Home » Business Sectors Overview » Mechanical engineering

Mechanical engineering

The land of engineers

Fabricated metal products

  • The labour costs in the fabricated metal products sector in Estonia is more than three times lower than the European 27 country average.

  • There are 10 higher and vocational education institutions that provide education in the metalworking and machinery sector.

  • There are industrial parks available at ports for manufacturing activities that offer great logistics: a nearby harbour, a nearby railway, and a good road network.

There are ca 960 companies with ca 11,500 employees active in this sector which makes it one of the largest sectors in industrial activities.

The most common products are metal and building constructions, metal processing, metal packaging, galvanized steel, aluminium alloys, technological pipelines, bulk towers etc. In addition, there are companies that manufacture more specific products and services, e.g. the manufacture and installation of storage tanks for dangerous fluids.

Exports forms ca 45% of the total turnover of the fabricated metal products sector. The main export destinations  are  Finland, Turkey, Sweden, Latvia, Poland, the Russian Federation, Germany and Norway. Sector exports forms nearly 11% of total Estonian industrial exports.

Most of the imports of base metals come from Finland, Germany, Sweden, Latvia and the Russian Federation . The close proximity of the main import markets makes it possible to process and manufacture at relatively low prices. With Germany and the Scandinavian countries, there is a great opportunity to use cost-efficient sea transportation, which keeps costs under control. Relatively similar export markets make it possible to use the same transportation routes and to use Estonia as a near shoring country so that manufacturing processes increase cost-efficiency.

Strenghts of Estonian engineering labour pool

  • Deep supply of talent: Estonia offers a broad range of talent and engineering excellence, to accommodate both legacy disciplines and emerging areas of expertise. Flexibility and an adeptness to respond to change are strong characteristics.

  • Rich level of experience: The industry demonstrates the ability to retain talent as well as inject fresh skills into the sector. This will particularly facilitate investors looking to recruit staff at middle management level and upwards.

  • Age profile assures long-term supply of talent: The Engineering sector has a healthy supply of young talent.  Talent supply and retention in Estonia is extremely strong compared with the national average.

  • High levels of education: Government support at vocational level is strong within Engineering. Equally, the number of graduates coming through the education pipeline and entering the sector remains encouraging.

  • Multi-skilled workforce: Estonia's engineering talent pool can also support areas which require expertise in technology and renewable energy in particular.

  • Access to multi-lingual pool: A high proportion of engineering professionals are multi-lingual.

  • Estonia has a vast supply of unexploited talent: The intensity of engineers in Estonia accounts for 14 per cent of the total working population. There are an additional 47,000 workers with relevant Engineering skills available, which can facilitate quicker start-up times for investors.

Additional information


To find out more, please contact:

Mrs. Ruth Vahtras
Investment project manager - Mechanical engineering

Phone: +372 627 9422

This email address is being protected from spambots. You need JavaScript enabled to view it.

Machinery and equipment

  • Good availability of highly educated and experienced engineering skills.

  • The labour force in the sector has great language skills. The most widely spoken languages are Russian, Finnish, Swedish, German and English.

  • Estonia offers an opportunity for cost-efficiency, including competitive labour and low transportation costs.

  • Manufacturing of machinery and equipment is largely dependent on exports - the World Bank has ranked Estonia among the TOP 7 in the world in ease of trade.


Manufacturing of machinery and equipment is one of the largest sub-sectors in the machinery and metalworking sector in Estonia. Ca 145 companies with 5 000 employees are active in the sector.

Examples of products manufactured in Estonia are woodworking machinery, forest trailers, timber hoists, different smaller components of machinery and large industrial antennas.

The main export markets are Sweden, Finland, Russia, Latvia, Germany and Denmark.

 

Strenghts of Estonian engineering labour pool

  • Deep supply of talent: Estonia offers a broad range of talent and engineering excellence, to accommodate both legacy disciplines and emerging areas of expertise. Flexibility and an adeptness to respond to change are strong characteristics.

  • Rich level of experience: The industry demonstrates the ability to retain talent as well as inject fresh skills into the sector. This will particularly facilitate investors looking to recruit staff at middle management level and upwards.

  • Age profile assures long-term supply of talent: The Engineering sector has a healthy supply of young talent.  Talent supply and retention in Estonia is extremely strong compared with the national average.

  • High levels of education: Government support at vocational level is strong within Engineering. Equally, the number of graduates coming through the education pipeline and entering the sector remains encouraging.

  • Multi-skilled workforce: Estonia's engineering talent pool can also support areas which require expertise in technology and renewable energy in particular.

  • Access to multi-lingual pool: A high proportion of engineering professionals are multi-lingual.

  • Estonia has a vast supply of unexploited talent: The intensity of engineers in Estonia accounts for 14 per cent of the total working population. There are an additional 47,000 workers with relevant Engineering skills available, which can facilitate quicker start-up times for investors.

Additional information


To find out more, please contact:

Mrs. Ruth Vahtras
Investment project manager - Mechanical engineering

Phone: +372 627 9422

This email address is being protected from spambots. You need JavaScript enabled to view it.

Toolmaking

  • Technically the most advanced sub-sector in the machinery and metalworking industry in Estonia.

  • Estonian toolmaking enterprises supply market leaders like AEG, Osram, Electrolux, Tyco Electronics and many more.

  • The toolmaking industry in Estonia has a long history, dating back to 1912.


Toolmaking is a business area that is presently considered highly developed in Estonia. The companies in the market are small, yet specialized and focused on high-quality products. The sector is mostly dominated by local enterprises. However, foreign investors can also be found.

Some examples of the products of Estonian toolmaking companies: injection molds, high precision tungsten carbide dies, plastic molds, blowing molds etc.

Estonian toolmaking companies subcontract for the automotive industry, electronics, the medical industry, telecommunications and many other industries. Some more widely known export markets for the toolmaking sector are Sweden, Finland, Germany and Denmark.

In 1992 the Estonian Special Tooling Association (ESTA) was established as a subsidiary organization within the Federation of Estonian Engineering Industry. The association is a voluntary alliance for solving common problems of the special tooling industry. Today, clear steps are being taken towards formulation of an informal cluster of manufacturing in the toolmaking sector. The cluster works in cooperation with the Federation of Estonian Engineering Industry, and it helps to allocate and use resources, as well as knowledge, in a more efficient way.

 

Strenghts of Estonian engineering labour pool

  • Deep supply of talent: Estonia offers a broad range of talent and engineering excellence, to accommodate both legacy disciplines and emerging areas of expertise. Flexibility and an adeptness to respond to change are strong characteristics.

  • Rich level of experience: The industry demonstrates the ability to retain talent as well as inject fresh skills into the sector. This will particularly facilitate investors looking to recruit staff at middle management level and upwards.

  • Age profile assures long-term supply of talent: The Engineering sector has a healthy supply of young talent.  Talent supply and retention in Estonia is extremely strong compared with the national average.

  • High levels of education: Government support at vocational level is strong within Engineering. Equally, the number of graduates coming through the education pipeline and entering the sector remains encouraging.

  • Multi-skilled workforce: Estonia's engineering talent pool can also support areas which require expertise in technology and renewable energy in particular.

  • Access to multi-lingual pool: A high proportion of engineering professionals are multi-lingual.

  • Estonia has a vast supply of unexploited talent: The intensity of engineers in Estonia accounts for 14 per cent of the total working population. There are an additional 47,000 workers with relevant Engineering skills available, which can facilitate quicker start-up times for investors.

Additional information


To find out more, please contact:

Mrs. Ruth Vahtras
Investment project manager - Mechanical engineering

Phone: +372 627 9422

This email address is being protected from spambots. You need JavaScript enabled to view it.

Transport equipment

  • The sector has a long tradition, with several market leaders being more than 100 years old.

  • The largest Estonian shipyard group consists of nearly 70 companies in the Baltic states, Scandinavia and Russia.

  • The Estonian company Norma supplies Volvo, IVECO, SAAB, Scania and many other car manufacturers in Europe with seat belts and other safety equipment.

webdesign tutorial

html tutorial

vpn services

خرید اینترنتیخرید اینترنتی

اس ام اس اشپزیManufacturing of transportation equipment comprises nearly 4% (ca 4 800 employees) of the entire manufacturing sector employment in Estonia. The total number of companies in the sector is 115.

There are a number of successful businesses in the market that produce either ferry components or other parts/products for transportation vehicles. Also a number of companies work for the automotive industry, e.g. Norma AS, which is famous for manufacturing seatbelt components for the Autoliv Group, and Universal Industries, which produces exhaust systems.

Shipyards have been considered a particularly good business area due to access to the Baltic Sea and proximity to Western Europe. There are a number of large shipyards in Estonia that subcontract for the world's largest shipping companies, e.g. Loksa Shipyard, which is part of the A.P. Moller-Maersk Group.

The main export markets are the Russian Federation, followed by Latvia, Lithuania, Sweden, Finland and Germany.

Strenghts of Estonian engineering labour pool

  • Deep supply of talent: Estonia offers a broad range of talent and engineering excellence, to accommodate both legacy disciplines and emerging areas of expertise. Flexibility and an adeptness to respond to change are strong characteristics.

  • Rich level of experience: The industry demonstrates the ability to retain talent as well as inject fresh skills into the sector. This will particularly facilitate investors looking to recruit staff at middle management level and upwards.

  • Age profile assures long-term supply of talent: The Engineering sector has a healthy supply of young talent.  Talent supply and retention in Estonia is extremely strong compared with the national average.

  • High levels of education: Government support at vocational level is strong within Engineering. Equally, the number of graduates coming through the education pipeline and entering the sector remains encouraging.

  • Multi-skilled workforce: Estonia's engineering talent pool can also support areas which require expertise in technology and renewable energy in particular.

  • Access to multi-lingual pool: A high proportion of engineering professionals are multi-lingual.

  • Estonia has a vast supply of unexploited talent: The intensity of engineers in Estonia accounts for 14 per cent of the total working population. There are an additional 47,000 workers with relevant Engineering skills available, which can facilitate quicker start-up times for investors.

Additional information


To find out more, please contact:

Mrs. Ruth Vahtras
Investment project manager - Mechanical engineering

Phone: +372 627 9422

This email address is being protected from spambots. You need JavaScript enabled to view it.