Ericsson to construct new manufacturing facility in Estonia

Ericsson to construct new manufacturing facility in Estonia

Ericsson is building a next-generation smart manufacturing and technology hub in Tallinn, Estonia.

The new facility is a green field investment valued at about EUR 155 million (US$169 million), and is being constructed with a focus on sustainability and operational efficiency.

Ericsson aims to consolidate all of its operations in Estonia into a single smart hub that comprises test labs, warehouses, production lines, and offices. The facility will co-develop cellular ecosystems and production techniques together with customers and partners in Europe and in tandem with Ericsson’s R&D in Sweden.

The fully connected hub will be located in Ülemiste City in Tallinn, the largest business park and future-oriented urban area in the Baltics. The new European hub is expected to be operational in early 2026.

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 digitalised 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.”

The new European hub is expected to reduce its carbon emissions by up to 70% compared to all four existing facilities in Tallinn. It will support Ericsson’s 2030 target to be Net Zero in its own operations through highly sustainable and energy-efficient design.

“We are committed to being at the forefront of sustainable operations in Europe as we revolutionise 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% by renewable electricity and built with optimal efficiency through AI, machine learning, robotics, and other advanced Industry 4.0 technologies.”

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