Lapland firms are slow to enter the NATO procurement market

Lapland businesses have been slow to seek access to NATO procurement, with only about 150 companies and organisations in the region applying for an NCAGE code, Yle reports. The code allows suppliers to take part in NATO tender competitions.

About 3,000 Finnish companies and organisations have applied for the code, compared with roughly 9,600 in Sweden. Harri Pelkonen, project manager for the Lapland Defence project at the Lappia education consortium, says European defence and security procurement could offer opportunities worth hundreds of billions of euros as purchasing grows.

Suppliers need not work in defence

Pelkonen and Christian Gummerus, an expert member of the project’s steering group, say a lack of information and the small number of people and businesses in Lapland help explain the low participation. Some business owners also mistakenly believe suppliers must operate in defence or security.

NATO purchases a wide range of goods and services, from armoured vehicles to woollen socks. Its needs can include accommodation, catering and maintenance, as well as services such as plumbing and hairdressing. Village associations, municipalities and other organisations can also join the list and provide facilities or meals for military exercises.

Pelkonen cited a sock manufacturer in the Pirkanmaa region that received an order from the Danish army for 750,000 pairs of woollen socks last year. Smaller businesses can also work together through national networks to bid for larger contracts.

Registration does not guarantee quick sales

Applying for an NCAGE code is free and takes about half an hour, Pelkonen says. The more difficult part can be selecting the correct codes for a company’s products so they can be found by buyers. The database contains 157,000 rows across six columns, from which applicants select five codes.

Gummerus cautions that joining the list does not bring immediate orders. NATO procurement can take years.

As new NATO members, Finland and Sweden currently have priority in procurement competitions for purchases worth more than 80,000 euros, Pelkonen says. He expects that priority to be phased out over time, and says it may no longer apply in five years.

The Lapland Defence project brings together small and medium-sized businesses and organisations in the region and helps them take part in NATO tenders. A joint project by the Redu training centre and Lappia vocational college, it began in April 2026 and is scheduled to run until February 2028.