Machine building
The Estonian machine building industry is heavily dependent on foreign markets - 75% of the machinery and 92% of the transportation equipment is being exported.
Approximately 130 machinery and equipment producers are active in Estonia and are small- and medium-sized, employing more than 3000 people. Another 130 companies are involved in transportation equipment production, mostly based around Tallinn, but they can be found also in Tartu and Saaremaa (boat building). More than 3600 people are employed.
Companies producing machinery can be found all over Estonia. Timber processing equipment producer AS Hekotek, based in Harjumaa, was launched in 1992. The company has sold its production to major companies in the Baltics and Europe, but also to companies as far as South Africa and Venezuela. Machinery producer AS FORS MW, founded in 1992, is today the oldest Swedish company in Estonia. Fors MW owns three leading brands with markets all over Europe, and its production takes place in Harjumaa.
AS Finmec, part of Swedish Svets och Mekano Gruppen AB, is a prime producer of welded and machined goods. Its production is located near Tallinn, in Maardu.
The machine building industry grew at a rapid pace before the worldwide economic turmoil, but the crisis hit the sector heavily because of a decrease in investments by clients. The preliminary 2011 data shows that in terms of production volumes, the sector has recovered from the crisis, while growth has been achieved with less workforce.
The turnover of the machine building industry was 205 million euros and the net profit was 10.4 million euros in 2010. Out of the net turnover, 153 million euros worth of production was exported. Finland was the major export country with a share of more than 40%. The average gross monthly salary was 1061 euros in 2011.
Transportation equipment
Tallinn-based and local-capital owned BLRT Grupp, which celebrated its 100th birthday in 2012, is the flagship of the ship building industry in Estonia, carring on long traditions.
AS Norma has been producing seat belts for the international car industry since 1973. Its core investor is Swedsih Autoliv AB.
AQ Lasertool OÜ is the producer of components for commercial vehicles, as well as for railway. It is a subsidiary of Swedish Lasertool AB.
The sector earned a net profit of 34.9 million euros in 2010 with a turnover of 314.8 million euros. The gross average monthly salary in the manufacture of motor vehicles was 842 euros in 2011.
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Metalworking
The metalworking industry is the third largest industry in Estonia, with nearly 1000 companies operating and over 11,000 people employed. The industry is mostly located in Tallinn and the Eastern Ida-Virumaa area.
The largest metal structures companies are local-capital owned and Tallinn-based AS Kohimo and the Finnish Komas Oy-owned subsidiary Komas Estonia OÜ, based in Narva. ArcelorMittal Tallinn OÜ is the only producer of hot dipped galvanized steel sheet in coils in the Baltic States. The company is part of ArcelorMittal group, the world's leading steel company with operations in more than 60 countries. Metal door producer Saku Metall AS is a local success story, as it has been active for 20 years and now has subsidiaries also in Finland and Latvia. AS Hanza Tarkon, subsidiary of Swedish HANZA, one of Northern Europe’s leading providers of complete manufacturing services, keeps expanding in Estonia and opened a state-of-the-art factory of sheet metal mechanics in Tartu in 2012.
Finnish Ruukki has 30 subsidiaries all over the world, including in Estonia. Ruukki Products AS has a steel production facility in Tallinn and a metal construction facility in Pärnu. Another Finnish company subsidiary Metalliset Eesti, part of Metalliset Group, is producing wide range of metallic products in Narva.
Tartu-based Metec is a group of companies making metal parts for the medicine and car industries. It is exporting nearly 95% of its production, and customers can be found mostly in Germany, Sweden and Finland.
The metalworking industry is characterised by rapid development. The average annual growth of production volumes in the last decade has been nearly 25%. Production volumes have grown thanks to export, although the increasing domestic demand has also played a part.
The turnover of the metalworking industry was 891 million euros and the net profit was 21.9 million euros in 2010. The average gross monthly salary was 1020 euros in 2011. The main export countries were Finland, Sweden and Poland in 2011. The main export articles are iron and steel products (37%), as well as iron and steel (30%).
Main advantages and strengths of Estonia in the metalworking and machine building sector
Good logistics and transportation infrastructure for export-import activities
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Highly developed infrastructure
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Excellent ferry connectivity
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High digital infrastructure level
Skilled and cost-efficient labour with a long history in the metalworking and machine building industry
Increasing productivity with government subsidized R&D services
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Constant productivity increase
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Competency centers and government support
Stable environment and clear sector regulations
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Clear regulations in the sector
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Transparency in government leadership
Sources of additional information
Tallinn Technical University - Faculty of Mechanical Engineering
The opportunity to gain information about R&D projects developed in the university. Further information about engineering education, services offered and contact details of the faculty.
http://www.ttu.ee/en/?id=20064
Federation of Estonian Engineering Industry
The federation represents Estonian metal and machine manufacturing companies. It focuses on their role in society and is actively engaged in development of the sector.
http://emliit.ee/
Estonian Innovation Relay Center (ESTRIC)
IRC is a project co-ordinated by the Foundation of Tartu Science Park. The project aim is to promote and facilitate technology inflow, support the exploitation of research results, increase productivity etc.
The project partner is the Archimedes Foundation.
http://www.irc.ee/Eng/Projects/estirc_en.htm
Tartu Science Park
The Tartu Science Park is the oldest science park in the Baltic states. The Science Park has supported business innovation activities in the region by networking with universities, and the public and private sectors for 15 years. For foreign companies, they offer help in extending business to Estonia.
http://www.teaduspark.ee
Doing Business in Estonia 2013
Overview of The World Bank's report on the Estonian business environment, compared to 185 world economies.
http://www.doingbusiness.org/data/exploreeconomies/estonia/ |
Business environment 
