Valmet Automotive and defense company Patria have signed a preliminary agreement for armored vehicle production and testing. The collaboration will take place at Valmet's Uusikaupunki factory in southwestern Finland.
Valmet Automotive CEO Pasi Rannus called the agreement a concrete step in the company's strategy to expand beyond traditional automotive manufacturing. He said the deal represents a major entry into defense sector contract manufacturing.
The company confirmed its new strategic direction earlier this month. Valmet will now offer its industrial mass production expertise to other industries beyond automotive manufacturing.
Jussi Järvinen leads Patria's Protected Mobility business area. He stated that Patria focuses on deliveries to current customers and increasing production capacity. The company needs to meet growing demand for its armored vehicles.
Järvinen explained that Patria's production currently meets all existing orders at a high level. The company nevertheless seeks additional manufacturing capacity. This search has led to potential partnership discussions with Valmet Automotive.
Both companies confirm that negotiations for final agreements are ongoing.
The Finnish state became Valmet Automotive's majority owner last autumn with a 79% stake. The Kokkila family's Pontos holds the remaining 21%.
Patria is owned by the Finnish state (50.1%) and Norwegian Kongsberg Defence (49.9%).
This partnership reflects Finland's growing defense industry needs amid changing European security dynamics. Both companies stand to benefit from shared manufacturing expertise during a period of increased defense spending across the region.