Portugal to Restore Ammunition Production with Belgian Joint Venture
Portugal signs a €50 million joint venture with Belgium's FN Herstal to build a small-calibre ammunition factory, restoring domestic production after nearly 30 years.
Portugal will regain a domestic ammunition manufacturing capability after nearly three decades, following an agreement signed on Tuesday between the state-owned idD Portugal Defence and Belgian firearms maker FN Herstal.
The two parties will establish a joint venture to build a small-calibre ammunition factory, Defence Minister Nuno Melo said. The project carries an investment of €50 million (about $57 million) and is expected to become operational in 2029.
Portugal is set to hold a minority stake of roughly 35% in the venture, according to the minister.
The deal falls under the European Union's SAFE programme, through which Portugal has access to approximately €5.8 billion in European loans for acquiring military equipment and developing domestic industrial capacity. It is the third project financed through the programme, following Portugal's acquisition of three Fincantieri frigates for €3.9 billion and 75 tactical vehicles for the Marine Corps worth €133 million.
Melo said the factory "will bring back to the country a fundamental capability that we should never have lost."
FN Herstal is part of the FN Browning Group, which already operates a manufacturing facility in Viana do Castelo in northern Portugal, producing hunting and sporting firearms.