Valmet Automotive and Finnish defense company Patria have signed a letter of intent for armored vehicle manufacturing. The companies plan to produce and test armored vehicles at Valmet Automotive's Uusikaupunki factory in southwestern Finland.
Valmet Automotive CEO Pasi Rannus called the agreement an important opening into defense sector contract manufacturing. He made the statement during a company announcement on Thursday.
Final contract negotiations are currently underway between the two Finnish companies. Both firms confirmed the talks are progressing.
The announcement comes just months after Valmet Automotive revealed major restructuring plans. The company estimated in September it needed to reduce approximately 1,075 person-years of work.
This defense sector move represents a strategic shift for Valmet Automotive, which has primarily focused on automotive contract manufacturing. The timing appears calculated, as the company seeks new revenue streams while managing workforce reductions.
What does this mean for the Uusikaupunki region? The potential armored vehicle production could bring stability to an area facing job uncertainty.
Finland's defense industry has seen increased activity since the country joined NATO. The geopolitical shift creates new opportunities for Finnish defense manufacturers.