Under the proposed set-up, Valmet Automotive would contribute vehicle manufacturing know-how and established production systems. Credit: Valmet Automotive

Finnish contract manufacturer Valmet Automotive and electric bus maker Jeti Industries have agreed in principle to produce modular electric buses in Finland.

The companies signed a preliminary agreement covering serial production at Valmet Automotive’s plant in Uusikaupunki.

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Discussions on definitive terms are continuing.

If concluded, the arrangement would represent the “first” production of electric buses for urban and regional transport in the Nordic region at a modern automotive facility under a contract manufacturing model, according to the press statement.

Jeti Industries CEO Niko Andersson said: “Valmet Automotive’s long-term experience in serial manufacturing of a wide range of complex vehicles enables us to scale production quickly and reliably.

“This collaboration is also supported by our shared commitment to sustainability and environmental values”

Under the proposed set-up, Valmet Automotive would contribute vehicle manufacturing know-how and established production systems, while Jeti Industries intends to expand capacity to meet rising demand in electric bus markets.

The initiative also reflects stricter European Union requirements on supply chain transparency and safety, which are driving interest in regional manufacturing and supporting Jeti Industries’ growth plans.

Planned bus assembly in Uusikaupunki would feature domestic content in parts and labour and involve Finnish suppliers across the automotive value chain.

In September 2025, Valmet Automotive outlined a strategy to deploy its serial production capabilities beyond passenger cars.

Manufacturing electric buses would draw on its electrification expertise, existing production assets and quality frameworks.

Valmet Automotive CEO Pasi Rannus added: “This preliminary agreement is another concrete step in advancing our strategy of expanding into new industries. 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.”