Falcon Defence Secures €253M Contracts, Establishes Artillery Ammunition Production Platform in Romania
Falcon Defence has formalised entry into Romania’s defence industry with binding €253 million contracts for 2026 ammunition deliveries and announced plans to launch a domestic production platform for artillery rounds and energetic materials.
Falcon Defence, part of the UK-registered Falcon Group, has entered the Romanian defence industrial landscape by finalising binding contracts worth €253 million for the 2026 delivery of artillery ammunition and energetic materials. The agreements underpin the company’s launch of an integrated production platform in Romania to support artillery round manufacturing on NATO’s eastern flank.
The Romania project involves retooling and reactivating an existing industrial site previously idle, with the first investment phase estimated at around €50 million. Falcon Defence has obtained foreign direct investment approval to acquire the facility, signalling strategic commitment beyond preliminary discussions. The initial phase will build a domestic production capacity of around 10,000 artillery projectiles per month, contributing to an expected 220,000 units available for 2026 deliveries.
Falcon Defence’s broader network across Europe and Asia is already capable of supplying 5,000 complete 155 mm shells per month, and through industrial partnerships, that capacity is projected to rise to about 30,000 per month by the second quarter of 2026. Subsequent investment phases are planned to add lines for energetic materials such as RDX and TNT, expanding Romania’s autonomy in ammunition component production.
Company leadership framed the move as more than a production expansion, positioning Falcon Defence as an industrial integrator within the NATO and EU defence ecosystem. Officials highlighted Romania’s established industrial workforce and strategic location as factors supporting the initiative. The project is also expected to generate between 100 and 150 direct jobs locally, alongside several hundred indirect positions tied to infrastructure upgrades and ancillary economic activity.
Analysts see the development as part of a wider trend of bolstering European ammunition supply chains in response to heightened demand across allied markets since 2022. By situating production capacity on the eastern flank of NATO, Falcon Defence’s investment may strengthen regional industrial resilience and support broader efforts to enhance strategic autonomy in key defence manufacturing sectors.
