Feasibility study for an Estonian Materials Technology Programme

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Feasibility study for an Estonian Materials Technology Programme
2. Materials technology in Estonia
Case: Pioneer Engineering Group
Background
The Pioneer Engineering Group (P.E.G) is the representative marketing organization for the connected
supply network for the subcontracting output of Estonia’s metal and machine building industry.
They find export orders for cluster members and offer consolidated services to members as well as
the parties who order. The members are companies with a specific distinct resource matrix which covers
the technical capacity of all machine construction and metalworking machine parks available.
There are plans to include Finnish companies in the PEG network, P.E.G. employs 3 persons focusing on financing,
legal and operational activities. They also do some joint R&D projects.
Aim is to grow bigger, create more partnerships, expand the network of companies to provide better supply
chain and to get higher level machine building cases to Estonia. Their business potential is bigger (abroad),
but local presence takes resources. Target markets include Finland, Sweden, Germany. Export ranges from 0 to
100% depending on the case.
The companies make contract type manufacturing for machine building customers. P.E.G. provides customers
as wide a selection of their own production components as possible, with the opportunity to order everything
from one location.
Target customers are active in fields like:
R&D
Design and building of various industrial machinery and equipment (mining, construction, material processing,
automotive, energetics, lifting-conveying)
Furniture and interior, with the top quality steel, plastic and wooden component
Manufacturing of products requiring automated machinery and production lines, quality assurance
equipment, jigs and fixtures.
R&D now < 1% of turnover. They would like to make more R&D (to lower the risks, “fail quick & learn“).
Examples of some small-scale R&D made: To find correct materials for specific purposes (case: plastics comparable
to aluminum); Fixture for military application, replacing a part which is imported; Plastics for mining
industry (wear, chemical resistance, machining) – Eksamo company made the mold, another company a specific
polyurethane material, customer ready.
University-Company collaboration
Some co-operation with Tampere University of Technology/Plastics, Finland. Tallinn TU is known, but it is a bit
distant. It seems that the needs and offering from universities do not match at the moment. The companies
have ideas and would be ready to participate. “The economy needs scientists who can jump from one project
to another“. P.E.G. has applied EAS funding but were rejected.
Lessons learned/key success factors from the interview
small companies have resource problems (competence, equipment, scale/big machining cases), together
the P.E.G. group can take bigger cases, provide a wider offering and find customers
contract manufacturing often making only components; wish towards higher level assemblies
needs of these companies and the offering of universities do not match – also faster, more solution
oriented R&D projects should be done and tunded
Contact and more information: Andres Soojärv, CEO, asoojarv@peg.ee