Estonia’s Centre for Defence Investment selected Turkish defence company ARCA to build an ammunition plant in Kiviõli, Estonian public broadcaster ERR reported.
ARCA Baltics Operations, an Estonian subsidiary registered for the project, obtained a licence on 20 October. The plant will produce large-calibre ammunition, including 155mm artillery shells, for the Estonian Defence Forces. Production is expected to begin in 2028.

The company will invest €300 million of its own funds in production infrastructure, equipment and warehouses and has pledged to create up to 1000 jobs. The state will provide a 141-hectare site in the Põhja-Kiviõli defence industry park and invest up to €10 million in access roads, fencing and connections to electricity, gas and water networks.
Ida-Viru County, where Kiviõli is located, is a region in northeastern Estonia with a predominantly Russian-speaking population. The parties plan to complete the notarisation of the building-rights agreement by the end of the year, after which the company will be able to obtain a construction permit.