Finland’s Ambassador to Australia, Arto Haapea, is preparing to lead the Nordic country’s first-ever defence industry delegation to Australia during the 2025 Avalon Air Show. Six Finnish companies will take part in the inaugural delegation, including Iceye, KT Shelter, Kuva Space, Nokia, Varjo, and VTT.
The selection of those six companies was informed by a close examination of the 2024 Integrated Investment Plan (IIP) and local industry conditions according to Ambassador Haapea. Each of the six companies, Haapea explained, has products or expertise that can be applied across a range of IIP programs.
“We’re trying to align our offering with the IIP and the needs on the ground,” he said.
The six companies are attending Avalon for various reasons. Some, including Iceye, Nokia and Varjo already have a presence in the Australian market which they are looking to expand. Others, such as KT Shelter who build portable aircraft shelter systems, are on the lookout for Australian Small and Medium Enterprises (SMEs) who they can partner with to bring their technology to market here.
“There are more than 400 [defence industry] companies in Finland, including both traditional, kinetic ones, and more technological offerings,” Ambassador Haapea explained.
During Avalon, the delegation will meet with representatives from each state and territory’s respective defence associations, as well as peak bodies and primes. In anticipation of success at Avalon, planning is already underway for more Finnish companies to join a larger industry delegation at the Indo Pacific exposition in November.
Separately, both Finland and Australia are looking at enhancing their military-military relationship. While Australia has had a Defence Attache in Sweden who is also accredited to Finland for years, the countries are now exploring the possibility of Finland dispatching a DA to Canberra.
Changing Circumstances
Finland’s decision to send a defence industry delegation to Australia is part of a two-tiered push by the Nordic country to deepen both political and defence industry cooperation with partner countries outside of Europe.
“The management of security risks deriving from commercial and economic dependencies and competition in disruptive technologies require that Finland strengthen its political and economic relations with key like-minded partner countries outside Europe. Finland will invest in deepening its relations with Canada - which is an ally - and with Australia, South Korea and Japan. This will be done by enhancing political dialogue and developing cooperation in the fields of security policy, defence, trade, technology and research,” a 2024 Finnish Government report on the country’s foreign and security policy states.
Finland’s foreign and security policy has changed dramatically in recent years, impacting its defence industry and broader defence relationships. In 2023, Finland joined the North Atlantic Treaty Organisation (NATO) after decades of neutrality, something which Ambassador Haapea says “renewed the credibility of Finnish defence companies” in Australia.
The re-election of President Donald Trump, and his articulation of an America First foreign policy, has also changed the paradigm. While Haapea doesn’t believe that changes in US policy towards Europe will negatively impact Finland, he said that they do highlight the need for diversification.
“I think that diversification is key in both Europe and the Indo Pacific, ensuring a wide range of suppliers,” he explained. “This is a huge moment for Europe, not just about its defence capability, but also shaping a more European NATO.”
Challenges and Opportunities
According to Ambassador Haapea, the Finnish Government is realistic about the challenges of expanding into Australia’s rapidly evolving defence sector. In recent years, several programs have been cancelled or cut even after contracts have been awarded and work has commenced.
Changes to the Arafura-class Offshore Patrol Vessel (OPV) program, for example, impacted Finland’s Boomeranger Boats which had been contracted to build three boats for each of the 12 OPVs before the program of record was cut in half by the surface fleet review.
“In Australia, the landscape of needs has changed rapidly resulting in the cancellation of programs,” Haapea said. “I think our companies need to be ready to invest in the long-term before they build a presence in Australia.”