However, Valmet was not able to compete with private companies in the newbuilding market, and in 1963 a decision was made to switch focus on repairing existing ships and maintain only limited newbuilding capability on a single shipyard. When demand for new ships increased considerably in the mid-1960s, the shipbuilding strategy of Valmet changed considerably. As the size of new ships was expected to increase in the future, there was a danger that the state-owned shipbuilding company would not be able to compete in the lucrative newbuilding market. Since expanding the shipyard located in the middle of the capital city was deemed impossible, a decision was made to construct a completely new shipyard in Vuosaari.