Patria’s structure to be re-aligned
The State of Finland established Patria by merging five mainly state-owned industrial players in 1997. The aim was to create a defence company with capability and capacity to evolve in the international competition. In 2001 the European Aeronautic Defence and Space Company EADS N.V. became the other owner (26.8%), which was considered to increase Patria’s opportunities to approach the European defence market. To the State of Finland ownership in Patria is strategic but as a company it acts fully market based. Patria has been successful especially on the armoured wheeled vehicle market.
The defence market is opening and in 2009 the European Union approved a Directive on defence and security procurement thus changing the competition in the field. Technological requirements in the field have increased and development of net-centric, well protected and efficient products and services is clearly more expensive than before and takes place more and more in cooperation by several players.
In order to strengthen Patria’s capability to meet these changes both domestically and internationally Patria’s owners and management have decided to renew the Group structure as well as Business Unit and management structure.
The State of Finland and EADS have decided to establish pro-rata with their ownership Patria Holding Oyj, which will be the new parent company of Patria Group. The current Patria Oyj will focus on offering treasury and finance services as well as other administrative services required by the Business Units and their projects.
Patria’s Group Management will be strengthened and management model clarified. Also, Group marketing will be developed and coordinated even tighter than before. Patria Aerostructures Oy and Patria Pilot Training Oy will be transferred as subsidiaries to Patria Aviation Oy.
Patria’s Systems Business Unit is focused on defence systems, such as command and control as well as situational awareness. Its role in system development, maintenance and integration design and implementing as well as avionics expert will be emphasised as those technologies are gradually expanding also in the civilian security market.
Patria’s land solutions offering will be regrouped. The global economic development has changed the market rapidly and in order to adapt to the change the tasks of Patria Land & Armament Oy will be divided into two companies.
- Patria Land Systems Oy will be established in order to further strengthen the international marketing, sales and delivery management. This project management company offers competitive international delivery solutions and monitors efficient contract realisation.
- Patria Land & Armament Oy will change its name to Patria Land Services Oy and it will focus -after fulfilment of current contractual responsibilities - on production and life cycle support services of vehicles and mortar systems in Hämeenlinna and Sastamala.
Patria Group company Millog Oy supplies army material support services as well as related expert services especially to the Finnish Army. Millog Oy started the Army material life-span support as the strategic partner in 2009.
Nammo AS, 50% owned by Partria, is an international supplier of ammunition and rocket engines as well as their systems and life cycle services. The other owner of the company is the Kingdom of Norway. The goal is to focus even more of the ammunition businesses in Nammo in the future.
The changes in the organisation will take effect on 1 May 2010 and the changes in the Group structure will be implemented starting as of the day of the Annual General Meeting of Patria Oyj, 14 April 2010.
Further information:
Heikki Allonen, President and CEO
