Varkaus is an industrial town and municipality in the North Savo region of Eastern Finland, known for its strategic location in the lake district along the straits of Lake Saimaa. Formerly called Warkaus until 1929, the name translates to "strait" in old Finnish, reflecting its geographical features. Situated between Kuopio and Savonlinna, it is unilingually Finnish and serves as a hub for industry and nature-based activities. With a population of 19,603 as of June 30, 2025, it ranks as the 58th largest municipality in Finland, covering 524.48 square kilometers, including significant water bodies. The town received market town status in 1929 and city rights in 1961, with Hannu Tsupari as the current town manager.
Varkaus offers nature and history-focused attractions. Key sites
include:
Taipale Canal and Museum: Over 170 years old, showcasing
canal history.
Old Varkaus: Nationally significant built environment
with guided walks.
Water Tower Sightseeing Platform: Panoramic views
of lakes and town.
Sammakkoniemi Camping and Nature Trails: Hiking,
boating, and wildlife spotting.
Linnansaari National Park Nearby:
Abandoned farms, viewpoints, and seal watching.
Other activities:
Adventure parks, churches, monasteries, and cultural experiences.
Tourism leverages Lake Saimaa for festivals and countryside exploration.
Varkaus spans 524.48 km², with 385.62 km² land and 138.45 km² water, making it the 206th largest by area in Finland. Located at 62°19′N 27°53.5′E, it features straits connecting parts of Lake Saimaa, one of Europe's largest lake systems. An extension of the Saimaa Canal runs through the town, enhancing its waterway network. The environment is characterized by forests, islands, and lakes, supporting biodiversity and outdoor recreation. Neighborhoods include Kaura-aho, Käpykangas, Kuoppakangas, and others, blending urban and rural elements. The population density is 50.84 inhabitants per km², allowing for spacious living amid nature.
Varkaus experiences a continental subarctic climate, typical of Eastern Finland, with cold winters (average January temperatures around -10°C) and mild summers (July averages about 17°C). Snow cover lasts from November to April, supporting winter sports, while summers offer long daylight for boating and hiking. Precipitation is moderate, around 600-700 mm annually, with occasional thunderstorms in summer.
The first written mention can be found in 1323 in the
Pähkinäsaari Peace Book, where one of the landmarks is the Lappish
winter village on the shores of the Sith (now Siitinselkä).
Permanent settlements in the area began to emerge in the 15th
century at the time of the completion of Olavinlinna (a medieval
castle in Savonlinna), and at the turn of the next century a crown
fishery was established in Varkaus. Theft was close to obtaining
city rights in the 18th century, but Kuopio did.
In 1792, a
royal decree established a naval base in Varkaus, which housed the
“Voluntary Company of the Naval Artillery Regiment of the Royal Army
Navy”. For this reason, Varkaus was called Ship Choice. The shipyard
was in operation until the Finnish War, when Russia took over the
entire territory of Finland. The city still has Laivalinnankatu.
During the 19th century, Varkaus developed into a major
industrial center (wood and paper industry and shipbuilding) thanks
to the hydropower available and because of its excellent location
along the waterways. The Taipale canal in Varkaus was the first
blocking canal built in Finland, and it made it possible to connect
the above-mentioned Leppävirta route to shipping with waterways in
the Saimaa region.
The zoning work in Varkaus began at the
beginning of the 20th century, when Ruukki in Varkaus became the
property of A. Ahlström Osakeyhtiö and Walter Ahlström became the
company's CEO. Ahlström set out vigorously to develop the wood
processing industry in Varkaus. Ruukki's population grew strongly
during the major years of construction. Ruukki was responsible for
zoning as well as housing policy and also for public duties while
Varkaus was still without municipal independence.
Walter
Ahlström had a vision of an entire city that would be formed around
industrial plants. Ahlström was actively involved in the planning of
his city, his aim was to create a new kind of industrial community
in which all functions were part of a whole.
A. Ahlström
Osakeyhtiö ordered the first town plan of Varkaus in 1913 from
architect brothers Ivar and Valter Thomélé. These parts were
connected by Ahlströminkatu, a boulevard-like park street. The Civil
War (1918) and the trauma left after it marked the spiritual
atmosphere of the factory site for decades. The division into reds
and whites persisted even after the war.
Varkaus became a
densely populated community in 1928, an independent township split
from the municipalities of Leppävirta and Joroinen in 1929 and a
city in 1962.
As of June 2025, Varkaus has 19,603 residents, with 93.6% Finnish speakers, 0.2% Swedish, and 6.2% others. Age distribution: 12% aged 0-14, 56.4% 15-64, and 31.6% 65+. The society features an aging population, influencing services like healthcare. Low property prices reflect limited job growth and out-migration. The time zone is UTC+2 (EET), with DST at UTC+3.
Historically driven by paper mills like A. Ahlström, Varkaus's economy focuses on industry. Recent developments include a 100 MW data center campus by APL Group, starting with 60 MW in phase one. Skeleton Technologies received €7 million for a SuperBattery factory. A 90 MWp solar project is set for completion by 2026. Challenges include declining markets due to aging demographics.
Varkaus's culture blends industrial heritage with natural surroundings. Local cuisine features Finnish staples like fish from Lake Saimaa (e.g., vendace or pike-perch), rye bread, and berry dishes. Cultural experiences include museums and festivals. Sports are prominent, with WP-35 bandy team winning 16 Finnish championships. Motorcycle speedway at Varkaus Speedway Stadion hosts national events.
Varkaus aligns with Finland's high-quality education system, though specifics are limited. Local schools emphasize comprehensive learning, with potential vocational ties to industry.