Estonia, a hub of arms start-ups. A chance for Poland?

Thanks to an invitation from Trade Estonia (part of the government agency Enterprise Estonia), a group of Polish journalists (including the author of this article) had the opportunity to learn more about the local arms industry and the country itself. Recent years have seen an accelerated development of the local defense sector, which, influenced by the experiences of the war in Ukraine (but also the hacker attack in 2007), is constantly increasing its potential. We are talking about the growing number of companies involved in production for the military, greater production capacity and increasing revenue from the sale of solutions manufactured there. As a result, larger defense companies, as well as armies of many countries, are increasingly looking in this direction, looking for solutions and partners that meet their needs. Will the Polish defense industry be one of them?

The startup hub

The Estonian arms industry is diametrically different from what we know from, for example, our own backyard. There are no large industrial plants like WZM or HSW, but rather much smaller enterprises located in theoretically unremarkable buildings among residential estates or in former industrial plants that no one had an idea for after 1991. However, this does not mean that this is a sector of no importance for the country or region. Some of the solutions that have been developed and are currently produced there are used in several solutions known to us, or are part of the equipment of the Armed Forces in several European countries.

The Estonian arms sector is in fact a real start-up hotbed, the aim of which is in many cases to find a niche and build their potential within it. Currently, we are talking about over 130 such companies, and this number is growing year by year. This is due to the general characteristic of the Estonian economic sector, in which there are as many as 1,107 start-ups per million inhabitants, which is the highest result in Europe (for comparison, in Poland it is only 90 such companies per 1 million inhabitants). This creates a market for many innovations, which are often just waiting for an invitation to cooperate with larger players, so that they can show their uniqueness on the market.

This could be an opportunity for our industry, among others, which would acquire not only new technologies for its products, but would probably also find valuable partners. Such cooperation would allow for dynamic mutual development, which would translate into greater uniqueness of the products created within it. Moreover, Estonians are a leading nation in the field of cybersecurity, so cooperation with them in this matter would be very useful in order to exchange experiences, learn certain solutions or even acquire them in order to increase the protection of our country. So what did the Estonian industry show the Polish delegation?

CybExer

The first Estonian company we saw was CybExer, a representative of the rapidly developing cyber sector in Estonia. Like other companies in this area, it sees its driving force in the events of 2007, when Estonia became the first country attacked in cyberspace for political reasons (DDoS). CybExer is a company focused on many types of activities in this area, becoming an important player in the region and beyond in recent years. It focuses on issues related to software, cybersecurity, cloud services, digital transformation, artificial intelligence, cybercrime and certification in the broad sense.

The company conducts a number of training courses aimed at not only teaching things in the field of cybersecurity, but also finding loopholes in already created software, thus constantly improving it. This allows for broad cooperation with state and private users, who can thus not only gain new skills in many areas of the cyber domain, but also test their existing skills. This is possible because it also conducts certification. In addition, it participates in research and development work in areas such as satellites, the 5G network, drones and systems combating them, energy networks and smart cities.

In terms of training and exercises, they are designed to prepare people participating in them for many types of threats that they may encounter in the cyber domain. This involves testing many variants of the environment in which the user will operate. What’s more, 7rma allows for practicing the ability to carry out counterattacks on a potential aggressor (of course, all within a system specially prepared for this). This is an important element of operations, for example, in armies dealing with cyberspace, whose goal is not only to defend, but also cannot exclude their own attacks. In this respect, cooperation with Poland would be possible as part of exercises with our Cyberspace Defense Forces or students at military universities such as WAT.

CybExer has gained a reputation in Europe (and beyond) by establishing cooperation and providing its services and technology to organizations such as ESA (European Space Agency), CCDCOE (NATO Cooperative Cyber ​​Defense Center of Excellence), Swedbank, European Defense Agency and NATO Communications and Information Agency. Over the last years, the company has gained customers and partners in countries such as Ukraine, Estonia, Sweden, Luxembourg and India. The company is valued both on the civilian and military market, constantly increasing the number of partners and customers. Currently, it is strongly operating within the protection of the banking sector, which only shows the trust it has been given.

DefSecIntel

The next company we had the opportunity to see is DefSecIntel. It deals with, among other things, providing solutions that increase the user’s situational awareness. This applies to both software and hardware issues. We were shown some of the products offered by this Estonian company, including a universal armoured towed platform, which some readers may be familiar with thanks to the SurveilSpire reconnaissance systems transferred to Ukraine. It can be the basis not only for the aforementioned solution, but also be adapted to other types of tasks, such as acting as a base for unmanned aerial systems. Interestingly, the aforementioned SurveilSpire system was supposedly observed by representatives of our Border Guard at some point in time in terms of possible use on the Polish-Belarusian border.

Considering that it allows for the detection and recognition of various types of threats, including drones, both during the day and at night, such a system could be a valuable support for our border guards. In addition to the cameras placed on the foldable mast, the system can be equipped with mini drones in a quadcopter system with autopilot and a command and control system. The operation of the entire platform is fully automated, allowing it to be used as a kind of mobile observation station. The system allows for data transmission via wireless links, e.g. using Starlink, which allows for image transmission to a mobile command station. This allows for a significant increase in the safety of the person responsible for observing a given area, compared to older, typical guard facilities. The entire system is powered by solar panels, providing it with significant independence.

At the plant, we were also able to see the Caiman reconnaissance system, which was based on a civilian Ineos Grenadier 3.0 off-road vehicle. It was equipped with several types of cameras and sensors, allowing for a significant increase in situational awareness of officers or soldiers inside it. Observation is carried out thanks to a reconnaissance head extending above the roof of the vehicle, which can transmit images in both visible light and thermal imaging.

Using a civilian car as a carrier here allows for maintaining discretion in operations, e.g. in urban conditions, where it does not differ from other vehicles in the vicinity. Of course, other brands of cars can be used as a carrier here, such as Ram Trucks, of which there were many in the plant (and in Tallinn itself). The cost of such a solution (depending on the carrier, of course) is about several hundred thousand euros.

It was mentioned to us that until recently, the plant had a Bandvagen family all-terrain vehicle (probably Bv206). The manufacturer’s website shows that it was used as a base for an ultra-short-range anti-aircraft system that uses interceptor drones or GPS jamming to combat targets. Returning to the 7th company itself, it prides itself on using AI in its solutions. This is to facilitate many processes, speed up their implementation and gain new capabilities. As we know, tasks related to reconnaissance or patrolling an area often require noticing small elements, so AI support here can be invaluable.

Threod Systems

Day two of the visit to Estonia began with a visit to Threod Systems, a company located near the coast. The company specializes in the production of unmanned aerial vehicles and optoelectronic heads. The former are made using very light materials such as carbon fiber, which are also very durable. This allows the drones to have a low net weight with good flight properties. Most of them have a modular design that allows for quick assembly and disassembly for transport.

What’s more, both of the drones shown to us (STREAM C VOLT and EOS VTOL UAS) can have different types of drive and wings, allowing them to take off into the air using a pneumatic launcher, classically „from hand”, but also on their own thanks to the lifting rotors in the quadrocopter system (which are switched off after reaching the appropriate height). In the case of the first mentioned drone, it is a structure launched from a CATA launcher with a wingspan of 3.9 meters and a length of 230 cm. It can stay in the air for over 6 hours, flying at a speed of 80-130 km/h, depending on the needs.

EOS VTOL UAS is a much smaller caliber design with a wingspan of 5 meters and a length of 180 cm and a weight of only 14 kg. It allows patrolling the indicated area for over 3 hours at a speed of 60-90 km/h. The signal range is specified at 30-50 km depending on the type of transmitter. Both designs complement each other in terms of fulfilling patrol and reconnaissance tasks, especially when the smaller one has wings with additional rotors. They are successfully used to patrol the borders of Estonia, e.g. the one with Latvia

And here we come to the second specialization in the form of optoelectronic heads. The lightest of them in the 7rm portfolio in the form of the eOPIC-5 model weighs only 1.5 kg and can be used in many types of drones. Its very low weight combined with the good quality of the image provided makes it unique on the market (competitors« solutions are heavier, so they cannot be used as widely with small drones). In addition to it, 7rm has larger models in the form of the eOPIC-8LD and eOPIC-8 weighing less than 6 kg intended for larger structures.

Maru Defence

Another company that the author had the opportunity to see is Maru Defense, which is one of the key producers of container solutions for the region. We are talking about solutions for both the civilian and military markets. This type of construction is very useful in various types of activities, starting with creating a temporary location for the army or shelter for civilians during natural disasters. As shown by the activities on the Polish-Belarusian or Lithuanian-Belarusian border, it is often necessary to create a large-sized residential base for soldiers and officers delegated for the crisis in a short time, because the existing infrastructure is not prepared for it. Otherwise, it ends in great improvisation, which unfortunately we saw on our border with Belarus.

On the area of ​​3,800 square meters, various types of structures based on 20 and 40-foot containers are designed and manufactured. Thanks to the systematized layout of the plant and appropriately prepared supply chains, the company can increase its production capacity. Currently, work is underway to create a new, larger plant with an area of ​​6,300 square meters, which shows what order of magnitude the company can talk about. The containers produced by the company can be combined to create really large residential or utility complexes up to 2 floors high. In this case, they are installed on concrete foundations, the connections between the container modules are sealed to be resistant to weather conditions.

Maru Defence designs are purchased by the armies of the Baltic countries (including Estonia, of course) and Scandinavia, where it has gained a reputation as a company that meets all expectations. When asked how long it takes to create a new type of utility container (including the design phase), we learned that it is about 3 months for a civilian solution and about 5 for the army. This allows for quick creation from scratch or adaptation of current designs to the requirements of the ordering party, who wants to have, for example, a mobile communications center, command center or field hospital. Importantly, their disassembly from the transport position to the functional position does not require a large number of personnel and time.

Milrem Robotics

The journey ended with a visit to probably the most recognizable Estonian company in the world (although most of its shares are currently owned by the EDGE Group operating in the United Arab Emirates), Milrem Robotics. This dynamically developing company has gained fame on the market in recent years for its unmanned tracked platform THeMIS, which has found its way into the armament of several countries, including Ukraine, Estonia, India, Sweden, the Netherlands and Thailand. In addition, there are many countries that are currently considering acquiring it as part of local or international programs for the purchase of unmanned ground platforms. It is undoubtedly the company’s „workhorse” and is constantly increasing the number of users.

What made THeMIS a success? First of all, it is a universal design that can be easily adapted to many types of tasks. These include logistic, support, and strictly combat tasks. The unmanned vehicle is powered by a hybrid drive, which is located on its side parts together with the control module. Between them, there is a platform that can be used to transport cargo or special equipment, and even barrel and missile weapons. The vehicle can operate for up to 15 hours, including 90 minutes in silent mode (on electric motor only). The unmanned vehicle’s maximum speed has been set at 80 km/h with a curb weight of 1630 kg.

Thanks to its recommended payload of 750 kg (maximum 1200 kg), it can perform a number of tasks, significantly reducing the burden on soldiers. This includes missions such as transporting ammunition and equipment, evacuating the wounded, conducting reconnaissance, clearing land mines or providing fire support. It can therefore be deployed to highly difficult operations without endangering the lives of soldiers. Such capabilities, as the war in Ukraine has shown, are often essential on the battlefield. This is also evident in the purchases of subsequent armies of the world, which decide to sue land unmanned platforms of various sizes.

We were also shown the preserved first prototype of the THeMIS, which, in comparison to the already „old” 3rd generation, showed what changes had occurred in this design. Many of them were visible from the outside, showing what changes over the years (although not many) this vehicle had undergone. We are talking about the type of drive covers, front track covers and the refinement of the whole within the rather neatly collected components (which are always easy to access). Interestingly, the cost of creating the first drone was around 100,000 euros. Currently, its 5th or 6th generation is being produced, allowing for increasing its capabilities and reliability. This allows for the creation of further specialist variants, which fit into individual battlefield niches.

On the premises of the plant, apart from many THeMIS in various stages of production, we could also see the currently largest unmanned platform from the 7th company’s portfolio in the form of Type-X. Its size is not inferior to many manned vehicles, which allows it to accommodate much more equipment and weapons. An example of this is the John Cockerill CPWS II unmanned turret or the Norwegian Kongsberg RT40. The vehicle can be equipped with other types of weapons such as anti-aircraft or anti-tank missiles and a mortar. Therefore, like THeMIS, it is a structure that can be quickly adapted to various types of tasks on the battlefield.

The production plant itself was created with the idea of ​​quickly adapting production capacity to needs. Appropriate design of the interior space, along with ordering necessary components in advance, is to allow for a quick increase in efficiency. All components used in the production of the drone are delivered to the company by trusted subcontractors. Currently, the company is focusing on fulfilling, among others, an order for the needs of Ukraine, which has become the largest user of the THeMIS platform. If it receives an appropriate number of orders for the aforementioned platform, the company can increase its efficiency to several hundred units per year with its current facilities. The company recently opened its office in Warsaw, declaring its willingness to cooperate with Polish companies in order to find new areas for cooperation.

Is Estonia the door for Polish industry in the region?

The Estonian arms industry is very keen to cooperate with its Polish counterpart, seeing how large and promising a market we are. The needs of our army exceed many times those that could be produced by all the Baltic countries combined, so it is no wonder that it wants to be part of the ambitious and very difficult process of technical modernization of our army (and not only). This invitation should be accepted and considered in terms of cooperation not only within individual orders, but the entire cooperation platform. The benefits go both ways here, because cooperation with Estonian manufacturers also opens up new prospects for the Polish industry in the region, not only the Baltic countries themselves.

The effects of cooperation can certainly compete on the European and global market, often offering users solutions that are not only technologically good, but also cheaper than those produced in other parts of the continent. Such action would fit into the intra-European industrial cooperation, which is so strongly fought for in the latter. The power of our country’s breakthrough and production capacity combined with the Estonian innovation market and specialization in niches can bring measurable economic, industrial and political profit.