Estonian company plans the largest drone factory in the Baltics

Entrepreneurs who have been involved in the sales of drones under the droon.ee brand are planning to build the largest drone factory in Estonia, Latvia and Lithuania with a production capacity of 2,000 drones per day.
In 2023, Ekspress reported how Meridein OÜ, the flagship of Estonian drone sales, saw its quarterly revenue grow more than tenfold in a year, as the war in Ukraine had driven demand for unmanned aerial vehicles to a record high. Ukraine bought up all the drones available on the market, and the company's founder and co-owner Nemo Vunk admitted that there was not enough production capacity in Europe, or even in China, to meet the demand.

Now, a little over two years later, Ukraine has emerged as one of the world’s most powerful drone war powers. They produce most of the aircraft they need themselves and are looking to reach foreign markets. Last year they produced two million drones, and the goal is to produce over five million drones per year.

With the support of Ukraine-oriented business, Meridein has grown so large that it is taking the next step and establishing its own factory here with the Ukrainians.

“Today, it is clear that Ukraine is ahead of Europe in terms of development and quality, but at the same time the price level is acceptable for small countries like ours,” says Eduard Vainu, Meridein’s development manager and one of the carriers of the planned drone factory in the Baltics, who is also one of Estonia’s first drone managers.

For context – compared to top European manufacturers, Ukrainian drones are 4–5 times cheaper, but with largely the same technical capabilities. Together with a Ukrainian partner who produces this type of drone, Meridein Grupp and partners are now planning to establish their own factory in the Baltics.

Which of the three Baltic countries will be the production site has not yet been decided. We will see who offers the best conditions. And once this decision is made, you will not know about it – there is no public information about where the drones will be built, not even with the accuracy of the country.

All that is said is that initially about 200 people will be offered jobs. If the entire production is put into operation in three shifts, then up to 500. Working in three shifts, it would be possible to produce up to 2,000 FPV attack drones per day, in addition to a certain amount of ISR, or reconnaissance drones, but how many, is not disclosed.

Since there is no need to build a separate building, the drone factory lines could be up and running as early as early 2026.

Meridein says that a Ukrainian FPV and ISR partner is key to the entire project, but it doesn't disclose who exactly. Again, for security reasons. It only confirms that it is a world-class manufacturer and the factory would certainly be the largest in the Baltics.

Drone sellers see that there is already a shortage of drones in the world. If you want to buy drones in single or double batches in standard configuration, you will not notice a shortage. However, when batches grow to hundreds or thousands, it becomes more difficult to get them.

A good example is the recent escalation of the India-Pakistan conflict – as soon as tensions between the two countries went into the red, both countries placed large orders for drones.

If a Western drone costs 4,000 euros and a Ukrainian one costs 500 euros, then it is clear which one we should choose explains Aivar Hanniotti

Ukraine continues to need hundreds of thousands, if not millions, of FPV attack drones. Europe, which is rearming, is seeing this from the sidelines and has also placed greater emphasis on drones in its own procurements.

So the men from Meridein believe that there is a market for a large factory, and they are offering an export share of 80–90 percent. They also hope to achieve a major price advantage with the technological developments taken over from Ukraine.

Aivar Hanniotti, the drone boss of the Estonian Defence League, who is dedicated to the plans, estimates that the factory to be created would not be among the three largest in Europe, but certainly in the top 25.

“The main thing to learn from the Ukrainian war is that the West has very cool systems, but if the Western one costs 4,000 euros and the Ukrainian one costs 500 euros, then it is clear which one we should choose,” says Aivar Hanniotti.

Lieutenant Colonel Arbo Probal, who heads the drone sector in the Estonian Defence Forces, confirms that establishing a factory near us would make a significant contribution to the regional defence infrastructure, significantly increase security of supply, operational continuity and support the defence forces' supply capability.

The production will be marketed primarily under the Flycore brand, and once the factory is built, drone manufacturers believe that there will be no other such factory in the Baltic States.

Summary from Eesti Ekspress
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