Elcoteq expands in Estonia

Elcoteq Network Corporation has announced the expansion of its second manufacturing plant, Tallinn 2, in Tallinn, Estonia. Between Tallinn 1 and Tallinn 2, Elcoteq will employ nearly 3200 employees and maintain 42,000 square meters of factory space in Tallinn. It can be compared with the size of 6 football fields. The expansion was needed because of growth in demand for communications network equipment products and an increase in Elcoteq’s business and customer portfolio. The total investment including the equipment and current assets was 40 million euros. “The expansion increases the production capacity of the whole Elcoteq Tallinn and therefore improves the competitiveness of our plant,” explained Risto Gaggl, General Manager of Elcoteq Tallinn. The official opening of the expanded facility took place on August 25, 2004 with a ceremony presided over by Estonian Prime Minister Juhan Parts and Antti Piippo, Chairman of the Board and Principal Owner of Elcoteq Network Corporation. Other government officials in attendance included Minister of Economic Affairs and Communications Mr Meelis Atonen and former Prime Minister Mr. Mart Laar. Elcoteq Tallinn has been the largest exporter in Estonia since 1994 with a 14% share of exports in 2003, according to the Estonian Statistical Office. With the expansion, the floor space in Tallinn 2 will double from 9,000 to 18,000 square meters. During the period January through August 2004, the number of employees in Elcoteq Tallinn increased by 880, from 2,280 to 3,160, and will continue to increase in the third quarter of 2004. “We see the number of employees possibly exceeding 3300. This will be an all time maximum for Elcoteq Tallinn operations,” added Gaggl.