Birger, Northern Europe's premier manufacturer of hooklift containers and steel structures, has unveiled plans to significantly expand its operations in East Estonia with a new €2.3 million production facility in Kohtla-Järve. This initiative is supported by a substantial grant from the Just Transition Fund (JTF), an EU funding mechanism designed to aid regions facing the twin challenges of economic transformation and meeting stringent climate goals.
Situated in Ida-Virumaa, a region historically reliant on the oil shale industry, the new facility aims to leverage the area's €340 million allocation from the JTF. Birger, a subsidiary of Finland’s Fincumet Group, is a key player in the steel industry, currently employing over 200 people and exporting more than 90% of its products from its base in Jõgeva County.
The expansion into Kohtla-Järve involves constructing over 6,500 square meters of new production and storage space. Tarmo Toomela, a member of Birger's management board, emphasized that the new facility is crucial for increasing the company's exports, turnover, and profitability. He noted that this expansion could accelerate product development that might have otherwise taken years without JTF support.
In addition to boosting production capacity, Birger is committed to enhancing workplace standards by implementing a new occupational health and safety management system within the year. The expansion is expected to generate at least 15 new jobs by 2026 and aims to optimize production processes through digitalization, automation, and the potential integration of artificial intelligence.
Toomela highlighted that 98% of the production from the new unit is projected to be exported, primarily to Scandinavian markets, reinforcing Birger’s role as a major exporter in the region.
Sigrid Harjo from Enterprise Estonia praised Birger's initiative as a model for how manufacturing companies can expand into Ida-Viru County with JTF support. She encouraged other businesses operating in or considering expansion to the region to explore the opportunities provided by the JTF, citing the unique advantage of developing on a larger scale and at a lower cost compared to other locations.