Turkey firm, ARCA Defence will establish a high-output ammunition production facility under the name “ARCA Baltic” in the Põhja-Kiviõli defence industrial zone in Estonia.
The fully integrated production line will mass produce 155mm M107 artillery ammunition, 60mm, 81mm and 120mm mortar systems, and 122mm rockets (with a range of 20 km).
Within the scope of the program, which has an investment of approximately 300 million euros, the facility is planned to start production in 2028.
Estonia will allocate 141 hectares of land in the Põhja-Kiviõli defense industry zone to ARCA Defence.
Under the agreement, Estonia will have direct access to ammunition produced on request. Besides meeting Estonian deman, the factory will export its production to European and allied nations.
The program is planned as an integrated facility encompassing not only the production line 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-defect production model to the Estonian region.