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# Romania’s Cugir Signs €54M Deal to Expand NATO Ammunition Production
- URL: https://www.adriadefense.com/romanias-cugir-signs-eur54m-deal-to-expand-nato-ammunition-production/
- Published: 2026-09-16T05:00:30.000Z
- Updated: 2026-09-16T05:00:29.000Z
- Description: Romania’s Uzina Mecanică Cugir has signed a €54 million contract for new equipment to produce 12.7×99 mm NATO ammunition, part of the plant’s largest modernization program in three decades.
- Author: AdriaDefense Desk
- Tags: Romania, CEE, Ammunition, Defense Industry, Industry, NATO

Romania’s Uzina Mecanică Cugir has signed a €54 million contract for specialized equipment to expand production of 12.7×99 mm NATO-standard ammunition, marking a major step in a broader modernization of the country’s defense-industrial capacity.

The contract was signed on September 11 and covers equipment specifically designed for the production of components used in 12.7×99 mm ammunition. The investment forms part of a wider modernization program at Cugir valued at approximately RON 552.9 million (€109 million).

According to information released by the company, the new production equipment will support the manufacture of M8, M20 and M33 ammunition and is required to achieve a minimum production rate of 80 rounds per minute, with an efficiency level of at least 85%.

The selected supplier has not yet been publicly disclosed. Three bids were submitted during the procurement process, including one from Belgium and two from Turkey. The contract was awarded on the basis of the best price-to-quality ratio.

The 12.7×99 mm expansion represents the largest component of Cugir’s current investment program. More than RON 409 million is being directed toward modernizing and developing production capacity for the caliber. Another approximately RON 68 million is allocated to 5.56×45 mm ammunition production, while RON 74.5 million is being invested in the modernization of the industrial facility itself.

The 5.56×45 mm component is scheduled for completion in November 2026, while modernization of the production hall is expected to be completed by the end of the year. The overall program is described by the company as its largest investment project in 30 years.

The investment comes as Romania seeks to increase the share of defense equipment and ammunition manufactured domestically. Earlier this year, the Romanian government said industrial cooperation arrangements were intended to secure full localization of certain small-arms and ammunition production at Uzina Mecanică Cugir, Fabrica de Arme Cugir and Uzina Mecanică Sadu.

Cugir is one of Romania’s longstanding defense manufacturing centers. The current expansion adds new NATO-standard production capacity at a time when European governments are investing heavily in ammunition supply, production resilience and domestic defense-industrial infrastructure.