Estonia is planning to build two defense industry parks in Ermistu, Pärnu County, and in Põhja-Kiviõli, Ida-Viru County. The state will invest more than €50 million in basic infrastructure.

"I'm pleased that in just over a year we have managed to carry out the special planning procedure at an accelerated pace, including conducting the required studies and strategic environmental impact assessment. In addition, we have developed compensation measures to support local life," said Minister of Defense Hanno Pevkur (Reform) in a statement on Thursday.

He said it is now possible to proceed with design and construction activities.

"Interest from companies in the park is high, and hopefully we will reach the first contracts in the near future. The negotiations held so far give hope that total private sector investment could reach €300 to €400 million and that hundreds of jobs will be created," Pevkur said.

Indrek Sirp, special adviser on defense industry at the Ministry of Defense, added that production is expected to begin by the end of next year, and all companies should reach full capacity by 2027.

"Given the strong interest from companies in the defense industry park, we are prepared to develop both the Ermistu and Põhja-Kiviõli areas," Sirp said.

The government has previously agreed to improve the region's roads and public shelters in Tõstamaa, Pärnu County, with nearly €3 million.

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