Nokia was founded in 1865 by Finnish mining engineer Fredrik Idestam as a paper mill in Finland. Idestam established the first mill near Tampere, Finland, and a second mill near Nokia in 1868. The name Nokia comes from the location of the second mill, which was built on the banks of the Nokianvirta River. In 1871, Idestam and his friend Leo Mechelin formed a company called Nokia Ab.