Enterprise Estonia supports entrepreneurs in expanding into export markets, with a recent focus on securing a foothold for Estonian companies in UK infrastructure projects. Among those successfully operating in the sector are GScan, which specialises in assessing the condition of large structures; Stako Diler, a manufacturer of underwater machinery; and Fractory Solutions, which connects stakeholders in the machinery industry.
Major infrastructure projects require understanding the complexities of public sector administration and the specific characteristics of large-scale ventures, where local companies are often favoured. The Estonian Embassy and Enterprise Estonia export support in the UK prove invaluable in this regard.
A couple of years ago, the Estonian company GScan, which applies cosmic background radiation for object scanning, selected the UK as its first market. The decision was based on the country’s rich industrial heritage and the many bridges built in the 1960s and 1970s that are now reaching the end of their service life. Assessing their condition is a concern for public authorities.
Previously, the only way to evaluate these structures was to cut out bridge sections. However, GScan introduced a more innovative, cost-effective, and precise solution. “Together with our two reputable and major clients – National Highways and AtkinsRealis – we have validated our unique and highly innovative technology, and this year, we will be conducting assessments on four to five operational bridges in the UK,” says GScan’s CEO, Marek Helm.
Estonian companies break through in UK market
Similar export success is being experienced by Estonian industrial machinery companies offering innovative products and comprehensive solutions. Stako Diler, which started five years ago, chose to focus on underwater machinery as a future-oriented sector. Today, the company has an annual turnover of €8 million, nearly half of which comes from the UK. “We saw that the potential in the Nordic markets was uncertain, so we quickly pivoted towards the UK,” explains project manager Taavi Anger, who is already working on orders for the year after next.
The sector is booming, with an increasing number of cables being installed on the seabed. “Currently, 10–20 service providers share a single cable, but the future trend is for major telecom companies to lay their private cables, which requires installation machinery,” describes the company’s CEO.
In March, Stako Diler plans to begin producing the world’s largest underwater trenching machines, capable of reaching seven metres into the seabed to install connections. By the end of the year, the company expects to deliver two 80-tonne machines to its clients.
Fractory Solutions, a technology company that connects manufacturers, engineers, and clients through a cloud-based service, is also achieving strong sales in the UK. Over 30,000 industrial clients have already registered on its platform.
“The biggest growth areas in the UK are currently energy infrastructure and rail-related projects—essentially large-scale infrastructure developments funded by the government,” explains Fractory’s sales director, Joosep Merelaht.
Reliability matters more than price
For companies selling to the UK and establishing a local presence, such as Fractory, on-the-ground conditions are critical. The company’s base in Manchester was chosen for good reason: “We’ve observed that costs are lower in the north, and it’s also easier to find talented employees,” shares the sales director.
Merelaht highlights that although English proficiency is widespread, it is insufficient. The biggest challenges arise from managing local teams and navigating employment law: “Estonian and British management cultures differ significantly. Recruiting team leaders locally is the best way to overcome this challenge.”
Enterprise Estonia export advisor Andreas Heiki Pant points out that companies that have succeeded in the UK market distinguish themselves through their products rather than pricing. “Manufacturing in Estonia may be 20–25% cheaper, but customs duties and transportation costs quickly offset this advantage. Ultimately, success depends on the quality of what is being offered.”
Pant also notes a typical challenge in the UK’s vast market: companies often promise more than they can deliver. This makes reliability a key differentiator for suppliers. He also underscores the importance of certifications in high-tech product industries: for some companies, UK partner quality control procedures can take over six months, yet without them, securing a contract is impossible.”
Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing services for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.
