Supporting a strong and competitive construction industry, Estonia has also a well developed industry manufacturing construction materials.
Industry manufacturing construction materials is a complex concept, as it ranges from enterprises manufacturing cement to companies producing wallpapers. Total sales of the members of the Association of Construction Material Producers of Estonia were in 2007 687 million EUR.
According to the estimation of the Association of Construction Material Producers of Estonia, in 2008 the production will stay on the level of 2007.
Construction industry has experienced a rapid growth in the turnover of construction activities. This has accelerated the growth of construction material manufacturing.
Structure
There is a wide range of construction materials produced in Estonia, mainly sawn-timber and cement, building blocks, prefabricated structural components for house building and civil engineering.
The production of the Estonian manufacturers of construction materials in 2005 and 2006 was as follows:
|
|
2005
|
2006
|
2007
|
|
Prefabricated structural components for civil engineering, thousand m³
|
338.8
|
384.1
|
450.0
|
|
Wall materials, million conventional bricks
|
556.8
|
718.4
|
899.3
|
|
Cement, thousand t
|
726.0
|
848.9
|
937.4
|
|
Roofing slates, thousand m²
|
778.8
|
|
|
|
Concrete and mortar, thousand m³
|
664.0
|
691.8
|
824.0
|
|
Lime, thousand t
|
37.0
|
39.7
|
43.5
|
|
Clinker, thousand t
|
88.8
|
65.1
|
302.7
|
Source: Statistics Estonia
Export
About 27% of construction materials produced in Estonia is exported. Export in 2007 was 179 million EUR. Due to the specific qualities of most construction materials (as a rule massive and heavy, large in size), the export is mainly directed towards nearest neighbors - Latvia, Lithuania and Finland, partly Russia. Main export products are insulating foams, cement, plywood, roofing slates, bricks, colors and varnishes.
The biggest exporter in 2007 was Krimelte AS (sealants and insulating foams). Krimelte exports ca 90% of its production. Other big exporters were Maxit Estonia AS, Wienerberger AS, Aeroc AS, Kunda Nordic Tsement AS, Viljandi Aken ja Uks and Viking Window AS.
Human resources
About 5000 people are engaged in manufacturing construction materials in Estonia. Despite of increasing labor costs in Estonia, the salaries of workers are still modest compared to the corresponding figures in Western Europe. The average salary in construction materials industry is approximately 800 EUR (2006).
Engineers of material technology are trained at Tallinn Technical University and also partly at Estonian Agricultural University. Vocational education in material technology is available at Tallinn Technical School. Although there should not be a shortage of educated people on the labor market, the employers also have to train the workers in the plant (operating machinery, basic safety procedures etc.).
Raw materials, costs
Most of the producers of construction materials use domestic raw materials. In case of more resource-consuming production, the plant is usually situated near the field of resources. There are large resources of sand, clay, limestone and dolomite in Estonia. The government has imposed taxes on the use of these resources.
Some manufacturers also have to pay charges for polluting the environment (air, water, soil). The producers of colors and varnishes, but also all kinds of stuffing mixtures have to pay package excise tax, imposed to promote the recycling of packages.
Standardisation
Estonian Standards Board has drawn up few original Estonian Standards, but the majority of construction material standards have been adopted from the International Standards and European Standards.
Some manufacturers of the construction materials have been issued an ISO 900x quality certificate:
|
Company
|
Standard
|
Activity
|
Date of issue
|
|
Silbet AS
|
ISO 9001:2000
|
Mining of construction sand
|
18.03.2004
|
|
TOODE AS
|
ISO 9001:2000
|
Steel products
|
04.12.2003
|
|
Ruukki Products AS
|
ISO 14001
|
Building materials of steel and related products
|
12.04.2005
|
|
Ruukki Products AS
|
ISO 9001:2000
|
Building materials of steel and related products
|
12.04.2005
|
|
Vivacolor AS
|
ISO 9001
|
Production of colors
|
04.05.1994
|
|
Vivacolor AS
|
ISO 14001
|
Colors and varnishes
|
01.07.1998
|
|
maxit ESTONIA AS
|
ISO 9001
|
Clay bricks
|
19.02.2002
|
|
maxit ESTONIA AS
|
ISO 14001
|
Clay bricks
|
14.01.2001
|
|
ES Sadolin AS
|
ISO 9001
|
Paints and alkyds
|
11.06.1999
|
|
Henkel Makroflex AS
|
ISO 9001
|
Construction sealants
|
03.08.1999
|
|
Paroc AS
|
ISO 9002
|
Insulation products
|
|
|
Malmerk AS
|
ISO 9002
|
Doors and windows
|
05.12.2000
|
|
Fenestra AS
|
ISO 9001
|
Production of windows
|
05.07.1999
|
|
Pipelife Eesti AS
|
ISO 4427
|
Production of plastic pipes
|
01.02.2000
|
|
Viking Window AS
|
ISO 9001
|
Production of windows
|
04.2000
|
Source: Estonian Association for Quality
R & D
There is a quite good base for research and development activities in Tallinn Technical University. The studies are funded by the state budget, grants from funds or contracts with companies.
Industry association
The Association of Construction Material Producers of Estonia unites 64 companies. The association represents the producers in government structures, organizes trainings, participates in certification committees of construction materials, etc.
Foreign investments
There are a number of foreign companies, which have invested in the industry of construction materials in Estonia:
|
Company
|
Investor
|
Country
|
|
Kunda Nordic Tsement AS
|
HeidelbergCement Northern Europe AS
|
Sweden
|
|
E-Betoonelement AS
|
Consolis OY AB
|
Finland
|
|
Vivacolor AS
|
Tikkurila Paints OY
|
Finland
|
|
ES Sadolin AS
|
Akzo Nobel Coatings OY
|
Finland
|
|
Fenestra AS
|
Fenestra OY
|
Finland
|
|
Ruukki Products AS
|
Rautaruukki Oyj
|
Finland
|
|
Pipelife Eesti AS
|
Pipelife Finland OY
|
Finland
|
|
maxit Estonia AS
|
Optiroc OY AB
|
Finland
|
|
Wienerberger AS
|
Wienerberger Group
|
Austria
|
Source: Enterprise Estonia, Äripäev TOP 100, Commercial register
Main reasons to invest in the construction materials industry in Estonia
- Local, relatively inexpensive raw materials
- Low production costs (labour energy etc.)
- Well-developed construction industry
- Stable and growing economy
- Solid base for research activities
- Well-educated engineering staff
- No income tax on reinvested profits
- Opportunity to cover Baltic, Russian and/or European markets
- European and international standards implemented
|
