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Finland partially sells state-owned defence equipment company to Norway

Xinhua, March 18, 2016 Adjust font size:

The Finnish government said on Thursday it is selling nearly half of the state-owned defence equipment manufacturer Patria to Norwegian Company Kongsberg for 272 million euros(307.86 million U.S. dollars).

Finnish Prime Minister Juha Sipila said in a press release industrial partnership was a good way of developing defence industries. Sipila said the transaction would improve the position of Patria on the global market. The Finnish government will remain as the owner of the company.

The buyer Kongsberg is a listed company and half owned by the Norwegian state. The main aim for Kongsberg to obtain Patria's stake is to improve the Norwegian company's competitive edge.

Patria has been fairly profitable as a business. Its surplus in 2015 was 47 million euros on the basis of 428 million euros turnover. Its best known products are armoured personnel carriers and grenade launchers. Kongsberg produces anti-aircraft and missile systems.

The third element in Finnish-Norwegian cooperation in defence industries is Nammo. It is a joint venture of Patria and the state of Norway. It produces ammunition and rocket motors. Sipila said Patria, Nammo and Kongsberg would together form the leading Nordic entity in defence industries.

Walter Qvam, CEO of Kongsberg, told media on Thursday that Patria, Kongsberg and Nammo produce a "unique and strong Nordic entity in defence industries".

Finnish Defence Minister Jussi Niinisto also welcomed the transaction. He said it is in line with the current Finnish defence strategies. Endit