Inission, a global electronics manufacturing and management leader, is one of many international players betting on Estonia. As part of the Inission AB group, the company has established a significant presence in the country over the past 15 years, operating factories in Tallinn and Lagedi specialising in electronics, electromechanics, and precision sheet metal processing.
Recent successes have put the company in the spotlight, having more than doubled its sales and turnover in Estonia over the last two years, with its products reaching markets across Europe, Asia, and the United States. Moving at full speed towards advanced manufacturing, Inission recently unveiled a €2M investment in cutting-edge equipment at its Lagedi plant, including the Baltics’ first Amada Combilaser, opening up an AI-powered era of production. This year, the company is also a finalist for the best Foreign Investor title.
And yet, this is only the beginning, says Nadežda Dementjeva, managing director at Inission Tallinn, in a recent interview with Invest Estonia.
What are Inission’s immediate goals and long-term ambitions in Estonia?
In the short term, Inission aims to solidify its presence in Estonia by enhancing its production capabilities and expanding its customer base. The primary goals include increasing production efficiency by implementing advanced manufacturing technologies to streamline operations and reduce production costs.
We have expanded our team by hiring more skilled professionals to support the increased demand and ensure high-quality production standards, and we will continue with that. We want to grow with our current customers and attract new ones, particularly focusing on local and regional businesses in need of smart industry solutions.
Over the next few years, Inission plans to explore new markets within and outside Estonia to widen its reach and increase market share. Turnover increase is the main goal for the next three years for us. Of course, strategic partnerships inside and outside our group are crucial as we are delivering our production to our factories as well, but we would also like to attract direct customers to both factories. We’re also aiming to proceed with our strategy to develop the smart industry sector here in Estonia. Investing in sustainable manufacturing practices to reduce environmental impact and promote eco-friendly solutions is our everyday job.
What is the secret sauce behind Inission’s recent growth and success?
If we talk about the success of any company, it is always the achievement of the entire team. It’s the same with Inission, our secret is simple—the right resources in the right place, and target-oriented strategy and management. In 2023, Inission Tallinn earned €2.2M in operating profit with a turnover of €27.7M.
In 2022, the company’s sales revenue was €21M, and the operating profit was €0.2M. The goal of the electronics factory was to deliver customer orders and increase flexibility to produce all required products in a shorter time frame. Compared to 2022, the turnover increased by 31.7%, the profitability of the operating profit was 8%, and it increased by 6.86 percentage points over the year.
At the end of 2023, 137 employees worked in the company, the number of employees increased by 11 during the year. Investments also increased by over two million euros in 2023—€2.5M were invested in fixed assets (in 2022, the investment was €347,000). Inission Tallinn gained four production units. Among them, Combilaser, the first one in the Baltics with an automatic carousel tool warehouse.
The startup world tends to make more headlines than industry. Yet (smart) industry is crucial to a thriving economy. What would need to happen to change public perceptions of the industry sector?
This observation is accurate. To change public perception, we need to highlight the importance and impact of the smart industry on the economy, promote careers in the smart industry, the same as Estonia did with the IT sector several years ago, and publicise achievements and innovations within the industry to garner interest and recognition.
How would you describe Estonia as a business environment, specifically for smart industry?
I think Estonia offers a favourable business environment for smart industry due to its access to a tech-savvy workforce. We have very high skilled and technologically proficient labour in Estonia. The important part is government help and incentives that support innovation and industrial growth. Another benefit is the robust digital infrastructure that facilitates advanced manufacturing processes.
Estonia is an attractive destination for smart industry investments because of its skilled workforce, innovation-friendly environment, strategic location, proximity to major European markets and logistical advantages, and favourable policies and incentives for industrial investments.
What is the state of smart industry in Estonia right now, and what role is Inission playing (and would like to play) in the future of the field?
Smart industry in Estonia is growing, with increasing investments and advancements in technology. Inission plays a significant role by driving and developing innovation by investing in new technologies and processes, collaborating with other industry players and academic institutions to drive the sector forward, and setting high standards to lead the industry by best example in quality and efficiency.
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