President Alexander Stubb of Finland visits the White House today together with Prime Minister Petteri Orpo. There, he will sign a memorandum of understanding with President Donald Trump concerning cooperation on icebreaker technology.
This document lays the foundation for commercial agreements between the U.S. Coast Guard and Finnish companies. It is also the result of prior negotiations between the U.S. administration and Finnish shipbuilders.
The cooperation is based on the fact that Finnish expertise in icebreaker technology is unparalleled anywhere in the world — and that is why the Americans trust it.
Icebreakers are not ordinary ships; they represent a highly specialized technology mastered only within the Finnish “icebreaker ecosystem”, where the coordinated expertise of numerous companies comes together. In other words, the overall know-how is not the private property of any single company.
For this same reason, Finland’s core icebreaker expertise cannot simply be transferred abroad, even though the agreement includes an option for part of the shipbuilding work to be carried out in the United States. However, this would mainly involve the final outfitting of the icebreakers — work that does not significantly differ from any other type of ship construction.
In Finland, some concern has been expressed that these new deals might lead to the loss of icebreaker know-how from the country. For the reasons mentioned above, I do not share this concern. However, I do see great value in the fact that the construction of these vessels will also create jobs for American companies.
Such cooperation, if successful, could lead to a long-term partnership between Finnish and American companies — and thereby, in President Stubb’s words, “benefit both Finland and the United States.” After all, each icebreaker costs around two billion euros, so there’s a significant share for everyone involved.
Previous thoughts on the same topic:
Finland and the USA: Strong Allies with Shared Interests or a Trade Dispute?
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I agree, if this will be real this is a good news.
ReplyDeleteIn this case, according to news reports, the order for 11 ships would be worth approximately $6.1 billion, or €5.3 billion. Roughly €480 million per ship.
ReplyDeleteSo-called heavy icebreakers are considerably more expensive.