Ericsson plans $170 mn smart manufacturing hub in Estonia

Ericsson, the leading telecommunications equipment company, has revealed its plans to construct a smart manufacturing and technology hub in Tallinn, Estonia. With an investment of approximately EUR 155 million (USD 169 million), the hub aims to consolidate all of Ericsson’s operations in Estonia into a single, innovative facility.
Ericsson’s Radio 6626Spanning an impressive 50,000 square meters, the smart hub will encompass test laboratories, warehouses, production lines, and offices. Its primary purpose will be to facilitate the collaborative development of cellular ecosystems and production techniques with European customers and partners. However, the hub’s impact is expected to extend globally, influencing the industrialization of volume production.

Situated in Ulemiste City, the largest business park and forward-thinking urban area in the Baltics, the connected hub will become a prominent addition to Tallinn’s technological landscape. Ericsson anticipates that the European hub will become operational in early 2026, with ambitious plans to achieve LEED Gold certification in the same year.

“Our entire production landscape globally is being digitalized, and… 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 is also produced with as low an environmental impact as possible,” Fredrik Jejdling, Executive Vice President and Head of Networks at Ericsson, said.

By consolidating its operations into a single hub, Ericsson expects to decrease carbon emissions by up to 70 percent compared to its existing facilities in Tallinn. The company’s commitment to achieving a net-zero emissions target by 2030 will be facilitated by sustainable and energy-efficient design elements.

Additionally, Ericsson aims to support communications service providers (CSPs) on their journey to net-zero emissions by offering the most energy-efficient portfolio on the market. By upgrading existing 4G sites to 5G, CSPs can significantly increase network capacity while reducing energy consumption by over 30 percent.

The hub will operate entirely on renewable electricity and will incorporate cutting-edge technologies such as artificial intelligence, machine learning, robotics, and other advanced Industry 4.0 solutions to maximize operational efficiency.

Currently employing over 2,200 professionals in Estonia, including engineers and experts in AI and machine learning, Ericsson’s Tallinn factory plays a vital role in the company’s global supply footprint. It accounts for more than 40 percent of the industrialization of Ericsson’s 5G products.

Tiit Riisalo, Minister of Economic Affairs and Information Technology of Estonia, expressed his enthusiasm for Ericsson’s decision to establish the high-tech hub in Ulemiste City. He praised it as a prime example of Estonia’s next-generation economy, highlighting the country’s commitment to technological advancement and innovation.

With the construction of this smart manufacturing and technology hub, Ericsson is set to reinforce its position as a leader in the telecommunications industry while fostering sustainable practices and driving the development of cellular ecosystems and production techniques.