Situated on the outskirts of Tallinn, near the airport, Tech Group develops and manufactures complex machines that test, assemble, or process components ranging from chips and photonics parts to medical devices. Over 95% of the company’s output is exported.
Tech Group, ranked among the top five in the Exporter of the Year category at the Estonian Entrepreneurship Awards, manufactures advanced machinery and production lines mainly for companies in electronics, photonics, automotive, food, wood processing, warehousing, and medical sectors.
“For us, the number of markets is less important than strong, long-term relationships with specific companies.”
Martin Sutrop, CEO of Tech Group
Tech Group’s main export markets include Finland and Switzerland, but Germany is by far the largest, generating nearly €20 million of the company’s €28 million total revenue last year.
According to the company´s CEO Martin Sutrop, Germany has stood out for its active cooperation partners, so the volume of projects there has exceeded expectations. “For us, the number of markets is less important than strong, long-term relationships with specific companies,” he emphasised, noting that developing and building machines can take one to two years.
Tech Group is growing with scale-up companies
The uncertain global economic climate has recently reduced investment confidence among Tech Group’s international clients, impacting the company’s operations. Sutrop explained that Sweden has been the most challenging market due to economic slowdown and prolonged decision-making processes among clients.
In the coming years, the company will focus its exports on the DACH region (Germany, Austria, Switzerland) and the Benelux countries. “These regions stand out for their high level of precision technology and mechanical engineering, which fits well with Tech Group’s competencies,” Sutrop mentioned.
The company sees its main growth opportunity in partnering with fast-growing technology scale-ups that need a flexible and technologically advanced development and manufacturing partner.
Process overhaul boosts revenue
According to Sutrop, since Tech Group can have 50-100 projects simultaneously in different stages of development, it is also essential to act smartly in the company’s work. This was achieved two years ago, in September 2023, when the company moved to a new 7,500 m2 building near the airport and fully implemented the LEAN production philosophy. Both business and production processes have also been continuously digitised.
Tech Group focuses on two business areas. Machine Engineering: developing and building original equipment for European tech companies and machine builders. Automation and Robotics: providing smart manufacturing and robotic solutions for production companies, including the development, manufacturing, and installation of intelligent machines and production lines, robot integration, and smart production processes.
LEAN principles are systematically implemented in production. As a result of this and continuous digitalisation, production efficiency has increased by 20%, and the number of errors has decreased significantly. “Weekly audits help ensure that the principles aren´t just theoretical but work in daily operations. The team has accepted the changes well, creating trust among customers,” said Sutrop.
This is reflected in the 2024 financial results: with nearly the same number of employees (108 in 2024 vs. 112 in 2023), the company grew its revenue by 33% to €28.2 million.
GOOD TO KNOW
What Is LEAN?
LEAN manufacturing is a set of principles for efficient production and business operations, rooted in the mid-20th-century Toyota Production System. It’s not just a methodology — it’s a mindset focused on efficiency, value creation, and continuous improvement. The goal is to achieve maximum quality with minimal waste, evaluate product or service value from the customer’s perspective, and eliminate resource use that doesn’t add value or hinder goals.
FACTS
Tech Group
- Founded: 2003
- Employees: 108
- Revenue (2024): €28.2 million
- Export revenue (2024): €26.7 million
- Export markets: Germany, Finland, Switzerland, Sweden, Croatia, Latvia, Poland, USA
- www.techgroup.ee
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