Pevkur in Istanbul: Turkey and Estonia to deepen defense cooperation

TALLINN – Minister of Defence Hanno Pevkur met with Turkish Minister of National Defence Yaşar Güler in Istanbul to discuss deepening defense cooperation, developing the defense industry, and the upcoming Ankara summit.

During the visit, Pevkur met with the heads of Turkish defense industry companies Aselsan, Roketsan, Baykar, and ARCA Defence at the SAHA EXPO defense industry fair. A joint statement was also signed with ARCA regarding the decision by ARCA Baltics Operations to establish a large-caliber ammunition factory in the North Kiviõli Industrial Park.

"NATO unity is important for both Estonia and Turkey in the current complex security situation. Estonia also takes threats from the south seriously and contributes to foreign operations. It is important for us that the Turkish Air Force will join the Baltic Air Policing mission in August to protect NATO's eastern flank," said Minister Pevkur.

"In anticipation of the Ankara summit, it is in all our interests to improve NATO's collective defense as quickly as possible. This summer in Ankara, all allies must confirm clear progress in increasing defense spending. Estonia has already met the 5 percent target," the minister added.

Deepening defense cooperation was also discussed at the meeting. "The procurement of armored vehicles, agreed upon in 2023 and now completed, confirmed that Turkey can fulfill agreements on time and with high quality. My Turkish colleague affirmed that ARCA is Turkey's largest ammunition manufacturer and a reliable partner, who will certainly increase the security of Estonia's ammunition supply when needed," Pevkur said.

Pevkur also thanked Turkey for its assistance to Ukraine and stressed that Ukraine's future is in NATO, and allies must continue to support Ukraine until the country's sovereignty and territorial integrity are restored.

The heads of ARCA Baltics Operations, who met with Pevkur, confirmed that they will primarily produce long-range 155 mm artillery shells at the North Kiviõli Industrial Park, intended for the European and US markets, but the factory will also have the capacity to produce other types of ammunition.

The company will invest 300 million euros to build the necessary infrastructure for production, including equipment and storage facilities. The ammunition manufacturer promises to create up to a thousand new jobs in the region.

ARCA Baltics Operations OÜ, established in Estonia, is affiliated with the Turkish defense industry group ARCA Defense, which had an export volume of over 3 billion euros last year. The group's nine factories employ approximately 5,000 people, and besides the defense and aviation sectors, it is also active in the energy and construction sectors.

According to the agreement signed between ARCA Baltics Operations and the Estonian Centre for Defence Investments, the state will provide the company with a 141-hectare plot of land in the North Kiviõli Industrial Park. The state, for its part, will invest approximately 10 million euros in the park's basic infrastructure to build access roads and a perimeter fence, and to establish the necessary electricity, gas, and water connections for production. The goal is to launch ammunition production in 2028.