This announcement comes on the heels of its recent unveiling of the SmartDrive range of fully electric battery-operated mining machines at Bauma 2019.
The company said demand is expected to grow for both fully electric and diesel-powered machines. Its short-term investment of about €4 million (US$4.4 million) will continue with the next phase.
According to Normet's plans, it will utilise the investment for the construction of a new digital testing centre and the expansion of the location's production capability. It will also be investing in production automation.
Its goal is to improve the facility's productivity and ensure both competitiveness and capacity that will support its growth.
"Iisalmi is Normet's main production and global research and development site," Normet's equipment business line SVP Kari Hämäläinen said.
"We want to ensure we have the best technological capabilities and the most advanced offering to strengthen our position as a global technology leader in our business segments. Streamlining the manufacturing process and increasing productivity is also critical to ensure our competitiveness going forward."
Finland-headquartered Normet said earlier this month that it has gotten much feedback thus far from the industry for its SmartDrive, SmartScan 3-D laser scanning technology and SmartSpray, which it has called the next step towards automated concrete spraying technology.