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Elcoteq Expands Tallinn, Estonia Plant
August 30, 2004 |Estimated reading time: 1 minute
Espoo, Finland — Elcoteq Network Corp. has expanded its second manufacturing plant, Tallinn 2, in Tallinn, Estonia.
Between Tallinn 1 and Tallinn 2, Elcoteq will employ nearly 3,200 employees and maintain 42,000 sq m of factory space in Tallinn, roughly the size of six football fields. The expansion was needed because of growth in demand for communications network equipment products and an increase in Elcoteq's business and customer portfolio. The total investment including the equipment and current assets was 40 million euros.
The official opening of the expanded facility took place on August 25, 2004, presided over by Estonian Prime Minister Juhan Parts and Antti Piippo, chairman of the Board and principal owner of Elcoteq Network Corp. Other government officials in attendance included Minister of Economic Affairs and Communications Meelis Atonen and former Prime Minister Mart Laar.
Elcoteq Tallinn has been the largest exporter in Estonia since 1994, with a 14 percent share of exports in 2003, according to the Estonian Statistical Office. With the expansion, the floor space in Tallinn 2 will double from 9,000 to 18,000 sq m. From January through August 2004, the number of employees in Elcoteq Tallinn increased 880, from 2,280 to 3,160, and will continue to increase in the third quarter of 2004. "
Production in Estonia focuses on two main business areas. Terminal products includes mobile phones (parts, modules and accessories); wireless modules; and home communication products. Communications network equipment includes GSM base station modules, cellular networks, antennas, broadband switches and routers, and optical devices. Elcoteq also will provide design, new product introduction (NPI), manufacturing, supply chain management, inbound and outbound logistics, purchasing, and after-sales services.
Elcoteq began pilot production in Estonia in 1992 with 12 employees. The company was established as a legal entity in March 1993. The GSM factory level repair center started in 1996. In 1997, Elcoteq's Tallinn plant was the first electronics manufacturing services plant in the world to start volume production of complete mobile phones (box build). An NPI Center was established in 2000, and the Tallinn 2 plant was opened in 2001 with an expansion just completed. Elcoteq Network Corp. is the largest European electronics manufacturing services (EMS) company and focuses on communications technology products. For more information, visit www.elcoteq.com.