Corporate Magazine 1/2009 Patria and Electronic Warfare systems Additional Patria AMV order from Croatia Millog is a Unique Partner of the Finnish Army EN
SATU PALM Editorial Precision and reliable information Welcome to our new edition of Focus! The cover image we chose for this year s fi rst issue represents a departure from our usual style. What you see in the picture is a glimpse to an electronic warfare signal environment. On pages 9 and 10, we will report on Patria s role as a developer of domestic know-how in the fi eld of electronic warfare (EW). A focal point of the story is the signifi cance of precise real-time situational awareness in successful electronic warfare. Very similar requirements apply to business life: in order to make realistic plans for the future, we need clear and exact information especially at a time when the global recession is undermining economic structures in Finland and elsewhere. Patria is looking back on a turbulent year, whose events will have lasting repercussions in one way or another. Over the past few years, we have substantially increased our international activities, especially in the Land & Armament Segment. A particularly positive piece of news is the order for 42 additional Patria Armoured Modular Vehicles placed by the Croatian Ministry of Defence: valuable recognition of Patria s reliability as a partner and confi rmation of the customer s high satisfaction with our fi rst-rate AMVs. All of our units have made signifi cant contributions to the development of Patria. For example, the successful modernisation of Hawk training jets has earned our Systems and Aviation Business Units a serial order from the Finnish Air Force. You will fi nd a detailed report on this in our next issue, which focuses on aviation. Expanding our service operations to match the needs of our main domestic customer in particular is of supreme importance for our future, and we must fi ne-tune our strategy accordingly. The launch of Millog Oy s operations at the beginning of this year was a signifi cant move for Patria, as well as for the Finnish Defence Forces. This comprehensive partnership in the maintenance of the Army s equipment is a challenging task. I wish all our readers a pleasant spring! Satu Palm, Editor in Chief Patria Focus Patria Corporate Magazine 1/2009 ISSN 1795-8768 Publisher: Patria Oyj, Kaivokatu 10 A, 00100 Helsinki, Tel. +358 20 4691, www.patria.fi Editor-in-chief: Satu Palm Board of editors: Tuure Hakavuori, Veli-Matti Kohtamäki, Pentti Miettinen, Simo Mäkipaja, Satu Palm, Mika Nurminen, Raili Saarinen Editing and layout: Legendium Oy Translations: Done Information Oy, Bożena Kojro, Praksis d.o.o., Mare Bulic Photos: Patria Press: Libris Oy Patria Focus is published three times a year. The next edition will be published in June 2009. Please send any feedback to www.patria.fi > News & Info > Patria Focus Current affairs New Government Report The new Government Report on the Finnish Security and Defence Policy was completed in January and proposes an annual two per cent increase in the defence budget. Finland s current defence budget is 2.3 billion euros. The report will be tabled in Parliament in the fi rst quarter of the year. Following an adjustment for infl ation, the budget will be increased by two per cent year-on-year from its current level, beginning in 2011. Reasons for the increase include the continuous rise in acquisition prices for defence needs and military technology. The defence budget will also provide additional fi nancing for crisis management. The purpose of the report is to outline the security and defence policy for, and possibly beyond, the current legislative period. However, the new report may be the last to adhere to its present form, as the established four-year period has been deemed too slow and infl exible to react in time to changes in Finland s security environment. A possible alternative to a shorter interval would be to hold onto the four-year report and its advantages for long-term planning, but to prepare additional security surveys on a yearly basis. 2 Patria Focus Corporate Magazine 1/2009
By the end of this year, there will be about a hundred Rosomaks protecting Polish soldiers in Afghanistan. Pauli Rumbin, Managing Director of Patria s Polish subsidiary 2 Editorial 2 Facts & Figures 4 Q&A Interview with Aarne Nieminen 5 Forum Millog and the Finnish Defence Forces launch a new era of maintenance 6 A partner in all states of preparedness 9 Patria develops domestic EW know-how 11 Additional Patria AMV order from Croatia 11 Helsinki Class missile boats serve as Vukovar and Dubrovnik 12 Tested in action: the Rosomak 14 In Focus 15 In Sight Heikki Allonen Patria Focus Corporate Magazine 1/2009 3
Q&A AARNE NIEMINEN Aarne Nieminen is facing multiple challenges as President of Millog Oy, since the maintenance of the Finnish Army s equipment involves challenging responsibilities and plenty of work. Can you tell us a bit about your career? I graduated from Tampere University of Technology in 1979. For more than 25 years, my professional career has been linked to the armed forces, especially the Air Force. I started working for Patria at Kuorevesi, Halli, in early 1996, and went on to work for the Group at the end of 2004. I became President of Millog when the company was founded in 2006. However, we only started recruiting staff in the beginning of 2008, and the actual operations commenced in full at the start of this year. What is the greatest challenge in your current job? Well, Millog as a company is going through a challenging phase right now. At the turn of the year, around 580 former Finnish Army employees joined Millog Oy. We are a new enterprise, and while the Group is supporting us, it is up to us to get our basic business functions into gear. We have no historic reference, such as existing fi nancial stats, so we must build on the information gathered during the bidding process for the project, and on the data supplied by the army. Our challenge is to get Millog up and running in order to fulfi l the promises we have given to our customers. How would you describe cooperation with the Finnish Army from your point of view? The Army is a large organisation, which is well structured but nevertheless dependent on individuals. Offi cers change their positions often, which is a possible source of diffi culty. Since our partnership is still in the early stages, it s hard to predict how things will work out in practice. But it has been a positive experience so far. The project has the support of the top management, and this support is manifest in deeds as well as words. However, not everyone has yet internalised the full extent of the partnership in the Army or among Millog s owners. What new things would you like to learn in your work? I m already looking back on a rather long career, so I have accumulated a good deal of experience along the way. But of course I always strive to improve my leadership skills. Managing a company with multiple owners of notably different sizes will confront me with many new situations. Harmonising our shareholder agreement with, among other things, the Stock Corporation Act and our fi nancing in any given situation will be challenging, and bring variety to the job. What helps you to maintain a balanced life? I have a cottage in the countryside. A favourite hobby of mine is cross-country skiing, and it always feels good to spend time with the family. My three children have fl own the nest, but I already have two grandchildren! Millog, a Finnish company co-owned by Patria, will from now on be responsible for the Finnish Army material maintenance. Tasks include service, repair, modifications, system configuration and spare parts servicing for vehicles, tanks, weapon and electronic systems, optical and optronic 4 Patria Focus Corporate Magazine 1/2009
Forum Millog and the Finnish Defence Forces launch a new era of maintenance Since the beginning of this year, the equipment of the Finnish Army has been maintained by Millog Oy. The unique partnership between the Finnish Defence Forces and Millog has had a good start. TEXT Virpi Hopeasaari equipment as well as for safety gear. In addition, Millog provides the Defence Forces with expert consulting on material acquisition issues. The company s staff increased when 600 former Defence Force employees joined Millog, their previous workplaces including the Army s Electronics Centre and Vehicle Depot as well as the service departments of the depots in Kuopio, Lievestuore and Tervola. This organisational model is unique and has even drawn attention from abroad. It is exciting to be involved in developing new ways of working, comments materials manager Pertti Saarenketo, who works at Millog s Lievestuore facilities I find this new concept interesting. My own work has not really changed, but as a company we have to take a new stance on implementing our business principles. Saarenketo is convinced that the Defence Forces will profit from the new modus operandi. Independence from the state budget facilitates a more efficient maintenance service and greater flexibility in the acquisition of new equipment. Efficiency in every situation From now on, we can utilise both the industry s and the Defence Force s maintenance resources in the best possible manner, states Pertti Tenhunen, manager at Millog s Riihimäki unit. In Tenhunen s view, a crucial aspect of Millog s role lies in securing the availability of industry capacity and expertise in exceptional circumstances. In the event of such circumstances, there is no need for creating new operational models for material maintenance, since the structures already exist In the beginning, of course we have to adjust our routines and everyone has to adapt to new ways of working. I am sure we will soon prove to be indispensable. We provide skilled maintenance and will be even more efficient after eliminating unnecessary overlaps. Experts enjoying their work Raimo Tumelius tasks and staff have not changed very much since the former repair shop manager of the Tervola depot became the head of Millog s Tervola branch. My job is still about managing people and things. However, it has become more varied, as the customer s expectations and our responsibility for the results have shifted more strongly into focus. Planning and monitoring have become more important than ever. Tumelius has observed a positive spirit among the newly appointed Millog staff, who are taking an obvious interest in the new challenges. Millog s goal is to optimise the utilisation of the different units special knowledge while establishing competence centres in support of the Defence Forces material life-cycle management. In addition, Millog offers the Defence Forces the possibility to make better use for the industry s best practices and development ideas. Besides the Finnish Defence Forces, Millog plans to recruit customers in the international market as well. The owners of Millog are Patria, Insta Group Oy, Raskone Oy, Oy Sisu Auto Ab and Oricopa Oy. Patria Focus Corporate Magazine 1/2009 5
Our strategic partnership with Millog is globally unique in terms of its scope and depth, Ilkka Aspara points out. Once well established, our activities may further develop through common plans, efforts and good results. 6 Patria Focus Corporate Magazine 1/2009
At the beginning of this year, a two-level maintenance system was introduced to the Army: the Defence Forces produce only such support that immediately required for the everyday maintenance of the troops materials and equipment. More demanding maintenance tasks were outsourced to the industry. In essence, Millog Oy takes care of the Army s material including weapon and electronic systems, vehicles and tanks and of the depot level maintenance of some of the Air Force s and the Navy s equipment, plus spare parts service and material performance support. Excluded from the maintenance partnership are explosive materials, clothing and medical equipment. Furthermore, the Defence Forces retain responsibility for certain specialty systems and the general management of the Army s maintenance tasks. Result of detailed preparations The Commander of the Finnish Army, Lieutenant General Ilkka Aspara, has played a central role in the preparations leading to the strategic partnership between the Defence Forces and Millog. The adoption of the two-tiered maintenance system was A partner in all states of preparedness The integration of the Finnish defence industry into the Army s maintenance tasks saves money, clarifies duties and responsibilities, and makes it easier to monitor quality and service levels, says Lieutenant General Ilkka Aspara, Commander of the Finnish Army. Millog Oy, a Patria company, is now part of the Army s operations in all states of preparedness. TEXT Vesa Ville Mattila PHOTOS Jari Härkönen outlined in the Council of State s 2004 Report on the Finnish Security and Defence Policy. The new strategic partnership is also supported by the defence industry strategy published two years ago, and the productivity programme introduced by the Council of State to improve cost efficiency. Aspara affirms his satisfaction with the building and current phase of the partnership. The operational model was planned and implemented in close cooperation and mutual understanding with the industry. I am certain that the result will be a winwin-scenario for both Millog and the Defence Forces. After all, we are very familiar with Patria and our former employees, who now work for Millog. Annual savings of 10 per cent The partnership enables the Defence Forces to interweave the Finnish defence industry tightly into their structures. From now on, Millog will form an integral part of the Army s operations in peacetime as well as in times of crisis. By the middle of the next decade, the partnership will have saved approximately ten per cent of the costs the Defence Forces would have incurred by continuing and further developing their previous maintenance model. If Millog will be able to provide maintenance services to its other customers as well, the total savings may be even bigger. The operational model is based on mutual agreement, and will be transparent at all costs. Aspara lists the additional benefits of the partnership: This true client/supplier model allows the Defence Forces to concentrate on their core tasks. A well-organised maintenance service and centralised know-how facilitates the efficient implementation of the industry s development ideas. Each party will find it easier to identify potential difficulties. The Millog partnership is globally unique in terms of its scope and depth. It is easy to see why it has attracted attention not only from the other Nordic countries, but also from the rest of Europe and the world. Patria a player in many fields A year ago, the Army was organised into an independent defence branch. At the same time, the planning of operations and resources, performance development and operative management were concentrated in the Army s headquarters in Mikkeli. Optimising the connection be-» Patria Focus Corporate Magazine 1/2009 7
» The Millog partnership provides greater possibilities for supporting the maintenance of Finnish as well as other countries crisis management troops. It is only natural that our maintenance partner is present where the equipment is used. tween the Army s performance on the one side and the planning and development of our operations on the other is easiest in an independent defence branch, Commander Aspara points out and recalls the close cooperation between the Army and Patria in many other contexts besides Millog. Last year we started using the AMV as armoured personel carriers for our troops, and it has become a mainstay of the Pori Brigade. Now we are eagerly awaiting the AMOS mortar vehicles we have ordered. The Army s mechanised troops will soon take new bridging and mine breaching systems into use. Patria has been integrating these and will later assume responsibility for their maintenance. In addition, Patria plays a significant role in renewing the night vision gear, upgrading the communication systems and instantiating the midrange air defence missile project and the acquisition of ammunition. Our Readiness Brigade, which is the spearhead of our operating troops, can now rely on top-notch gear, Aspara delineates. The regional troops equipment still appears to be in good working order. The importance of domestic know-how and production Much of the Defence Forces equipment is made in Finland, and these devices usually have a very long life span. The maintenance of this material requires domestic know-how. As a militarily neutral nation, we need our own production facilities and capacity to prevail in special conditions, Aspara outlines. The Army Commander points out that securing maintenance on a national level also benefits international crisis management: Aspara considers export an important aspect of the future of defence technology knowledge in Finland. He is convinced that Patria will continue to find fields in which to excel among its competitors. Long-term strategy supports the national defence To be able to plan and develop their future operations, the Defence Forces need a sufficiently long-range outline from the Finnish Parliament. Aspara therefore supports a strategy that covers the entire legislative period. Our safety environment, on the other hand, is something we might discuss on a yearly basis, if necessary. Aspara is satisfied with the proposed contents of the new Defence Policy Report: The adjustment for inflation and the annual two per cent budget increase from 2011 on will secure our operational possibilities. Among other things, it will compensate for the substantial rise in defence material costs. Weekdays in Mikkeli, weekends in Helsinki Ilkka Aspara works at the Army headquarters in Mikkeli most of the time but usually spends his weekends in Helsinki when not on a business trip. Both towns have their own attractions: The Mikkeli headquarters are new, dynamic, and simply a great working environment. I also like the location of the town and the beautiful nature by the Lake Saimaa. But my friends and relatives live in Helsinki. Aspara s family includes two grown-up sons. In his spare time he exercises, reads, listens to classical music or goes out hunting. In autumn I like to hunt moose and deer. The best thing about hunting is spending time outdoors in the company of friends, but of course it s nice to score some prey every now and then. When it comes to reading, Aspara is most interested in history: I lately immersed myself in Kari Selen s collection of Mannerheim s speeches from 1918 to 1947. This work reveals Mannerheim s (www.mannerheim.fi ) infallible sense of style and situation. He knew perfectly how to capture the moment and to get his message across. 8 Patria Focus Corporate Magazine 1/2009
Modern warfare involves the rapid deployment of troops, whose diminished numbers are compensated for by better equipment and higher flexibility. Concentrating these in the right place at the right time requires comprehensive, real-time situational awareness with regard to both one s own and enemy forces. Situational information is gathered from all available units and must be communicated to the persons in charge without delay. A prerequisite for this is a functioning network which connects command and control systems on a digital battlefield, even down to the level of individual soldiers at tactical level, and all the way up to tactical levels. Increasing need for reliable broadband connections Patria develops domestic EW know-how Mastery of electronic warfare (EW) lies at the heart of the successful missions on the network centric battlefield. Its prerequisites are command and control, intelligence and surveillance (C2IS) systems, which are actively developed by Patria in Finland. TEXT Tuomas Halonen PHOTOS Kalle Martikainen Whether a military crisis or international peacekeeping operation is in question, today s network-centric battlefields are surveyed using hundreds of radio and radar systems, from the traditional combat net radio to state-of-the-art broadband data transfer systems. In times of crisis, robust and secure broadband transmission and controlling the use of electromagnetic spectrum therefore plays a crucial role. Electronic warfare is a core aspect in fight for spectrum dominance on the digital battlefield. It comprises intercepting, localising and jamming military communications and radar systems that are dependent on the use of electromagnetic»» Patria Focus Corporate Magazine 1/2009 9
Shutterstock Domestic product development is advisable in the field of intelligence and reconnaisance, since the sensitive nature of this area places restrictions on the international availability of state-of-the-art technology.» Patria s electronic intelligence receiver is able to intercept even a single radar pulse in dense signal environment. spectrum facilitate electromagnetic spectrum. Basic information on the adrversary s system is gathered during peacetime, using strategic intelligence systems. On the battlefield, a tactical electronic situation picture, electronic order of battle, is built using electronic support receivers which intercept, identify and analyse battlefield signals in real-time. Developing domestic know-how Technological progress has brought efficient commercial components to the market and enabled their utilisation in the development of digital wideband intelligence receivers. Know-how on sophisticated signal processing algorithms needed to identifying and classifying each incoming signal is a crucial competency in securing competitiveness in the international market as well as sustaining ability to react to electronic countermeasures in times of crisis. Finland s largest supplier of defence technology, Patria, has been actively developing domestic know-how in the field of command and control, intelligence and surveillance systems. A recent result of Patria s product development is a prototype for a wideband digital wideband signal intelligence receiver designed for intercepting radar and communication signals (ELINT / COMINT). This can be integrated into existing systems in order to improve their performance and upgrade them to meet present-day demands. The system s signal processing features are flexibly adaptable for various purposes. Patria is also developing tactical robust jam-resistant data transfer systems for domestic and international applications. Domestic product development is advisable in the field of intelligence and reconnaisance, since the sensitive nature of this area places restrictions on the international availability of state-of-the-art technology. Superior knowledge of intelligence receiver systems, and domestic readiness to react to changing threats, provides a relative advantage over enemy forces. An additional benefit for the customer is the lower cost of the products life-cycle maintenance. In addition, several prototypes developed and produced in Finland have performed better than, foreign serial products, and at a lower price. Domestic product development supports technical research and strengthens the know-how and innovative spirit of the Finnish defence industry. It provides opportunities for high-tech exports, advances Finland s integration into international material cooperation and facilitates the acquisition of premium defence equipment. 10 Patria Focus Corporate Magazine 1/2009
Additional Patria AMV order from Croatia In January, the Croatian Ministry of Defence announced its decision to order 42 additional Patria Armoured Modular Vehicles, in accordance with the option agreed in the 2007 contract. TEXT Jaakko Liikanen C roatia chose the Patria AMV as the new transport and combat vehicle for its infantry. In October 2007, the Croatian Ministry of Defence, Patria, and local partner Duro Dakovic Special Vehicles, signed an agreement for the order of 84 AMV 8x8 vehicles. To the notable benefit of the Croatian economy, the AMVs including those ordered now in addition to the earlier series are being produced in cooperation with a local partner. A signal of trust Patria s CEO and President Heikki Allonen views the additional order as a very positive signal: Patria is a trusted partner, and our customers have seen how well our products adapt to their respective requirements and customer-specific needs. Heikki Allonen points out that in field tests and actual crisis areas, the Patria AMV has proven to be a worldclass product in terms of both safety and performance. Helsinki Class missile boats serve as Vukovar and Dubrovnik Two Helsinki Class Fast Attack Craft (FACs) formerly belonging to the Finnish Navy were transferred to the Croatian Navy at the end of January. In a ceremony staged at the Navy base in Split, the two vessels Kotka and Oulu were renamed Vukovar and Dubrovnik. As set out in the purchase agreement signed in July 2008, Patria will also train the Croatian crew of the two missile boats. An additional goal for Patria is to secure a maintenance contract for the vessels. The Helsinki Class has served the Navy well, says Navy Commander, Vice Admiral Hans Holmström. Its well-designed construction makes it ideally suited to the demanding Baltic Sea and archipelago environments. With Patria s help, we are glad to have found a buyer who is interested in these vessels, which are still in perfect working order. Patria Focus Corporate Magazine 1/2009 11
Tested in action: the Rosomak Managing director Pauli Rumbin of Patria s Polish subsidiary reports that the Polish Army s experiences in Afghanistan have earned the Patria AMV an excellent reputation. Moreover, cooperation with local manufacturer WZM has been exemplary. TEXT Jaakko Liikanen PHOTOS arch. Il zmiany PKW Afganistan and Anna Kojro Poland s armed forces ordered 690 Armoured Modular Vehicles from Patria in 2003. When the first series was produced in Patria s Hämeenlinna factory, our Polish partner came to Finland for hands-on training in the production of the vehicles. In 2006, the entire production and the necessary technology were transferred to Poland. Technology transfers are a common requirement in defence industry exports. The current production arrangement is valid until 2013 and covers the production of the AMVs in cooperation with local partner WZM. The structure of the cooperation designates WZM as the manufacturer and primarily responsible supplier of the vehicles, locally known as Rosomaks (Wolverines), in charge of dealing with the end customer. Patria provides its partner with support and expertise. Besides the Rosomak, other cooperation projects are already underway. Both partners share the challenge of supplying end customers with a variety of versions. With Patria s support, WZM has modified the AMV s armoured shell, elevating the construction to offer suitable protection to the vehicle s ambulance version, the MedEvac. These will be used in several operations conducted by the Polish defence forces. It is also possible that vehicles manufactured in Poland will be exported to other countries, which would mean a further expansion of local production. Poland is planning to acquire additional vehicles in 2013 2018. According to Rumbin, the number of units is estimated to a total of between 100 and 400 vehicles. Pauli Rumbin points out: The current manufacturing licence agreement between Patria and WZM will terminate in 2013, but of course we are already preparing for the time after that. 12 Patria Focus Corporate Magazine 1/2009
arch. Il zmiany PKW Afganistan With Patria s support, WZM has modified the AMV s armoured shell, elevating the construction to offer suitable protection to the vehicle s ambulance version, the MedEvac. Poland is planning to acquire additional vehicles in 2013 2018. According to Rumbin, the number of units is estimated to total between 100 and 400. Mr. Adam Janik, Chairman of the Board, Director. The Rosomak vehicle itself was awarded the European Integration and Business Centre Club s European Medal in November. Anna Kojro arch. Il zmiany PKW Afganistan Success in actual crisis is a good reference, says Pauli Rumbin. Other pending projects are the marketing of the Patria Nemo mortar system and the organising of fighter pilot training for the Polish Air Force in cooperation with the Nordic Pilot Training Centre in Kauhava/Finland, which is currently developing an international training centre for fighter pilots. Renown in Afghanistan Pauli Rumbin states that Poland s use of the armoured vehicles developed by Patria in crisis management operations in Afghanistan and Chad has resulted in excellent references for Patria. Poland deployed some twenty vehicles to Afghanistan in 2007. The soldiers experiences with the Rosomak in actual crisis situations were so positive that the number of vehicles has been raised continually. By the end of this year, there will be about a hundred Rosomaks protecting Polish soldiers in Afghanistan. Award for WZM Patria s partner WZM has been awarded recognition for its own know-how as well as for products manufactured under licence. In October, the company was honoured with the Economic Diamond, the Siemianowice Industrial Area entrepreneurs award for products and services that exceed quality standards. This award is only presented to companies with substantial economic potential. Additional criteria are the nominees investments in sustainable development and HR training, as well as their level of recognition within the industry. The Rosomak vehicle itself was awarded the European Integration and Business Centre Club s European Medal in November. Rumbin comments: Those awards reflect back on Patria, for we have been building this great success together with WZM. Recognition of this kind proves that we are capable of handling cooperation projects in the right way. Patria Focus Corporate Magazine 1/2009 13
in Focus Mr Seppo Seppälä, MSc. (Eng.) has been appointed as the President of Patria Land & Armament Oy as of 1 December 2008. Mr Seppälä has extensive experience of leading positions in both Finnish and internationally operating companies. Employed by Patria since year 2000 Mr Seppo Seppälä Seppälä has held different managerial positions in the company as well as a position in the Group Management Board as of 2003. Czech Chief of the General Staff visiting Patria Headed by Lieutenant General Vlastimil Picek, the delegation of the General Staff of the Armed Forces of the Czech Republic visited Finland in October 2008. Other members of the Czech delegation were Col Ales Opata, Director of Force DevelopmentDivision- Operations Division and Col Tomas Dvoracek, Chief of the Artillery. Lt Gen Picek visited Finland on the grounds of the invitation made by Admiral Juhani Kaskeala, the Finnish Chief of Defence. In addition to the programme organized by the Finnish Defence Forces that included discussions with general officers and visit to Pori Brigade, Patria had the opportunity to get the delegation members become familiar with Patria and Patria AMV vehicle and, most importantly, with Patria Nemo mortar system integrated with AMV. The real grand finale was however test firing in Reila. During a beautiful autumn day the delegation had the opportunity to get the first hand experience with Nemo mortar system, including direct firing and MRSI. The field tests were organized in a way allowing to observe advantages of turreted systems compared with traditional ones. At the end of test firing, General Picek said: We were most impressed by capabilities of turreted mortar system. Acquisition of the system will be seriously considered by the Czech Armed Forces. Patria received a serial order for upgrades of Hawk jet trainers Patria Aviation Oy received an order from the Finnish Air Force for a cockpit upgrade of 11 BAES Hawk Mk 51 and Mk52 jet trainers on 30 December 2008. The total value of the order is over 10 million euros. The upgraded trainers will be delivered during 2009 2010. The Finnish Air Force and Patria agreed on the system modernisation of the Hawk jet trainers in December 2006 in order to further increase the quality of fighter training by creating mission planning, recording and debriefing capabilities. The first Hawk jet trainer modernised by Patria with the modern avionics and a glass cockpit successfully performed its first flight in Jämsä, Finland in September 2008. The Finnish Air Force has announced to upgrade also the 18 BAES Hawk Mk66 jet trainers purchased from Switzerland in summer 2007, which accumulates the number of modernised aircraft up to 30. Patria has maintained the Finnish Hawks during their entire life-span as well as performed significant modification projects. The Finnish Air Force and Patria are together surveying possibilities to offer pilot training also to foreign pilots in the Kauhava, Finland based training centre as well as possibilities to sell the excess Hawk trainers to foreign customers. 14 Patria Focus Corporate Magazine 1/2009
In Sight Service, defence and money From the defence industry s point of view, the defence budget for the coming years is of key interest. It is therefore encouraging to fi nd a proposal for a budget increase in the 2009 Report on the Finnish Security and Defence Policy, scheduled for implementation from 2011 onwards. Another interesting item is defence cooperation between the Nordic countries. The outlines for its future, and in particular the sharing of long-term leadership responsibilities in the cooperation between Sweden, Norway and Finland, were again the subject of high level discussion in January. These two subjects are closely linked to each other and are very important to Patria. Expenses associated with defence material are continuously rising, even more than the general price index. The main reason for this is the increasingly complex technology associated with modern weapon and defence systems. Active cooperation between the Swedish, Norwegian and Finnish defence industries would therefore be benefi cial to all. I am convinced that the development of this trilateral arrangement will not be hampered by Norway s recent decision on the acquisition of fi ghter aircraft. Having commenced its operations only in January, Millog Oy is a unique company in terms of its concept, even on a global scale, and is of major importance to the Finnish defence industry and the reliable supply of maintenance services. A strategic partner of the Finnish defence forces, the enterprise has assumed responsibility for the servicing and maintenance of the Army s equipment. Patria s share in this joint venture amounts to 55 per cent. Patria s staff in Finland has grown by a third since the beginning of 2009, reinforcing our position as one of the country s biggest employers. Contrary to many other Finnish companies that have submitted to competitive pressure and relocated their production to foreign countries, Patria s maintenance operations keep jobs in our home country. We have also expanded our geographic area, as the seven depots from the Finnish Defence Forces were integrated into Millog. I have stressed this before and will do so again the service business is crucial to the operations of the whole Group. Notwithstanding the export success of the Patria AMVs and the Patria Nemo mortar system, Patria must be considered more than ever a strategic partner serving the Finnish Defence Forces. Patria s role as a service provider includes its own, distinct product development and the readiness to commit itself to building, servicing and developing systems which the customer has acquired abroad, from the projects earliest stages onwards. As we ponder how to strengthen our service business and its role, we must always bear in mind that the systems requiring life cycle support are becoming more and more complex, extensive and demanding. In order to fulfi l our tasks, it is essential that we familiarise ourselves thoroughly with these systems as early as possible. This will enable us to guarantee that they function properly throughout the product s life cycle. This year will without doubt be a challenging one. The recession is threatening the global as well as the Finnish economy. Patria must be able to adjust to changes quickly and to correct its course whenever necessary. I wish all of our readers a good start to the year! Heikki Allonen President and CEO HEIKKI ALLONEN Patria Focus Corporate Magazine 1/2009 15
ch. Il zmiany PKW Afganistan www.patria.fi PATRIA DELIVERS PROTECTION AND PERFORMANCE with focus on increasing security through all its solutions. Patria Oyj, Kaivokatu 10 A, FI-00100 Helsinki, Finland, Tel. +358 20 4691, Fax +358 20 469 2022, info@patria.fi EN