Estonian industry sector is following its tech marvel success, empowering entrepreneurs to test new ideas. As a proof, Estonia is investing €8.5 million from the European Union’s Just Transition Fund (JTF) to build a 7,000 m² industrial incubator in Narva, Ida-Virumaa County, reports Ehitusleht. The project, managed by the Ida-Viru Investment Agency Foundation (IVIA), includes designing, constructing, and equipping the building. Construction is scheduled to finish by August 2026.
The industrial incubator will be able to host 10 production units and five business service companies simultaneously. Companies can rent production buildings for up to five years on a lease before establishing their own unit and leaving the incubator. The building’s structure will allow for flexibility in changing internal layouts using movable walls based on a tenant’s needs. Additionally, there is an option to expand rental space to accommodate increased production by the investor.
The support doesn’t end there. During this time, the entrepreneur is provided with incubation services, also known as soft landing support services, to help them integrate into the economic environment and commence operations under market conditions quickly.
Minister of Economic Affairs and Information Technology, Tiit Riisalo, aims to attract both domestic and foreign industrial investment to Ida-Virumaa through the Narva industrial incubator.
“It serves as a springboard for starting production, growing it and trying different solutions. However, the beginning is not easy and setting up a new production is a big expense for an entrepreneur. That’s why it’s good that with the support of the Just Transition Fund, we can build modern production buildings for rent to production companies, which also have the necessary administrative and support premises,” he said.
The industrial incubator will receive funding from the €25M budget allocated to the Ida-Virumaa entrepreneurship support services diversification measure. This investment will support the provision of incubation services in Ida-Virumaa County by financing incubators. Specifically, €20M will go towards constructing incubators in Narva and Johvi.
The Just Transition Fund has a €340 million budget for Estonia and is focused on supporting Ida-Virumaa County, which is heavily reliant on the oil shale industry. More than a few important projects, which will reshape the region’s economy in the coming years, have already been started — including a unique €100M magnet plant from Neo Performance Materials, as well as various other producers. Currently, IVIA’s industrial parks are offering more industrial slots and support measures for companies willing to scale their business in Narva Kadastiku, Narva Kulgu, Jõhvi, Kohtla-Järve and Kiviõli.
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