Minister of Defense Hanno Pevkur stated that the Turkish company ARCA will start producing ammunition in Estonia. Last week, Pevkur asked ARCA owners what they plan to do in Estonia.
The factory will be built in Estonia as quickly as possible. ARCA requires various permits, such as explosives and firearms licenses. After obtaining the construction permit, the factory will be completed within 12 to 14 months. The factory will produce medium and long-range 155mm artillery shells.
ARCA plans to create up to a thousand jobs in Estonia. Most workers will be hired locally, but experts from other countries will also be brought in.
Three weeks ago, it was revealed that ARCA is building a large shell factory in Põhja-Kiviõli. Some speculated that the Turks would produce short-range ammunition for export. Pevkur stated that ARCA owners confirmed in writing that they will produce long-range ammunition in Estonia.
Pevkur added that Estonia currently does not have a contract with ARCA to purchase ammunition. If the price is suitable, Estonia will also buy locally produced ammunition.
Chairman of the committee Urmas Reinsalu said that ARCA plans to produce 122mm rockets as well. Pevkur responded that ARCA will produce what is stated in their contracts. ARCA confirmed in writing that they will produce long-range 155mm ammunition for the European and US markets.
Pevkur recommended ending speculations and focusing on the investment that will bring nearly a thousand jobs to Estonia and a factory that produces the ammunition needed by the Estonian Defense Forces.
Chief of Defense Andrus Merilo said that the Defense Forces need long-range ammunition. Short-range ammunition is of no use. Merilo added that the need for long-range ammunition exists within the Estonian Defense Forces and is crucial during crises.
The Ministry of Defense announced that ARCA Baltics Operations will produce 155mm artillery shells in Põhja-Kiviõli. The investment is approximately 300 million euros. The factory will create up to a thousand jobs, and production will begin in 2028.