Valmet Automotive is planning to begin mass production of electric buses at its factory in Uusikaupunki, on Finland's west coast.
Announcing the plan on Tuesday, the company said it has signed an agreement with Jeti Industries, a Finnish firm specialising in the design, development and production of electric buses and other vehicles.
The agreement means that Valmet Automotive's factory in Uusikaupunki will manufacture electric city and regional buses on a contractual basis.
In mid-December, Valmet Automotive announced plans to assemble military vehicles for Sisu Auto at the Uusikaupunki facility. The firm also announced plans in October to partner with Finnish defence vehicle firm Patria in manufacturing efforts.
The plant underwent major redundancy talks in the autumn, after a manufacturing contract with Mercedes-Benz came to an end. Following those talks, in November the company announced that it would cut a maxiumum of 235 jobs and furlough up to 860 workers.
According to Valmet Automotive's CEO, Pasi Rannus, the electric bus deal is another step in advancing the firm's strategy of expanding into new industries.
"Given our history in car manufacturing, producing zero-emission electric buses for next-generation mobility is a logical step for us and a continuation of our long-standing expertise in manufacturing electric vehicles. Jeti Industries has developed an excellent product innovation with an existing, international market. We are excited to participate in the development of novel mobility solutions and to enable the serial production of a Finnish high-tech product," Rannus said in a press release on Tuesday.
Negotiations on the deal's final agreements are underway, the release said.
