DEFENCE MATERIEL INDUSTRY AND INDUSTRIAL PARTICIPATION

The Finnish defence materiel industry plays an important part in the upholding and development of the Defence Forces.

When the Finnish Defence Forces make large purchases of defence material from foreign suppliers industrial participation (formerly offset deals) is required. Supply contracts are subject to the condition of offset usually when the value of the procurement exceeds 10 million. Industrial participation is designed to safeguard domestic security of supply. The aim is to involve the industry in materiel and technology projects already at the planning stage.

The Finnish defence materiel industry must manage three areas of competence that are essential from the point of view of defence

• The assemblage, maintenance and repairing of large, technologically demanding systems
• The management of information systems technology and systems integration
• Availability (and if necessary, manufacture) of critical components and spare parts

In any case competence in gunpowder and ammunition production and in various production methods will continue to be needed in Finland in the future. This competence could be maintained in, for instance, centres of excellence jointly run by the industry, research institutions and defence administration.

More on Industrial Participation in the web pages of Ministry of Trade and Industry and Association of Finnish Defence Industries.