The Kemijarvi pulp-mill, owned by Stora Enso, was closed down in the spring of2008. Originally the mill was a state-owned company built at the end of the 1960s toindustrialize northern Finland and to utilize local forests. The mill was a tool for thestate to promote economic and social aims. I examine the history of the Kemijarvi mill as an example of changes in the Finnishstate's ownership policy and definitions of social responsibility of state enterprises.The theoretical concept legitimacy is understood to deal with social power, objectivesand consequences, and used as an analytical tool to examine these components. Themain finding is that Finnish definitions of legitimacy of state-owned forest companieshave changed since the 1980s, but local interest groups around the Kemijarvi mill andin Northern Finland still interpret the legitimacy as they did in the 1960s. This led toa legitimacy crisis of governmental ownership policy.
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