AGP Executive Report

Aviation Demand: Tallinn Airport hit an all-time August passenger record with nearly 390,000 travellers (+16% year-on-year), helped by Wizz Air’s rapid expansion (18% of passengers) and a network of almost 50 destinations across 19 airlines. Corporate Leadership: Poltrona Frau, the Italian furniture group, appointed Giovanni Baldi as CEO, bringing luxury retail experience from Dolce & Gabbana and Gucci as it targets a new growth phase under Haworth Lifestyle. Defense Industry: Patria completed assembly of Finland’s first F135 engine for the F-35 programme, starting full-scale production at its Linnavuori facility through 2030 and strengthening security-of-supply. Energy & Industry: Kalmar will simplify its operating model by merging Terminal Tractors and Horizontal Transportation into one division to speed up electrification and automation plans. Policy & Permits: A critical minerals policy shift is making permits a direct driver of project costs and financing, with Brazil tightening scrutiny and the EU using its Critical Raw Materials Act. Finland in the World: Finland’s goods exports to China rose 12.9% in H1, while Finland also set up an expert group to assess AI security risks.

Finnish Defence Industry: Patria has completed assembly of Finland’s first F135 fighter jet engine at its Linnavuori, Nokia facility, with full-scale production planned through 2030—boosting domestic maintenance and security-of-supply for the F-35 fleet. Civil Defence & Security: Finland staged Europe’s biggest civil defence drill since WWII, testing responses to cyberattacks, loss of utilities and possible missile scenarios tied to the Russia threat. Energy & Tech: A study links sleep at age 50 to how long people stay in paid work, with longer sleep tied to shorter working-life expectancy. Digital Infrastructure: Data centre cooling is becoming business-critical as AI workloads push electricity use higher, with cooling already taking a large share of total power draw. Health & Workplace: Jamaica’s HRMAJ is urging employers to strengthen workplace protections for staff facing long-term illness, using breast cancer support as the rally point. Smart Wearables Market: Oura’s IPO filing and smart-ring competition keep heating up the wearable health sector. Arctic Trade: A new Arctic shipping route is reshaping the economic map by shortening Asia-Europe transit times.

Oura IPO Watch: Finnish smart-ring maker Oura filed for a US listing, targeting a $16bn-plus valuation as revenue jumped 74% to $1.21bn (nine months to June) and it counts 5m paid subscribers. Smart-Ring Rivalry: The filing lands as competitors push new features, from payments to haptics, turning Oura’s health-tracking edge into a race. Defence & Readiness: Finland ran Europe’s biggest civil defence drill since WWII, testing responses to cyberattacks and missile scenarios with 2,000+ participants in Kuopio. Aviation Industry: Patria completed Finland’s first F135 fighter engine assembly for the F-35 programme, building domestic capability for maintenance and supply security. Energy & Industry: Kempower argues EV charging utilisation depends more on connector count than peak power, using its analytics to back higher plug numbers. Arctic Trade: A new Asia-Europe Arctic shipping route is gaining traction as ice conditions improve seasonally, reshaping geopolitics and logistics. Global Markets: Oil trade is shifting after the Hormuz disruption, with exporters rerouting flows and prices set for another weekly gain.

Finland’s Defence Readiness: Finland staged Europe’s biggest civil defence drill since WWII, Shelter 2026 in Kuopio, testing responses to cyberattacks, power and water outages, and possible missile strikes, with over 2,000 participants. Aerospace & Security: Patria has completed Finland’s first F135 fighter engine assembly for the F-35 programme at its Linnavuori, Nokia facility, building domestic capability for maintenance and supply security. Smart Rings Go Public: Oura filed for a US IPO, targeting a valuation above $16bn after $1.21bn revenue in the first nine months of 2026 and 5m paid subscribers, as competition heats up in the smart ring market. Helsinki Politics: Two opposing demonstrations split Helsinki’s afternoon, with police coordinating routes after a march by the Blue-and-Black Movement and an anti-fascist counter-protest. Arctic & Industry: The Finnish icebreaker MSV Nordica is set to head on an Arctic mission for Canada’s Coast Guard, while Finland’s Normet opened a technology centre in Pirkkala to speed underground mining innovation. Business Outlook: Finland’s government says the economy is growing and outlines 2027 budget measures aimed at boosting growth, jobs and entrepreneurship.

Finland–China Trade: Finland’s goods exports to China climbed 12.9% year-on-year in H1 2026, with machinery and electrical equipment leading gains, while cellulose pulp stayed the biggest export item. Wages Watch: Statistics Finland says working-day adjusted wages and salaries rose 1.1% in July year-on-year, but fell 1.1% month-on-month, with finance and insurance among the few sectors posting increases. Defence Industry: Patria has completed assembly of the first F135 engine for Finland’s F-35 programme at its Linnavuori, Nokia facility, moving the project into full-scale production. Arctic & Shipping: The Polar Class icebreaker MSV Nordica arrived in Canada under an Inuit-led partnership, boosting Arctic capacity for safe navigation and icebreaking. Mining Tech: Normet opened a new technology centre in Pirkkala to expand R&D and testing for autonomy, robotics and digital mining tools. Global Risk: A report warns investors’ dollar hedging is at a multi-year low, raising the risk of sharper market selloffs if the greenback weakens further. Humanitarian Aid: Finland will grant €1m to Nepal flood victims via the Finnish Red Cross and IFRC, targeting shelter, healthcare and water/sanitation support.

Finnish Defence Industry: Patria has completed the first locally assembled F135 engine for Finland’s F-35A fleet at its Linnavuori facility in Nokia, with assembly running through 2030 before shifting to maintenance and upgrades—boosting domestic sustainment and security of supply. Mining Tech Investment: Normet opened a new technology centre in Pirkkala to expand R&D and testing for autonomy, robotics and software for underground mining, hiring more than 50 people in Finland this year and targeting more high-value roles. Industrial Capacity Expansion: Sandvik finished a multi-year expansion of rock drill production in Tampere, adding automation and lifting capacity in phases, with further volume ramp-up into 2027. AI Policy & Security: Finland will set up an expert group to assess how AI is reshaping foreign policy and security, with recommendations due by end of November. Civil Defence Readiness: Finland staged Europe’s biggest civil defence drills since WWII, rehearsing responses to cyberattacks and missile threats to critical infrastructure. Regional Business & Trade: Tallink Silja Line kicked off its autumn programme with a Spanish Festival at Sea, while also running Baltic Sea Day activities in Tallinn and Helsinki.

Arctic Security & NATO: Finland and Sweden’s rapid NATO entry is reshaping Arctic cooperation as Western firms and travel links to Russia largely shut down, while NATO’s Arctic 7-format (A7) grows more active. Counter-Drone Tech: NATO used the British BlackTalon Ecosystem counter-drone system in the Baltic Trust 26 exercise in Latvia, highlighting interoperability and real-world drone detection drills. Russia–Germany Hybrid Tensions: Russia says it will close German cultural centres after Germany blamed Moscow for a drone incident at Leipzig/Halle airport, escalating the hybrid war backdrop. Finland Business & Payments: Finland’s card payments rose in Q2 to €20.6bn (+6% y/y), with contactless and remote payments both increasing. Oura IPO: Finnish smart-ring maker Oura filed for a US IPO after revenue jumped 74% to $1.21bn (nine months to June 30), with 5m paid members and strong subscription margins. Industrial Tech: Metso says it has connected 800+ mine equipment units to its data-driven maintenance analytics, aiming to cut unplanned downtime. Defense Industry (Finland-linked): Patria completed first F135 engine assembly for Finland’s F-35 sustainment, while Hanwha showcased drone-linked K9 concepts at Estonia’s K9 User Club. Ukraine Youth & Education: A debate on Ukraine’s recovery puts education at the centre, while questions grow over where preparedness ends and militarization begins.

Finland Defence Prep: Finland is running Europe’s biggest civil defence exercise since WWII in Kuopio, with 2,000+ people rehearsing sheltering, radiation checks and crisis coordination after cyberattacks and missile-strike threats. Arctic Sanctions & Shipping: Norway seized Russia’s cruise ship Professor Molchanov in the Arctic to enforce Ukraine’s Naftogaz’s $4.22bn compensation claim over Crimea, escalating a treaty dispute with Moscow. EU Budget Talks: Ireland’s EU presidency budget commissioner Piotr Serafin says a deal on the bloc’s 2028-2034 budget is “optimistic” despite “frugals” resisting higher spending. Local Infrastructure: YIT begins work on a €94m Jätkäsaari Helsinki sports and swimming centre, adding 21,000 sqm and 20+ sports with heat recovery and solar elements. Energy & Storage Deals: D.TRADING and Finnish Capalo AI are teaming up to offer structured revenue arrangements for battery storage and hybrid renewables across Europe. Business & Tech: Ultrahuman raised $70m to scale R&D and expand its Blood Vision and CGM platforms into a broader AI-powered health intelligence system. Aviation Upgrade: Finavia finished an €11m renovation of approach lighting at Tampere-Pirkkala Airport without disrupting flights.

EU Sports Governance: Denmark, Finland and Sweden have asked the European Commission to step in over governance concerns at FIFA, citing transparency and decision-making issues around the proposed FIFA Forward Enterprise plan. Arctic Energy & Legal Pressure: Norway has seized the Russian research vessel Professor Molchanov near Svalbard to enforce a $4.22bn Naftogaz compensation award tied to Russia’s 2014 Crimea actions, escalating enforcement across jurisdictions. Finland Economy Outlook: Nordea expects Finland’s growth to hold up despite higher fuel prices and interest rates, lifting its 2026 forecast to 1.7% and pointing to strength in metal, defence and maritime exports plus data-centre investment. Corporate Finance: Atria secured a €41m, 10-year Nordic Investment Bank loan for Nurmo convenience-food factory modernisation, targeting lower energy use and new production capabilities by 2028. Tech & Healthcare: Nokia and BeeHealthy are integrating “Network as Code” to replace SMS one-time passcodes with network-based verification for digital healthcare access. Business & Markets: Virtune listed a physically backed Chainlink ETP on the Warsaw Stock Exchange, adding to its growing Poland lineup. Energy Transition: Auramarine says ship operators need flexible fuel strategies as availability and compliance remain uncertain.

Arctic Security & NATO: A new analysis says Russia’s war and sanctions have largely frozen Western-Arctic ties, pushing Finland and Sweden into NATO fast and boosting Nordic defence cooperation through NATO formats. AI Data Centres & Power: Infineon and Estonia’s Skeleton Technologies are teaming up to build resilient, high-efficiency power systems for AI data centres, including solid-state transformers. Helsinki Heat Deal: OnZero will connect its AI “Heat Factory” to Helen’s district heating network in Helsinki from 2027, targeting up to ~500,000 MWh of annual heat. Mining Tech: Sandvik is rolling out AutoMine Aura for underground automation and Deswik NOVA for surface mine planning, both showcased in Tampere. Markets: European stocks drifted near a one-month low as bond yields jumped on oil-price pressure from the Iran conflict. Legal/Trade: Norway seized a Russian vessel linked to a Naftogaz compensation award over Crimea. Crypto Product Update: Virtune completed monthly rebalancing of its Crypto Altcoin Index ETP on Nasdaq Stockholm/Helsinki and other venues.

Finland’s budget: The four-party government agreed a €92.5bn budget for 2027 with a €12.4bn deficit, with defence and security costs among the drivers and savings measures continuing. EU foreign policy: 11 EU states, including Finland, urged limits on national vetoes and more use of qualified-majority voting, arguing unanimity can leave the bloc with legitimacy but not strength. Markets: European shares hovered near a one-month low as Middle East tensions pushed bond yields higher and raised inflation worries. Nokia and the index: Nokia is set to rejoin the Euro Stoxx 50, a move that underlines investor focus on its AI-data-centre fibre shift. Data centres in Finland: Finland’s defence and infrastructure backdrop meets the AI build-out: reports say Finland has moved to cut planned financial support for data centres, while new projects and power links are emerging. Health costs: Estonia-style pressure is echoed in Finland too, with expectations that Health Insurance Fund cuts could lengthen waiting lists. Security and drones: The EU summoned Russia’s envoy over a Leipzig “hybrid attack” drone incident, with ministers debating sanctions and Ukraine support.

Eurozone Inflation Watch: Eurostat’s flash estimate puts euro area inflation at 3.3% in August, up from 2.9% in July, with energy prices driving the jump; Finland’s rate eases to 2.4% from 2.5%. Finnish Budget Talks: Finland’s Orpo government starts final 2027 budget negotiations with about €1bn in pre-agreed savings, aiming for improved employment as growth returns. AI Compute & Energy in Finland: OnZero and Helen link an AI data centre in Helsinki to the district heating network, while Cerebras expands AI data-centre capacity in Mikkeli (165 MW planned). Supercomputer Deal: EuroHPC selects Bull for the €387.8m LUMI-AI supercomputer in Kajaani, Finland, using AMD hardware. Mining & Industry: Metso will supply concentrator technology for GTK Mintec’s new Outokumpu pilot plant; Sandvik unveils an autonomous battery-electric drilling concept at Future of Mining 2026. EU Foreign Policy: 11 EU countries, including Finland, push to reduce reliance on unanimity for foreign-policy decisions. Security: Germany blames Russia for an explosive drone incident at Leipzig/Halle airport, part of a wider hybrid-attack pattern. Business Regulation: EU regulators designate ChatGPT, Reddit and Roblox under the Digital Services Act, requiring systemic-risk mitigation.

AI Infrastructure in Finland: EuroHPC has ordered Bull’s €387.8m LUMI-AI supercomputer for Finland, with AMD Instinct MI430X GPUs and 256-core EPYC CPUs, to boost European AI capacity and be deployed at CSC in Kajaani in 2H 2027. AI Data Centres: Cerebras and Compute Nordic Finland are building a phased 165 MW AI data centre in Mikkeli, with the first 50 MW phase already under way. Quantum Hardware Funding: Finnish startup S-Transistors (VTT spin-out) raised €2.6m pre-seed to develop superconducting transistors for cryogenic signal control in quantum computing. Public Procurement & Tech: A new draft on public procurement rules points to more data-driven, automated purchasing—pushing suppliers and agencies toward smarter planning. Defence Contracts: Saab says it has new Finnish Defence Forces orders for the RBS 70 NG air-defence system. Energy & Costs: Fuel prices are set to rise from September 2 as global oil supply remains strained by the Iran war. Migration Pressure: EU migration and Schengen frictions are back in focus after the Ceuta crisis, with calls for tighter asylum rules and faster returns. Business & Labour: Finland’s corporate tax cut plan faces criticism from JHL, which warns it will deepen public finances strain.

AI Supercomputing Boost: The EU has picked French state-owned Bull to build the €387.8m LUMI-AI supercomputer, installed at CSC in Kajaani, Finland, with delivery targeted for late 2027 and a big jump in AI capacity. Quantum Startup Funding: Finnish startup S-Transistors, spun out of VTT, raised €2.6m pre-seed to develop superconducting transistors aimed at more scalable cryogenic quantum computing. Defence Deals with Finland in the Mix: Finland’s President Alexander Stubb says China privately assured Helsinki it would not allow Russia to use nuclear weapons, while Finland also extends defence cooperation with Israel through 2034. Arctic Security Tensions: Russian FM Lavrov warns NATO’s Arctic presence is a direct threat, as Moscow leans on the Northern Sea Route to deepen trade ties. Israel–Greece Air Defence: Israel and Greece signed a €3bn “Achilles Shield” deal for a multi-layer air defence network. Local Business & Industry: Jennmar and Outokumpu expand ground control supply for Finland’s Kemi mine, and Telia Finland rolls out stronger mobile authentication for certificate activation. Culture & Media: Helsinki’s Finnish Film Affair reveals 38 international projects for its 15th edition.

AI Infrastructure Boost: EuroHPC has ordered Bull’s €387.8m LUMI-AI supercomputer for Finland’s CSC in Kajaani, aiming to multiply Europe’s AI capacity tenfold and come online in 2H 2027. Quantum Start-up Funding: VTT-origin S-Transistors raised €2.6m pre-seed to build superconducting transistor tech for scaling cryogenic quantum computers. EU Budget Fight: “Frugal” EU states led by Germany’s Merz are pushing to cut the next seven-year EU budget by several hundred billion euros while still backing higher defence, competitiveness and migration spending. Helsinki Innovation Push: A University of Helsinki-led Business Finland project VALABio is turning dairy and meat side streams into bioactive ingredients and diagnostic tools. Defence Cooperation Politics: Finland’s opposition is attacking a reported extension of military cooperation with Israel through 2034, including the David’s Sling air-defence purchase. Energy Cost Shock: A CREA study says the Iran war and Hormuz disruptions added at least $330bn in extra fossil-fuel import costs globally, with the EU among the biggest hit. Arctic Tensions: Russia’s Lavrov warns NATO is militarising the Arctic, as Finland and Sweden’s NATO membership reshapes regional security cooperation.

Finland–Israel Defence Deal: Finland has quietly extended its defence cooperation memorandum with Israel to 2034, covering R&D and procurement, after earlier extensions and amid domestic opposition criticism. NATO Deterrence Debate: President Alexander Stubb says Russia is unlikely to attack NATO territory, arguing deterrence is stronger than any rival and that recent “2029” warnings are part of an information war. Hybrid Threats in Europe: Reports say Russia is stepping up “gray zone” operations—sabotage, arson, cyberattacks and drone incursions—to raise the cost of supporting Ukraine. Global Defence Bank Push: Canada backs a new Defence, Security and Resilience Bank to fund rearmament, but key G7 economies are still holding back, putting the bank’s top credit-rating hopes in doubt. Arctic Security Context: Analysis highlights how sanctions and reduced Western-Russian ties in the Arctic have reshaped cooperation frameworks, with NATO and Nordic/Baltic integration taking centre stage. Finland Business & Markets: Spinnova has filed for a US IPO and dual listing, aiming to broaden its investor base. Tech & Investment: TechBBQ in Copenhagen drew global founders and investors to discuss AI, quantum, robotics and climate—matchmaking included. Sports (Finnish angle): Sami Pajari won Rally Paraguay for a third straight WRC victory, cutting Elfyn Evans’ lead.