Swedish group to construct major munitions factory in Estonia
The company behind the planned €300 million large-caliber ammunition factory to be built in the Põhja-Kiviõli defense industry park is, according to ERR, a Swedish defense industry firm.
Defense Minister Hanno Pevkur (Reform) announced last week that the state had reached an agreement with a manufacturer of 155-millimeter ammunition to build a factory in Estonia, noting that the company is neither South Korea's Hanwha Aerospace nor U.S. defense giant Lockheed Martin.
According to the minister, the company was promised that its name would not be disclosed before contracts are formally signed and Pevkur also declined to tell ERR on Wednesday which firm will produce shells at the Estonian plant.
The legal signing of the agreement is expected in mid-April, at which point the investor's name can be made public, the defense minister noted.
Nevertheless, Estonia will continue its preparatory activities and signing the agreement in a couple of weeks will not delay the overall timeline of the process, Pevkur emphasized.
Two major defense companies are linked to Sweden: Saab and BAE Systems, which includes BAE Systems Bofors, a producer of artillery systems and ammunition.
Matthew Knowles, a spokesperson for BAE Systems in Europe and the Americas, told ERR in response to an inquiry that Estonia is an important partner for the company, but advised contacting the government regarding this specific matter.
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Editor: Marcus Turovski, Mait Ots
