Hexest Materials is a state-owned company. Its goal is to establish an explosives plant in Estonia. This will help reduce the shortage of explosives in Europe. It will also help develop Estonia's defense industry and economy.
Currently, Hexest Materials is 100% state-owned. In the future, a strategic investor will be sought. The investor will get a share of the company, but the state will remain the largest owner.
Defense Minister Hanno Pevkur says the investor should be an explosives, ammunition or weapons manufacturer. The investor should operate in Estonia's allied or partner countries. This will help Hexest Materials successfully enter the market and make a profit.
Hexest Materials board member Randel Veerits says the company has recently been in negotiations with a technology partner. The business plan has also been finalized and the team expanded. Work is being done quickly to start explosives production in 2028.
A special competition will be organized to find an investor. The investor must invest at least 50 million euros. They must have experience in explosives, ammunition or weapons manufacturing. Since this is a security-related field, the investor must be reliable.
The strategic investor will get a 49% stake in Hexest Materials. The state will remain the largest owner. The exact price and investment amount will be determined during the competition.
Hexest Materials AS was founded in 2025. Its owner is the Ministry of Defense. The company produces the military explosive RDX. The exact location of the plant is not yet known. Possible locations are being discussed as part of the state's special planning.