Estonia approves €150 million explosives plant in Piirsalu to boost NATO supply

The cabinet signed off on a national designated spatial plan that creates a defence industry park in Piirsalu, within Lääne-Nigula Municipality, and earmarks more than €6 million for the park’s core infrastructure. State-owned Hexest Materials will construct an RDX explosives plant, with a projected €150 million outlay and an anticipated start of production in 2028, which is expected to provide about 75 jobs. Defence Minister Martin Herem highlighted the strategic need for domestic explosives amid the war in Ukraine and one outlet NATO shortage, noting the plant will also raise local tax receipts.

The plan incorporates strict environmental and safety measures, including the purchase of a sealed incinerator to avoid open-air waste burning and continuous monitoring of the Piirsalu River and nearby drinking-water wells in cooperation with the municipality. The Ministry of Defence will also support local infrastructure, such as a pedestrian-bicycle path along the Risti-Kuijõe highway and the creation of a community resilience centre and public shelter. Piirsalu joins Ermistu and Põhja-Kiviõli as sites with approved defence industry spatial plans, while planning continues for the Aidu area.