Turkish firm ARCA Defense will establish an artillery ammunition factory in Estonia through its local affiliate, in a project valued at approximately 300 million euros ($352 million).
ARCA Baltics Operations will construct the facility at the Põhja-Kiviõli Defense Industrial Park in Ida-Viru County, with production scheduled to begin in 2028.
The project is expected to generate up to a thousand local jobs.
“By establishing the production of large-caliber ammunition, Estonia is taking an important step in developing its defense capabilities and ammunition industry,” Estonian Minister of Defense Hanno Pevkur said.
The factory will primarily produce large-caliber 155mm ammunition, including long-range ammunition.
Ammo Facilities
The Estonian government will allocate a 141-hectare (348-acre) site for the facility and invest up to 10 million euros ($12 million) in infrastructure, including access roads, fencing, and essential utility connections such as electricity, gas, and water.
In addition to 155mm artillery shells, the plant will manufacture mortar rounds of various calibers, as well as 122mm rockets.
Separately, Estonia has signed agreements with four companies — Nitrotol OÜ, Frankenburg Technologies OÜ, Infinitum Strike OÜ, and Odin Defence OÜ — to establish ammunition production facilities at the Ermistu defense industrial park in Pärnumaa County.
These companies will cover a broad spectrum of munitions production, including military explosives, mines and charges, short-range air defense missiles, ammunition components, and plastic explosives.
Production at the park is expected to begin in 2027, with capacity to accommodate two or three additional companies.
