Ericsson to build €155mn production hub in Tallinn

Ericsson to build €155mn production hub in Tallinn
Ericsson's HQ in Kiska, Stockholm. / bne IntelliNews
By bne IntelliNews July 6, 2023

Ericsson, the Swedish telecommunications company, will build a €155 million next-generation smart manufacturing and technology hub in Tallinn.

The centre will be constructed in Tallinn's Ulemiste City, the largest business park and future-oriented urban area in the Baltics, and is expected to be completed by 2026, according to a press release.

The facility will contain the organisation's testing laboratories, production lines, offices and warehouses. The plan is to consolidate all of Ericsson’s operations in Estonia into a single, state-of-the art, 50,000 sq m smart hub that comprises test labs, warehouses, production lines, and offices.

It 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. By establishing this  European hub, Ericsson will enable a symbiotic relationship between its established R&D in Sweden and manufacturing, where product innovation extends into production and vice versa.

Ericsson has currently more than 2,200 employees in Estonia, including engineers and experts in AI and machine learning, who will be moved to the site. The existing operations account for more than 40 percent of the industrialisation of Ericsson's 5G products.

Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, says: “This move is in line with Ericsson’s long-term strategy for a more resilient and sustainable supply chain, significantly reducing our carbon footprint and harnessing the power of 5G for smart manufacturing. Our entire production landscape globally is being digitalized and, as we have done in the U.S., this will strengthen the link between our R&D and new product introduction to ensure every product we manufacture not only benefits our customers but are also produced with as low environmental impact as possible.”

“We are committed to being at the forefront of sustainable operations in Europe as we revolutionize our manufacturing process jointly with our partners and customers, and support the scale up of 5G deployment,” Jejdling says. “This smart hub will be powered 100 percent by renewable electricity and built with optimal efficiency through AI, machine learning, robotics, and other advanced Industry 4.0 technologies. In addition, we aim to attract local and European talent by creating an environment that fosters collaboration, innovation, employee wellbeing, diversity, and inclusion.”

Tiit Riisalo, Minister of Economic Affairs and Information Technology of Estonia, says: "Ericsson’s decision to establish a high-tech, smart manufacturing and technology hub in the forward-looking Ülemiste City, stands as a prime illustration of the economy's next generation for Estonia. It serves as a concrete demonstration of Estonia's commitment to the green transition, our robust ties to emerging technologies, and the creation of an ecosystem that fosters innovation for other companies as well."


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