Ericsson outlined plans to invest €155 million on the creation of a new smart manufacturing and technology facility in Estonia, earmarked to be operational in early 2026.

The vendor stated the new site will consolidate all of its operations in Estonia into a single 50,000 square-metre hub, comprising of laboratories, warehouses, offices and production lines.

It will be located in Ulemiste City in Tallinn and the company has signed a definitive agreement to acquire property to build the facility through its Estonian affiliate, a transaction expected to close at the end of 2024.

Ericsson hopes the new European hub will enable a symbiotic relationship between its R&D hub in Sweden and manufacturing in Estonia, as it looks to deploy the site for co-developing cellular ecosystems and productions with industry partners in Europe.

Merging Estonian operations into a single site will also reduce environmental impact and promote a more sustainable supply chain, the vendor claimed.

EVP and head of networks at Ericsson Fredrik Jejdling said the site will be fully powered by renewable electricity and built with “optimal efficiency” through AI, machine learning, robotics and other advanced Industry 4.0 technologies.

The vendor counts more than 2,200 employees at its existing Estonian factory, which holds a key role in its global supply footprint as it accounts for over 40 per cent of the manufacturing of its 5G equipment.