Ericsson will not proceed with a €155 million investment in Estonia, which would have been one of the largest industrial investments in the country.
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,” she explained, justifying the decision to forgo the investment.
Ericsson announced plans for a new production and technology center in Tallinn’s Ülemiste City last summer, estimating the investment at €155 million. The construction of the 50,000 m² smart manufacturing center was scheduled to begin this year and be completed by 2026.
The center was planned to house the company’s testing laboratories, production lines, office spaces, and warehouses. It was intended to accommodate all of Ericsson Estonia’s employees, numbering over 2,200.
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