When we say defence, we mean business. If you want to invest in a more secure world, get in touch through our e-Consulting service and let’s find you the right investment opportunity.
In the mater of defence and security, Estonia is taking a swift and decisive approach. After a period of initial planning and considerations, the Estonian government has officially approved the establishment of a defence industry park, selecting two strategic locations for the project. Initially, five sites were considered across Estonia, two in the east and three in the west.
Key criteria included the size of the site and the possibility of expansion, minimal environmental impact, and distance from the eastern border, explained as was explained by Indrek Sirp, special adviser on defence industry development at the Ministry of Defence (per ERR).
Now, the primary site will be located in Ermistu village, Pärnu city, covering 204 hectares, while a secondary location has been designated in Varinurme village, Lüganuse municipality, Ida-Virumaa, spanning 141 hectares (known as the Põhja-Kiviõli area).
The defence industry park will focus on manufacturing ammunition, combat munitions, explosives, and explosive materials. Production is set to begin in 2027, with a phased implementation plan based on individual company readiness and operational capabilities. So far, several important producers have already issued their interest in joining the project, but the names have not been disclosed yet.
The state will build the park’s basic infrastructure, including access roads, electricity connections, a perimeter fence, water supply, a testing area, a demolition site, and storage facilities. Up to €50M has been allocated for this in the state budget. Overall, the country has committed over €10B to defence in the coming years, safeguarding the country’s future and investment environment.
