Furniture manufacturer Wermo AS, based in Võru, has reached the top five in the Exporter of the Year category at the Estonian Entrepreneurship Awards. The company’s success is built on decades of production experience, investments in innovation, and the courage to expand into new markets. While Europe is currently characterised more by stability and price pressure, Wermo expects the strongest growth from the United States.
Founded in 1947 as a small workshop, Wermo has grown into an international design furniture manufacturer, with export revenue exceeding €9.5 million in 2024. Over the past three years, exports have increased by 46 per cent. The company´s largest export markets are Germany, Denmark, France, and Switzerland, but according to the management, the US has now become the main growth driver.
“In today’s automated and digitalised manufacturing, cheap labour is not the key factor, but being as close to the market as possible to shorten supply chains and reduce the environmental footprint.”
Peeter Kuum, Wermo Chief Commercial Officer
“In Europe, we are experiencing reduced consumption and price pressure, while in the US market, there is room and potential,” said Wermo Chief Commercial Officer Peeter Kuum. At the end of 2023, Wermo entered the American market via Amazon and has since sold nearly 8,000 products there, with store visits exceeding 3.2 million.
US sales alone amounted to €2.5 million last year. The company has also established a subsidiary in the United States and is considering opening local production. “Production is becoming increasingly local. In today’s automated and digitalised manufacturing, cheap labour is not the key factor, but being as close to the market as possible to shorten supply chains and reduce the environmental footprint,” Kuum noted.
Wermo’s tambour door production and AI tools drive global growth
Wermo’s product portfolio includes more than 600 models, with living room and dining room furniture dominating. The company produces about 450–500 products weekly, ranging from TV stands and cabinets to beds and dining tables. The ability to supply smaller batches (15–30 products at a time) gives Wermo a competitive advantage in flexibility and customer orientation.
“Robotisation is our number one priority – there simply aren’t enough people available.”
Raul Vene, Wermo Board Member and CEO
Wermo’s most significant export success has been its tambour door furniture line, which was launched at the Cologne Trade Fair in 2020. More than 50,000 units worth €12 million have been sold to date. In 2022, the company decided to bring tambour door production back to Estonia and developed its own technology, lowering production costs and increasing profitability. “A sufficiently large volume creates the conditions for developing the right technology, but the question always remains: which comes first – volume or technology, especially with new products?” Kuum reflected.
Innovation plays a central role in Wermo’s operations. Over the past five years, more than €1 million has been invested in product development, with 120–150 new prototypes created annually. The company uses the Estonian-developed ERP system Eziil to plan workflows and avoid bottlenecks. Three robots are operating, and new AI solutions are being prepared for quality control. Artificial intelligence is also used to optimise cutting patterns and monitor machine quality. “Robotisation is our number one priority – there simply aren’t enough people available,” admitted Board Member and CEO Raul Vene.
Eco-conscious manufacturing and export ambition drive Wermo’s next chapter
Wermo is also an environmentally conscious manufacturer. The solar park on the factory’s roof can generate up to 5 megawatts of electricity on a sunny summer day, covering half of the plant’s energy needs. The company has switched to water-based finishing materials and uses honeycomb cardboard and paper instead of plastic in packaging. In 2024, Wermo conducted a green audit, developed a sustainability roadmap, and measured its CO₂ footprint across all scopes.
The company also contributes to the community, supporting youth scholarship programs in Võru as well as local sports and technology initiatives. “Several scholarship recipients have later come to work at Wermo,” noted Raul Vene.
“When you are a trendsetter rather than a follower, fighting against cheap copies is inevitable – but it’s also proof of good work, because leaders are always copied.”
Peeter Kuum, Wermo Chief Commercial Officer
Despite its success, challenges remain. “The Estonian furniture industry is no longer a low-cost subcontracting sector, and the domestic market is virtually non-existent. Previously, shifts in the furniture market occurred every five to seven years, but now the same can happen within a year,” said Vene. The company must also constantly deal with cheap Chinese copy products that appear on Amazon within months. “When you are a trendsetter rather than a follower, fighting against cheap copies is inevitable – but it’s also proof of good work, because leaders are always copied,” Kuum emphasised.
Wermo focuses on strengthening existing markets, especially in the US and UK. The company is also exploring new opportunities in Asia, including South Korea. “In exports, surprises can come unexpectedly – years ago, we knew nothing about the Swiss market, but it turned out to be one of our success stories,” recalled Kuum. “Today we are quietly looking toward Asian markets as well,” he added.
FACTS
Wermo
Founded: 1947
Employees: 77
Export revenue (2024): €9.5 million
Key export markets: Germany, USA, Denmark, France, UK, Switzerland
wermo.ee
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.
