Turkey-based ARCA Defence will establish a large-scale ammunition production facility in the Põhja-Kiviõli defence industry zone in Estonia, under the name “ARCA Baltic.”

As part of the program, which involves an investment of approximately €300 million, the facility is planned to begin production in 2028. The fully integrated production line will manufacture 155mm M107 artillery ammunition, 60mm, 81mm, and 120mm mortar systems, as well as 122mm rockets with a range of 20 km.

Estonia will allocate a 141-hectare (1.41 million m²) site in the Põhja-Kiviõli defence industry area for ARCA Defence.

Under the agreement, Estonia will have direct access to the ammunition produced upon request.

The program is designed as an integrated facility covering not only production lines, but also infrastructure, equipment, and ammunition storage capabilities.

ARCA Defence aims to strengthen its position in the international defence supply chain by bringing its zero-error production discipline to Estonia.

The company is positioning itself to meet the growing global demand for 155mm, 152mm, and 122mm ammunition.

ARCA Defence is an integrated defence industry company producing artillery ammunition, mortar ammunition, multiple launch rocket system (MLRS) munitions, and small-caliber ammunition components tailored to the needs of modern warfare.

Source: ULUSAVUNMA.COM