Patria and Gorenje to Found Joint Venture on Mega Arms Deal

Ljubljana, 21 June

Finnish company Patria, its Slovenian representative Rotis and Slovenian home appliance maker Gorenje, have announced a joint venture for the production of 8x8 light armoured personnel vehicles for the Slovenian army.

The agreement comes after the Defence Ministry has recently chosen Patria as the contractor in the EUR 263m deal for at least 64 vehicles over the Slovenian defence firm Sistemska tehnika.
"We have agreed that Slovenian companies will take a majority stake in this project," Patria's CEO Jorma Wiitakorpi said. "This will obviously be a product made in Slovenia for Slovenian buyers," he said.
According to Wiitakorpi, Slovenian companies will be tasked with producing basic parts for the vehicles, while Patria will train workers and provide parts for the production line.
According to a report by public broadcaster Radio Slovenija, Gorenje's CEO Franjo Bobinac said that the Patria-Rotis-Gorenje project is about cooperation of the Slovenian industry, therefore the doors are also open to Sistemska tehnika.
The three companies already signed a memorandum of understanding on Tuesday, agreeing that the new company will be based in Slovenia.
The production could get underway in less than a month, however the launch depends on the ministry's orders. The company estimates that at least 30% of each vehicle will be made of Slovenian-produced parts.
Gorenje added that at least 360 new jobs would be secured as a result. Earlier this month, Rotis said the deal would bring 320 jobs directly and as many as 1,920 indirectly.
The ministry has come under fire for choosing Patria, with some 250 employees of Sistemska tehnika gathering in front of its headquarters on Monday, claiming that the vehicles manufactured by Sistemska tehnika are better, cheaper and safer, and compatible with NATO standards.

Patria and Gorenje to Found Joint Venture on Mega Arms Deal

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