Estonian state-owned defence-industry company Hexest Materials is set to build a €150M explosives plant in Piirsalu after Estonia approved the site’s national designated spatial plan.
Hexest Materials said in its company announcement that the state-owned business was established to develop military-explosives production in Estonia, reduce the shortage of explosives in the European Union and NATO, strengthen the country’s defence industry and support the wider economy, writes Tööstusuudised.
The Ministry of Defence said the facility is planned for Lääne-Nigula municipality in West Estonia. Production is expected to begin in 2028, with the plant creating about 75 jobs. The investment in the production facility is estimated at €150M, while the state plans to spend more than €6M on the defence industrial park’s basic infrastructure.
Building a domestic defence supply chain
The project is intended to produce RDX, a military explosive used in defence applications. Estonia’s government approved the national spatial plan after consultations with local residents and other stakeholders. The plan requires the project to comply with environmental and safety requirements.
“The construction of an RDX explosives production facility in Estonia is strategically necessary. Against the backdrop of the war in Ukraine, the need to increase Europe’s defence-industry production capacity has grown sharply, and there is currently a shortage of explosives production capacity in NATO countries. The plant to be built in Piirsalu gives Estonia an opportunity to alleviate this shortfall,” Estonian Defence Minister Martin Herem said.
Government approves plan for €150 million Piirsalu explosives plant. Photo by Carlos Lima via Unsplash
Hexest Materials has also opened a strategic investor process for the construction and operation of the facility. In its investor announcement, the company said the Government of Estonia is offering a 49% stake while retaining majority ownership after the transaction. The state has already provided development capital, and a preferred technology partner has been selected.
The investor search is aimed at manufacturers of military explosives, ammunition or weapons systems in allied and partner countries. The partner’s expertise is expected to help Hexest Materials enter the defence sector, compete in the market and generate revenue. The company’s strategic investor materials describe the project as the Baltic region’s first RDX military explosives production facility.
Pairing investment with local safeguards
The approved plan includes measures responding to concerns raised during public discussions. Production waste will not normally be burned in the open air. Instead, the plant is expected to use a specialised enclosed burner.
The operator must also continue monitoring the ecological condition of the Piirsalu River and monitor the water levels and quality of drinking-water wells near the industrial park in cooperation with the local community and Lääne-Nigula municipality.
The defence ministry also plans to support local infrastructure, including a pedestrian and cycling path along the Risti–Kuijõe road near Piirsalu village. It has further indicated that it is prepared to support a resilience centre and public shelter in the village, extending the project’s planned economic and security impact beyond the factory site.
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