The company behind the planned EUR 300-million large-caliber ammunition factory to be built in the Pohja-Kivioli defense industry park is 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 was 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 say which firm would 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 notes.
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 emphasizes.
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, said that Estonia was an important partner for the company, but advised contacting the government regarding this specific matter. (ERR)