According to Pevkur, he asked the owners of ARCA last week about their plans for Estonia.

"The plan is to build the factory in Estonia as quickly as possible, depending on how fast they can obtain the various permits here: an explosives handling permit, a weapons permit, all the other permits and a building permit. From the moment they receive the building permit, they are prepared to complete construction of the factory within 12 to 14 months. They already have the production lines that will manufacture the ammunition," Hanno Pevkur said.

"What they will mainly produce at the Estonian factory is medium- and long-range 155-millimeter artillery shells, meaning ammunition with a range of more than 30 and 40 kilometers, which the Estonian Defense Forces (EDF) certainly needs," the defense minister added.

As previously reported, ARCA plans to create up to 1,000 jobs in Estonia with the factory and the company hopes to recruit most of its workers locally. "But naturally, they will also have to bring in experts from other countries and from their home country," Pevkur noted.

After it emerged three weeks ago that Turkish company ARCA would build the large shell factory in Põhja-Kiviõli, claims circulated in Estonia that the company mainly intended to produce short-range ammunition for export that is not used by the Estonian Defense Forces.

According to Pevkur, the owners of the Turkish company confirmed to him in writing last week that they want to begin producing long-range ammunition in Estonia.

"They confirmed that production in Estonia will be aimed at the European and United States markets. That is the information they provided and that is what we can rely on today," he added.

"If you ask whether Estonia currently has a contract with them to purchase ammunition, then to my knowledge there is no such contract at the moment. Do they produce long-range ammunition? Yes, they do. Do we want to buy it? That depends on the price they offer. If their price is suitable and competitive with other suppliers on the market, then of course it makes sense for us to buy ammunition produced in Estonia here in Estonia," Pevkur said.

Committee chair Urmas Reinsalu of Isamaa said claims have also circulated in Estonia that ARCA plans to produce 122-millimeter rockets here — Grad ammunition used, for example, by Russia.

"That is part of their production portfolio and naturally, since the production line allows them to manufacture different products, the company will produce whatever it has contracts for at its factory. But once again, they said they will produce long-range 155-millimeter ammunition in Estonia. It is as simple as that. I do not know what they will ultimately be producing here a year and a half from now. I assume that if they have confirmed to us in writing that they will produce long-range 155-millimeter ammunition for the European and U.S. markets, then that is what they will do," Pevkur replied.

"I would recommend putting an end to all this speculation and focusing instead on ensuring that an investment worth nearly 1 percent of Estonia's GDP comes to Estonia, that these nearly 1,000 jobs are created and that we gain a factory capable of producing ammunition needed by the Estonian Defense Forces, with full-cycle production capability — from manufacturing shell casings to filling them," he added.

Commander: EDF has need for long-range artillery munitions

Commander of the Estonian Defense Forces Andrus Merilo said the military had informed the ministry that short-range ammunition is of no use to the Estonian Defense Forces and that he also sees no business logic in why the Turkish company would begin producing it here if it has said its output is intended for Europe and the United States.

"The Estonian Defense Forces uses a modern artillery system that requires long-range ammunition. The greater the range, the better — we see that in Ukraine as well. Now, if this company claims it will produce for the European and American markets, then there simply is no market for short-range ammunition. They would never recoup their investment if they were to start producing only short-range ammunition with a range of about 16 kilometers, which, frankly speaking, is of no use with modern artillery systems," Merilo said.

According to Merilo, it is also important for the Defense Forces to know whether ARCA will produce long-range ammunition in Estonia from start to finish domestically. "In any case, the Estonian Defense Forces do need long-range 155-millimeter artillery ammunition and that need would certainly become even more acute during a crisis or wartime," he said.

If ARCA also begins producing 122-millimeter ammunition, there is demand for it in places such as Ukraine, Merilo added.

The Ministry of Defense announced on April 21 that Turkish-backed company ARCA Baltics Operations will begin producing 155-millimeter artillery ammunition at the Põhja-Kiviõli defense industry park. The total investment amounts to approximately €300 million, the planned ammunition factory will create up to 1,000 jobs in the region and production is scheduled to begin in 2028.

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