Estonia is ramping up its defence capabilities with an ambitious new project—a massive 200-hectare industrial park located strategically in Pärnu County. The Ministry of Defence announced Friday that Tõstamaa’s village of Ermistu will host the project, which is set to become a powerhouse for military production while opening doors for international defence companies.
“We’ve reached the conclusion through analysis that the most suitable site for establishing the industrial park is one of the locations in Pärnu, an area in the village of Ermistu,” said Indrek Sirp, special adviser on defence industry development at the Ministry of Defense, during a press conference, reports ERR.
The park is designed to accommodate the production of ammunition, munitions, explosives, and explosive materials. With the location now selected, the planning process will commence, and construction of basic infrastructure could begin by the end of this year. Most building activity is expected to take place in 2026.
The Estonian Centre for Defence Investments (ECDI) announced a call for proposals on April 9 for companies interested in manufacturing in the park. Next week, the Ministry of Defence will officially invite companies interested in operating at the site. The selection process should be completed by August, with production potentially starting as early as 2027, depending on each company’s operational readiness.
The state will be responsible for developing the park’s basic infrastructure, including access roads, electricity connections, perimeter fencing, water supply, testing areas, demolition sites, and storage facilities. Up to €50M has been allocated in the state budget.
A strategic choice
Five sites were initially considered across Estonia—two in the East and three in the West. Key criteria included the size of the site and the possibility for expansion, minimal environmental impact, and strategic distance from the eastern border.
The second most suitable location was identified as Põhja-Kiviõli in Ida-Viru County, and planning for this site will also be completed as a backup option.
The chosen location in Ermistu is in a sparsely populated area. The nearest densely populated settlement is the small borough of Tõstamaa, about 4 kilometres away. Audru is approximately 16 kilometres from the site, and Pärnu is 22 kilometres away.
Join the call
According to the ECDI announcement, companies interested in the call for proposals must submit an operational plan by June 15 that includes detailed information about their intended products, production processes, timeline, infrastructure requirements, and business plans. Before that, companies should submit initial applications by May 15.
An information day for interested companies will be held on April 17, 2025, at the Nordic Hotel Forum in Tallinn, followed by an opportunity to visit the defence industry park area. Company representatives wishing to participate should register by April 13.
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