Ericsson Invests EUR 155 Million in Innovative Smart Hub in Estonia

Ericsson Invests EUR 155 Million in Innovative Smart Hub in Estonia

(IN BRIEF) Ericsson plans to establish a next-generation smart manufacturing and technology hub in Tallinn, Estonia, with an investment of approximately EUR 155 million. The hub will consolidate Ericsson’s operations in Estonia into a single facility and serve as a collaborative space for co-developing cellular ecosystems and production techniques. The hub aims to foster synergy between Ericsson’s R&D capabilities in Sweden and manufacturing operations. The fully connected facility, expected to be operational by early 2026, will prioritize sustainability and reduce carbon emissions by up to 70 percent compared to existing facilities. Ericsson aims to achieve LEED Gold certification for the hub and support CSPs in their Net Zero goals with energy-efficient solutions. The hub will be located in Tallinn’s Ülemiste City and contribute to Ericsson’s global supply footprint for 5G products.

(PRESS RELEASE) STOCKHOLM, 5-Jul-2023 — /EuropaWire/ — Ericsson (NASDAQ: ERIC), a Swedish multinational networking and telecommunications company, is embarking on a transformative journey in Europe with the creation of a cutting-edge smart manufacturing and technology hub in Tallinn, Estonia. With sustainability and operational efficiency as key priorities, this greenfield investment, valued at approximately EUR 155 million (USD 169 million), aims to drive innovation in the region.

The strategic plan involves consolidating all of Ericsson’s operations in Estonia into a state-of-the-art smart hub spanning 50,000 square meters. The facility will house test labs, warehouses, production lines, and offices, fostering collaborative efforts to co-develop cellular ecosystems and production techniques with European customers and partners. By establishing this European hub, Ericsson aims to foster a symbiotic relationship between its renowned R&D capabilities in Sweden and manufacturing, where product innovation seamlessly extends into production and vice versa.

As an initial step towards this vision, Ericsson, through its Estonian affiliate, has signed a definitive agreement to acquire property for the construction of the smart hub. The transaction is expected to be finalized in the fourth quarter of 2024, subject to agreed conditions.

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 digitalized 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.”

Located in Ülemiste City, Tallinn’s largest business park and a forward-looking urban area in the Baltics, the fully connected hub is projected to be operational in early 2026. Ericsson is committed to obtaining LEED Gold certification for the facility in the same year, showcasing its dedication to sustainability.

The establishment of the European hub is expected to reduce carbon emissions by up to 70 percent compared to the combined emissions of the four existing facilities in Tallinn. This aligns with Ericsson’s goal of achieving Net Zero carbon emissions in its own operations by 2030. The design of the hub incorporates highly sustainable and energy-efficient elements, including the use of low embodied carbon wooden glulam beams for structural strength while minimizing environmental impact. Additionally, a solar farm on the roof will further enhance its energy efficiency.

“We are committed to being at the forefront of sustainable operations in Europe as we revolutionize 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 percent by renewable electricity and built with optimal efficiency through AI, machine learning, robotics, and other advanced Industry 4.0 technologies. In addition, we aim to attract local and European talent by creating an environment that fosters collaboration, innovation, employee wellbeing, diversity, and inclusion.”

As part of its commitment to supporting communications service providers (CSPs) in their journey towards Net Zero, Ericsson offers the most energy-efficient portfolio in the market. By upgrading existing 4G sites to 5G, CSPs can significantly increase network capacity while reducing energy consumption by over 30 percent.

With over 2,200 employees in Estonia, including engineers and experts in AI and machine learning, Ericsson’s presence in the country is substantial. The existing factory in Tallinn holds strategic importance in the global supply footprint, accounting for more than 40 percent of the industrialization of Ericsson’s 5G products.

Tiit Riisalo, Minister of Economic Affairs and Information Technology of Estonia, says: “Ericsson’s decision to establish a high-tech, smart manufacturing and technology hub in the forward-looking Ülemiste City, stands as a prime illustration of the economy’s next generation for Estonia. It serves as a concrete demonstration of Estonia’s commitment to the green transition, our robust ties to emerging technologies, and the creation of an ecosystem that fosters innovation for other companies as well.”

MORE INFORMATION AT:
Ericsson Newsroom
media.relations@ericsson.com  (+46 10 719 69 92)
investor.relations@ericsson.com  (+46 10 719 00 00)

SOURCE:  Telefonaktiebolaget LM Ericsson