Hexest Materials AS, a 100% state-owned entity under Estonia’s Ministry of Defence, has officially launched a strategic investor search for the construction and operation of the Baltic region’s first RDX military explosives production facility.
The decision to proceed with the strategic investor search was made public on the 10th of April, with a press release issued by the Ministry of Defence (Link) that includes commentary by the Minister of Defence Hanno Pevkur and Management Board Member of Hexest Materials Randel Veerits.
“The Government of Estonia sees the development of an RDX military explosives production facility as establishing strategic production capability. The time is right to take the next steps in the development of Hexest Materials. In search for a strategic partner, we are looking towards manufacturers of military explosives, ammunition, or weapons systems operating within our allied and partner countries. The expertise of the future partner will enable Hexest Materials to successfully enter the defence sector, be competitive, and generate revenue,” said Hanno Pevkur, the Minister of Defence of Estonia.
“Hexest Materials’ focus in recent months has been on negotiating with a key technology partner, while at the same time we have refined our business plan and expanded our core team. We have made preparations to attract a strategic investor. We are moving at a good pace to reach our target of starting explosives production in 2028,” said Randel Veerits, Member of the Management Board of Hexest Materials.
The Government of Estonia is offering a 49% stake in Hexest Materials, while retaining majority ownership post-transaction. The GoE has already deployed substantial development capital into Hexest and a preferred technology partner has also been selected for the facility.
The project comes against a backdrop of growing pressure across Europe to establish domestic energetics production capacity. EU member states have faced persistent shortfalls in military-grade explosives and munitions output since 2022, prompting a broader push to reduce dependence on 3rd party supply chains for critical defence inputs. Estonia has yet to anchor a large-scale domestic defence manufacturing base, despite significant national and allied defence spending commitments, leaving a clear gap that Hexest Materials is positioned to address.
Further information on the strategic investor process can be found on the website of Estonia’s official state gazette Ametlikud Teadaanded (Link to Gazette) and within the Hexest Materials website under the subsection For Investors.
