Germany and Finland deepen defence-industry ties with message: prepare for war

Germany and Finland are stepping up cooperation in the defence industry, with Berlin’s €108bn military budget opening new opportunities for Finnish firms.

German interest centres on Finland’s high-technology strengths such as communications systems, sensor technology and artificial intelligence, according to Jan Feller, CEO of the German-Finnish Chamber of Commerce, who was visiting Oulu.

“If you want peace, prepare for war,” Feller said at a seminar that brought together Finnish defence-industry executives, government policymakers and military leaders.

Germany’s defence budget, now €108bn, is driving investment in domestic capabilities and creating demand for foreign partners. Feller noted that Finland’s NATO membership and its border with Russia further increase its appeal as a defence partner.

Finnish companies are already making inroads. Oulu-based KNL Networks, which makes long-range tactical radio systems, is targeting the German market as Berlin modernises both its communications and general defence posture.

“Germany is one of the largest markets in Europe,” said Toni Linden, KNL Networks CEO. “With NATO membership, Finnish defence industry and armed forces are highly regarded.”

German defence giant Rheinmetall, which employs more than 40,000 people worldwide, is also expanding its Finnish operations. Birgit Görtler, the company’s deputy CEO, highlighted Finland’s proximity to Russia and its ability to operate reliably in a crisis as key reasons for investment.

Rheinmetall has opened a presence in Oulu to showcase sustainable-fuel production, pointing to Finland’s rapid shift away from Russian energy sources and adoption of alternatives such as biofuels.

Finnish and German firms share high levels of engineering expertise. Rohde & Schwarz, the 1930s-founded German family company with offices in Vantaa and Oulu, operates three business units in Finland: testing and measurement, cybersecurity, and technology systems for authorities and defence actors.

“We have customers in all these segments in Finland,” said Jarno Tervo, country manager for Rohde & Schwarz Finland. “Finnish companies have strong potential in the German defence market.”