The Defence Industry Park in Pärnumaa, Estonia, will host four companies—Nitrotol OÜ (Estonia), Thor Industries Ltd (the UK), Frankenburg Technologies OÜ (Estonia), and Infinitum Strike OÜ (Estonia)—as they set up operations within the developing defence industry hub.
Estonia’s new defence industry park will be built in Tõstamaa, Pärnu County. Production could begin as early as 2027.
“At the same time, we aim to develop a large-calibre ammunition plant in Estonia, and negotiations are continuing with a potential manufacturer to establish such production in the Põhja-Kiviõli Defence Industry Park.”
Asko Kivinuk, Deputy Director General of the Estonian Centre for Defence Investments
The Estonian state will build a park to launch the domestic defence industry as tensions rise in the region. It will create the basic infrastructure and leave the rest up to companies in the sector. Five sites, two in the east and three in the west, were put forward last year that were capable of accommodating five companies. The most suitable site for establishing the industrial park is one of the locations in Pärnu, an area in the village of Ermistu. It is about 200 hectares, which means it can support all the necessary activities within the industrial area.
Estonia’s defence sector expands with new industrial park and long-term contracts
“Interest from companies has been remarkable, and today we are pleased to announce the first enterprises that will begin operations in the park. I would like to thank all four future tenants of the Ermistu Defence Industry Park for their smooth cooperation and hope that construction can begin as soon as possible,” said Minister of Defence of Estonia Hanno Pevkur.
Following a competitive selective tender, the state will grant the companies use rights for up to 70 years in the Ermistu Defence Industry Park area. The Estonian Centre for Defence Investments (ECDI) will develop the park’s core infrastructure, while the selected companies will construct their own production facilities.
The selection committee evaluated the applicants’ operational plans and the feasibility of their investment strategies. Four companies were chosen, and the ECDI will now begin the contract negotiation process with them.
Four companies to build weapons factories in Estonia’s new defence hub
According to their submitted business plans Nitrotol OÜ will produce mines and charges, Thor Industries Ltd will manufacture plastic explosives, Frankenburg Technologies OÜ will establish a factory complex for short-range air defence missile production and Infinitum Strike OÜ will produce ammunition components.
“Interest from companies has been remarkable, and today we are pleased to announce the first enterprises that will begin operations in the park.”
Hanno Pevkur, Minister of Defence of Estonia
According to Asko Kivinuk, Deputy Director General of the Estonian Centre for Defence Investments, the establishment of the Ermistu Defence Industry Park marks a significant step in strengthening Estonia’s defence industry capacity.
“At the same time, we aim to develop a large-calibre ammunition plant in Estonia, and negotiations are continuing with a potential manufacturer to establish such production in the Põhja-Kiviõli Defence Industry Park,” Kivinuk noted.
In addition to the four selected companies, the Ermistu Defence Industry Park could potentially accommodate production facilities for up to two additional enterprises.
GOOD TO KNOW
- The Ermistu Defence Industry Park will allow for the production of ammunition, munitions, explosives, and explosive materials.
- The construction of basic infrastructure can start by the end of the year. Most of the building activity will take place in 2026.
- The state will build the park’s basic infrastructure, including access roads, electricity connections, a perimeter fence, water supply, a testing area, a demolition site, and storage facilities.
- In total, five sites were considered across Estonia for the park, two in the east and three in the west. Key criteria included the size of the site and the possibility of expansion, minimal environmental impact, and distance from the eastern border.
- Production in the park could start in 2027, but it depends on the companies and their operations.
FACTS
Estonian defence sector in numbers:
- 100% Estonian defence companies are private.
- Estonia is #1 in Global Cybersecurity index in the EU and home to Cyber Defence Centre of Excellene.
- 5,4% of GDP investment commitment to NATO. (Source: Estonian Ministry of Defence estimate for 2026).
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