Patria Land Oy and Valmet Automotive have agreed to collaborate in the manufacture and testing of armoured vehicles at the latter’s facility in the port town of Uusikaupunki, Finland, the companies announced on 31 October.
Patria’s Protected Mobility business, which encompasses its 6×6, AMV XP and TRACKX armoured vehicle programmes, has grown significantly in recent years, prompting a substantial investment in production facilities in Finland and Latvia. “Patria is focused on delivering to existing customers and boosting production capacity to meet rising demand for Patria’s armoured vehicles. Patria’s production levels are well positioned to fulfil all existing orders; however, we are seeking additional capacity,” explained Jussi Järvinen, Patria EVP of Protected Mobility.
Technology transfer and local manufacturing are integral to Patria’s business model. Through the Common Armoured Vehicle System (CAVS) programme alone, the company has already received orders for nearly 1,000 Patria 6×6 vehicles. While CAVS (launched by the Finnish and Latvian MoDs in 2020 and now also including Denmark, Germany, Norway, Sweden and the UK), leverages local industry via technology transfer to support security of supply in both nations, local partners in Poland and Slovakia also manufacture. Technology transfer is also underway for German CAVS 6×6 and Japanese AMV XP 8×8 programmes.
From Valmet’s perspective, the agreement answers a growing need within the company, whose Uusikaupunki plant will imminently come to the end of its agreement to license-build Mercedes-Benz vehicles. Pasi Rannus, CEO, describes the agreement as “a concrete demonstration of the progress of our strategy extending beyond the automotive industry. We are pleased that our expertise is in demand also in other industries that require high technological capabilities. This Letter of Intent is a major first step for us in contract manufacturing in the defense sector”.
DA Comment
As well as market diversification – and intelligent move in an increasingly unstable world – the agreement could answer another significant issue for Valmet. Expiry of the Mercedes-Benz contract is forcing active consideration of axing up to 1,000 jobs, on top of the 400 redundancies announced in the spring. Although the intention is that passenger car manufacture will continue at the plant, which is now majority owned by the Finnish state, which has announced a further €35 million investment in the plant, there are no current indications of timing – either for car manufacture or for the commencement of armoured vehicle production and/or testing. However, Valmet has a decades long reputation for being able to ramp up production very swiftly.
Image of the TRACKX highly mobile all-terrain vehicle courtesy Patria Group
