Explosives Manufacturing Plant to Be Built in Estonia

A plant for the production of explosives for ammunition is set to be built in Estonia.

The country’s Ministry of Finance has been granted the authority to establish a company responsible for creating the facility, according to government sources.

The new company, named Hexest AS, will be founded in the coming weeks and is expected to be transferred to the Ministry of Defense of Estonia within six months.

The fully state-owned enterprise plans to attract investors in the future, reducing state participation to 50%, according to ERR.

Initially, a contribution of up to €7.2 million will be made to cover the costs of engineering design and preparatory work.

It is expected that the engineering project preparation will take about a year. Based on its results, a final decision will be made regarding investments, which are estimated to amount to €120–130 million.

The plant, which is set to begin operations in the first half of 2028, is planned to be built on the grounds of a defense-industrial park.

The plant will manufacture explosives such as hexogen, which is used in artillery shells, mines, missile warheads, and more. It is expected to produce 600 tons of explosives annually.

“Establishing the plant is an important step in the development of Estonia’s defense industry, as there is a significant shortage of explosives manufacturing capacity in Europe,” says Defense Minister Hanno Pevkur.

It is anticipated that the primary customers for hexogen from the new plant would be both Estonian and European ammunition manufacturers.

Last February, the Ministry of Defense of Estonia announced plans to establish a defense-industrial park in the country, covering an area of about 100 hectares.

The park will house facilities for the production of small, medium, and large-caliber ammunition and explosives, as well as the necessary infrastructure.