Machinery Sector

These men believe in metal and in our metal industry.

The machinery and metal足working sector in Estonia

Breakdown of the machinery and metalworking sector by turnover (%)

T

he Estonian machinery and metal足 working sector is a sector of traditions with a history dating back to the second half of the 19th century.

Today it is a growing modern industry with strong links to theScandinavian and Western European engineering clusters.

The machinery and metalworking sector comprises nearly 24% of all the enterprises operating in themanufacturing industry in Estonia. The predominant subsector is the manufacturing of fabricated metal products which involves 16% of all the companies operating in the manufacturing industry.

basic metals and fabricated metal products

59%

machinery and equipment

18%

transport equipment

23%

Source: Statistics Estonia

Main export destinations 2008, percentage of total

20%

19% 11% 9%

Source: Statistics Estonia

Tyrkey

Lithuania

Germany

Latvia

Russian Federation

Sweden

Finland

6% 4% 4%

Example of companies in the sector: AS Hekotek (woodworking machinery), AS Fors MW (forest machinery), AS Finmec (components of machinery), Ruukki Products AS (metal constructions), AS Viljandi Metall (metal constructions), AS Saku Metall (metal constructions), Favor AS (metalworking), AS Bestnet (trailers), Cargotec Estonia AS (cargo handling solution components), AS BLRT (Shipbuilding), AS Norma (vehicle components), Loksa Laevatehase AS (components for shipbuilding), AS Respo Haagised (trailers) and many more.

T

here are more than 25,100 people working in the sector, of which approximately 13,800 are engaged in the manufacturing metals and fabricated metal products, nearly 6,000 in the manufacturing of machinery and equipment and approximately 5,300 in the manufacturing of transportation equipment.

The machinery and metalworking sector contributes 42% of total exports and 43% of total imports (2008). The most export oriented subsector is machinery and mechanical appliances which contributes 22% of total exports.

Main advantages and strengths of Estonia in the metalworking and machinery sector

Good logistics and transportation infrastructure for export-import activities

Highly developed infrastructure Excellent ferry connectivity Low transportation costs High level of digital infrastructure

Skilled and cost-efficient labour with long history in metalworking and machinery industry Educated labour force Skilled and cost-efficient labour

Increasing productivity with government subsidized R&D services Constant productivity increase Competency centres and government support Stable environment and clear sector regulations Clear regulations in the sector Transparency in government leadership