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A munitions factory will be established in Estonia

The Minister of Defense of Estonia, Hanno Pevkur, has instructed the Estonian Centre for Defence Investment (RKIK/EDCI) to announce a tender for the construction of a munitions production facility based on the military infrastructure of the Ämari Air Base.

On Saturday, August 17, 2024, the Estonian Ministry of Defense announced that the head of the department, Hanno Pevkur, had instructed the Estonian Centre for Defence Investment (Riigi Kaitseinvesteeringute Keskus or RKIK, also known by its English acronym ECDI) to announce a tender for the construction of a munitions production facility based on the military infrastructure of the Ämari Air Base.

Photo: Estonian Ministry Of Defense

“In the current security situation, it is necessary to start producing ammunition in Estonia as quickly as possible. Until a defense industrial park is established, we need to explore ways to expedite the production of ammunition in Estonia. One option we see is to grant a company the opportunity to start production even faster in Ämari through a tender, where the necessary security and safety infrastructure is already in place,” said Defense Minister Pevkur.

In the near future, the Estonian Centre for Defence Investment (RKIK) will publish the terms of the tender along with evaluation criteria and organize an information day for interested companies. The deadline for submitting offers is October 10, 2024. The winning company will utilize approximately 8,900 square meters of space with communication infrastructure, a light hall, protective embankments, and up to seven warehouses for storing ammunition at the Ämari Air Base. This will enable the initial production capacity to be reached as early as the first half of 2025.

The terms of the tender include operating the facility for a minimum of three years, with the possibility of extending the operation for an additional two years. The facility is expected to produce small, medium, and/or large-caliber ammunition, as well as explosives. The bidder must also possess the necessary permits required for special production.

The other Baltic states are also developing their own ammunition production capabilities in the context of the ongoing Russian-Ukrainian war.

In November, the Latvian government approved a plan to establish a state-owned company, SIA Valsts aizsardzības korporācija, entirely under the control of the Ministry of Defense. On March 15, 2024, the European Commission approved co-financing for the construction of a 155 mm artillery ammunition production facility, which will be completed by the end of the year as part of the EU’s ASAP (Act in Support of Ammunition Production) program. According to the information provided on March 20, industrial entities from France, Italy, Finland, and Norway (KNDS and Nammo) are participating in the project, with the grant amounting to 41 million EUR.

Meanwhile, the German group Rheinmetall AG is constructing a 155 mm artillery ammunition production facility in Lithuania. On June 3 of this year, a Memorandum of Understanding was signed regarding this matter with the Lithuanian Ministry of Economy and Innovation.

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