner of the Finnish-Chinese factory company, found that Chinese workers had been pressured to sign unlawful employment contracts and threatened with losing their jobs, money or residence permits. They were also charged for accommodation and meals through wage deductions without a written agreement.

Records from subcontractor Jiangsu Installation Finland showed about 800 workdays of unrecorded hours. The workers have been promised full repayment. More than 300 Chinese workers were at the Kotka site during the summer.

The review found no evidence that CHEC knew about the problems. Lin Tao said the company would apply lessons from Kotka if foreign workers are used on future projects, and would monitor subcontracting and recruitment chains at every level.

Nova Complex also says it will strengthen oversight. It requires CHEC to ensure subcontractors follow Finnish employment terms and report problems, and plans spot checks of wage and working-time records.

Nova Complex is also planning a data centre in Loviisa. Its Kuusankoski project is expected to be smaller than other data centres being built in Kouvola.