2#2012

Case #2Case #16Corporate social responsibility: Conducting defence material trade consistently and responsibly

8Case #1Case #1Effective technology transfer the main strength in the vehicle project in Croatia

14Striving to establish common rules for international arms trade

Patria, Hämeenlinna , Finland 60°59’45”N, 24°27’55”E

Mechanic Arto Urkko testing the power pack of a vehicle.

Photo Matti Immonen

2#2012

A Moment

4 Patria

Events >

Idex 2013, Abu Dhabi, UAE

17.-21.2.2013

>The International Defence Exhibition & Conference IDEX is the most sig-ni�cant defence and security sector event in the Middle East and North Africa. The venue of the event is Abu Dhabi National Exhibition Centre (ADNEC). Patria’s stand is located at site 08-B20.

www.idexuae.ae

>The International Training Exhibition and Confer-ence focuses on military training, education and simulation sectors, presenting the latest innova-tions within the �eld to international stakeholders.

www.itec.co.uk

ITEC 2013, Rome, Italy

22.-24.5.2013

Military Flight Training, London, UK

March 2013

>The Military Flight Training, focusing on military aviation, will bring together key stakeholders within the sector.

www.military�ighttraining.com

Photos Antti Hentinen and Shutterstock

Patria 5

Editorial >

7

“As a company, Patria plays a major role in the maintenance of Finnish security of supply.”

Slavonski Brod, Croatia: In AMV production two cultures meet.

Heikki Allonen, President and CEO

Contents

Patria. Patria Group's stakeholder magazine. Birgitta Selonen, Editor in Chief, birgitta.selonen@patria.fi. Editing and layout: Otavamedia Oy, producer Petteri Pohjonen, layout Linda Halenius. Print: NewPrint. Paper: cover 200g Galerie Art Silk, inside pages 130g Galerie Art Silk. Feedback, request for information and subscriptions: info@patria.fi. Cover phography: Matti Immonen and Hrvoje Dominić. ISSN 2323-4784. ISSN-L 1799-5701.

17.-21.2.2013Case # 1 > 8

Situation >“Finland and the other initiating countries want to promote organisation of yet another conference in spring that would propose the international Arms Trade Treaty to the UN General Assembly.”

Case # 2 > 16

A Classic > Opinion > In Brief >

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Sanna Poutiainen, Senior Adviser at the Ministry of Defence

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“A company must have the support of society and stakeholders. A company can only earn this through its own actions.”

Jukka Holkeri, Patria’s Chief Marketing Officer

“Patria AMV made an impression on the U.S. Marine Corps troops.”

Steve Williams, Lockheed Martin Corporate

Patria. Patria Group's stakeholder magazine. Birgitta Selonen, Editor in Chief, birgitta.selonen@patria.fi. Editing and layout: Otavamedia Oy,

2422 23 27

6 Patria

Patria’s Data Link know-how is based on long-term work

in signi�cant national and international programmes.

Did you know… >

MPNDL OFFERS a solution to �ll capability gaps faced in today’s Network Centric Environment.

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Phot

o P

entt

i Hok

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PATRIA TOOK AN IMPORTANT STEP towards interna-tional co-operation in the �eld of unmanned aviation by participating in the national Fin UVS programme in the year 2004. On the basis of the programme it was noticed that Finnish Data Link know-how corresponded to inter-national capability gaps within the UAS area.

In the year 2005, the European Defence Agency (EDA) commissioned research on unmanned aircraft and Data Link technology from a Patria-led consortium.

The following year Patria joined the German R&D project Agile UAV in Network Centric Environment, fo-cusing on unmanned aircraft as part of a network-centric environment.

In the summer of 2012, as a part of the programme’s test �ight campaign, Patria together with its partners successfully completed the �rst Unmanned Aerial Sys-tem (UAS) test �ights of the Multi Purpose Networking Data Link (MPNDL)

Successful testing of MPNDL in an actual UAS sce-nario was yet another major milestone in the long-term development of a networking Command and Control data link.

DATA LINK

* D at a L i n k sy s te m s enable wireless data transfer in a network-centric environment used by di�erentsystems and users, e.g. by unmanned aircraft and ground stations. Patria has strong skills in this �eld.

*

Patria 7

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Editorial >Photo Arto Wiikari

S ocial responsibility and social responsibility reporting are a big issue for most companies today, regardless of the sector in which

they operate. Patria is no exception; social responsibility has become an integral part of our daily work. As the entity responsible for maintaining supply security in Finland, Patria plays a signi�cant role in society. A number of our business operations would also be vital in the event of a crisis requiring national defence measures.

This year, we have brought the visibility of our social responsibility work to a whole new level. In late 2011, the objectives and principles of Finnish state-owned companies, with respect to state ownership policy, were updated. Greater emphasis was placed on responsibility, openness and long-term goal setting. These are key considerations in our operations, too, which is why we bore them in mind when compiling our social responsi-bility issues into one report. As it turned out, we have kept extensive records of operations, but this is the �rst time the information will be made available through a single source. More detailed information on our social responsibility is available in this magazine.

Responsible defence equipment trade should also be pro�table. The agreement to close the vehicle delivery project, signed at the beginning of September between the Slovenian Ministry of Defence, Rotis Plus and Patria, was of great importance to us, as it eliminated major industrial and �nancial risks. It is hardly a surprise that the Slovenian project has been unpro�table. Even if we had stubbornly pursued the project to the end, the situation would not have improved.

Projects of major importance to Patria at the moment are the Patria NEMO and AMOS mortar deliveries, and the vehicle project

delivery to Sweden. The vehicle project for South Africa and the serial production stage are under preparation. New international projects are also on the drawing board, such as the vehicle projects for the United Arab Emirates and Denmark. Competition is intense and all of the major industry players are out to win this project.

A prime example of our work in con-quering new markets is the close co-opera-tion between Patria and the Croatian Ðuro ÐakoviĆ in the vehicles market. We believe that this partnership, which is supported by the Croatian government, will strengthen our position as a supplier of armoured wheeled vehicles.

In the last few months, the interna-tional securities market has seen interesting new defence industry related initiatives. Our industry is taking steps to prepare for more challenging conditions. Europe and the Euro-pean defence industry are at a crossroads; it will be interesting to see which road we take.

Heikki Allonen, President and CEO

Responsible defence equipment trade

Our industry is taking steps to prepare for more challenging conditions. Europe and the European defence industry are at a crossroads; it will be interesting to see which road we take.

Case # 1 >Heini Santos Photos Hrvoje Dominić

8 Patria

Patria 9

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IN SLAVONSKI BROD, a Croatian town of little over 50,000 inhabitants, armoured wheeled

vehicles with the latest technology are being produced – the last vehicle out of 126 Patria AMV 8x8s will be

�nished in the beginning of 2013. The smooth work �ow was a result of mutual e�ort.

AMV manufacturing

breaks cultural barriers

10 Patria

2007, the Ministry of Defence of Croatia decided to order Patria AMV 8x8 vehicles. The decision resulted in a consortium between Patria and a local specialist in combat vehicle pro-

duction, Đuro Đaković Special Vehicles (ĐĐSV). ĐĐSV, which is a part of Đuro Đaković Holding (ĐĐH) was set to become the domestic producer responsible for the localization of Patria AMVs.

Today, about 120 of the company’s total of 520 employ-ees in the production unit are working explicitly on AMVs, and many more are partially involved in the process. Get-ting to this point was a result of careful preparation and intense daily cooperation between Finland and Croatia.

TECHNOLOGY IS TRANSFERRED BETWEEN PEOPLE

Passing the technical know-how on to ĐĐSV began during 2008. In practice that meant more than 15,000 sheets of data and not a lot of time.

"We were faced by a huge workload in the beginning, and we did experience some di�culties due to the di�erent information systems used by our companies. Although the situation was stressful, we were able to solve the issues mutually," says Darko Grbac, the Vice President of the Defence Division within ĐĐH and AMV project manager.

inNext, the two companies held several

meetings sharing their thoughts and ex-periences. The �rst group of employees from ĐĐSV – managers and specialists of speci�c tasks such as welding and as-sembly – travelled to Hämeenlinna, Fin-land, to do on-job training with experts at Patria. They were later followed by more people from all areas of the proc-ess ranging from purchasing to design. These persons – a total of 50 – would later pass on the knowledge to other workers in Croatia.

"At �rst we were slightly concerned about the possible cultural di�erences and language barriers. But we did not even need a translator, and overcoming those issues was great team building. There are many Finns with Croatian nick-names now," Grbac laughs.

The on-job training took place during the production of the �rst six vehicles. After that the production started to roll at ĐĐSV with the assistance of Patria employees now paying Slavonski Brod a counter-visit.

“We did not even need an interpreter, and overcoming common challenges turned out to be the best kind of team building there is.”

Darko Grbac, AMV project manager

Col. Darko Pintaric, The head of the armament sector in the Croatian Ministry of Defence

Bartol Jerković, ÐÐSV Executive director

Experts >

SOME 120 of the production department’s 520 employees are working exclusively with Patria

AMV vehicles, and many others are partially involved in the project.

Patria 11

FOREMAN IN THE �nal assembly workshop, Damir Rajkovaca was one of the key persons that spent �ve weeks in Hämeenlinna, Finland.

"Alongside the experts at Patria, we went through one vehicle part by part, from hull production up to �nal inspection. We were not just watching but working together with the Finnish guys," he says.

Now, after producing some hundred AMVs, Rajkovaca rarely faces a problem. In case there is one, a quick phone call or email to Finland helps solve things on the run.

At the workshop

CLOCK-LIKE QUALITY

While Patria was able to rely on previously established data and design packages from other similar projects, from ĐĐSV’s perspective the transfer of technology was more like prototype production. Along with care-ful training of the sta� and open lines of communica-tion, the quality of the �nal products is assured by complete testing.

"We test every vehicle, part, and component after every step of the manufacturing. After integrating the subsystems, we test it again. We have stayed exactly in schedule, which is another good indicator of quality," Grbac lists.

ĐĐSV has very strong welding processes of its own, which also helped shorten the technology transfer phase. The �rst vehicles were delivered only eighteen months after the Ministry of Defence signed the order.

ON PROCESS MANAGEMENT

During quality planning in the beginning of the project, the two companies determined their responsibilities and established lines of communication with the Min-istry of Defence.

"We agreed on a set of instructions that became the handbook of this project. It is still valid in its original

12 Patria

“When driving an AMV, I can focus on the mission at hand. And no, we have

not yet succeeded in breaking any of these,” Zivic says with a laugh.

EVERY VEHICLE is tested on ÐÐSV’s own test course, a 450,000-squaremetre lot located in the outskirts of Slavonski Brod and surrounded by hills on all sides.

"Everything can be done here from driving on di�erent terrains to overcoming obstacles, shooting, swimming, measur-ing maximum speed and climbing in over 30-degree angles," lists test driver Nikola Živić.

Each vehicle is assigned to its own test driver, who handles the whole testing

process. Each vehicle is tested and, if necessary, tuned to fully meet the per-formance requirements set for the vehicle before delivery to the customer.

"The AMVs have very good conformity, strong brakes, and excellent o�-road-qualities. Instead of the driving procedure I can focus on the main task at hand. And no, we have not managed to break any yet," laughs Živić who represents the second generation of tank drivers in his family.

At the testing ground

form, which comes to show that the system was organ-ized properly from the get-go," says ĐĐSV Executive director Bartol Jerković.

Another important issue from the project manage-ment point of view was establishing daily contact be-tween the teams – within each company as well as between corresponding teams in Finland and Croatia – so that anything unexpected could be solved imme-diately.

IMPETUS FOR MORE

Last June, Patria and ĐĐH signed a frame agreement stating the readiness of both parties to reach out to third markets. ĐĐH is now able to do business in case-by-case selected third countries, which was one of the goals set in the very beginning of the partnership.

"Maximizing the local capacity has created a basis for approaching third markets. The agreement was pos-sible in June because we have ful�lled two important prerequisites: Our production for the Croatian Ministry of Defence has been smooth and timely, and every-thing has been certi�ed by Patria," Jerković clari�es.

So far it is di�cult to estimate when and where the �rst outcome of the frame agreement will take place. What can be said is that together Patria and ĐĐH gain a relative advantage over their competitors.

Patria 13

"WE DID NOT ONLY GET A VEHICLE, we got capability," Col. Darko Pintaric, the head of the armament sector in the Croatian Ministry of Defence sums up the customer perspective.

"This has been a huge project with a vast spectrum of challenges. Just project management at the Ministry of Defence has required the full-time e�orts of 5-10 people and some additional experts over the whole period of time," tells Pintaric.

He sees that both of the partnering companies have gained a lot from the cooperation. ÐÐH is now a real pro-ducer, not just an assembly line, and Patria can use their capability for producing other vehicles as well as sepa-rate parts. As for the Ministry of Defence, they received the best and most reliable product possible as well as the most for their money as the two expert companies put their heads together.

UNWRITTEN EXPECTATIONS

In addition to the formal standards and EU-regulations, the Ministry of Defence leans on a set of unwritten expectations.

"They are things related to time management and how the partners manage our requirements. For example, if we ask for a product that has not been done before, it is up to Patria’s engineers to �gure out the technology and way – to invent and to implement," Pintaric explains.

Although steps outside the budget are not currently possible, based on the �ve years of experience has convinced Pintaric that Patria and ÐÐH are capable of meeting whatever requests the Ministry of Defence may have in the future.

"The last vehicles will be delivered in the beginning of 2013. In our understanding the cooperation will continue for example as support in integrating subsystems into the vehicles in the next year or two."

More than a customer

The Croatian Ministry of Defence got the best and the most reliable product and good value for money, when two experts shared their expertise.

14 Patria

Situation > Leila Uotila Photos Arto Wiikari, Louie Psihoyos/Corbis, Sagel & Kranefeld/Corbis Senior Adviser at the

Ministry of Defence

Sanna Poutiainen

addition, for example, the European Union already has robust, established routines for regulating arms exports,” reports Sanna Poutiainen, Senior Adviser at the Ministry of Defence.

In July, she participated in the UN Arms Trade Treaty conference held in New York. She was part of the Finnish delegation, which included Patria as the industry repre-sentative. Delegations from 163 parties par-ticipated in the negotiations.

Along with Argentina, Australia, Costa Rica, Japan, Kenya and the United Kingdom, Fin-land is one of the initiating countries of the Arms Trade Treaty. For Finland, observation of international humanitarian justice and hu-

Negotiations in July, aiming at the establishment of the International Arms Trade Treaty, resulted in a draft treaty text signed by some 90 states. As one of the initiating countries, Finland hopes for a decisive conference in spring.

T he initiative for the establishment of an International arms trade treaty was taken by NGOs more than ten

years ago. This issue was �rst admitted to the United Nations agenda in 2006, when the UN General Assembly adopted a resolution on the development of the International Arms Trade Treaty (ATT). The purpose of the treaty is to regulate the legal international arms trade, while also impacting on the illicit arms trade.

“Since no international rules have pre-viously existed for arms exports, this will be a long process. The situations between states di�er greatly; the countries involved include both major arms producers and small developing countries from Asia or Africa. In

1.2.3.

4.5.

6.

THE WORLD’S TOP SIX ARMS EXPORTERS (OCTOBER 2012)

1. USA

2. Russia

3. Germany

4. France

5. China

6. United Kingdom

International Arms Trade Treaty just around the corner

Patria 15

15man rights issues is a particularly important issue in the consideration of export permits.

“If arms exports are not controlled and regulated, people in, for example, developing countries will su�er. One of the objectives of the treaty is to prevent arms from making their way into con�icts, for instance.”

EQUAL STARTING POINTS FOR DEFENCE MATERIEL TRADE

Poutiainen underscores that the aim is not to establish an arms ban or a disarmament agreement, but to lay down common stand-ards for the export of conventional arms. The treaty would bring more transparency to the arms trade and provide enhanced opportuni-ties for controlling illicit trade in arms.

The European Union already enforces its own legally binding criteria for arms exports. Before any defence materiel is exported to a speci�c country, the situation in the said country and region is assessed, by applying several criteria. These criteria concern issues such as the internal situation in the country, regional peace and stability, human rights issues, respect for international law, and the risk of arms being re-exported.

The treaty would bring changes to coun-tries where control of the arms trade has been weak until now. For example, in Fin-land, where the system is already fairly func-tional, as a rule no changes are needed.

The intention is to supervise compliance with the treaty by means of the obligation to report and national export control systems. In this, the goal is to achieve the most inter-nationally comprehensive treaty possible. Accordingly, the draft treaty text includes regulations on international technical assist-ance, in order to encourage the maximum number of countries to join the treaty.

“We want to advocate the establishment of similar standards in as many countries as possible. Naturally, foreign and security policy grounds, as well as the promotion of international stability, are among the reasons behind the endeavour. However, from the industry’s point of view, enforcing similar standards in all countries would also create equality between the actors.”

The material traded in the defence ma-teriel sector is valuable. The trade concerns almost every state in the world.

OBJECTIVES OF THE ARMS TRADE TREATY:• Common standards for export of conventional arms;

• Reducing illicit arms trade;

• Reducing weapon deliveries to terrorists, organised crime, and parties neglecting human rights; and

• Increasing transparency in the arms trade

“Because most countries possess defence materiel and some also act as transit coun-tries, control of arms exports concerns most countries in the world in one way or anoth-er,” Poutiainen points out.

DIFFERENT STARTING POINTS BETWEEN COUNTRIES OBSERVED

At the end of the meeting in July, the United States and Russia, among others, announced that they would need more time before adopting the treaty. It is of prime importance that major arms producing countries are en-gaged in the treaty.

“It was a disappointment that the treaty could not be �nalised, but in relation to where we started, we have come a long way. After all, we have been doing this work for years. Sensitive materials are at stake when defence materials are transferred, and many political and �nancial issues are involved.”

According to Poutiainen, achievements so far include, for instance, the fact that the

Control of arms exports concerns most of the countries in the world in one way or another.

IN TRANSFERS of defence materiel, sensitive materials are at stake, and there are many

political and �nancial issues involved.

draft treaty text also covers the control of small arms and ammunition. In addition, the draft text includes a comprehensive list of various forms of arms transfer.

“The meeting was chaired by Argentinean Ambassador Roberto Garcia Moritán, who is a very talented diplomat. Elements of the forthcoming treaty have been compiled into the latest draft, which re�ects the starting points and problem areas of various coun-tries well,” Poutiainen commends.

Finland and the other initiating countries are seeking to promote the organisation of yet another conference in the spring, which would present the treaty to the UN General Assembly.

“We now want to maintain the momentum and proceed at a fairly rapid pace. However, the outcome in July was so good that we advocate using it as the basis for the �nal treaty. The ini-tiating countries are now attempting to attract the broadest possible support for the treaty and conference,” Poutiainen concludes.

International Arms Trade Treaty just around the corner

Case # 2 >Matti Remes Photos Matti Immonen

VEHICLES go through swimming and fording tests in a purpose-built tank. This will reduce the need for such testing in natural waters. The series of photos for this article was shot at Patria’s Hämeenlinna unit.

16 Patria

Patria 17

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Everything begins with

Corporate Responsibility

TODAY, NOT A SINGLE COMPANY or sector can ignore the corporate responsibility issues associated with human resources, the economy, society and the environment, and the defence equipment industry is no exception to this rule. Corporate responsibility

always constitutes the foundation of Patria’s operations and, in the future, the company will report on the implementation of its corporate responsibility

activities in a more systematic and open manner than before. In Patria’s operations, alongside ethical

trading, the focus is on reliable partnership.

ukka Holkeri, Patria’s Chief Marketing O cer, points out that in order to succeed every company needs general ac-ceptance, i.e. ‘a social licence’.

“A company must have the support of so-ciety and stakeholders. A company can only earn this through its own actions. In other words, what you do is of crucial importance.”

It goes without saying that the applicable laws must be complied with. In addition, re-sponsible business operations also respect the standards recognised in ethical operations.

ARMS EXPORTS STRICTLY REGULATED

Manufacture of defence equipment for the purposes of national defence is widely ap-proved of by Finns. However, with respect to arms exports, opinions di�er somewhat. In Holkeri’s opinion, the importance of exports therefore needs to be openly recognised.

J

18 Patria

IN THE ASSEMBLY HALL, oils, radiator �uids, brake �uids, etc. are held in protective contain-

ers. A raised �oor edge prevents potential leaks from spreading into other parts of the hall.

“The Finnish defence equipment indus-try cannot be maintained on the basis of domestic demand alone. For this reason, it is important that products are sold to other countries too.”

In Finland, arms exports are strictly regu-lated. Export licences granted by the Gov-ernment are always preceded by thorough Ministry of Defence and Ministry for Foreign A�airs reviews, to ensure that each transac-tion complies with national and international laws and commitments.

“In such matters, we rely on the expertise of the Ministry of Defence and the Ministry for Foreign A�airs. After being granted an export licence, it is Patria’s responsibility to conduct actual trading in compliance with all laws and ethical codes of conduct.”

LAWS AND FAIRNESS THE FOUNDATIONS OF TRADING

This is not always an easy task, since busi-ness methods and cultures vary greatly from country to country.

In some parts of the world, o�ering a lunch to a trading partner is part of normal hospital-ity. In another country, it may be considered improper.

The Finnish defence equipment industry cannot be maintained on the basis of domestic demand alone. For this reason, it is important that products are sold to other countries too.

Patria 19

Patria also observes environmental aspects in

its operations. Compared to many other industrial sectors,

the company’s production processes are not a source of

major emissions.

“In every country, you must know what is considered legal and fair. However, in Patria, everything is based on Finnish legislation and ethical codes of conduct. We would rather leave a deal unclosed than break the rules.”

An operating environment that varies from country to country requires the use of local agents and advisers in the trading process. From its co-operation partners and its own employees, Patria expects the same commitment to compli-ance with laws and ethical codes of conduct.

“Both local agents and co-operation partners are selected in accordance with closely speci ed criteria.”

In recent years, Patria has been in the public eye due to sus-pected irregularities in defence equipment deals made with Egypt, Slovenia and Croatia. The legal processes concerning all of these cases remain unresolved.

“We hope for a quick resolution of these matters, which have long been in the public eye.”

A RELIABLE PARTNER IN THE FUTURE TOO

Within each sector, the focus of responsibility-related issues varies somewhat. In Holkeri’s opinion, alongside ethical trade, the focus in Patria’s operations is on reliable partnership.

“Patria, which provides products and life-cycle services, commits itself to long-term co-operation with its partners. Its operations must be pro table, to ensure that the company is still viable 30 years from now.”

Patria also observes environmental aspects in its op-erations. Compared to many other industrial sectors, the company’s production processes are not a source of major emissions.

Taking care of the well-being and motivation of sta� lies at the core of responsibility issues. For this reason, the company has long been investing in occupational safety, induction to work, and on-the-job learning.

It says something about employee satisfaction that working careers tend to be long in Patria. However, Holkeri expects competition for experts to intensify in the coming years.

“In the modern world, dominated as it is by the social me-dia, if a company is not the kind of workplace it claims to be, this is easily revealed.”

In Finland, Patria employs some 2,500 specialists and ap-proximately 3,000 suppliers and subcontractors. The com-pany is therefore an important employer and taxpayer.

VEHICLE EXHAUSTS are appropriately handled and redirected from the assembly hall.

COMPREHENSIVE CORPORATE RESPONSIBILITY REPORT

Although corporate responsibility has always been part of Patria’s business operations, in col-lected reporting of these matters we are just at the beginning of the road. The company published its �rst Corporate Responsibility Report this year.

“Originally, the intention was to draw up a re-port for internal use, as a basis for future work, specifying where we are in terms of corporate responsibility issues and which matters need to be improved. However, the work very soon ex-panded into a Corporate Responsibility Report for publication, when the Government issued guidelines on more e�ective reporting on state-owned companies.”

In the future, Patria’s Corporate Responsibil-ity Report will be published every two years, but the key �gures to be reported will be published on an annual basis on the company website.

“For us, as well as for any other company, reporting on corporate responsibility is critical to our business operations. There are very few companies in the world that do not make mis-takes. Patria will certainly make mistakes, but even while bearing that risk, we want to be as open as possible and report on our objectives within this �eld too.”

CLEAR OBJECTIVES FOR CORPORATE RESPONSIBILITY

Raili Saarinen, Communications Manager co-ordinating corporate responsibility matters at Patria, points out that corporate responsibility brings a fairly broad perspective to a company’s operations.

Patria has been a responsible actor in all areas of corporate responsibility – �nancial, social and environmental – but each of these areas has been de-veloped separately.

“Now that we have collected all of these matters into a single report, the overall issue is given a strong empha-sis. In this way, we have gained a new perspective on what things we are do-ing well and where we still have room for improvement.”

According to Saarinen, the work will now continue in such a manner that the steering group, with the highest-level executives and representation from each business unit, will specify the development goals for corporate responsibility.

In the modern world, dominated as it is by the social media, if a company is not the kind of workplace it claims to be, this is easily revealed.

POWER PACK for a vehicle being tested in a separate purpose-built testing facility.

A MECHANIC moved to Hämeenlinna from the Patria maintenance workshop in Lebanon.

APPROPRIATELY STORED and secured gas bottles in their storage cage.

The �rst Corporate Responsibility Report to be published by Patria this year follows the guidelines provided by the Government, according to which state-owned companies must report openly on their operations.

THE NEW GOVERNMENT RESOLUTION issued in March 2011 emphasises responsibility, openness and taking a long-term approach to operations in state-owned companies.

“The obligation to report is the most concrete expression of the view taken by the state, as an owner, of openness. The objective is not that companies report to the owner alone. Instead, they must report to all stakeholders, to the entire environment in which they operate,” underscores Petri Vihervuori from the Ownership Steering Department of the Prime Minister’s O�ce.

According to Vihervuori, the new guidelines are based on a clear change in society and the corporate operating environ-ment. All sectors are nowadays expected to conduct business in a responsible manner.

“Responsibility issues are not a passing issue, but form an integral and permanent part of business operations.”

Vihervuori a�rms that, as an owner, the state's aim is that responsibility issues emerge in each company at strategy level, being laid down by company boards and becoming an integral part of management group activity.

The analysts of the Ownership Steering Department will monitor the corporate responsibility reporting of companies, with key obser-vations being collected in the annual report on ownership steering.

“The annual report will not take a stand on any particular com-pany, but will take a stand at portfolio level on how state-owned companies have reported on their corporate responsibility.”

According to Vihervuori, there is plenty of room for improve-ment in the reporting procedure. Some companies within the state’s ownership portfolio have reported on corporate responsi-bility for years, while some have just begun doing so.“All companies under state authority have begun such reporting, and this is the right direction to take.”

Read more at: Patria.� -> bottom of the page -> Patria’s Corporate Responsibility Report 2011

Patria 21

State as an owner emphasises openness

Phot

o Pa

ula

Kukk

onen

A Classic >Heini Santos Photos Patria

Sturdy Vinka ideal for �ight training

T he Finnish Air Force has 28 Vinka primary trainers in service. Most of these planes are in training use at Tikkakoski, in addi-

tion to which a few aircraft are serving in liaison and training tasks in other Air Force bases. Patria is responsible for organising primary and basic �ight training for the Finnish Air Force, as well as the repair and maintenance of aircraft. Each year, some 90 trainees – conscripts, cadets and �ight instructors – pass the training programme.

“The present training programme progresses quite rapidly. From trainees, training programmes implemented using Vinkas require a rapid capac-ity to absorb information, with hardly any �ights being made to refresh pilot skills. Compared to the past, the biggest di�erence is that the train-ees move on to more powerful training jets than

Successful life extension programme extended the service life of Vinkas by ten years. These primary trainers, which have been used in military pilot training since the 1980s, will attain a lifecycle as long as 40 years.

1970 1977

1980

DECISION TAKEN to revive the Finnish aircraft industry.

22 Patria

Vinkas facilitate training of various handling manoeuvres as well as aerobatics and navigation skills or even instrument �ying only.

before, such as Hawks,” says Jari Kar-janlahti, Executive Vice President in charge of Training at Patria.

Vinkas facilitate training in various handling manoeuvres, as well as aero-batics and navigation skills or even in-strument �ying only, which e�ectively prepares trainees for ‘more powerful’ aircraft.

DOMESTIC PRODUCTION

The story of Vinkas began in the early 1970s, when Finland became con-cerned about the capacity of Finnish aircraft manufacturing to serve na-tional defence needs. A development department was established at what

1973

VINKA PROTOTYPE ordered from Valmet Oy.

THE FINNISH AIR FORCE orders a series of 30 Vinkas.

FLIGHT TRAINING begins at Kauhava.

begins

Sturdy Vinka ideal for �ight trainingSturdy Vinka ideal for �ight trainingSturdy Vinka

Successful life extension programme extended the service

*

* VINKA is a Sami word for cold wind.

2002–2004

THE FINNISH AIR FORCE has 28 Vinka primary trainers in its service. The Finnish Air Force will

be �ying Vinkas until approximately 2018, which means a service life of almost 40 years.

2012

2005

PATRIA EXTENDS the service life of Vinkas. In the picture, a Vinka's tail is being strengthened during assembly in Halli.

PATRIA GIVEN RESPONSIBILITY for �ight training at Tikkakoski and overall responsibility for Vinkas.

was then Valmet Oy’s Tampere aircraft factory, to map out the alternatives for a primary trainer. A few years later, Valmet received an order from the Finnish Air Force for the �rst proto-type of the LEKO-70. The �nal order for 30 aircraft was signed in January 1977. FIM 42.75 million was budgeted for this purpose.

At the time, the Vinka was tailored to the Finnish Air Force’s require-ments. Special features of the aircraft include a sturdy and high-quality structure, all the way to handles, but-tons and control sticks.

“The cockpit of the aircraft is roomy, well organised and relatively

taken to investigate the stress factors by means of in-�ight measurements. One of the Vinkas was equipped with the necessary measuring equip-ment, after which it was put through the entire training programme. In addition, the aircraft was subjected to fatigue testing of critical structures and precise fatigue analyses were performed. On the basis of these results, modi�cations were made on Vinkas from 2002 to 2004, which turned out to be a real success story.

“With help of Patria’s Life Extension Pro-gramme (LEP) the lifecycle of the aircraft could be extended from 5,000 to 7,000 �ight hours per aircraft, which translates into more than ten years of average service in the Air Force. With the help of these fairly cost-e�cient measures, Vinka will probably become the aircraft with the longest service history in the Air Force,” Raunio points out.

It looks like the Finnish Air Force will be �ying Vinkas until approximately 2018, which means a service life of almost 40 years, which is quite rare for military aircraft. Typically, such planes last 25 to 30 years.

warm, which makes it quite suitable for northern conditions. Good �ight characteristics and a sturdy, safe struc-ture make the Vinka perfectly suited for �ight training purposes. Vinka’s safety statistics are exceptionally good: after more than thirty years of service, all except two of the original aircraft are still in use,” says Jukka Raunio, Chief Engineer at Patria, who has �own Vinkas himself.

ONE THIRD ADDITION TO LIFECYCLE

In the 1990s, it was discovered that training placed more strain on the Vin-ka’s structure than envisaged during the plane’s design. The decision was

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VINKA WAS TAILORED TO THE FINNISH AIR FORCE REQUIREMENTS. The special features of the aircraft include a sturdy and high-quality structure, all the way to handles, buttons, and control sticks.

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24 Patria

Opinion >Photo Christa Elza

T his rings true not just for defence and aerospace – but for all industries around the world. International cooperation underpins much of what we do at

Lockheed Martin and we have valued the collabora-tion with AFDA who introduced Lockheed Martin to a variety of Finnish companies in 2011. We look forward to closer cooperation with Patria and other Finnish and European industry players in the future.

ONE COMMON OBJECTIVE

Industrial participation is not only important for the survival of our business, it is crucial for our custom-ers. Industrial cooperation, while challenging at

Looking to the Future: the need for industrial cooperation

Regional President for Continental Europe, Lockheed Martin Corporate

Steve Williams

Writing in Patria’s Corporate Magazine, Tuija Karanko, Secretary General of the Association of Finnish Defence and Aerospace Industries (AFDA), observed that international cooperation is the key to survival for the industry.

times, is about �nding common ground in compet-ing designs and the battle for resources under increasing �nancial pressures. Across all industries, businesses need to bring the best ideas from dif-ferent teams together with one common objective: to provide customers with the most innovative and a�ordable solutions available. For us – and the Finnish forces – this means providing our custom-ers with survivable, a�ordable equipment that delivers the capabilities to survive and accomplish demanding missions at home or internationally.

GO BEYOND THE THEORY

We are excited about programs and opportuni-ties in Finland as well as the U.S., where industrial cooperation is no longer only theory.

The US Marines established strenuous vehicle requirements for a new combat vehicle that will push both technology and industry to its limits. Even as the world's largest defense company, Lock-heed Martin cannot meet these requirements alone.

To meet and exceed the standards set for the Marine Corp's new Marine Personnel Carrier (MPC), we partnered with Patria. Patria's 8x8 Armored Modular Vehicle (AMV) was challenged in all environ-ments, from rugged terrain to performing amphibi-ous vehicle operations in high sea states. Impressed by its performance, the Marines named the vehicle

“Havoc”. In cooperation with Patria, Lockheed Martin aims to sell some 600 Havoc vehicles in the U.S.

We are also working with Patria to deliver upgraded Guided Multiple Launched Rocket Systems (GMLRS) for the Finnish ground forces. A possible follow-on includes the Army Tactical Missile System (ATACMS). These systems are expected to be updated and maintained by Millog, a Patria company.

For the Finnish Air Force's CASA-295 aircraft, we are working with Patria on a new system which provides intelligence, surveillance, and reconnais-sance capabilities in an integrated package and price not seen in our market space to date.

Today, Finnish F-18’s are undergoing a mid-life update by Patria. They have been maintained and carefully taken care of. As a testament to close Finnish-U.S. relations, the current �ghter ¢eet will carry weapons similar to those ¢own by the U.S. Air Force, including the Joint Air-to-Surface Stand-o� Missile (JASSM).

Like all industries, the defense industry must be pro�table to be viable. However, something di�eren-tiates us from all other sectors: the products, tech-nology, and services we provide underpin whether missions are accomplished, forces return home, and if lives are protected. It is this somber responsibil-ity that we embrace and share with our partners, partners such as Patria and Finnish industry.

The value of technology, products and services manifests itself in how they contribute to mission completion, homecoming of forces, and protection of human life.

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Steve Williams: “I have served and trained with U.S. Marines, which gives me the ability to look at our industry from a dif-ferent perspective. I saw Finnish soldiers in the Bal-kans and Afghanistan where they served admirably under di�cult circumstance. As an old artillery man, I can testify that the capability of products currently being produced by our industry do not compare to those that were made 15 years ago.

The last time I returned to the U.S. from Finland, I exited passport control and saw a family waiting anx-iously for a loved one with a sign that said "Welcome Home to our Marine! We missed you." It made me realize the importance of what we do in our business. Ultimately, the real value in the products such as the Havoc vehicles is bringing back home those that oper-ate them. “

In Brief >Photos Antti Hentinen and Patria

A t the Eurosatory 2012 event, Pa-tria showcased the pioneering Nemo Plus concept, opening up

new opportunities for the operative use of turreted remote weapon systems. In ad-dition to the Patria Nemo, the global mar-ket leader in turreted mortar systems, this

concept comprises another remote weap-on system (RWS), the Kongsberg PROTEC-TOR Super Lite. This unique combination deserves nothing but the best armoured wheeled vehicle platform – the undis-puted market leader of modern 8x8s – the Patria AMV.

Nemo Plus concept showcased at Eurosatory event

T he design of Patria products was portrayed in the HI Design exhibi-tion, which brought together the

design competencies of Finnish compa-nies engaged in the technology industry. The exhibition demonstrated the impor-tance of design for the products and busi-ness operations of industrial companies.

Held from June to September 2012, the exhibition attracted more than 20,000 visitors.

In the exhibition, Patria showcased Pa-tria AMV vehicles, Patria Nemo mortars and composite-structured aircraft spoilers.

HI Design was organised as one of the World Design Capital Helsinki 2012 events.

Design competence attracts interest at the HI Design exhibition

26 Patria

B y August in 2012, conscripts had completed more than 80,000 units of exercise in conscripts’ sports clubs, up more than 14 per cent from the

previous year. Both the number of units of exercise and the range of sports activities have increased. Growth in physical activity has been speeded up by the Get Mov-ing project, sponsored by Patria and co-ordinated by the Finnish Military Sport Federation, with the aim of enhancing the physical condition of conscripts and pro-moting physical activity throughout life, by developing the operations of voluntary sports clubs for conscripts. Based on the results, investment in sports club activities can be adjudged a success. The objective of the three-year project is to make sports and exercise available to all conscripts and to inspire joy in exercise that will con-tinue after military service is over.

Get Moving project has increased physical activity among conscripts

IN CONNECTION WITH THE GET MOVING PROJECT, in August 2012, Patria tournament in Fastscoop, a novel

activity in the sports clubs for conscripts, was organ-ised with participating teams from ten garrisons.

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