The Estonian government has taken a critical step in its bid to significantly increase domestic ammunition production capacity. The government has approved a project to build a RDX (cyclic trimethylenetrinitramine) type explosives production facility, which will support the production of 155 mm artillery ammunition in particular, and has the potential to export explosives to other countries in the region.
Senior officials emphasized that this strategic investment is of vital importance for the country's defense industry and regional security.
New Company Established, Defense Industry Strengthens
Estonian authorities have authorized the Ministry of Finance to establish a new company called Hexest AS in the coming weeks to implement the project. According to the government statement, this company will operate the planned RDX production facility and will be transferred to the Ministry of Defense within six months.
RDX is known as a high-energy explosive chemical compound widely used in military applications.
Estonian Defence Minister Hanno Pevkur, drawing attention to the strategic importance of the investment, said: “There is a shortage of explosives production capacity in Europe, so creating new capacity is essential to ensure supply security for companies in Estonia and the wider region. The explosives facility will make Estonia a more attractive location for the defence industry.”
Strategic Investor Search and New Ammunition Factories
At first, all shares of the company will be owned by the state, but the Tallinn administration plans to bring a strategic investor into the facility in the future.
The Estonian government is also preparing to create space for new ammunition factories. The cabinet is working to locate domestic and foreign arms, ammunition and equipment manufacturers in different regions, including the defense industry park in Ämari.
“In addition to the ‘mini defense industrial park’ in Ämari, we are also developing a national defense industrial park, which will allow the production of 155mm shells as well as other products, without any restrictions on production. It is up to defense companies to come up with production projects. The government will provide a favorable environment,” a spokesperson for the Estonian Center for Defense Investments (ECDI) told Defense News. SözcüHe also stated that in line with the plan, ECDI will organize public tenders for selected investors this year.
Minister Pevkur said, “The establishment of an explosives factory in Estonia will be a strong added value for the Defense Industry Park and ammunition manufacturers that will operate there.”
Production to Begin in 2028, Initial Investment 7.2 Million Euros
Production at the RDX plant in Ämari is expected to begin in 2028. The government statement said that as a first step of the project, a contribution of up to 7,2 million euros ($8,2 million) would “cover the costs of technical design and preparatory activities.” The technical design is expected to take around a year to complete, and the final investment decision will be made based on the results of these studies.
Similar Steps from Regional Allies
Estonia’s move is part of a broader effort by Eastern European allies to boost their domestic munitions production capacity following Russia’s invasion of Ukraine, as these countries frequently seek partnerships with large foreign defense industry groups.
In Lithuania, Rheinmetall is advancing a project to build a facility to produce 155 mm artillery ammunition. The facility in Baisogala is scheduled to become operational in mid-2026 and will generate around 180 million euros of investment, creating around 150 jobs locally. Chairman of the Lithuanian Parliament’s National Security and Defense Committee Giedrimas Jeglinskas said Vilnius aims to attract more defense industry players and is committed to providing support, including financial assistance, to potential investors.
Poland has similarly set aside around 3 billion zlotys ($798 million) to finance investments to expand the country’s ammunition production capacities. These funds will be made available to Polish-based manufacturers that will carry out projects to increase their ammunition production capacity, particularly for 155mm artillery shells.
Estonia's decision to establish an RDX production facility is an important part of the country's strategy to strengthen its defence industry independence and play a more active role in regional security.
