Two major Finnish state-owned industrial companies have confirmed a landmark technology transfer agreement to begin manufacturing armored vehicles. Valmet Automotive, now majority state-owned, and defense contractor Patria, also state-controlled, will collaborate on producing Patria's protected mobility platforms.
The partnership starts immediately. The first armored vehicles are scheduled for production in the second half of 2026. The companies did not disclose the commercial value of the deal.
Valmet Automotive CEO Pasi Rannus called the agreement a major milestone for the company's new strategy. He said the move proves their decades of contract manufacturing expertise represents exceptionally high quality. This expertise is well-suited for series production of diverse products, according to Rannus.
Jussi Järvinen, head of Patria's Protected Mobility business unit, stated that while Patria's current production capacity is at a very good level for existing and anticipated orders, the company is seeking additional capacity for future demand. He described the technology transfer as a natural part of Patria's business model and a first important step in cooperation with Valmet Automotive.
This deal signals a strategic pivot for Valmet Automotive, a company with deep roots in the Finnish automotive sector. Historically known for manufacturing cars for brands like Saab and Porsche, the company has faced challenges in the traditional automotive space. The shift toward defense contracts represents a diversification into a more stable, government-backed sector. It leverages Finland's advanced manufacturing ecosystem, often highlighted in Finnish tech news.
The collaboration directly taps into Finland's robust technology sector, known for precision engineering and complex system integration. It connects the automotive supply chain in Uusikaupunki, where Valmet Automotive's main plant is located, with Patria's defense expertise in Helsinki and other locations. This is not just a contract but a strategic alignment of state assets.
For international observers, this move reflects broader European trends. Nations are bolstering domestic defense industrial capacity due to geopolitical instability. Finland, with its long border and history, takes territorial defense seriously. State-owned companies are logical tools for such national security objectives.
What does this mean for the Finnish technology sector? It demonstrates how industrial know-how from the automotive and telecommunications fields—where companies like Nokia excel—can be adapted for defense. The required expertise in sensors, communications, and durable systems overlaps with Finland's tech strengths in Helsinki startups and the wider ecosystem in Espoo innovation areas.
The financial details remain secret, which is standard for defense deals. The real value is strategic. It secures production capacity for the Finnish Defence Forces and potentially for export. Patria's armored vehicles, like the 6x6 Patria AMV, are already used by several nations. Scaling production through Valmet Automotive could improve cost efficiency and delivery times.
This partnership is a clear example of industrial policy. The state, as the majority owner of both companies, is directing resources to meet a perceived national need. It provides Valmet Automotive with a new, long-term revenue stream in a high-barrier sector. For the Finnish economy, it helps retain advanced manufacturing jobs and expertise. The success of this venture will depend on execution and the ability to secure export orders in a competitive global defense market.