Magnetic MRO moves UK subsidiary to Tallinn following Brexit complications
Estonian aircraft maintenance and asset management firm Magnetic MRO has moved the production facility of a United Kingdom-based design firm to Tallinn, as a result of issues connected with Brexit, the company says.
The aircraft interior design firm, MAC Aero Interiors, based in Redhill, Surrey, was acquired by Magnetic MRO in 2016.
Risto Mäeots, Magnetic MRO CEO, said plans to invest in production were long overdue.
"However, as this seemingly indecisive situation around Brexit lasted and lasted, we ultimately got sick of things," Mäeots said, appearing on ETV news show "Aktuaalne kaamera" Wednesday evening.
While Magnetic MRO had so far focused on the maintenance of large passenger aircraft, with a global market volume of US$80 billion, the company is now entering an aircraft manufacturing market worth over three times that, ERR's online news in Estonian reports, making the company's plans from the beginning of this year large-scale.
"Should we have even half of one percent of the 250 billion dollars, that would already be a very figure number for Estonia's export and industry. I sincerely hope that pre-production is the first step. We will definitely expand and develop. We plan to work with different Estonian manufacturing companies, and we certainly do not want to do everything ourselves. We will for sure work with product developers in Estonia," Mäeots added.
The company will also produce the most sophisticated aircraft parts possible, said Mäeots, though this would already require transnational agreements.
Magnetic MRO's production facilities are situated close to the airport in Tallinn, and Eero Pärgmäe, Commercial Manager at the airport, said the company's expansion plans are important for the development of the entire Estonian aviation industry.
"First, they are an important partner for the more than 30 airlines flying from here, who can be assured that if something happens, there will be this type of service on the ground. And second, it will complement the whole picture of our business. Magnetic MRO is playing a very important role there," Pärgmäe said.
Aviation currently accounts for three percent of Estonia's GDP, but with this cluster that could rise to an estimated five percent, with maintenance, airline trade and airline IT solutions being the primary focus.
Magnetic started bond trading on the Nasdaq Tallinn stock exchange last month.
In 2018, the company had considered pulling out of Estonia due to what it said were impediments in both hiring foreign workforce and the taxation system's effect on its growth.
Download the ERR News app for Android and iOS now and never miss an update!
Editor: Andrew Whyte