Electronics and Optics

This is an historical sector in Estonia, with long traditions dating back to 1907, when the first telephone factory was established. The production of electrical and optical equipment has been one of the most rapidly developing industry sectors in Estonia. The sales revenue of the enterprises in this sector has more than doubled over the last five years.

 The sector is strongly oriented towards the export markets and the majority of the larger enterprises are based on foreign capital. There are approximately 200 enterprises operating in the production of electrical and optical equipment.

The sector is dominated by local small-scale companies; however, there are also a number of subsidiaries of international corporations, which are mostly oriented towards subcontracting for exports. Nearly ¾ of electronics output is exported.

The production of electrical and optical equipment is largely characterised by geographic concentration in Tallinn and the immediate vicinity and that has a significant effect on regional development. This sector has been one of the largest creators of new jobs in Saaremaa, Pärnu, Sindi, Elva and Koeru.

The production of electrical and optical equipment is divided into two sub-sectors. The largest enterprises in the production of computers, electronic and optical equipment include Ericsson Eesti AS (production of communication network equipment), Enics Eesti AS (electronic components for industrial and medical equipment), OÜ JOT Eesti (automated equipment) and the largest computer producer is AS Ordi. Unlike the overall orientation of the sector, the sales of computers are mainly aimed at the domestic market. The largest turnover in the production of electrical equipment and devices is generated by ABB AS, the main field of activity of which is the production of power distribution equipment and generators. Other larger companies include AS Konesko (electrical engines and equipment), Harju Elektri Group’s associate AS Draka Keila Cables (aluminium cables) and ENSTO ENSEK (power distribution equipment and control devices).

The average sales turnover of the sector was 173 million EUR in the first half of 2009.

The average export turnover was 134 million EUR. In the first half of 2009, export was divided between the main export countries as follows: Sweden (42%), Finland (25%), Germany (7%), Denmark (6%), Holland (2%) and USA (2%).