In total, 136 million euros was invested in the Industrial sector, 95 million in ICT and 72 million in the Logistics sector.
You can find the opportunities Estonia has to offer in each of the sectors here and the list of top investments of 2018 below.
See top investments by:
Investment amount
New jobs created
Here are the top investments, based on investment amount:
1. € 50 million: HHLA / Transiidikeskuse AS
German logistics and port company Hamburger Hafen und Logistik AG (HHLA) obtained the biggest container terminal operator in Estonia, Transiidikeskuse AS.
There were many aspects that made HHLA’s decision to come to Estonia easy: the relationships with key authorities are very good, uncomplicated and forward-looking; there is little bureaucracy and the taxation system is simple and advantageous.
‘One of HHLA’s targets is to grow internationally. Estonia is one of the fastest-growing economies in Europe and a pioneer when it comes to digitalisation. We are therefore pleased to integrate Transiidikeskuse AS, already a profitable and high-performing company, into the HHLA family,’ CEO of HHLA, Angela Titzrath said.
You can read more about what made the investment happen here.
2. € 43 million: Hangxin / Magnetic MRO
Hangxin, a company from the People’s Republic of China obtained the aircraft maintenance company Magnetic MRO that received Estonia’s Company of the Year and Exporter of the Year titles in 2017.
Brussels Airlines, airBaltic, Austrian Airlines, Thomas Cook, FedEx − those are just some examples of companies that have their aircrafts serviced in Estonia at the modern hangars of Magnetic MRO. Maintenance is not only limited to checking tire pressure and oil exchange. Aircraft are disassembled here down to the smallest details and the base maintenance of a plane can take several months. The company is based in massive hangars at the Tallinn Airport.
According to Magnetic MRO, its critical success factors include:
– pushing the technological boundaries in an innovation-based digital ecosystem
– speed and excitement of a start-up, but professional execution of large-scale projects
– encouraging the team to be ahead of the industry in knowledge and self-development
You can read more about the Magnetic MRO success story here.
3. € 34.8 million: TransferWise
The Fintech company TransferWise obtained VC investments from the United States (a €34.8 M part of which is counted as investments facilitated by the Estonian Investment Agency).
After last year successful investments, a lot more has happened, including the company becoming the most valuable FinTech in Europe with another € 262 M round of investment.
At the time when the latest round was happening, we recorded this exclusive short interview with Co-Founder of TransferWise, Taavet Hinrikus at Estonia’s biggest startup and tech event Latitude59. You can watch it right here:
.@taavet, Co-founder of @TransferWise, explains: “There is something in the soil in #Estonia, which makes the Estonian people much more capable to make something great!”
Wish to invest in Estonia? Start here: https://t.co/9F7oztnQcX @Latitude59 pic.twitter.com/iIYMTkqwjJ
— Invest in Estonia (@EstoniaInvest) May 16, 2019
If you would like to read the latest news about TransferWise, you can find it here.
4. € 22 million: MPG AgroProduction
MPG AgroProduction OÜ, a company with Cypriot roots, announced investing in building a logistics center and and an oilseed factory at the Port of Muuga.
According to the agreements signed in 2018, MPG will construct a plant for processing oilseeds, a superstructure for loading and unloading raw material and end products on the quays, as well as loading facilities for transporting raw material and end products to and from Muuga using the railway and road network.
The project development is planned to be executed in full capacity during a period of five years, subject to the processing of relevant construction and environmental permits and confirmations by the local municipality. The complex is expected to start operating in 2020 at the earliest and is expected to reach full capacity by 2024. Total processing capacity of the complex is estimated to be 1.5 million tons per year which could result in total additional annual cargo volume of 2.5 million tons for Tallinna Sadam.
MPG is an Estonian company established in 2017 by a group of European investors. It is expected that approximately 300 direct jobs and 1,000 indirect jobs will have been created by the time the complex starts operating at full capacity.
5. €21.84 million: CMA CGM Group / APL Agencies Estonia
Logistics company APL Agencies Estonia invested in expanding its service center in Estonia. Founded in 2007, Estonia hosts a center of excellence for service design and delivery, shipping and business support services. According to the company, the main arguments that have helped its Estonian center flourish are quality of work, strong work ethics and the team’s excellent problem solving skills. By now, the shared services center has come to the central position of delivering first class service to CMA CGM and APL customers. As of May 2019, APL Agencies Estonia has 617 employees.
Investments also brought hundreds of new jobs to Estonia in 2018 – 1,472 in full-time equivalent.
Here are the investments creating the biggest number of jobs:
1. 364 new jobs: APL Agencies Estonia
Logistics company APL Agencies Estonia (a part of CMA CGM Group) expanded its service center in Estonia. By now, the shared services center has come to the central position of delivering first class service to CMA CGM and APL customers.
2. 130 new jobs: Aquaphor
One of the leading producers of water filters in the world, Aquaphor expanded production at the Westaqua plant in Narva, North-East Estonia, creating 130 new jobs. The CEO of Aquaphor Group, Joseph L. Shmidt told business daily Äripäev that one of the reasons for the expansion is that Estonia has a good business environment. According to Shmidt, Estonia’s employees can easily compete with countries generally known for their high work ethics, such as Finland, Sweden and Germany as the employees have a serious work attitude and an understanding of responsibility.
3. 120 new jobs: Aquaphor
Aquaphor also expanded production at the Westaqua plant in Sillamäe, North-East Estonia, creating 120 new jobs.
4. 100 new jobs: Stera Technologies
Stera Technologies, an international mechanics and electronics contract manufacturer with headquarters in Finland, expanded its production plant located at Allika Industrial park located near Tallinn and acquired new equipment for it. “Estonia’s qualified labor isn’t much cheaper than Finland and this is no longer the main argument for moving here,” Veiko Vaher, managing director at Stera Estonia told Äripäev. “Rather, Estonia has more appropriate logistic connections – you don’t have to export your products exclusively by ship from here.”
5. 60 new jobs: Stora Enso
Stora Enso Group, the leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets, is making its Tallinn service center the main financial center for the whole corporation. Worldwide, the company employs some 26,000 people and is publicly listed in Helsinki and Stockholm. Expanding the Tallinn center means hiring new employees and moving positions from service centers previously located in different European locations and India to Tallinn.
‘The decision by the Stora Enso Group to establish its main and central Financial Services Centre in Tallinn is high praise for our development potential and the local economic environment,’ says Martin Leiger, Head of the Stora Enso Tallinn Service Centre. In addition to jobs linked directly to financial calculation, other posts in new areas are also being created in Tallinn.
Read more here.
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