Falcon Defence, part of Falcon Group, announces its official entry into the Romanian market through the launch of an integrated production platform for energetic materials and artillery ammunition, supported by binding contracts worth €253 million for deliveries in 2026.
The contracts will be fulfilled through the group’s existing network of production facilities in Europe and Asia, demonstrating immediate industrial capacity in a context where demand for ammunition and energetic materials in the European space is increasing at an accelerated pace.
Strategic context
Russia’s invasion of Ukraine has prompted the European Union to accelerate the expansion of defence industry production capacities and to reduce dependence on external suppliers. Annual ammunition production capacity at EU level has increased significantly in recent years, and Member States’ defence budgets have recorded substantial increases.
In this context, Romania is strengthening its own industrial capabilities, including through the relaunch of 155 mm ammunition production beginning in 2026. Falcon Defence intends to contribute to this dynamic through private investment and the integration of Romania into an international industrial network dedicated to artillery ammunition and energetic materials.
Current capacity and expansion plan
Falcon Defence can already supply 5,000 complete 155 mm shells per month, with immediate availability. Through international partnerships with major energetic materials groups and industrial partners in Asia, the network’s capacity will increase to 30,000 shells per month by the second quarter of 2026.
The first phase of the Romanian project will add an additional domestic capacity of 10,000 shells per month, securing a volume of approximately 220,000 shells for 2026 deliveries. Production will comply with NATO standards and European export control regulations.
Investment programme in Romania
The project involves the retooling and reactivation of an existing industrial platform, acquired with foreign direct investment approval in 2025. The estimated investment for the first phase is approximately €50 million and will generate between 100 and 150 direct jobs, as well as several hundred indirect jobs in the economy.
By revitalising an existing industrial site, the company aims to reduce environmental impact and reactivate communities affected by industrial decline. Investments will include the modernization of energy infrastructure, water networks, and telecommunications systems.
Subsequent phases will include additional production lines for RDX and TNT, with the objective of strengthening Romania’s autonomy in the field of energetic materials.
Socio-economic impact and geopolitical positioning
By locating production capacities on NATO’s eastern flank, Falcon Defence contributes to strengthening European industrial resilience. The investment has the potential to support local economic development, create stable and well-paid jobs, and consolidate Romania’s position as a relevant industrial actor within the European security architecture.
Morten Reimers, CEO and founder of Falcon Group, stated:
“Falcon is not just a manufacturer, but an industrial bridge. Integration into the NATO and EU defence ecosystem involves complex regulatory and compliance processes. We have obtained foreign direct investment approval and authorization to take over an industrial platform in Romania — an essential strategic milestone. Through structured industrial cooperation with international partners, we are bringing integrated production capacity into the European ecosystem. Romania has industrial tradition, a skilled workforce, and geopolitical relevance. Reactivating former industrial platforms means transforming abandoned spaces into engines of economic and infrastructural development.”
Cătălin Cîrlănaru, Director of Government and Strategic Affairs, added:
“By signing binding contracts for deliveries in 2026, we demonstrate that Falcon is entering Romania with real capacity, not merely intentions. We are contracting today for next year’s deliveries, and our network can already supply 5,000 shells per month, rising to 30,000 through our international partnerships. Our vision is to secure Europe’s supply of 155 mm ammunition and energetic materials, strengthen Romania’s industrial base, and contribute to European strategic autonomy.”
About Falcon Defence
Falcon Defence SRL is a Romanian company specialized in the defence sector and a member of the PATROMIL association. It is part of Falcon Group, active in the production of artillery ammunition and energetic materials. The company collaborates with governmental clients and defence industries in Europe, Asia, and other allied markets, providing compliant and secure access to ammunition and energetic materials production capacities.