Estonia has made a significant investment of seven million euros into Frankenburg Technologies, a local rocket manufacturer, through the SmartCap state defense fund. This investment is part of a larger funding round totaling 30 million euros, led by Plural. The capital raised will be utilized to establish rocket production at multiple locations, including the construction of two mass production units in the European Union. It will also ensure the availability of components with long lead times and create production capabilities for rocket engines and warheads within the EU, thereby strengthening regional defense industries.

According to the Minister of Economic Affairs and Infrastructure, Erkki Keldo, this investment reaffirms Estonia's capacity to develop critical defense capabilities not only for its own national security but also for the entirety of Europe. The establishment of production facilities in Estonia’s Pärnu defense industrial park is anticipated to attract high-tech jobs and expertise to the region, thereby enhancing local industrial capabilities. This move highlights the national strategy of fostering technological innovation and self-reliance in defense.

The investment in Frankenburg Technologies showcases Estonia's proactive approach in bolstering its defense sector amid the growing need for enhanced security infrastructures across Europe. As regional tensions rise, the emphasis on developing domestic defense production capabilities reflects a broader trend among EU nations to secure their military supply chains. By facilitating the creation of advanced production capacities and skilled labor, Estonia aims to position itself as a key player in the European defense landscape and ensure robust readiness against potential threats.