There are about ten defense industry companies in Estonia working in Ukraine. Their information is very important for the Estonian defense industry. This was stated by the executive director of the Defense and Aerospace Industry Association, Kalev Koidumäe.
Two years ago, the association's annual turnover was 250 million euros. Last year's turnover was already 500 million euros. Two-thirds of this came from exports. The association now has nearly 190 companies.
Estonia's defense expenditures are growing. This means more money stays in the Estonian economy. The sector's goal is to capture two percent of GDP. This is a big goal.
The defense industry is a special sector. The client is the state, which uses public money. Procurement processes are long and thorough. Cooperation with the client lasts for years because systems and services must be reliable even during a crisis.
Banks' attitude towards the defense industry has improved. More support is available from banks. For example, Defsecintel received a five-million-euro working capital loan.
The Smartcap fund can also finance risky technologies. The first decisions are expected soon. Investors are interested in the Estonian defense industry.
Estonian defense industry products have been in Ukraine since 2016. Some companies have opened factories there. Ukrainian experience is important for the development of the Estonian defense industry.
The Estonian defense industry has learned that autonomous systems are very important on the battlefield. The European defense industry is very diverse. Older countries have their own defense industry with state participation. Estonian companies are based on private capital.
Estonian companies are successful thanks to innovation. The association contributes to foreign relations. Baltic Workboats is developing an unmanned maritime platform. This is a great recognition for Estonian maritime companies.