Estonia signs agreements with four manufacturers for Ermistu defence industrial park

The Estonian Centre for Defence Investments has signed agreements with four companies to establish production facilities at the new defence industrial park in Ermistu, Pärnu County.

The selected companies are Nitrotol OÜ, Frankenburg Technologies OÜ, Infinitum Strike OÜ, and UK-based Thor Industries Ltd, operating through its Estonian subsidiary Odin Defence OÜ.

Under the agreements, Nitrotol OÜ will manufacture military explosives and ammunition, including mines and charges. Frankenburg Technologies OÜ will develop a production complex for short-range air defence missiles, while Infinitum Strike OÜ will produce ammunition components. Odin Defence OÜ will focus on the production of plastic explosives.

Minister of Defence Hanno Pevkur said the agreements mark a significant milestone in the development of Estonia’s defence industrial capacity.

“This is an important step forward for the Ermistu defence industrial park. Contracts have now been concluded with all companies selected through the selective tender process, and they have committed to commencing production next year. Delivering the planning process, environmental assessments and procurement in under two years is a notable achievement. I would like to thank all partners and local communities for their constructive cooperation,” he said.

The Estonian Centre for Defence Investments (ECDI) launched the competitive selection process for the use of state-owned land in April 2025. The state will invest more than €50 million in core infrastructure at Ermistu, including roads and electricity networks. The companies’ own investments are expected to be of a similar scale.

The Ermistu defence industrial park will be the first facility of its kind in Estonia designed specifically for ammunition production.

Asko Kivinuk, Deputy Director General of ECDI, said the project will strengthen both national defence and export potential.

“Following a thorough selective tender process, we have enabled the first four companies to begin ammunition production in Estonia. This is a critical sector that supports national defence with domestically produced ammunition while also strengthening the export capacity of the defence industry. We will continue to work closely with the companies to develop the park,” he said.

The companies are expected to begin production during 2027. The park has capacity to accommodate one or two additional manufacturers in the future.