OREANDA-NEWS. May 26, 2014. The Finnish metal producer Mecanova will at the end of this month open a new plant in Parnu, southwestern Estonia that will give work to 30 people.

Mecanova that mostly supplies metal engineering products to the Scandinavian market has a factory also in Finland. Its Parnu plant occupies a 4,000 square meter building near the Parnu ring road vacated in the fall by the electronics manufacturer Efore which relocated production to China.

The consultant Juha Ajakainen said Mecanova moved its plant from Hungary to Parnu because Estonia suits the company better in terms of both logistics and legislation. "Mecanova adapted the existing building to its needs, brought the machinery here and concluded employment contracts with local people," he said.

The Finnish company has a long-term lease agreement with the owner of the building, a German real estate fund.

Finns generally look for premises to relocate production in Tallinn and its environs, the consultant said. Nonetheless, other regions have their own advantages. "Production space in Parnu costs four euros per square meter, in Tallinn the rent is one euro higher on the average and labor is more expensive, too," Ajakainen said.

Mecanova will employ 30 people initially but plans to expand, employing 100 people eventually.