EUR 263m Defence Contract Awarded to Finnish Company

Ljubljana, 12 June

The Defence Ministry has chosen Rotis, a company representing Finish Patria, as the company to supply the Slovenian army with at least 64 8x8 light armoured personnel vehicles, Defence Minister Karl Erjavec told the press on Monday.

According to Erjavec, Rotis's bid was 10% to 18% cheaper than that of the Slovenian defence technology company Sistemska tehnika, the only other bidder in a non-public invitation to tender, which expired in April.
Erjavec explained that a contract on the supply of 64 Patria AMV vehicles by 2010 is to be signed with Rotis, with the first vehicles to be delivered in 2007.
The ministry plans to buy a total of 136 8x8 carriers by 2012, with the remaining vehicles being subject to annexes to the contract with Rotis, according to Erjavec.
The minister also explained that SIT 63bn (EUR 263m) have been earmarked for the project and that the final number of the carriers could come out lower if this is found to be in line with the army's needs.
Technical and commercial efficiency as well as long term benefits to the Slovenian economy in the form of counter-supplies and the incorporation of the Slovenian defence industry were the main criteria guiding the ministry's decision, according to the ministry.
Peter Stavanja, chairman of the government working group for counter-supplies, said that Rotis's bid was better in terms of securing new jobs, promising 320 directly and as much as 1920 indirectly. A deal with Sistemska tehnika would have brought 180 new jobs, 92 indirectly.
Furthermore, Rotis announced that more than 50 Slovenian companies would be involved in the project, whereas the figure given by Sistemska tehnika was 21.
Erjavec concluded that Rotis's bid was better both in terms of the price and the benefits for the Slovenian economy.
More than 50 people participated in the decision making process that included the comparison of more than 643 sets of data, according to the ministry.
Meanwhile, Sistemska tehnika, a part of the Viator&Vektor group and one of the largest defence companies in Slovenia, which offered its Krpan 8x8 vehicles under the licence of Austrian vehicle manufacturer Steyr, has expressed "grave disappointment" over the decision.
The direktor of the Ravne na Koroskem-based company Joze Studencnik said that Sistemska tehnika intends to examine the Ministry's decision in detail and issue an "appropriate response" even though a complaint against the decision is not possible.
Meanwhile, Erjavec also revealed today that the ministry on 5 June signed a SIT 3.12bn (EUR 13m) deal with Arex, a sales representative of arms manufacturer FN Hersal, on the supply of 6,500 pieces of P 2000 automatic rifles, which are to replace the AK47 rifles. Arex outbid Perigon, which represents Hechler-Koch.

EUR 263m Defence Contract Awarded to Finnish Company

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