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Estonia builds international defence industry base

Estonia is building its defence industry with strong international involvement, driven by the Ministry of Defence. A 155 mm ammunition plant is the most advanced project, with production planned for 2028. The direction is based on lessons from Ukraine and the need to secure supply.

Estońska armatohaubica K9EST Kõu.
Photo. 1. jalaväebrigaad 1st Infantry Brigade / Facebook

Estonia, with direct involvement of the Ministry of Defence, is developing the Põhja-Kiviõli Industrial and Defence Park. Turkish company ARCA will build a 155 mm artillery ammunition factory there, with production expected to start in 2028. This is a response to shortages of ammunition and the need to secure local production.

The process is broader. At least four major foreign investments are planned in Estonia. These include South Korea’s Hanwha, the United States« Lockheed Martin, a Turkish company and an investor from Sweden. The state is creating conditions for these companies to enter and operate within the defence sector.

The focus is on artillery ammunition, drones and unmanned systems. Estonia is not prioritising heavy platforms, but capabilities that are used daily in Ukraine. The objective is availability, scalability and faster production.

The model is controlled but diversified. The Ministry of Defence is coordinating the direction, while multiple partners reduce dependence on a single supplier. Estonia is positioning itself as a production hub on NATO’s eastern flank.