The NPM Narva factory, which is in the Narva Industrial Park, produces magnets to be used in electric vehicles, wind generators, medical devices and more. Previously, 90 percent of these types of magnets have been made in China, meaning the new Narva factory will reduce Europe's dependence on Chines products.

"Industrial investments in Estonia, especially in high-tech manufacturing, are very important. And Neo itself is also extremely important for Europe, because if we look at the world more broadly, such capacities and opportunities usually move towards China," said Prime Minister Kristen Michal (Reform).

"From the European Union's perspective, the opening of a factory like this is very important. It is proof that our industrial policy is making a comeback, even in peripheral areas such as Narva," added Maive Rute, deputy director-general for internal market, industry and SMEs at the European Commission.

The leaders of the Narva Industrial Park hope that the arrival of NPM will encourage more entrepreneurs to build factories in the border town at a faster pace.

"It can be said that the establishment of such a large production unit in the Narva Industrial Park actually means that many companies, which may be looking in from the outside, will gain courage, considering geopolitics," said Teet Kuusmik, head of the Ida-Viru Investment Agency.

The factory is currently producing test batches and employs 100 people from 14 countries. In the coming years, the number of jobs is expected to increase to 400. The company also has expansion plans but they depend on a number of factors.

"Of course, there are several things we are looking at when we think about continued growth and the infrastructure needed to continue production. One of these is energy –  its availability, whether it is renewable or not and what the price of energy is – all of this is critical. In addition, there are a number of other infrastructure-related issues. Public-private partnerships are important. I think that in many ways, the government could support us in offering opportunities that would allow us to move forward more quickly with more production opportunities," said Rahim Suleman, president and CEO of NPM.

While the current plant's capacity is 2,000 tons per year, the annual production would reach as much as 5,000 tons in the event of expansion. The plant would then be able to provide jobs for 1,000 employees.

According to Aivar Virunen, production manager at NPM Narva, the plant will hopefully also give a boost to the development of technical science in Estonia.

"We need people who are familiar with both science and production. And it is precisely here that scientists can apply their knowledge in industry," said Virunen.

The NPM Narva factory, which cost €96 million, received €14.7 million in support from the Just Transition Fund. Initially, the support amount was €18.7 million but the amount decreased as the factory's overall budget fell.

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