Ericsson will not proceed investment in Estonia
In June 2023, Ericsson announced that it would invest 155 million euros to build a next-generation smart manufacturing and technology hub in Tallinn, Estonia. But now it turns out that the Swedish company is abandoning its plans.
As Evertiq previously wrote, the new 50,000-square-metre facility, a green field investment valued at about EUR 155 million (USD 169 million), will be used for co-developing cellular ecosystems and production techniques mainly with customers and partners in Europe – but with global impact on industrialisation for volume production.
However, Ericsson will not proceed with its €155 million investment in Estonia, which would have been one of the country's largest industrial investments, ERR News reports.
According to Estonian TV and radio broadcaster, Ericsson Estonia's CEO, Sirli Männiksaar, told Delfi Ärileht on Monday that Ericsson informed its employees and partners of its decision to focus on modernizing its existing operations in Tallinn — comprising three production units and an office in Ülemiste — rather than constructing a new facility in Ülemiste City.
"In the challenging market and economic environment, we are taking a more cautious approach to industrial investments, especially in Europe. To ensure that our business remains robust and well-positioned for long-term success, Ericsson is reallocating its investments to certain areas," ERR News quotes her explanation, justifying the decision to forgo the investment.
Center worth 155 million euros was planned to house the company's testing laboratories, production lines, office spaces, and warehouses. At the same time, it was to be the place where all the company's employees would work - in June 2023 there were more than 2,200 of them.
"The site designated for the planned production facility had already been cleared, with the former Jeti Ice Arena demolished. However, no new construction activity has begun at the location." — ERR news reports.
