Estonian electro-optical systems manufacturer HEVI Optronics plans to invest about €20M in a second factory in Tabasalu and open a development office in Tartu. It aims to start operating the new plant in early 2029 and create about 100 jobs, though construction has not yet been scheduled.
Founder and CEO Kristjan Tiimus outlined the plans in an interview with Tööstusuudised. HEVI is still defining the plant’s requirements internally before bringing in an architect and planning its production technology. It is exploring funding options, including investment funds; the €20M figure covers the proposed building and equipment, not a committed financing package.
HEVI Optronics plans to make its own sensors
The second plant would manufacture sensors, optics and precision-mechanics components that HEVI now sources partly from suppliers. HEVI Optronics is developing electro-optical systems, stabilisation technology and image-processing solutions for air, land and sea platforms. Bringing component production in-house would give it tighter control of supply and cost as it prepares for larger orders.
“Until now, we have used certain purchased components, but production volumes of tens of thousands of units require full control of the supply chain,” Tiimus told Tööstusuudised. The figure describes the scale HEVI is preparing for, not a disclosed annual production target: the company did not identify customers or an order period. Tiimus said the planned 2029 start is linked to the delivery schedule of a forthcoming major order, with initial fulfilment to begin at the factory already under construction.
The proposed production process calls for optical benches, laser-alignment equipment, environmental testing and cleanrooms. Tiimus said specialised equipment can take from six months to one and a half years to arrive, with some purchases subject to export controls. Those lead times help explain why the firm is working on requirements before setting a construction date.
A second Tabasalu plant and an engineering base in Tartu
HEVI Optronics’ first Tabasalu factory is under construction to bring development, assembly, testing and expanded precision-mechanics work now spread across several buildings under one roof. The proposed second building would stand on HEVI-owned neighbouring land and produce the sensors and optics currently in development.
The planned Tartu office, due to open in November, would complement HEVI’s development office near Tallinn University of Technology. The company expects to recruit optical engineers, precision-mechanics and microelectronics specialists, cleanroom operators and testing staff for the expansion. A separate sensor-development team works outside Estonia under management from Estonia, according to Tiimus.
HEVI Optronics supplies electro-optical systems to larger defence contractors, which integrate them into their own products, rather than selling directly to end users. ERR reported 2025 revenue of €27.15M, up from €9.94M in 2024. The company has also attracted foreign investments: German defence technology company Quantum Systems acquired a 60% stake in March.
Interested in investing in Estonia? Explore Industrial R&D opportunities. For tailored guidance, request e-Consulting from Invest Estonia’s advisors.
