In September, Minister of Defense Hanno Pevkur (Reform) and Minister of Economic Affairs Erkki Keldo (Reform) announced that a factory in which large-caliber ammunition will be produced is expected to be built in Põhja-Kiviõli, Ida-Viru County.

At that time, Pevkur said the ministry would be able to speak more publicly on the subject in the coming weeks, as no agreement had yet been signed with the potential investor.

At the end of October, the Ministry of Defense once again expressed hope that the negotiations may be concluded within a few weeks.

As of this February, work to establish the factory has not progressed beyond the negotiating stage.

"Work with potential investors is still ongoing," a spokesperson for the Ministry of Economic Affairs told ERR.

The Ministry of Defense also confirmed that negotiations with the large-caliber ammunition manufacturer are still in process. "It should be understood that with such large-scale agreements, it is normal that agreeing on all the details takes time," the ministry spokesperson added.

The amount invested in the large-caliber ammunition factory is expected to be in the range of €250–300 million and create over 100 new jobs in the region.

While Rheinmetall will begin producing ammunition in Latvia and Lithuania, Estonia rejected the German company's offer due to the high level of commitments it expected from the state.

In September, a Latvian state-owned company signed a memorandum of understanding with Rheinmetall to build a €275 million artillery ammunition factory in the country, where NATO standard caliber 155 mm artillery shells will be produced.

Rheinmetall is already building an ammunition factory in Lithuania, which will mainly produce 155 mm artillery shells.

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