Finland may soon produce significant number of drones for Ukraine

Finnish company Innokas is poised to collaborate with Ukrainian developer Airlogix to establish new production facilities for unmanned aerial vehicles (drones) in Finland. The partnership, formalized through a letter of intent signed recently, aims to significantly increase drone manufacturing capacity to meet the substantial demand from Ukraine.

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Ukraine has more demand than existing production. There is a need, and drone technology is also of interest in the Nordic countries.

Janne Kostamo, CEO of Innokas, highlighted the critical need for more drones than current production levels can supply. He noted that drone technology is also gaining interest in Nordic countries, suggesting broader market potential. This collaboration is expected to strengthen manufacturing capabilities within Finland and the wider Nordic region, with the goal of establishing multiple production sites across Europe to support Ukraine's defense efforts throughout the war.

Under the agreement, all technologies and technical solutions will remain Ukrainian property. Initially, the manufactured products will be exclusively for strengthening Ukraine's defense capabilities. Innokas will provide the infrastructure for localizing and expanding production, utilizing its existing factories, including one in the Oulu region. Kostamo indicated plans to distribute production across several locations as needed.

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We have factories already, and these will be scattered in several places as needed. We have a factory in the Oulu region.

However, the commencement of production is dependent on a crucial technology transfer agreement between Finland and Ukraine. Kostamo explained that Ukrainian Minister of Defense approval is required before technology can be moved, and he could not estimate when such an agreement might be finalized. Despite the delay, the companies are working to establish the necessary legal, technical, and operational frameworks, and are exploring the possibility of forming a joint venture. This initiative follows similar efforts by other Finnish companies, such as Summa Defence, to manufacture drones for Ukraine.

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We cannot start tomorrow, even if we wanted to. Ukraine's Minister of Defense will not give permission to transfer the technology before such a technology transfer agreement is signed.