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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 07:43

Defence procurement stimulates Estonian industrialists

BC, Tallinn, 11.04.2014.Print version
Estonian industrial companies will earn around 61 million euros in 2014 with defence ministry procurements for creating exportable products and services, LETA/Postimees writes.

Bus operator company Sebe, which won last year the Estonian Defence Forces SISU armoured vehicles repairs procurement, gained such an impetus from the military experience that now intends to start producing new military machines itself, having created a company called Milrem for the purpose.

 

The smallness of the Estonian Defence Forces doesn't enable even an industrial company with average size to focus only on local military orders, 70% of the nearly 4 mln euros turnover of Estonia's biggest footwear producer Samelin is contributed by military boots, but military boots sold in Estonia only contribute just a fifth of the turnover.

 

Although a number of Estonian companies offer products and services for the militaryy, several active companies cannot win defence procurements since procurement conditions focus on the lowest price.

 

Defence Minister Sven Mikser called Estonian companies to actively participate in the 11.5 mln euro defence procurement of this year. According to previous experiences, Estonian industrialists can cover around 55% of the defence procurement which this year forms over 61 mln euros while the rest of the procurement winners come from abroad.






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