Estonia Launches Hexest AS to Boost Domestic Explosives Production and Strengthen Defence Industry

Estonia is taking a major step to strengthen its national defence capabilities by establishing a new state-owned company, Hexest AS, which will lead the development of the country’s first military explosives factory. The Estonian government has approved the creation of this company and given the green light to begin preparations for the plant's construction, marking a significant milestone in the nation's defence industrial ambitions.

Hexest AS will be formally created in the coming weeks and handed over to the Ministry of Defence within six months. The initiative reflects Estonia’s growing focus on building local capacity for defence manufacturing and ensuring long-term security in a rapidly evolving geopolitical environment.

According to Estonia’s Minister of Defence, Hanno Pevkur, the move is not only important for Estonia but also for Europe. “There is a shortage of explosives production capacity in Europe,” he said, pointing to the growing demand for reliable and local sources of military-grade materials. He emphasized that the explosives plant would add value to Estonia’s Defence Industrial Park and help attract more defence-related companies to the region.

The initial funding for Hexest AS will come entirely from the Estonian state, with an investment of up to €7.2 million allocated for technical design and early preparatory activities. Once the technical design phase is completed—which is expected to take about a year—the final investment decision will be made based on those results.

The factory is planned to be built within the Defence Industrial Park, a growing hub for Estonia's military and defence manufacturing. It aims to start production by 2028. The plant will focus on producing RDX-type explosives, a highly potent compound used in various types of military ammunition such as missiles, mines, and warheads.

Estonia is also considering involving a strategic investor later in the project, but for now, all shares in Hexest AS will be held by the government. Once operational, the plant is expected to serve both domestic and European ammunition manufacturers, filling a critical gap in regional supply and enhancing Estonia’s reputation as a reliable player in the European defence sector.

With this bold move, Estonia is not only preparing itself for future security challenges but is also stepping into a leadership role in the European defence manufacturing space.