Millog, the provider of life-cycle support services for the Finnish Defence Forces FDF, continues positive development. The key events of the year were the signing of the extended strategic partnership contract, the contract for delivering night vision devices to the FDF and its subsidiary Oricopa’s entering to the delivery contract of the NASAMS ground-to-air missile system project with Kongsberg Defence & Aerospace AS.

SIGNIFICANT ENLARGEMENT OF THE FDF PARTNERSHIP CONTRACT

In September of 2014, Millog and the FDF signed a partnership contract, thereby expanding and deepening their existing strategic partnership. The company assumed a greater role in the FDF’s maintenance responsibilities of Army and Navy material. This partnership contract covers the period between 2015 and 2020 at a fixed price of €581 million and being effective until further notice. The contract covers life-cycle support and repair services for Army material related to wheeled and tracked vehicles, electronics, missile and weapon systems and equipment, as well as related modifications and installations. The enlarged contract also includes vessel and system maintenance and related services for the Navy. As a result of the FDF reform the Logistics Command became operational from 1st of January 2015 and Millog was given a more prominent role in the annual planning and implementation of the maintenance process. A total of 317 people were transferred from the FDF to Millog. After the transfer Millog employs more than one thousand maintenance professionals.

DEMAND FOR NIGHT VISION DEVICES

The Finnish Defence Forces and Millog signed an agreement on target acquisition sensors. The value of the contract is €26.8 million. The deliveries of the Millog LISA sensors and accessories will take place in 2014–2017. The sensors, based on uncooled thermal imaging technology will be manufactured by Millog in Finland. Amounting to almost 140 person-years, this deal will have a significant employment effect for Millog and its subcontractors.

The contract will strengthen Millog’s position as a domestic developer and supplier of optronics products. The fact that Millog was chosen as the supplier as a result of intense international competition provides an important reference for the company in its efforts to bring products to the international market.

SIGNIFICANT CONTRACT FOR ORICOPA

In May, Oricopa Oy, a 100% owned subsidiary of Millog, and Norwegian Kongsberg Defence & Aerospace AS signed a contract, worth €25 million, on deliveries for the NASAMS anti-aircraft system. Oricopa’s role in the deal is the manufacturing of containers for housing communications and command systems and devices. Oricopa will install the systems in containers and manufacture components for the systems. The contract will provide employment to Oricopa and its supply chain amounting to nearly 100 person-years. Deliveries will take place in 2015–2017.