Patria, Slovenian MOD settle AMV contract
Patria has announced that it has signed a settlement agreement with the Slovenian Ministry of Defence (MoD) and local prime contractor, Rotis Plus, to reduce the overall number of AMV 8x8 armoured vehicles ordered under a 2006 contract. The company made the announcement 5 September 2012.
The Slovenian government ordered 135 Patria AMV 8X8 armoured vehicles in 2006. Some months following the initial vehicle delivery in June 2009, informal discussions revealed that the MoD lacked funding to continue with the programme. Rather than discontinuing production at that time, temporary measures were imposed on the production of additional vehicles, with the focus on finalising those vehicles scheduled for delivery throughout the remainder of 2009 and 2010.
On formally renegotiating the scope of the contract, Patria and the MoD have now signed a settlement agreement that will reduce the fleet size to the 30 vehicles already delivered and closing down the rest of the project and supply contract. Patria will take over the life cycle support for the delivered vehicles from Rotis Plus, and the original offset agreement has been deemed fulfilled.
Seppo Seppälä, president, Patria Land Services, commented on the announcement, saying: ‘Defence industry needs to adapt to changes in the existing and new possible customers’ demands and possibilities. The economic situations will change and so do the technologies used. Consequently, our policy is to look for reasonable solutions in different situations whenever possible. This settlement will make it possible for all the parties to focus on their future. We are proud to have the Slovenian government as one of the satisfied users of Patria AMV vehicles and will continue to provide life cycle support for them’.
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