Finnish lorry manufacturer Sisu expects major boost from military contract
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Minister of Defence Jyri Häkämies (Nat. Coalition Party) is to decide in the coming months on the acquisition of all-wheel drive all terrain armoured military lorries for the Finnish Defence Forces. A decision on the acquisition of lorries for ordinary road use is expected next spring.
All terrain lorries are military vehicles with 2-5 axles, in which all the wheels are powered by the engine, and whose cabs are armoured against bullets and mines. The reinforcement must be strong enough to allow survival even if a mine were to explode beneath it. The cab can also be pressurised in case of a poison gas attack.
The price tag of hundreds of thousands of euros for each vehicle means that the supply contract is a very lucrative one.
The Defence Forces plan to acquire about 180 road lorries of different types between 2008 and 2010. About 350 actual military lorries will be needed in 2009 and 2010, and the military wants the option for another lot the same size by the end of 2011.
About 250 double-axle lorries weighing between 8 and 12 tonnes will replace the Proto-Sisu model vehicles. Also included will be a number of armoured all-wheel drive trucks as well.
Tatu Juurtti, head of the Finnish Defence Forces Materiel Command, does not want to name a specific price because two separate bids for tenders are underway. "There have been so many offers that the competition will be a proper one. They will be presented to the Ministry of Defence in mid-November", Juurtti says.
In any case, tens of millions of euros will be involved. If the average price of a vehicle is as low as EUR 150,000, 350 of them would cost about EUR 53 million.
The deal would be especially important for the traditional supplier of goods for the military - Sisu, which has invested heavily in recent years in the development of military vehicles, alongside its civilian lorries used mainly for transporting gravel and wood, and its crane lorries and interchangeable platform vehicles.
Sisu has been involved in groundbreaking work in the development of armouring in cooperation with the Defence Forces and the Finnish Funding Agency for Technology and Innovation (TEKES).
The all-terrain lorries are also modular in construction and ride so low that they will fit under European standard highway bridges when carrying a normal-sized container, and can be driven onto a Hercules transport plane, for instance.
"Although mass produced components are also used in all-wheel drive lorries for the sake of cost-effectiveness, they have been developed to serve as military vehicles in crisis situations, so we have not had to make any compromises", says Olof Elenius, the new CEO of Sisu.
Elenius replaced Teppo Raitis, who had headed Sisu for three years, and who unexpectedly left the companay a month ago, taking with him sales chief Petri Heino.
In the sale of military vehicles it will be years after the signing of a contract before the supplier can submit an invoice. The defence forces of a manufacturer's own country are always in a key position.
"The first question that a foreign buyer will ask is how many of these has the country's own army ordered. If the home army is not interested, you might as well pack away your briefcase", says Jukka Tiusanen, director of Sisu Defence.
Sisu scored a major victory by winning a contract for the supply of about 50 all-terrain lorries for the Lithuanian armed forces. The deal, worth EUR 30 million, is the biggest single export deal for in the company's history.
All terrain lorries are military vehicles with 2-5 axles, in which all the wheels are powered by the engine, and whose cabs are armoured against bullets and mines. The reinforcement must be strong enough to allow survival even if a mine were to explode beneath it. The cab can also be pressurised in case of a poison gas attack.
The price tag of hundreds of thousands of euros for each vehicle means that the supply contract is a very lucrative one.
The Defence Forces plan to acquire about 180 road lorries of different types between 2008 and 2010. About 350 actual military lorries will be needed in 2009 and 2010, and the military wants the option for another lot the same size by the end of 2011.
About 250 double-axle lorries weighing between 8 and 12 tonnes will replace the Proto-Sisu model vehicles. Also included will be a number of armoured all-wheel drive trucks as well.
Tatu Juurtti, head of the Finnish Defence Forces Materiel Command, does not want to name a specific price because two separate bids for tenders are underway. "There have been so many offers that the competition will be a proper one. They will be presented to the Ministry of Defence in mid-November", Juurtti says.
In any case, tens of millions of euros will be involved. If the average price of a vehicle is as low as EUR 150,000, 350 of them would cost about EUR 53 million.
The deal would be especially important for the traditional supplier of goods for the military - Sisu, which has invested heavily in recent years in the development of military vehicles, alongside its civilian lorries used mainly for transporting gravel and wood, and its crane lorries and interchangeable platform vehicles.
Sisu has been involved in groundbreaking work in the development of armouring in cooperation with the Defence Forces and the Finnish Funding Agency for Technology and Innovation (TEKES).
The all-terrain lorries are also modular in construction and ride so low that they will fit under European standard highway bridges when carrying a normal-sized container, and can be driven onto a Hercules transport plane, for instance.
"Although mass produced components are also used in all-wheel drive lorries for the sake of cost-effectiveness, they have been developed to serve as military vehicles in crisis situations, so we have not had to make any compromises", says Olof Elenius, the new CEO of Sisu.
Elenius replaced Teppo Raitis, who had headed Sisu for three years, and who unexpectedly left the companay a month ago, taking with him sales chief Petri Heino.
In the sale of military vehicles it will be years after the signing of a contract before the supplier can submit an invoice. The defence forces of a manufacturer's own country are always in a key position.
"The first question that a foreign buyer will ask is how many of these has the country's own army ordered. If the home army is not interested, you might as well pack away your briefcase", says Jukka Tiusanen, director of Sisu Defence.
Sisu scored a major victory by winning a contract for the supply of about 50 all-terrain lorries for the Lithuanian armed forces. The deal, worth EUR 30 million, is the biggest single export deal for in the company's history.
Helsingin Sanomat