On Wednesday, Turkish defense firm ARCA Defense and Estonia’s Defense Ministry signed an agreement to set up an ammunition production facility in Estonia, during the SAHA 2026 International Defense and Aerospace Exhibition in Istanbul.

The exhibition, organized by SAHA Istanbul, is being held at the Istanbul Expo Center. Anadolu is serving as the event’s global communications partner, The Caspian Post reports, citing Anadolu agency.

The signing ceremony was attended by Turkish Defense Minister Yasar Guler, Estonian Defense Minister Hanno Pevkur, ARCA Defense Chairman Ismail Terlemez, ARCA Defense board member Ozgur Rodoplu and SAHA Istanbul Chairman Haluk Bayraktar.

Speaking at the ceremony, Guler recalled attending another signing event in Estonia five years ago with Pevkur involving vehicles purchased from Turkish armored vehicle manufacturer Otokar.

“Now, I would like to express my great pleasure in being here at the signing ceremony of such an agreement between our Estonian friends and ARCA, one of our country’s leading companies,” Guler said.

Pevkur said the agreement would further deepen defense cooperation between Türkiye and Estonia.

“Always good to be here in Istanbul, in Türkiye. I believe it is a historical moment we face,” he said.

“Today, we have the honor to sign the declaration that ARCA Defense will establish an ammunition factory in Estonia, which deepens our cooperation,” he added.

Pevkur said Estonia already maintains strong defense cooperation with several Turkish companies.

“This is a very big investment in Estonia. I would like to thank ARCA Defense for that tremendous investment, creating roughly 1,000 jobs in Estonia and starting the production of long-range artillery ammunition for Estonia, for Europe and for NATO countries,” he said.

“So this is an extremely important day for all of us,” he added.