R&D investment increased nearly 800% over five years period, reaching 2.7 million EUR in 2007 Sector id divided to 3 main branches: metals &metal products; machinery & equipment; transport equipment Metal & metal products is the largest segment by number of enterprises, headcount, revenues & profits Transport equipment sub-sector has the highest export orientation Transport equipment sub-sector is the most profitable overall & per capita
Key Facts:Metals & Metal Sales: 695 million EUR inProducts 2009 Exports: 400 million EUR in 2009 (58% of sales) Headcount: 12,000 in 2009
Key Facts: Metals & Metal Products Net Sales by Segment 2008 structural metal products 54% treatment and coating of metals; machining 25% other fabricated metal products 12% basic precious and other non ferrous metals 4% tanks, reservoirs and containers of metal 2% cutlery, tools and general hardware 1%ng, pressing, stamping and roll forming of metal; powder metallurgy 1% casting of metals 1% tubes, pipes, hollow profiles and related fittings, of steel etc... 0% 0% 12% 24% 36% 48% 60% 951 core manufacturers of metals & metal products
Metals & Metal Products Industrial company engaged in the execution of metal construction projects and realisation of turnkeyBLRT Marketex OÜ projects principally in Estonia. Annual revenues Euros 64 million, 475 employees.AS Viljandi Metall metal constructions Hanza Tarkon’s work ranges from cold stamping, milling, turning, plating etc to assembly of mechanical andHanza Tarkon electromechanical electronic units. The company was first established in 1907 and privatized in 1996. In 2006 Hanza Tarkon also set up a factory in China. Annual revenues Euros 32 million, 402 employees. Metalliset is a Finnish Group that focuses on comprehensive contract services for industrial companies. In Estonia they have two production plants (Narva and Tallinn) and focus on production (sheet, machining,Metalliset plastics and melds) and surface treatment services. In addition, they offer product development and design. The group has subsidiaries in Estonia, Finland and the Czech Republic. Annual revenues Euros 10.6 million, 167 employees. Ruukki started their core business in Estonia in 1992. Today they have two production plants in Pärnu. They focus mainly on construction and metal products. The construction unit produces metal-basedRuukki Products AS construction solutions for retail, industrial and logistics buildings. The metal unit produces aluminium and steel-based standardized, as well as special, products. Ruukki employs approximately 250 people in Estonia.AS Saku Metall metal constructionsFavor AS 167 employees. Provision of metalworking services; metalwork subcontracting.
Key Facts:Machinery & Sales: 177 million EUR inEquipment 2009 Exports: 122 million EUR in 2009 (68% of sales) Headcount: 3,700 in 2009
Key Facts:Machinery & Equipment Net Sales by Segment 2008 Other general purpose machinery 45% Other special purpose machinery 23% Agricultural and forestry machinery 18%Metal forming machinery and machine tools 9% General purpose machinery 5% 0% 12.5% 25.0% 37.5% 50.0% 143 core manufacturers of machinery and equipment
Machinery & Equipment ABB manufactures power products, power systems, automation products, process automation, and robotics. ABB has implemented ISO 9001 and ISO 14001 certificates. In addition to the main office inABB AS (SE) (862) Tallinn, there are plants in Keila, Jüri and Maardu. Active in Estonia since 1992, 1862 employees at the end of 2009, annual revenues Euros 123 million. AS Hekotek is a mechanical engineering company founded in 1992 by Finnish specialists; its main operations include designing and producing woodworking technology installations. In 2007, HekoteksAS Hekotek ownership changed and it now belongs to Sorb Wood, which belongs to the Carl Bennet AB concern in Sweden. Hekotek Estonia employs approximately 100 people, annual revenues Euros 6.5 million. Manufacturing of hook lift systems, lumber trailers, tractor processors. Fors MW is the oldest Swedish company in Estonia and was founded in 1992. The headquarters is situated in Saue, Estonia. ThereAS Fors are two subsidiaries, one in Norrköping, Sweden and one in Shanghai, China. Annual revenues Euros 10.3 million. Manufacturing of steel structure and components, and cargo handling solution components. Subsidiary of Cargotec Group. The company was previously owned by A.P. Moller–Mærsk Group.Cargotec Estonia AS Cargotec acquired the company as they perceived it to be the best alternative when developing competitive component sourcing. Important roles are played by the close proximity to other EU countries and low-cost manufacturing. Annual revenues Euros 14.5 million, 281 employees. Heavy duty welding and machining of steel structures. Finmec AS was founded in 1994 and is aAS Finmec subsidiary of a Swedish company whose production facilities are located in Estonia, including modern CNC controlled cutting. Annual revenues 4.8 million, 99 employees.Zircon Technologies AS Manufacturing of injection melds and high precision tungsten carbide dies. Zircon has produced dies(UK) for such brands as AEG, AMI Doduco, Brandauer, Ekranas, Electrolux, Osram and Tyco Electronics.
Key Facts: Sales:Transport 175 million EUREquipment in 2009 Exports: 147,4 million EUR in 2009 (84% of sales) Headcount: 3,600 in 2009
Key Facts:Transport Equipment Net Sales by Segment 2008 Automotive parts & accessories 56% Motor vehicles, trailers & bodies 23%Ships, boats & other transport equipment 21% 0% 15% 30% 45% 60% 120 core manufacturers of transport equipment
Transport EquipmentAS Bestnet Trailers. Annual revenues Euros 6.8 million, 121 employees. Holding firm for a group engaged in building and repairing of ships in Estonia and abroad. AnnualAS BLRT revenues Euros 35.1 million, 118 employees. Shipbuilding components. Manufacturing of hatch covers and non-curved steel blocks. If required, Loksa Shipyard delivers products fully painted and outfitted. The company is more thanLoksa Laevatehase AS 100 years old. In 1994 the company became part of the A.P. Moller-Maersk Group, after which comprehensive renovation and advanced production installment took place. Annual revenues Euros 24.2 million, 588 employees. Norma is mostly focused on the automotive industry. Connections with the international automotive industry were established in 1973, the year in which Norma started producing safety belts for cars. In addition to manufacturing and distributing safety systems for cars, today Norma is gradually becoming a major manufacturer of safety equipment components for the internationalAS Norma automotive industry. Manufacturing of seatbelts and assemblies, progressive stamping, fine blanking, injection moulding, etc. Today Norma is part of the Autoliv Group and employs nearly a thousand people. Revenues 51.4 million, 616 employees. Norcar BSB was established in 1979 in Sweden. In 1994 a subsidiary in Estonia was established. Today they have opened new production facilities with automated welding and employ a total ofNorcar BSB Eesti AS (FI) 54 people. Norcar BSB is focused on the manufacturing of miniloaders, farming products, and industry automation.AS Respo Haagised Trailers, Annual revenues 6.4 millions, 53 employees. Automotive electronics production and development unit of global auto-electronics group. Established in Estonia since 1998. Eleven years later, Stoneridge’s Estonia facility employs 170Stoneridge(USA) people, including 11 design and development engineers dedicated to the part of Stoneridge Estonia which has received the most attention locally: product research and development. Annual revenues Euros 20.6 million.
Engineering TOTALWorkforce 98,300 Currently work in engineering role 51,600 Previously worked in an engineering role 46,700
Engineering Workforce Private sector small company 30% Private sector medium company 26% Private sector big company 24% Government/Public sector 10% Self employed 8%Education further/Adult education 1% Education school 1% 0% 8% 15% 23% 30%
Engineers: Key Specialisms Experience working in a Technical Engineering Role10 years or more 5-10 years 2-5 yearsless than 2 years 0% 13% 25% 38% 50%
Engineers: Key Specialisms Electrical and 26,700 Electronics Mechanical 22,200 Industrial and 22,000 Manufacturing Automotive 14,300
Higher 9 universities (6 public, 3 private)Education ca 52 000 student Related to the industry universities:
Vocational 51 vocational schoolsEducation ca 28 500 students exact
R&D Competence Centre Competence / Activity WebsiteCompetence Centre in To improve competitiveness of Estonian and www.eliko.eeElectronics-, Info- and European ICT industry through the deepCommunication Technologies - integration of research and productionELIKO institutionsInnovative Manufacturing To improve the competitiveness of Estonian www.imecc.eeEngineering Systems engineering industry and to develop cultural,Competence Centre -IMECC ethical, and social values based on increasing integrated industrial use of new technologiesSoftware Technology and To conduct industry-focused research with the www.stacc.eeApplications Competence aim to develop leading-edge solutions in theCentre - STACC ﬁelds of data mining and software technologyTehnopol — a science and Tehnopol is a science and business environment www.tehnopol.eebusiness environment for knowledge based companies. Today there are 150 companies, Tallinn University of Technology and IT College in Tehnopol.
Total labour costs EUR/yearLabour Machine tools & equipment 110 personsCosts 5,000,000 4,662,734 4,328,684 3,750,000 3,642,474 2,500,000 1,406,826 1,195,122 1,099,787 1,250,000 993,961 961,925 934,646 0 c nia nd ny ary a nia nd en bli ma tvi inla la pu Esto ng a d r La thu Po we hR e F Ge Hu Li S c C ze Low labour costs, with a Scandinavian-like culture
I Industrial Property Market Indicative range for rents (excluding VAT and operating expenses) and industrial land price in major towns of Estonia for industrial and office premises (EUR/m2 per month). Tartu Pärnu Narva Type of space Tallinn (South) (South West) (North East) Industrial lease 2.8 - 5.0 2.0 - 4.0 1.6 - 4.4 3.2 - 8.0 Industrial land 18 - 20 11 - 18 6 - 15 5 - 15 purchase price Office 6.5 – 14.1 6.0 – 12.8 6.0 – 9.2 4.5 – 8.3
SILPORT hinterland territory of 600 has Free Zone status and is available for developing different terminals, distribution and manufacturing facilities. SAIVTA is developing 6 industrial parks in Ida-Viru County in Eastern Estonia, a key development area.Industrial & Paldiski South Harbour Industrial Park - located 50 km west of Tallinn and it is the third largest Science harbour of the five harbours belonging to Port of Tallinn. A 21 ha industrial park area bordering on the Parks harbour is developed. Muuga Industrial Park is located in Muuga Harbour, the largest and deepest cargo port in Estonia. The total area of the industrial park is 75 ha.
Foreign InvestmentsElectronics and optics sub-sector77% of workforce of the sector works for foreigncompanyTransport equipment sub-sector61,4% workforce of the sector works for foreigncompanyMore successful then national companiesMore export oriented (95,8% of revenue from export)
Main Trade Partners export destinationsBase metals: Transport Machines & Equipment: Equipment:Finland (19%)Turkey (13%) Russia (23%) Sweden(28%)Sweden (9%) Latvia (21%) Finland (25%)Latvia (8%) Lithuania (16%) Russia (9%)Poland (6%) Sweden (11%)the Russian Latvia (6%) Finland (7%)Federation (6%) Germany (5%) Germany (3%).Germany (5%) Denmark(4%)Norway (5%).
Opportunities Foreign Investments Nordic and Baltic production and distribution hub Contract manufacturing and engineering services Design and R&D services Product development, piloting and testing Ideal „small country” test market Scalable development sites around major sea and land hubs