Turkish defense firm ARCA to build 155 mm artillery shell plant in Estonia

Turkish defense company ARCA has received an operating permit for a large-caliber ammunition plant in Estonia's Põhja-Kiviõli defense industry park, where it plans to invest €300 million and start production in 2028.

Estonia's Centre for Defence Investment has chosen Turkish defense company ARCA to build an ammunition plant in the Põhja-Kiviõli defense industry park in the country's northeast, Estonian public broadcaster ERR reported.

ARCA Baltics Operations, the Estonian subsidiary set up for the project, received its operating permit on Oct. 20. The plant is to produce large-caliber ammunition, including 155 mm artillery shells, for the Estonian Defence Forces, with production planned to begin in 2028.

The industrial area of Kiviõli in Estonia's Ida-Viru County, near the planned defense industry park (file photo)

The company is to invest €300 million of its own funds in production infrastructure, equipment and storage, and says it will create up to 1,000 jobs. The Estonian state will provide a 141-hectare plot and invest up to €10 million in access roads, fencing and electricity, gas and water connections.

The two sides plan to complete the notarial procedure for the land-use agreement by the end of the year. Defence Ministry spokesperson Ines Edur said ARCA can continue design and preparatory work and will be able to start construction after the agreement is signed and a building permit is issued.