- ARCA Savunma will build a $352 million ammunition plant in Estonia’s Põhja-Kiviõli zone, with production scheduled to begin in 2028.
- The facility will produce 155mm M107 shells, mortar ammunition, and 122mm rockets, with Estonia granted direct access to output upon request.
Turkey-based ARCA Savunma plans to build a large ammunition production facility in Estonia’s Põhja-Kiviõli defense industry zone, with production expected to begin in 2028 under a program valued at about €300 million ($352 million).
The project, named “ARCA Baltic,” will establish a fully integrated manufacturing site capable of producing several types of munitions in large volumes. Plans for the facility include the production of 155mm M107 artillery shells, along with mortar rounds in 60mm, 81mm, and 120mm calibers. The site will also manufacture 122mm rockets with a range of up to 20 kilometers, covering a range of ammunition used across modern land forces.
Estonia has allocated 141 hectares of land in the Põhja-Kiviõli defense industrial area to support construction of the facility. The agreement gives Estonia the option to access ammunition produced at the site if needed, linking the project directly to the country’s defense supply needs.
The facility is designed as a single, integrated complex that will handle production, storage, and supporting infrastructure in one location. This setup is intended to streamline manufacturing and reduce reliance on external logistics by keeping key processes within the same site.
ARCA Savunma says it will apply its “zero error” production model at the Estonian plant, aiming to maintain consistent output standards as it expands into the region. The company produces artillery, mortar, and rocket ammunition, along with smaller-caliber components, and is positioning the new facility to support growing demand for these systems.
The types of munitions planned for production are widely used on today’s battlefields. The 155mm M107 shell is a standard high-explosive round fired by many NATO-compatible artillery systems. Mortar rounds in the 60mm, 81mm, and 120mm categories are commonly used by infantry units for indirect fire support at shorter ranges. The addition of 122mm rockets brings in another category of munitions typically used with multiple launch rocket systems for rapid strikes over wider areas.
For Estonia, the project strengthens local industrial capacity tied to defense needs. Having access to domestically produced ammunition can reduce dependence on external suppliers and provide more flexibility in maintaining stockpiles.
Construction and setup of the plant are expected to take several years, with production scheduled to begin in 2028. The scale of the investment and the size of the site point to a long-term industrial presence in the region.