Patria Group

Patria is a provider of defence, security and aviation life-cycle support services and technology solutions. Patria is owned by the state of Finland (73.2%) and the European Aeronautic Defence and Space Company (EADS N.V.) (26.8 %). Patria is the largest company in the defence field in Finland, with its roots reaching all the way back to 1921. The State of Finland is the majority owner of the Group.

In 1921 an aircraft factory named “Ilmailuvoimien Lentokonetehdas” ("Air Force Aircraft Factory”), was founded in Suomenlinna, an 18th century fortress off Helsinki. Seven years later, the name of the factory was changed to “Valtion Lentokonetehdas” (”State Aircraft Factory”). Patria’s history as a mortar manufacturer dates back to 1930s, when a Finnish company called Tampella began to design and manufacture mortars for the Finnish Defence Forces. Specialisation in vehicles began in the 1940s, during what is known in Finnish history as the Continuation War, when a wartime need to intensify vehicle production prompted such a shift in focus. In the early stages of vehicle production, the Vanaja factory manufactured buses, trucks, tractor-trailers, carriages, crane platforms and articulated buses and many other products.

The history of Sisu lies in O/Y Suomen Autoteollisuus A/B, established in 1931 in Helsinki, and also in Vanaja trucks. During World War II the Finnish army needed trucks desperately. To meet this demand a stateowned Yhteissisu Oy was, established in 1943 in Vanaja, Hämeenlinna. Later in 1981 the companys name was changed into Sisu Corporation. Sisu Corporation lived until 1996 when it was split into several companies. The military business was turned to Patria. Sisu Terminal Systems, Sisu Trucks and Sisu Axles were sold to Partek Oyj.

Patria was formed in 1996 when Finnish Defence Companies were consolidated. The Sisu and the Vammas units were the origins of the present Patria Land Systems and Land Services. Patria bought Systems Division in 1997. In 1997, Patria was established in its present form to operate in accordance with the government’s will and steering by the state. Patria has four Business Areas: Land Systems; Aviation; New Technologies; and Civil Products & Services. As of 2010 Patria had about 2300 employees.

The Ministry of Defence is in charge with regard to the strategic objectives of the main owner. The company plays an important role in Finland’s security of supply performance, and several of its Business Units are essential for national defence during crises.

Products and services:

• Armored wheeled vehicles, mortar systems and ammunition products as well as their life cycle support services.
• Life cycle support services for aircraft and helicopters as well as pilot training.
• Maintenance of army material for the Finnish Defence Forces.
• Development and integration of systems for command and control and situational awareness as well as their life cycle support services.

Patria and its organisation possess unique expertise. This is of wider significance also for the know-how in this field in Finland, particularly in view of the Group’s extensive network of suppliers and subcontractors. Patria is a major player in organisational activities in the defence sector, in discussions of issues connected to this field, and in the development of activities in the industry.

Patria is a profitable business group generating direct and indirect tax revenue for the state through both its operations and the income taxes of its personnel. Furthermore, Patria pays dividends of the results of its operations to its owners. The ethics of defence-equipment business is a hot topic in public debate, and the field is regulated by various laws and decrees. Previously, operations were limited primarily by the national laws and decrees of Finland and Patria’s other customer countries, and by the requirements set by customers. Today, the business is also affected and directed by Europe-wide directives and several other international regulations. It is apparent that different countries interpret and apply these regulations in different ways. The goal is to get all players on the field playing with the same rules – first within the EU and then more extensively at the global level. Doing profitable business in this sector is possible when the competitive situation is the same for everyone.

Patria Group’s (“Patria”) objective is to pursue long-term profitable business in an ethical and responsible manner taking into account, inter alia, economical, human and social, as well as environmental matters since this creates loyalty and trust among employees, customers, shareholders, other stakeholders and in the communities in which Patria operates. Proper business conduct means compliance with the highly recognised standards of ethical conduct as well as with all and any applicable laws.

It is the policy of Patria to comply in all of its operations with all applicable laws and regulations wherever Patria conducts its business. These include, inter alia, laws and regulations related to antitrust and fair competition, including prohibition to obtain confidential information of other parties by improper means and to use or disclose confidential information of other parties without authorisation, corporate governance, product safety and product liability, occupational health and safety, labor, environment, human rights, protection of individual privacy as well as equality at work.

Patria and its Business Units control and develop the Group's strategic purchasing and buying, logistics, partnership and subcontractor networks in a manner that produces the most cost-effective value to its customers and owners. Patria’s purchasing supports Patria and its Business Units in achieving their goals at the customer interface by providing, developing and coordinating the most competitive purchasing, buying and logistics processes. Controlling partnership and subcontractor networks utilises Patria’s entire purchasing power whenever this is possible financially, quality-wise and within the delivery terms, while catering for, sharing and developing common operating models, systems, processes and best practices.

Patria strives to operate only with suppliers, subcontractors, consultants and representatives who are ready to comply in their work with the principles of Patria’s Code of Conduct. Patria requires that all suppliers, subcontractors, consultants and representatives abide by local legislation in all countries in which they operate. When competing for new projects, the significance of the added value contributed by suppliers has increased further. Suppliers providing concrete added value can participate in projects at an early stage as risk-sharing partners, active product developers and by providing support in discharging offset obligations.