Kosovo’s government has selected the Turkish company Makine ve Kimia Endustrisi (MKE) to build the country’s first ammunition factory, according to sources within the Ministry of Defence, as reported by Koha on December 16.

Kosovo’s Prime Minister Albin Kurti previously announced plans to set up a domestic arms industry amid heightened tensions with neighbouring Serbia, which has been ramping up its defence procurement efforts. The establishment of a domestic military production capability is seen as a strategic response to the evolving security landscape in the region.

The agreement with MKE is set to be signed early this week, with the company taking responsibility for building the facility and initiating production.

The first phase of the project, to be completed within two years, will focus on manufacturing two types of ammunition: 5.56 mm and 7.62 mm calibres. In addition, the contract includes provisions for the design of drones, further enhancing Kosovo’s defence capabilities.

Kurti will sign the agreement with MKE on behalf of the government, marking a significant milestone in the country’s efforts to develop an independent military industry.

Last month, the government established an interdepartmental commission tasked with evaluating and initiating the necessary procedures for creating the ammunition factory and a laboratory for drone design. This followed a decision signed by Kurti on November 27, signalling Kosovo’s intention to lay the groundwork for its military industry.

The initiative aims to strengthen national security by reducing reliance on foreign suppliers and fostering a self-sufficient defence infrastructure.