Filter Manufacturer to Build €10 Million Factory with Capital Mill and Hire 150 Employee
Estonian air filter manufacturer Filter Plus is working with real estate developer Capital Mill to build a new production and office facility in Rae municipality. The new premises will be more than twice the size of its current facility and will create up to 150 new jobs.
Filter Plus, in cooperation with Capital Mill, is developing a new €10 million production and office facility in Rae municipality. Scheduled for completion by the end of 2027, the project will create up to 150 new jobs.
Sander Veanes, CEO and owner of Filter Plus, explained that the company has outgrown its current premises and that the new factory will increase production capacity severalfold. The company aims to double its revenue within five years, primarily by expanding in the Finnish, Swedish and Norwegian markets.
The new 10,000-square-metre production facility will be developed and constructed by Capital Mill, which will retain ownership of the property. Filter Plus will enter into a long-term lease agreement with the developer. According to Capital Mill partner Tanel Samuel, the total investment amounts to approximately €10 million.
“There are many additional costs beyond construction itself, including land, design, utility connections, infrastructure and roads,” Samuel explained.
According to Samuel, the project’s payback period will exceed ten years.
“Real estate is, after all, a long-term business.”
The factory is scheduled for completion at the end of 2027.
Production Capacity to Increase Severalfold
Filter Plus CEO and owner Sander Veanes said that the company began planning its new facility two years ago, just six months after moving into its current premises.
“Our problem today is that our building is too small,” Veanes said. “We have not been able to take on certain types of customers because we simply lack the capacity to fulfil such large orders.”
Filter Plus
Founded seven years ago in the premises of a former fish shop on the Estonian island of Hiiumaa, Filter Plus has grown rapidly and has already operated from six different locations. The company’s business also expanded significantly through large-scale face mask sales during the COVID-19 pandemic.
Filter Plus manufactures ventilation and air filters for both commercial and private customers. The company currently employs more than 100 people. Production operates in two shifts, with some production lines running three shifts.
Filter Plus currently occupies approximately 3,700 square metres of production space. Its ambition is to become one of Scandinavia’s leading and most technologically advanced filter manufacturers.
“We no longer have enough space to install new production equipment or increase production volumes. That is why we decided to build a factory designed from the outset around our needs, while also providing room for future growth,” Veanes said.
The new site will also allow for a potential expansion of an additional 5,000 square metres of production space.
Capital Mill is designing the new building specifically around the requirements of air filter manufacturing. Particular attention is being paid to production efficiency, automation and the smooth movement of raw materials and finished products.
Filter Plus has already introduced robotic production lines at its existing facility, increasing the capacity of one production line by 40%. Veanes confirmed that similar automated systems will also be installed in the new factory.
The new facility will enable the company to introduce additional production equipment and technologies, expand its product range and increase production volumes severalfold. This will also support higher export volumes and faster service for international customers.
Growing Demand for Production Capacity
Filter Plus has demonstrated consistent revenue growth in recent years.
In 2025, the company’s revenue reached €7.58 million, representing an increase of approximately 24% compared with the previous year. Operating profit amounted to €0.66 million.
Veanes forecasts revenue of €8.5 million for 2026 and expects turnover to reach at least €9.5 million in 2027.
Last year, exports accounted for approximately 71% of the company’s revenue, or €5.4 million. Strengthening its position and expanding operations in international markets is therefore a key priority for Filter Plus.
“Our goal is to double the company’s revenue over the next five years. We see the greatest growth potential in Finland, Sweden and Norway, where we aim to significantly strengthen our market position. The new factory will provide the production capacity needed to achieve this,” Veanes explained.
Filter Plus also operates a sales office in Finland, employing eight people. The company recently opened a sales office and warehouse in Stockholm, Sweden, where two employees currently work, with additional recruitment planned.
Filter Plus also intends to establish representative offices in Norway and Denmark in the near future.
“Recruitment will depend on how quickly we grow,” Veanes explained. “Until now, our biggest challenge has been production capacity rather than finding employees.”
Capital Mill Increasing Its Focus on Industrial Real Estate
According to Capital Mill partner Tanel Samuel, industrial real estate has always been part of the company’s investment portfolio.
“Throughout our history, we have been active in all segments: retail, offices, manufacturing and warehouses. We have done it all,” Samuel said.
He explained that the developer’s real estate portfolio is divided into three approximately equal segments.
“One-third consists of office properties, one-third retail properties, and the remaining third industrial and warehouse properties.”
However, under current market conditions, Samuel considers industrial real estate a more promising segment than office development.
“Yes, we are increasingly focusing on industrial real estate,” Samuel said. “Tallinn has developed several well-established business districts, such as Ülemiste City and other areas. Adding new office buildings in these locations may be natural and even inevitable, but developing standalone office buildings today may not be the most attractive option.”
According to Samuel, Capital Mill has several additional industrial property developments in progress.
One example is a new facility for trailer manufacturer Tiki Treiler near Laagri, which is approaching completion. Several other industrial projects are currently in the design phase.
Veanes also pointed out that Filter Plus does not yet manufacture all the products it would like to offer.
“Every new product also requires us to recruit additional employees,” he said.
Although Filter Plus also operates in Germany, Veanes noted that the German market differs considerably from Scandinavia.
According to him, the German market is more volume-driven, whereas Scandinavian customers place greater emphasis on quality.
Veanes sees limited growth potential in Latvia and Lithuania, although Filter Plus also sells its products in those markets.
Estonia currently remains the company’s largest market, followed closely by Norway and Finland.
“Next year, our exports to Finland will probably already exceed our sales in Estonia,” Veanes said.
New Factory to Create 150 Jobs
Filter Plus currently employs approximately 100 people. The new production facility is being designed to accommodate up to 250 employees as the company grows.
This means the factory will create the potential for up to 150 additional jobs.
Veanes explained that the company already has an in-house recruiter responsible for recruitment. Once large-scale hiring for the new factory begins, the recruitment team will likely be expanded.
Filter Plus also has its own engineering team, which develops robotic and automated production lines specifically for the company’s manufacturing processes.
“We currently have four different production lines under development,” Veanes said.
New Factory Developed in Partnership with Capital Mill
Filter Plus is developing its new production and office facility in cooperation with Capital Mill.
“For us, it is essential to have a partner who understands the specific requirements of our production processes and our long-term growth plans. In Capital Mill, we have found a partner who can help us turn these plans into reality,” Veanes said.
According to Capital Mill partner Tanel Samuel, the new Filter Plus factory is a strong example of how purpose-built real estate development can support the growth and export competitiveness of Estonian industry.
“Our goal is to develop buildings that support our clients’ business operations both today and in the years ahead. In the case of Filter Plus, the key priorities are carefully planned production and logistics solutions, together with the flexibility to expand manufacturing capacity in the future.
We are pleased to work with an Estonian company whose ambitious growth plans give us the opportunity to create a modern manufacturing environment tailored specifically to its needs,” Samuel said.