Finland’s easternmost listed company saved by defence products

Finland’s easternmost publicly traded firm, Kesla, has secured its largest-ever order—a €17 million contract for mine-laying trailers—reviving the struggling engineering company after years of losses, reports Yle.

The two-year deal, supplied to a NATO member state, covers Kesla’s Kerberos mine-drilling trailers, maintenance, spare parts, and training. The tractor-mounted system can deploy, conceal, and clear vehicle mines even in rough terrain. The contract’s value equals half of Kesla’s 2023 revenue, which had plummeted due to weak demand for its traditional forestry equipment.

CEO Pasi Nieminen called the order a turning point for the North Karelia-based firm, which had faced layoffs and a €5 million loss last year—its weakest performance since 2020. “Every order brings jobs and prosperity to North Karelia, a region losing population,” Nieminen said. “We’re fighting structural change and eastern Finland’s decline on the front lines.”

The defence contract has already ended layoffs at Kesla’s Kesälahti plant, where the Kerberos trailers are built, and the company is now hiring ten permanent workers. Nieminen noted that the weak economy has made skilled labour more available.

Kesla has also launched HydraX, a fire-suppression trailer for wildfires, dust control, industrial cleaning, and crowd dispersal. While Nieminen declined to name customers or pricing, he hinted at premium costs: “The old joke is that green paint is expensive—defence buyers need deeper pockets than civilian markets.”

Defence now drives Kesla’s growth after decades in forestry machinery. Founded in 1960 as an agricultural equipment maker, the company later shifted to logging tools. Last year, it created a dedicated Defence product group. “Innovation has always defined Kesla,” Nieminen said. “Now we’re transforming into defence.”

Eastern Finland hosts fewer than 20 of Finland’s 400 defence firms, but Kesla’s pivot has boosted local morale. Kitee mayor Pekka Hirvonen called the news “truly wonderful” for Kesälahti, where unemployment ranks among Finland’s highest. The company is also discussing expansion space with the city and building a subcontractor network.

With 210 employees across three sites—Joensuu (110 workers, cranes/R&D), Kesälahti (70, defence/forestry tools), and Ilomantsi (30, hydraulics)—Kesla’s outlook has brightened. “We’re developing all product lines,” Nieminen said, “but expectations for defence are high.”