Turkish defense firm's ammo plant could bring 1,000 jobs to Ida-Viru County
A planned munitions plant to be operated by a Turkish defense firm will bring up to a thousand jobs to Ida-Viru County.
The move will hike workplace competition, proponents say, and will also exert upward pressure on property prices in Kiviõli, the town the facility is planned for, and its surroundings.
The news is welcome in any case, since Ida-Viru County is Estonia's most deprived region, though it is not yet clear exactly how many jobs the plant, to be opened by Turkish firm ARCA, will create.
The company has put the figure at up to 1,000 workplaces, but it is not yet certain whether these are direct positions, or if the figure includes indirect jobs as well.
Either way, hiring is likely to go ahead quite quickly and will lead to greater competition in the jobs market, Teet Kuusmik, head of the Ida-Viru Investment Agency (s Ida-Viru Investeeringute Agentuur) said.
"If we look at the planned location of the factory and assume a labor catchment area of 30 to 35 kilometers, there are between 70,000 and 80,000 people living within that zone. This includes in Rakvere, Kohtla-Järve, and Jõhvi. And since the investment timelines are relatively short, the pace of recruitment is likely to be quite rapid, which will create a certain level of competition in the labor market," Kuusmik said.
The plant may even attract commuters from as far afield as Tallinn, X from Kiviõli, and may also hire specialists from abroad.
Lüganuse rural municipal mayor Dmitri Dmitrijev (Center) also noted hopes that stable jobs and the arrival of new workers will improve housing conditions in Kiviõli, though prices may also go up.
"If demand increases, then on the one hand the number of vacant residential spaces will fall and property prices will rise to some extent. This might also encourage apartment associations to take more risks and move forward with renovations. Some people may also move here, but overall, since we do not know what will happen to the larger companies currently operating in the region, these additional jobs will bring stability to the area," Dmitrijev said,
Anneki Teelahk, head of the Unemployment Insurance Fund's (Töötukassa) Lääne- and Ida-Viru County department, said the Kiviõli plant's announced workforce need is still only about one seventh of the total number of unemployed people in the region.
Also, both ARCA and other firms may start attracting employees, including by "poaching" them from other firms, as well as or instead of taking on the jobless, Teelahk said. This is all a sign of healthy competition, she added. It may also encourage existing firms to treat their staff better in order to retain them.
"Poaching or attracting employees from elsewhere is actually a sign of a functioning and active labor market. It is positive, as competition makes everyone strive harder. This means other companies also have to make an effort to retain their people [too]. If we look at Virumaa today, we can already say that only 17 percent of salaries are below €1,000 [per month]. So employers are indeed making an effort," Teelahk went on.
The actual workforce needs of the ARCA factory will become clear once the company communicates its plans to the Unemployment Insurance Fund, she added.
The €300 million factory planned for Kiviõli will produce 155mm artillery ammunition, mortar rounds and rockets, with production expected to begin in 2028. The project is led by ARCA, a Turkish defense group with annual turnover exceeding €3 billion; the Estonian state will support the development with up to €10 million in infrastructure spend.
The company's background has drawn scrutiny after past U.S. corruption suspicions involving its founder, though Estonian authorities say full security checks will be carried out before operating permits get issued.
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Editor: Andrew Whyte
