European defence spending boom opens markets for Finnish companies

Rising defence spending across Europe is creating new opportunities for hundreds of Finnish companies and subcontractors, Yle reports. The growth is also increasing membership in Finland’s Defence and Aerospace Industries Association, known as PIA.

PIA member companies had combined revenue of 4.5 billion euros in 2025, an increase of more than 40 per cent from the previous year. The association’s membership has doubled in four years to about 300 companies.

Many of the new members come from the information and communications technology sector and from defence supply chains. Members are based throughout Finland, although traditional defence industry hubs are in the Pirkanmaa and Central Finland regions and around Oulu. The Helsinki metropolitan area is also growing.

PIA Secretary General Tuija Karanko said the association had received around 100 membership applications a year since Russia’s war in Ukraine began. She said the growth in revenue was being driven mainly by exports.

Patria is PIA’s largest defence industry member by revenue. Other companies with a regional presence include Nammo Lapua and Nammo Vihtavuori.

Antti Malkamäki, a project manager at Into Seinäjoki, said defence industry trade could be either fully open or less visible. Some subcontractors might not even know where their products ultimately go.

Malkamäki leads a defence and dual-use industry project in South Ostrobothnia. The project is examining how many companies in the region are already involved in commercial defence-related activities.

Dual-use products can be used for both civilian and defence purposes. Examples include thermal management systems, 3D printers, vehicles and armoured glass. Malkamäki estimated that about 30 companies in South Ostrobothnia are part of defence industry supply chains, while around 10 are members of an industry organisation.

Alavus-based glass manufacturer Finnglass is investing 12 million euros in new machinery and equipment for producing armoured glass. The investment will allow the company to multiply production for armoured vehicles, with a domestic defence vehicle manufacturer as the customer.

The investment is expected to create about 25 jobs, in addition to the company’s current workforce of 50. Finnglass’s revenue could increase fivefold to 50 million euros.

Chief Executive Timo Saukko said the rise in Europe’s defence industry was a major opportunity. Finnglass has produced bullet-resistant glass since the 1990s, but is now expanding production. The company also receives revenue from tourism construction in Lapland, skyscraper projects abroad and private construction.