Indrek Sirp, special advisor at the Ministry of Defense, said that the state's special planning is in its final phase. The last public discussions will take place next week. Documentation will be submitted to the government in August. Sirp hopes that the government will approve the planning on August 21.
At the same time, the process of selecting companies continues. It has reached two-thirds completion. It is hoped that by the end of August, it will be clear which companies will remain there. Offers came from 12 companies, nine of which were invited to negotiations. Not all nine companies may be selected. Half of the companies are from abroad, the other half from Estonia.
Sirp said that hopefully production will begin at the end of 2026 or early 2027. Currently, the plan is to establish the defense industry park in Ermistu, near Pärnu. But if not all companies fit there, the location in Põhja-Kiviõli may be used.
The total investment by companies could be 300-400 million euros. These could create 300-400 new jobs. However, these numbers may still change.
In addition, the state has established the company Hexest Materials AS. It is expected to build an explosives factory in the industrial park. The defense industry park is necessary for Estonia to produce its own ammunition and other weapons. This is important because in a crisis situation, it may be difficult to obtain these from abroad.
The defense industry park means that the state will create basic infrastructure. Selected companies can build their factories there. For this, the government has allocated 50 million euros. This money will be used to prepare the area and build infrastructure.