Estonia secures €300M deal for new large-caliber ammunition plant
Estonia has reached a deal to build a €300 million factory for large-caliber ammunition. The agreement involves a Swedish defence firm, though its name remains undisclosed for now. Defence Minister Hanno Pevkur confirmed the partnership with a manufacturer specialising in 155-millimetre shells.
The factory will produce 155-millimetre ammunition, a key type used by modern artillery. Minister Pevkur announced the agreement but did not reveal the company's identity. Officials will disclose the manufacturer's name only after the contract is signed in mid-April.
Two of Sweden's biggest defence firms are Saab and BAE Systems Bofors. The chosen manufacturer is neither South Korea's Hanwha Aerospace nor the US giant Lockheed Martin. Despite the pending signature, Estonia will continue preparatory work on the project. The deal ensures the factory's development stays on track. No delays are expected, even as final details are confirmed in the coming weeks.
The new facility will boost Estonia's ammunition production capabilities. Once operational, it will supply 155-millimetre shells for both domestic and international defence needs. The formal contract signing in mid-April will mark the next step in the project's progress.
