Turkish Firm to Boost Estonia’s Ammo Production With $352M Plant

Turkish defense company ARCA Defense is set to establish a major artillery ammunition production facility in Estonia through its local subsidiary, ARCA Baltics Operations, with the project valued at approximately 300 million euros ($352 million).

The facility will be constructed at the Põhja-Kiviõli Defense Industrial Park in Ida-Viru County, Estonia, on a 141-hectare site allocated by the Estonian government. Production is scheduled to begin in 2028 and the plant is expected to generate up to 1,000 local jobs upon full operation.

ARCA Baltics Operations will primarily manufacture large-caliber 155mm artillery ammunition, including long-range variants, along with mortar rounds of various calibers and 122mm rockets. The Estonian government will also invest up to 10 million euros ($12 million) in supporting infrastructure, such as access roads, fencing, and utility connections for electricity, gas, and water.

Estonian Minister of Defense Hanno Pevkur emphasized the strategic importance of the project, stating that establishing domestic production of large-caliber ammunition represents a significant step in strengthening the country’s defense capabilities and reducing reliance on external suppliers.

The agreement includes provisions allowing the Estonian state to purchase ammunition directly from the facility should it choose to do so. In parallel, Estonia has advanced separate agreements with four other companies — Nitrotol OÜ, Frankenburg Technologies OÜ, Infinitum Strike OÜ, and Odin Defence OÜ — to develop additional ammunition production capabilities at the Ermistu defense industrial park in Pärnumaa County.

ARCA Defense has previously expanded its ammunition manufacturing footprint in Turkey, and the Estonia project marks a key step in the company’s broader European expansion strategy. The initiative aligns with regional efforts to enhance defense industrial resilience amid evolving security dynamics in northeastern Europe.