Patria AMV Wins contract for Armoured Wheeled Vehicles from Swedish Defence
12:00 AM, August 16, 2010
Over the next few years, the Swedish armed forces will receive 113 armored wheeled vehicles. Following an international competitive tender, FMV has now decided to give the order to the Finnish company Patria Land & Armament Oy. The order, which includes 113 Patria vehicles as well as supporting equipment, is worth about SEK 2,5 billion (EUR 260 million). Delivery will begin in 2012 and the vehicles will be fully operational by 2014, with an option to purchase an additional 113 vehicles. “We have the task of finding the most cost effective solution for the Swedish Armed Forces,” says FMV's Director General Gunnar Holmgren. “The international wheeled vehicle market is large, and highly competitive.” FMV has evaluated bids from five bidders based on Armed Forces requirements, including performance, economy, and reliability of delivery. The evaluation showed that the Patria AMV (Armoured Modular Vehicle) is the vehicle that best meets the Swedish Armed Forces requirements. The agreement with Patria requires industry cooperation for 100 percent of the total order. Swedish manufacturers Scania (engines), SSAB (steel armor), and Åkers Krutbruk (protection) are already designated as subcontractors. Suspension and electronics will also come from other Swedish companies. AMV is a modern armored eight-wheeled vehicle with a high standard of protection, mobility, and accessibility. The AMV has been produced since 2004 and is used operationally by countries such as Finland and Poland, as well as for operations in Afghanistan. The procurement was mandated to FMV by the Armed Forces. The procedure follows the strategy for defence equipment acquisition as approved by the Swedish Parliament. When new equipment is to be developed or acquired, priority is given to the purchase of existing equipment in the market or to joint international development projects. In a few areas of strategic importance, completely new equipment is developed in Sweden. Patria Wins the Swedish Armoured Wheeled Vehicle Contract The Swedish Defence Materiel Administration (FMV) has today announced that the contract for 113 armoured vehicles goes to Patria. The contract includes an option for another 113 vehicles. The value of the deal is approximately SEK 2.5 billion. “I am very pleased that the FMV has found our AMV vehicle to meet best their requirements. We offer the Swedish soldiers a safe and field-proven vehicle which can be of vital importance in the extreme conditions the soldiers operate. At the same time we offer Sweden a true Nordic solution as well as 100% offset. “Since the operating principle of Patria is strongly networked this contract is significant to our co-operators in Finland and abroad – especially in Sweden where Patria has also had a long cooperation in the area of the armoured military vehicle supply. Patria’s focus on its key competencies will be also strengthened further since the final assembly of AMVs will take place in Finland,” states Mr Seppo Seppälä, President of Patria Land & Armament Oy. The 113 vehicles ordered by the FMV will be delivered by the end of 2013 for making it possible the Swedish Army to have the operating capability with them during 2014. Patria AMV was launched in 2004. Until today Patria has contracts for some 1300 vehicles with among others Finland and Poland. Patria Wins Armoured Vehicle Contract In Sweden Finnish arms maker Patria on Friday announced it had won a contract for selling 113 armoured vehicles to Sweden.
The deal is valued at around 250 million euros and also includes an option of selling another set of 113 Patria AMV vehicles at a later date.
The Swedish Defence Materiel Administration (FMV) originally closed the deal with Patria last autumn, but a competitor, BAE Systems Hägglunds, lodged a complaint. The Stockholm administrative court ruled that the deal had breached public procurement law and ordered a repeat of the tender process.
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