The Turkish-owned ARCA Baltics Operations company will build a 155mm artillery ammunition production plant in Estonia.
ERR reported on this.
The new facility will be located in the Põhja-Kiviõli Defense Industrial Park in Estonia.
The total cost of the project is €300 million. The company will invest its own funds in the construction of production infrastructure, equipment, and warehouses.
The plant is expected to become operational in 2028 and create up to 1,000 jobs. The company plans to produce 155mm artillery shells, including long-range versions, mortar shells of various calibers, and 122mm rockets.
Within the agreement, Estonia will provide a 141-hectare land plot and invest up to €10 million in developing logistics, energy networks, and communications. The agreement also provides for priority procurement of ammunition for the Estonian military.
ARCA Baltics Operations is linked to the Turkish defense group ARCA Defense, whose exports exceeded €3 billion last year.
ERR previously reported that Sweden’s BAE Systems Bofors could instead build the new large-caliber ammunition plant.
In March, South Korean defense company Hanwha Aerospace announced a €100 million investment in Estonia’s defense industry.
The project includes the construction of a 40mm ammunition plant with an investment of €25 million. According to the plan, the joint venture with local companies will be able to produce more than 300,000 shells per year.
A service and repair center for equipment is also planned, along with expanded cooperation with Estonian defense companies in research and development.
Estonian Defense Minister Hanno Pevkur said the investments are part of the contract to purchase Chunmoo multiple-launch rocket systems.
