In relation to the new development strategy approved by the Ministry of Road Transport and Highways of the Estonian Soviet Socialist Republic in 1956 that established the focus of modernising the local road network within ten years, the Tallinn Road Administration had to urgently find a site for the industrial base required in order to implement the strategy. The first item on the agenda was constructing an asphalt concrete plant.

In the Soviet era, the operation of a construction organisation without the company's own thoroughly developed industrial base was inconceivable. Gunnar Laev, Chief Engineer, was therefore tasked with urgently finding a site that would be suitable for producing asphalt concrete.

As one of the essential prerequisites for establishing the industrial base was the proximity of the railway, two options were on the table: Lagedi and Riisipere. The final decision was made in favour of Lagedi. Planning and designing the industrial base began in 1959. The first batch of production was received from the Lagedi asphalt concrete plant in 1961 and it was used for the Tallinn-Tartu highway. Lagedi asphalt concrete plant was the third such plant launched in Estonia in addition to Pahnimäe and Toila.