Estonia rejects Rheinmetall's proposal to build an ammunition plant

Despite the fact that the German defense giant Rheinmetall is building large-caliber ammunition plants in Latvia and Lithuania, Estonia has decided to reject the company's proposal to build a similar production facility on its territory. About writes estonian public broadcasting company ERR.

Estonian Defense Minister Hanno Pevkur and Minister of Economy and Industry Erkki Keldo confirmed that Tallinn expects to establish large-caliber ammunition production in the country, but without Rheinmetall's involvement.

Pevkur explained that the key difference between the Estonian approach is the refusal to use taxpayers' money to attract foreign investors.

Unlike Latvia and Lithuania, which have committed to public investment and buybacks, Estonia requires full self-financing from the investor.

"We are currently proceeding from the principle that an investor or producer who comes here makes these investments himself, and taxpayers' money is not used here," Pevkur said, emphasizing that "all producers are equal for the government."

Estonia is focused on finalizing a tender for its defense industry fleet, where it already has several potential partners. According to Pevkur, the bidders include companies that produce both smaller and large-caliber ammunition.

"We hope to sign an agreement with these manufacturers in the near future, and then [the plant] will be in Estonia," the Defense Minister said.

The ministers will be able to announce the name of a specific company only after the contract is signed, which is expected "in the coming weeks."

• In April, it was reported that the Estonian government had instructed the Ministry of Finance to to establish a state-owned company Hexest AS, which will be engaged in construction of a plant for the production of explosives. Within six months, Hexest AS will be transferred to the Ministry of Defense.