An unnamed Swedish company will build a factory in Estonia to produce large-caliber ammunition, with an estimated cost of at least €300 million. This will be the largest foreign investment to date in the country’s defense sector. The facility is planned to be located just 80 km from the russian border.
The agreement was announced by Estonian Minister of Defense Hanno Pevkur, who declined to disclose details ahead of the signing, which is scheduled for mid-April. According to the local public broadcaster ERR.ee, the deal specifically involves a Swedish company.
Read more: Romania Reconsiders Watchkeeper X Deal Amid Delays: Are Ukrainian Drones Solution?
The South Korean 155-mm K9 howitzer in service with Estonia / Open-source illustrative photo
The new plant is expected to manufacture short-, medium-, and long-range ammunition. As a result, the list of potential investors has been narrowed to BAE Systems Bofors, a company known for its artillery and related products.
Estonian journalists contacted BAE Systems’ European press office for comment, but the company neither confirmed nor denied its involvement. Instead, they advised journalists to contact the government for further details.
Production of 155-mm shells at the BAE Systems plant
From Defense Express we would like to note that expanding ammunition production in Europe is generally a positive development that will benefit the entire region. It will also strengthen Estonia’s capabilities and its industry.
The future plant will be situated in Põhja-Kiviõli Industrial Park, which specializes in the defense industry and lies roughly 80 km from the russian border. This raises questions about the security of such a location.
Production of 155-mm shells at the BAE Systems plant
BAE Systems generally has advanced technology for manufacturing ammunition, which Poland has purchased for its own use. As for Bofors, it manufactures high-precision BONUS and Excalibur ammunition in Sweden, along with rounds for 57-mm cannons and 40-mm anti-aircraft guns.
Another company, Nammo, produces a broad spectrum of ammunition, from small arms to 30-mm and artillery rounds, and also has manufacturing facilities in Sweden. It should be noted that Nammo is currently owned by the Norwegian government and the Finnish company Patria, so any connection to the Estonian project remains hypothetical. However, its wide product range matches what is expected to be produced in Estonia.
Read more: New TigerShark Strike Drone With 1,000 km Range Completes First Flight, Could Be Supplied to Ukraine