Minister of Defence Hanno Pevkur met with his Turkish counterpart Yaşar Güler in Istanbul to discuss closer defence cooperation, the development of the defence industry and the upcoming Ankara Summit.
During the visit, Pevkur met with the heads of the Turkish defence industry companies Aselsan, Roketsan, Baykar, Nurol Makina, Otokar and ARCA Defence at the SAHA EXPO 2026 defence exhibition. A joint statement was also signed with ARCA in connection with the decision of ARCA Baltics Operations to establish a large calibre ammunition factory in Põhja-Kiviõli Defence Industry Park.
“The unity of NATO is important for both Estonia and Turkey in the current difficult security situation. Estonia is also taking threats from the south seriously and contributing to foreign operations. It is important for us that the Turkish Air Force joins the Baltic Air Policing Mission in August to protect NATO’s eastern border,” said Minister Pevkur.
“In view of the upcoming Ankara Summit, it is in all our interests to improve NATO’s collective defence as quickly as possible. In summer, all of the allies will have to confirm clear progress on defence spending in Ankara. Estonia has already met the 5% target,” the minister added.
Closer defence cooperation was also discussed at the meeting. “The procurement of armoured vehicles agreed in 2023 and now completed confirmed that Turkey can deliver on time with the highest quality,” said Pevkur. “According to my Turkish counterpart, ARCA is the largest producer of ammunition in Turkey and a reliable partner, who will certainly boost Estonia’s security of ammunition supply if needed.”
Pevkur also thanked Turkey for its assistance to Ukraine and stressed that Ukraine’s future lies in NATO and that the allies must continue to support Ukraine until its sovereignty and territorial integrity are restored.
The heads of ARCA Baltics Operations, who met with Pevkur, confirmed that the factory in Põhja-Kiviõli Defence Industry Park will produce mainly long-range 155 mm artillery ammunition for the European and US markets, while also having the capacity to produce other types of ammunition. For its part, the company will be investing €300 million to build the necessary production infrastructure, including equipment and storage facilities. The ammunition producer promises to create up to 1,000 new jobs in the region.
ARCA Baltics Operations OÜ, established in Estonia, is affiliated with the Turkish defence industry group ARCA Defense, whose export exceeded €3 billion last year. The group employs around 5,000 people in its nine factories and is active in energy and construction in addition to defence and aerospace sectors.
According to the contract signed between ARCA Baltics Operations and the Estonian Centre for Defence Investments, the state will provide the company with 141 hectares of land in Põhja-Kiviõli Defence Industry Park, and the state will invest 10 million euros in the basic development of the park to build access roads and a fence, as well as the electricity, gas and water connections needed for production. The goal is to start producing ammunition in 2028.