The Finnish Ministry of Defence has today announced its decision to transfer the Army material maintenance to a strategic partner, Patria’s subsidiary Millog Oy as of 2009 according to the proposition made by the Defence Command.

The eight-year contract between the Defence Administration and Millog Oy will be signed in summer 2008, the Letter of Intent will be signed already in March. The basic yearly value of the contract is EUR 54 – 63 million. The costs of the Army material maintenance is currently approximately EUR 100 million per year.

In the strategic partnership Millog Oy will be integrated to the Defence Forces’ operations already during peace time, which will increase the crisis time readiness and security of supply. The partnership agreement covers the Army material life-cycle support for the platforms and systems related to non and armoured vehicles, equipment and weapon systems including modifications and installations.

The maintenance organisations of Materiel Command the Electronics and Vehicle Depots as well as the Depots in Kuopio, Lievestuore and Tervola will be transferred to Millog in the beginning of 2009. The strategic partnership model will lead to the transfer of approximately 660 people to Millog with their current terms of employment.

Millog is a member of the Patria Group, the other owners being Insta Group Oy, Raskone Oy, Oy Sisu Auto Ab and Oricopa Oy.

Patria is a defence and aerospace group with international operations delivering its customers competitive solutions based on own specialist know-how and partnerships. Patria is owned by the State of Finland and the European Aeronautic Defence and Space Company EADS N.V

Millog Oy
18.03.2008