The service agreement concerns the building of industrial participation capabilities, with focus on procuring services for the F-35 project from Patria Aviation Oy. The services will include one-off work related to building capabilities for industrial participation in the F-35 system, machinery, equipment, tools and information systems required for production. The procurement will also cover the support needed to reach full production speed.

The total price estimate of the agreement, excluding value added tax, for 2023-2026 does not exceed EUR 90 million. The value added tax of 24 per cent accounts for EUR 21.6 million, which means that the total price estimate of the agreement does not exceed EUR 111.6 million.

The service package will be procured in three stages. The authorisation granted concerns the first phase of the service agreement, in other words the period 2023-2026, and according to the above-mentioned total price estimate, it does not exceed EUR 90 million. The schedule, costs and pricing of the procurements in the second and third phase will be specified when the first phase is being implemented.
The direct employment impact of the service agreement for Patria Aviation Oy in 2023-2031 will be 600 person-years, while the employment impact of the procurement will be long-lasting, extending into the 2040s. The supplier is a Finnish company, which means that all work will be carried out in Finland.

The agreement will ensure Finland's capability to maintain and service the F-35 system, which will have a critical impact on the military security of supply of the weapons system that is essential for Finland's defence. These services will ensure the management of expertise and technology that is vital for the security of supply of the F-35 system, both in normal conditions and emergencies. Security of supply will ensure the ability of F-35s to operate independently in all circumstances.

The service agreement on building the capabilities of the F-35 programme is related to the industrial participation agreement between the Ministry of Defence and Lockheed Martin and the Ministry of Defence and Pratt & Whitney. According to this agreement, the companies must fulfil the industrial participation obligation within ten years of signing the industrial participation agreement.

The main focus of industrial participation in the F-35 project is on direct industrial cooperation, which will create significant capabilities for maintaining independently the F-35 fleet in Finland. From the perspective of security of supply, industrial cooperation will develop vital expertise in the domestic industry and is significant for the national economy.

- The new services will enable Finland to build a strong capability to service and maintain the F-35 system, which is essential for the system's military security of supply. In addition, these services acquired from Patria and the infrastructure and expertise built on them will create a centre of expertise in the F-35 system in Finland, which will strengthen Finland's position in the F-35 user community, says Brigadier General (Eng.) Juha-Matti Ylitalo, Deputy Director of the Defence Forces Logistics Command.


The contribution of the domestic industry to building the capabilities of the F-35 project is vital to meet the requirements of industrial cooperation and security of supply that were required in the HX fighter project. Security of supply and industrial participation were one of the key considerations in the decision-making of the HX project, and that is why the value of industrial participation in the project was required to be at least 30 per cent of the procurement price.

Inquiries:
Senior Ministerial Adviser Iikka Marttila, 
Resource Policy Department, Ministry of Defence
tel. +358 295 140 038
 
Brigadier General (Eng.) Juha-Matti Ylitalo
Deputy Director, Defence Forces Logistics Command
+358 299 800 (Defence Forces switchboard)