The Lahti City Board approved the contractual arrangements between LADEC and Lahti Region
1.6.2026
City of Lahti News | 1 June 2026
The Lahti City Board approved the contractual arrangements between LADEC and Lahti Region
The City Board of Lahti has approved the updated funding agreements of the regional development company LADEC (Lahti Region Development LADEC Ltd) and the tourism company Lahti Region (Lahden Seutu - Lahti Region Oy), as well as the shareholders’ agreement of Lahden Seutu - Lahti Region Oy.
At the end of March, the City Board of Lahti instructed Lahti Region Development LADEC Ltd and Lahden Seutu - Lahti Region Oy to initiate preparations to merge their operations through a business acquisition. In April, the other shareholders of the companies supported advancing the arrangement.
In the business transaction, Lahti Region Development LADEC Ltd will sell its operations to Lahden Seutu - Lahti Region Oy. By combining the activities of the two regional development companies, the aim is to achieve greater impact on the vitality of the Lahti region. The development of the company structure is based on a business review published in autumn 2025.
Shareholders’ agreement of the Lahden Seutu - Lahti Region Oy
The shareholders’ agreement of Lahden Seutu - Lahti Region Oy defines the relations between shareholders, the relations between shareholders and the company, and the key principles of governance. The company operates as an in-house entity within the meaning of the Act on Public Procurement and Concession Contracts. The company’s objective is not to generate profit for its shareholders, and it does not distribute dividends.
According to the agreement, the company’s Board of Directors will consist of six members. The City of Lahti appoints the chair and two members, and the other owner municipalities jointly appoint three members. Board members are primarily independent experts, and the chair of the board may have a background as an elected official.
A Supervisory Board will be established for the company, and the company may also have an advisory board to support the strategic work of the management.
Updated funding agreements
The funding agreements define the municipalities’ financial contributions, which are based on their population.
The funding agreement of Lahden Seutu - Lahti Region Oy has been updated to correspond to the new combined business entity. The contribution levels remain in line with those of the previous development companies. Orimattila and Kärkölä have been added as contracting parties.
The funding agreement of Lahti Region Development LADEC Ltd will expire on 30 June 2026, when its operations are merged into Lahti Region through the business acquisition.
The aim is for operational activities in the combined company to begin on 1 July 2026.
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Lahti Region Development LADEC Ltd is a regional development company jointly owned by the municipalities and higher education communities of Päijät-Häme. The City of Lahti holds an 87.5% ownership stake in the company. The municipal shareholders have committed to funding the company’s operations through a funding agreement.
Lahden Seutu - Lahti Region Oy is a company promoting regional tourism business, owned by the municipalities of Päijät-Häme. Its owners are the municipalities of Päijät-Häme, of which all except Kärkölä and Orimattila have committed to funding the company’s operations through a funding agreement. The City of Lahti holds a 52.9% ownership stake in the company.
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Further information:
Elina Laavi
Executive Director for Vitality Development and Services | City of Lahti
+358 40 708 2121
Sanna Haarala
Group Ownership Steering Specialist | City of Lahti
+358 44 482 6426