A factory in Romania has signed a €54 million contract for the production of NATO ammunition

On September 11, 2026, Cugir Mechanical Plant signed a €54 million contract to supply special equipment for the production of components for 12.7 x 99 mm NATO ammunition. The contract is part of a strategic modernization program estimated at 552.9 million lei.

The investment aims to modernize industrial infrastructure, increase production capacity and diversify the range of ammunition manufactured in Cugir. The equipment will enable production of NATO M8, M20 and M33 cartridges, with a minimum capacity of 80 cartridges per minute and an efficiency of at least 85%.

The commercial partner has not been announced. Three bids were submitted in the tender—one from Belgium and two from Turkey—and the contract was awarded based on the best value-for-money ratio.

The project includes four stages. Modernization of the industrial hall, financed with 74.5 million lei, must be completed in December 2026. Development of 5.56 x 45 mm ammunition production has a budget of nearly 68 million lei and a deadline in November 2026. The largest stage, worth more than 409 million lei, concerns 12.7 x 99 mm ammunition and is underway.

The investments are financed through government support granted two years ago and the company’s own funds. The plant in Cugir, established in 1799, is thus carrying out the largest local investment project of the past 30 years.