Estonian real estate developer Reterra and International Aluminium Casting (IAC) have completed an expansion of IAC’s aluminum plant on Vaksali Street in Tartu. The expansion has effectively doubled the plant’s size from 4,500 to 9,000 square meters, leading to a nearly 25% increase in the number of employees at the Tartu facility.
Dan Nilsson, CEO of IAC Sweden, highlighted the strategic importance of the Tartu plant for the company’s growth, citing the advantageous location and Estonia’s stable economic environment as key factors in their decision to expand in the region.
Reterra had previously acquired the IAC facility in Tartu in 2023 through a sale-and-leaseback deal, a relatively uncommon transaction where the property is sold but the original owner continues to lease it as a tenant. Reterra CEO Reigo Randmets noted the significance of this deal, particularly given the current challenges in the real estate market.
The expansion was carried out by Mapri Ehitus, a construction company whose CEO, Tarmo Roos, remarked on the continuous development and expansion efforts seen in industrial companies, despite broader concerns about an economic downturn. Roos emphasized that doubling the plant’s production space would not only increase revenue but also create new jobs and contribute to the strengthening of the Estonian economy. 
