Estonia is investing over $58.3 million to establish defense industrial parks in Ermistu and Põhja-Kiviõli. The Ministry of Defence said Thursday that areas in Piirsalu and Aidu have also been selected as reserve areas for potential future park expansions.
According to Defence Minister Hanno Pevkur, the government’s initial negotiations with private companies indicate their investments in the new industrial parks could reach between $350 million and $466 million, creating hundreds of job opportunities. “Various companies have expressed strong interest in the park and hopefully we will be able to reach the first agreements in the near future,” he said.
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Site Planning, Research and Construction
Pevkur noted that the parks’ design and construction can start now, with their site planning, research and strategic environmental studies completed at an accelerated pace.
The ministry’s special adviser for defense industry development, Indrek Sirp, added that the parks’ initial production is expected by the end of 2026, with full operational capacity anticipated by 2027.
During the next four years, Estonia will spend more than $11.4 billion to upgrade its defense capabilities under a new development plan that Pevkur approved in late July.