The Estonian government has officially approved a national designated spatial plan for the development of defence industrial parks. The decision paves the way for new industrial hubs in Ermistu (Pärnu County) and Põhja-Kiviõli (Ida-Viru County), supported by more than 50 million euros in state investment for base infrastructure.
According to Minister of Defence Hanno Pevkur, the process was carried out in record time:
“In just over a year, we have managed to complete the special planning procedure, conduct the necessary studies, and carry out the strategic environmental assessment. In parallel, compensation measures have been developed to support local communities,” he explained, adding that design and construction can now move forward.
Private investment and job creation
Interest from the private sector has already been strong. Negotiations are ongoing, and projections suggest that private investments could total 300–400 million euros, with the potential to create hundreds of new jobs. The first production is expected to start by the end of next year, with full operational capacity for all companies targeted by 2027.
Indrek Sirp, Special Advisor for Defence Industry Development at the Ministry of Defence, confirmed that both Ermistu and Põhja-Kiviõli will be developed to meet the growing demand.
Environmental considerations and local benefits
To address the environmental impact of the new industrial park in Ermistu, a compensation plan has been developed together with the Ministry of Climate and the Environmental Board. This includes measures to balance ecological impacts and enhance sustainability.
In addition, nearly three million euros will be directed to improving local infrastructure and community facilities in Pärnu County, such as upgrading roads and the Tõstamaa public shelter.
Reserve development areas
Alongside the main sites, Piirsalu (Lääne County) and Aidu (Ida-Viru County) have also been identified as suitable locations. While they will remain as reserve areas for now, they may be developed in the future should demand for defence industry capacity increase.