ARCA Defense, one of Europe's leading artillery ammunition manufacturers, has announced its preparations to establish a new production facility in Estonia. With this investment under the ARCA Baltic brand, the company is integrating its industrial capacity directly onto the European continent. Having won the strategic defence industry basin tender opened in Estonia, ARCA Defense announced that it has officially completed the establishment contracts for the factory. This development strengthens the company's position in the global supply chain while increasing its ability to respond quickly and locally to the growing demand for ammunition.
ARCA Defense's Strategic Investment in Estonia
ARCA Defense's move represents not just a geographical expansion but a fundamental transformation in its production strategy. As emphasised in the company's official statement, "As ARCA Defense, one of Europe's largest artillery ammunition manufacturers, we are signing a historic investment that will integrate our industrial capacity onto the European continent." Estonia holds a critical position in the Baltic region as a NATO and European Union member. The new factory will both enable production close to the ammunition needs of European armies and increase resilience against potential disruptions in the global supply chain. The facility, which will operate under the ARCA Baltic brand, will provide capacity increases, especially in high-demand calibres.
The Company's Origins and Production Infrastructure in Türkiye
ARCA Defense operates in its 960-acre integrated facilities in Sungurlu, Çorum, with the vision of "every factory is a fortress." Founded in 2020, the company quickly specialised in heavy ammunition production, achieving a remarkable rise in the sector. Particularly, 155 mm, 152 mm, and 122 mm artillery ammunition, along with 120 mm mortar ammunition, constitute the company's main product portfolio. These calibres are among the most intensively used conventional ammunition types by modern armies. Due to rapidly depleting stocks in global conflict zones, demand for these products has sharply increased in recent years. The company's production model is based on a fully integrated structure; all processes from raw material intake to final product are managed under one roof. This approach maximises quality control while optimising production costs.
2025 Export Summit: ARCA Defense's Historic Achievement
In the defence and aerospace sector export ranking announced by the Presidency of Defence Industries (SSB) in 2025, ARCA Defense achieved a historic success by placing first in the general classification. Reaching the top by surpassing Baykar, the company also secured the championship in the weapon systems and ammunition category. Awarded by the Minister of Trade, Prof. Dr. Ömer Bolat, and the President of Defence Industries, Prof. Dr. Haluk Görgün, this success certified ARCA's silent rise, leaving giants behind in just five years. With its record performance in ammunition exports, the company concretely proved the product diversity and competitiveness of the Turkish defence industry. In the Top 10 list, following ARCA, established players such as Baykar, TUSAŞ, TEI, and ROKETSAN were ranked.
Technical Capacity and Production Advantages
ARCA Defense's production model manages complex stages such as precise chemical filling, ballistic tests, and logistics integration within a single facility. The new Estonian factory will also adopt the same standards. ARCA's expertise in this field stands out with its ability to offer products compatible with NATO standards. As the company's General Manager İlknur Dutak Pamir stated in previous remarks, "On this path where we started production activities with domestic and national resources, we not only met the needs of the defence industry but also transcended borders." The Estonian investment is a concrete extension of this vision.
Impacts on the European Market and Global Strategy
ARCA Defense's ARCA Baltic investment in Estonia directly responds to the increasing defence expenditures and stock replenishment needs in Europe. The new facility not only supports its own growth but also contributes to the supply security of allied countries in Europe. Experts predict that such investments could increase the company's market share by 20-30% in the medium term. The investment transforms ARCA's production from being solely based in Türkiye into a multi-continental structure.
The Rising Star of the Turkish Defence Industry and Future Perspective
ARCA Defense's rise also reflects the general transformation of the Turkish defence industry. A young company founded in the 2020s became the export champion in 2025, capable of competing with the giants of the sector. This success was made possible by the combination of factors such as R&D-focused production, rapid scalability, and compliance with global standards. The factory in Estonia is a continuation of ARCA's silent rise and sets an example for the sector to follow. Defence industry professionals and investors will continue to closely monitor ARCA's move.
ARCA Defense's ARCA Baltic investment heralds a new era in the defence industry sector. With its technical capacity, export performance, and strategic vision, the company is growing even stronger on the global stage. The factory in Estonia is critically important both for closer access to the European market and for increasing production security. This development takes ARCA Defense's global competitiveness to the next level.
