Estonia - Your Product Innovation and Production Partner

1. ESTONIA – YOUR PARTNER
IN INNOVATION AND
PRODUCTION
investinestonia.com

2. The metalworking and mechanical
industry
The machinery and metalworking industry in Estonia provides about 18% of
total sales for the Estonian manufacturing industry and employs approximately
12% of all employees in the manufacturing industry.
The sector’s key specialities are fabricated metal products, precision tungsten
carbide dies, high-end welding, tool making, machinery and equipment,
automotive components and ship building.
The sector comprises 18% of total industrial exports. The biggest export
partners are Finland, Sweden, Germany, Norway, Russia, the Netherlands and
Denmark.
Source: Statistics Estonia
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3. Dynamic engineering industry
ecosystem
World class foreign investors supported by extensive local supply chains
Productivity increased by 48% in 5 years
One stop business for complementing your supply chain: Solution +
Development + Production + IT Support
Solutions for industry are supported by competence centres
Tehnopol, a science and business environment for knowledge based
companies, has the Mechatronics Innovation Centre, which offers R&D
and laboratory space for technology-based companies. Tallinn University
of Technology has just opened a Technology Campus uniting various
engineering departments and offering companies modern industrial research
and testing services.
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4. Opportunities
Existing supply chain from design to production
Flexible high-value contract manufacturing and engineering services
Design and R&D services
Product development, piloting and testing
Scalable development sites around major sea and land hubs
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5. High efficiency
Ranked 21st country in the world for ease of doing business (World Bank)
Ranked 7th in the world for ease of trading across borders
Simple, flat rate tax system — 0% tax on re-invested profits
Creating a company in Estonia via the internet takes only 18 minutes
Annual reports can be submitted in 20 minutes via the e-Annual Report
online environment (voted best e-government solution in the world at World
Summit Award 2011) and tax declarations via fully automatic e-Tax Board
Prime bulk industrial space rent 4€/m2 per year
Low risk
Political and economic stability — joined the euro zone in January 2011
Lowest government debt in Europe
Lowest corruption among CEE countries (Transparency International)
Estonia is ranked 2nd in economic sustainability (European Policy Centre)
Cyber security — NATO’s Cooperative Cyber Defence Centre of Excellence,
is located in Tallinn, Estonia’s capital city
Most integrated country in Northern Europe - member of the euro zone, EU,
NATO, OECD and the Schengen area
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6. Progressive infrastructure
Cutting edge ICT infrastructure: 100% fibre national broadband by 2015
Many large-scale ICT companies have development centres in Estonia
The EU Agency for large scale IT systems is located in Tallinn
98% of money transfers are made online
Industrial parks are scalable and accessible
EU tax exemption in the customs-free zones of the ports
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7. Strategic location and accessibility
Gateway between the north, west, Eastern Europe and Russia
Major European cities are reachable by air within a couple of hours (for
example, it takes 75 minutes to reach Tallinn from Oslo Airport)
Ports are ice-free year-round with growth potential and development sites,
including the Port of Tallinn — the largest and deepest (at 18 m of depth)
port of the Baltic Sea
Excellent national and international rail network with particularly strong links
to Russia
Border crossings to Russia are quick and easy with online border queue
operation service GoSwift (selected as one of the world’s TOP40 e-services
at the World Summit Award), saving millions of euros per year
Cargo can be moved from the Baltic Sea to Moscow within two days and to
China within 15 days
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8. Quality talent pool
6 public (state) universities and 1 private university, plus 22 professional
higher education institutions; virtually all academic research in Estonia is
performed at the public universities
48 vocational education institutions — 15,000 students in technical, science
and production study programs
15% of workforce has an engineering background
55% of the Estonian workforce is fluent in one or more foreign languages
(especially Russian, English, Finnish, German and Swedish)
Ranked 19th in world for quality of higher education (World Economic
Forum 2013)
Ranked 5th in the world for high school education standards (PISA)
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9. Examples of sector companies in
Estonia
ABB AS
ABB is the leader in power and automation
technologies that enable utility and industry
customers to improve their performance
while lowering environmental impact. In
Estonia ABB One Campus with its Head
Office is located in Jüri. There are sales and
engineering units, four factories and other
regional and global service centres with a
total area of 119 000 m2. ABB One Campus
hosts more than 1200 employees on a daily
basis. Furthermore has ABB remote location
activities such as full and field service
and workshop with summing up of total
headcount for ABB AS around 1300.
DECK Engineering OÜ
DECK Engineering provides engineering
services for emerging offshore oil & gas,
energy and infrastructure industries.
Established in 2013, employs 5 employees.
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10. BLRT Grupp
BLRT Grupp is one of the biggest industrial
holdings in the Baltic Sea region. It
incorporates 71 companies which build
and service vessels, product advanced steel
solutions, proceed metal products, produce
gases, offer transport and port services.
BLRT Marketex is the subsidiary of BLRT
Grupp which focuses on industrial and large
scale steel solutions.
BLRT Marketex Marine is the subsidiary
of BLRT Grupp which focuses on small
shipbuilding and fish farming solutions.
BLRT Marketex Offshore Constructions is
the subsidiary of BLRT Grupp which offers
solutions for offshore oil&gas market.
Hanza Mechanics Tartu AS
Hanza Mechanics Tartu’s work ranges
from cold stamping, milling, turning,
plating, etc to assembly of mechanical and
electromechanical electronic units. The
company was first established in 1907
and privatized in 1996. Employs over 470
employees.
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11. Fortaco Estonia AS
Manufactures steel structures and
components and cargo handling solution
components for Hiab and Kalmer brands.
Established in 2007. Employs around 360
employees.
ICD Industries Estonia OÜ
ICD Industries provides developers
with a reliable, complete framework for
development of industrial control systems.
Our CDP application will increase your
team’s performance and ability to deliver
end-user optimised and bug-free solutions
– on time. Established in 2012, employs 3
employees
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12. Bestra Engineering AS
AS Bestra Engineering’s main production
articles are metal constructions, components
for the engineering industry, assemblies and
equipment for oil rigs. Established in 2006,
employs 41 employees
Stoneridge Electronics
Automotive electronics production and
development unit of global auto-electronics
group. Established in Estonia in 1998.
Stoneridge’s Estonian facility employs
around 300 people, including design and
development engineers dedicated to product
research and development.
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13. What they say about us
“We work with Tallinn Technical University to direct the courses
they offer towards our specific needs, and we handpick our
engineers through this cooperation. It takes only simple maths
to conclude this is a great place to do business. In Sweden, one
employee has roughly 1400 workable hours. In Estonia, one
employee has 1750 hours.” Ericsson
“Even when the labour market has been at its tightest, ABB has
been able to recruit and train the specialists it needs. When
ABB could not find the specific specialists it needed to produce
turbines for wind generators, it created programs and trained
them itself.” ABB
“For five years now we’ve added value with design and
development. We have always managed well in getting the
engineers we need. From the point of having an ambitious
vision, we have quite quickly come to have a fully functional
team of bright young engineers integrated with the overall R&D
team at Stoneridge Electronics.” Stoneridge
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14. More information
ELIKO — Competence Centre in Electronics, Info and Communication Technologies
www.eliko.ee
IMECC — Innovative Manufacturing Engineering Systems Competence Centre
www.imecc.ee
STACC — Software Technology and Applications Competence Centre
www.stacc.ee
Mehhatroonikum — a science and business environment
http://www.mehhatroonikum.ee/en
Tartu Science Park
http://www.teaduspark.ee/en
Federation of Estonian Engineering Industry
http://www.emliit.ee/
Tallinn University of Technology
http://www.ttu.ee/en
University of Applied Sciences
http://www.tktk.ee
Estonian Academy of Arts
www.artun.ee
Sector business opportunities in Estonia
http://www.investinestonia.com/en/business-opportunities/mechanical-engineering

15. Estonian Investment Agency
Enterprise Estonia
Lasnamäe 2, Tallinn 11412, Estonia
Phone: +372 627 9700 / Fax: +372 627 9701
E-mail: invest@eas.ee
www.investinestonia.com

16. Capital: Tallinn
Area: 45.227 km2 ≈ Denmark
Population: 1.300.000
Internet users: 80%
Country Calling Code: 372
Currency: euro (EUR)
Country credit ratings: Fitch A+;
Standard & Poor’s AA-; Moody’s A1
(August 2013)
GDP: EUR 17 billion (2012)
GDP per capita: EUR 13.210 (2012)
Index of Economic Freedom: 13th
among 183 countries
Member of EU, NATO, OECD,
WTO, Schengen area