Valmet Automotive negotiates Chinese passenger car production in Finland

Valmet Automotive is negotiating with Chinese carmakers about producing passenger cars at its factory in Uusikaupunki, the company’s chief executive Pasi Rannus confirmed to Yle. The company has not said when production could begin.

Rannus said the company is holding discussions about car manufacturing almost daily. He said the number of discussions with different parties is higher than ever, although some matters outside the company’s control are slowing negotiations.

“It may have appeared in public that the negotiations are losing momentum, but they have continued all along,” Rannus said.

The last passenger car was completed at the Uusikaupunki factory in late 2025. The plant has since expanded into defence industry production and bus manufacturing.

Chinese manufacturers expand in Europe

European car manufacturing is facing a difficult situation as Chinese cars gain market share and production is being planned in Eastern Europe.

By bringing production to Europe, Chinese manufacturers can avoid tariffs imposed by the European Union on Chinese electric cars.

Chinese manufacturers accounted for 6 per cent of the European market last year. Rannus said they had sold as many cars in Europe by the middle of this year as during the whole of last year, putting their market share at 12 per cent.

Uusikaupunki is known for being able to move from signing a contract to starting production in as little as six months.

Bus production plans face setbacks

In April, Carrus Delta, a bus company from Lieto, and Valmet Automotive announced a long-term partnership to produce buses in series at the Uusikaupunki factory. A production line for Volvo buses is being built in the hall formerly used for welding Mercedes-Benz A-Class cars.

A separate plan for the series production of electric buses with Jeti Industries, a company from Turku, appears to be falling through. Valmet Automotive announced a preliminary agreement with the company in February.

Rannus said the project was in a cooling-off phase for reasons beyond Valmet Automotive’s control. He said it currently appeared unlikely to go ahead, although he would know more towards the end of the year.

Patria armoured vehicles already in production

The first armoured vehicles manufactured by Valmet Automotive for defence manufacturer Patria have been completed. Patria has said it will order hundreds of armoured vehicles from Uusikaupunki in the coming years.

The companies have not disclosed detailed production figures. Panu Routila, Patria’s chief executive, said production was moving from the first phase to a second phase involving longer series production, higher volumes and potentially new products.

Jussi Järvinen, head of Patria’s vehicle business, described the launch of series production within six months as an exceptional achievement.

Sisu Auto production remains under negotiation

Uusikaupunki is also being considered as a production location for armoured vehicles made by Sisu Auto. The company’s armoured and off-road GTP 4×4 multipurpose vehicles have so far been built in Karjaa.

Rannus said Valmet Automotive and Sisu Auto had not yet signed a final cooperation agreement covering component manufacturing for Sisu GT products and the assembly of completed vehicles.

He said the companies were actively discussing the details and would provide more information when they were ready.