The Turkish defence industry placed itself at the centre of the global ammunition supply chain by signing historic export contracts of rare magnitude at the SAHA EXPO 2026 fair. ARCA Defence, a leading ammunition manufacturer in the sector, officially signed two massive artillery ammunition sales contracts with international supply companies VTIC and GMP, totalling $3.4 billion. This series of record-breaking, high-budget export agreements was complemented by an investment in a new, large-scale ammunition production facility to be established in Estonia. In the production of artillery ammunition, the most critical component of conventional warfare, Türkiye has risen to the position of not just a supplier but an absolute game-changer directly shaping Europe's security.
155 mm Howitzer Ammunition and 40 km Striking Power
Regional conflicts on a global scale in recent years have created a massive global shortage in 155 mm artillery ammunition, the most basic firepower of modern armies. Many developed Western countries are experiencing a significant production bottleneck in replenishing their own ammunition stocks. These record contracts totalling $3.4 billion signed by ARCA Defence represent a massive Turkish solution brought to this global production crisis.
When the technical details of the agreements are examined, the operational superiority of the system is clearly seen. The $1.2 billion contract signed between ARCA Defense General Manager İlknur Dutak Pamir and GMP CEO Marc Morales directly covers the procurement of "155 mm 40 km Long-Range Artillery Ammunition." A standard 155 mm howitzer ammunition usually has a range between 20 and 25 kilometers. The fact that the ammunition produced by ARCA Defense reaches an extreme range of 40 kilometers indicates that the ammunition has "Base Bleed" technology, which reduces aerodynamic drag by releasing gas from the base, or a rocket-assisted (RAP) propulsion architecture. This technical superiority allows artillery batteries to strike safely from well outside the enemy's firing range. On the other hand, the other giant contract of $2.2 billion signed with VTIC CEO Petar Vasilev proves the massive volume the company has reached in meeting global demand.
A Strategic Production Base in Estonia
The fact that the agreements are not limited to the export dimension shows the new point Türkiye has reached in defence diplomacy. The third major signature under the SAHA EXPO umbrella covers the large-scale ammunition production facility that ARCA Defence will establish directly in Estonia, a European Union and NATO territory.
Estonia, located in the Baltic geography, is among the leading countries radically increasing its defence expenditures due to regional security concerns. Estonia choosing Turkish engineering and capital for such a critical ammunition factory, directly concerning its national security, is the product of invaluable trust. The personal attendance of Minister of National Defence Yaşar Güler, Estonian Defence Minister Hanno Pevkur, SAHA İstanbul Chairman of the Board Haluk Bayraktar, ARCA Defence Chairman of the Board İsmail Terlemez, and Board Member Özgür Rodoplu at the signing ceremony certifies that this investment means a top-level strategic alliance between the two states.
Turkish Dominance in the Global Supply Chain
ARCA Defence's breakthroughs at SAHA EXPO 2026 go down in Turkish defence industry history with the massive financial magnitude of $3.4 billion reached by a single company. This figure clearly proves what an enormous market share and foreign currency inflow can be obtained worldwide simply by producing conventional ammunition.
The uninterrupted production power of factories in Türkiye and the new long-range artillery ammunition facility to be established in Estonia make the industrial footprint of Turkish defence companies permanent on the European continent. Türkiye is transforming into the most reliable and largest producer of heavy artillery ammunition, the backbone of modern land warfare, for the Western world, not just in unmanned aerial vehicles.
