According to Defense Minister Hanno Pevkur, consultations are currently underway with all parties interested in establishing operations within the defense industry park. "We have already received about 15 expressions of interest. These include both Estonian and foreign investors, with companies looking to produce everything from small-caliber munitions to larger-scale investments, such as 155-millimeter artillery shells. Establishing such a plant would require an investment between €100 and €300 million. So far, four companies have approached us with this interest," Pevkur said.

The minister noted that, as part of the national special planning process, the project has reached the stages of preliminary site selection and the public disclosure of the strategic environmental assessment program. This will help identify the most suitable locations for developing the defense industry park.

"The planning process is on schedule, with the aim of identifying the best site by spring 2025 and finalizing the plan by August 2025," Pevkur stated.

The new defense industry park site selection includes four potential areas in Ida-Viru County, Lääne County and Pärnu County, covering possible land areas between 0.5 and 2 square kilometers. The goal is to create a modern production environment that supports Estonia's ammunition, weapons and drone manufacturing capabilities, enabling rapid startup of production activities.

Pevkur emphasized that the final size and location of the planned area will be determined based on investor interest and through a government decision.

"Both local industry and foreign investors are eager to begin large-scale production, and there is significant interest from companies in the defense industry park," Pevkur said.

"Considering that we initiated the national special planning process this February, and if we can finalize it by next August, this pace is unprecedented," Pevkur said. "This means that industrial production in the defense industry park could begin as early as 2026. We are committed to ensuring that all companies with the capability to operate within the park are given the opportunity to do so."

The cabinet meeting also discussed Estonia's military aid package to Ukraine, focusing on ways to deliver this assistance through the local defense industry. In line with the coalition agreement, Estonia will continue to provide military aid to Ukraine at 0.25 percent of its GDP, amounting to approximately €100 million annually. This marks the largest government-supported growth initiative for the industry to date.

To facilitate this, the Ministry of Defense is preparing a support measure allowing donations of products from Estonian companies to Ukraine. "We aim to announce this support measure as early as November," Pevkur said. "Estonian companies will be able to contribute a wide range of defense and security products for Ukraine, including software solutions."

On Thursday, the government's economic cabinet focused on developing Estonia's defense industry to further support Ukraine in its fight against Russian aggression. The meeting began with an overview of the sector presented by Taavi Veskimägi, chairman of the board of the Estonian Defense and Aerospace Industry Association. Defense Minister Hanno Pevkur then outlined the accelerated development of the defense industry park and plans for continued military aid to Ukraine.

In his overview, Veskimägi highlighted the sector's ambition to grow the defense industry's volume to €2 billion by 2030, leveraging breakthrough technologies. The association's motto, "Making Metal Smart," reflects its aim to provide intelligent and effective solutions for Estonia's defense.

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