Türkiye's ARCA Defense to build ammo plant in Estonia

A Turkish defense firm has signed a landmark deal with Estonia’s Defense Ministry to set up an ammunition factory in the Baltic nation. The agreement, inked at Istanbul’s SAHA 2026 exhibition, will create roughly 1,000 jobs and produce long-range artillery shells for NATO.
Türkiye’s defense industry has scored another strategic win in Europe. ARCA Defense, a prominent Turkish military manufacturer, formalised an agreement with Estonia’s Defense Ministry on Wednesday to establish an ammunition production facility in Estonia. The signing took place during the SAHA 2026 International Defense and Aerospace Exhibition at the Istanbul Expo Center, with Anadolu serving as the event’s global communications partner.
High-profile attendance and historical context
The ceremony drew top officials including Turkish Defense Minister Yasar Guler and his Estonian counterpart Hanno Pevkur. Also present were ARCA Defense Chairman Ismail Terlemez, board member Ozgur Rodoplu, and SAHA Istanbul Chairman Haluk Bayraktar. Guler recalled a similar signing in Estonia five years ago involving vehicles from Turkish armored manufacturer Otokar, stating: “Now, I would like to express my great pleasure in being here at the signing ceremony of such an agreement between our Estonian friends and ARCA, one of our country’s leading companies.”
Jobs, ammunition, and NATO commitment
Pevkur described the moment as “historical,” adding: “Today, we have the honor to sign the declaration that ARCA Defense will establish an ammunition factory in Estonia, which deepens our cooperation.” He confirmed that Estonia already works closely with several Turkish firms. “This is a very big investment in Estonia. I would like to thank ARCA Defense for that tremendous investment, creating roughly 1,000 jobs in Estonia and starting the production of long-range artillery ammunition for Estonia, for Europe and for NATO countries,” Pevkur said. The Estonian minister concluded: “So this is an extremely important day for all of us.”
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