Portugal and Belgium sign agreement for new ammunition factory

Portugal and Belgium have signed a memorandum of understanding to establish a new small-caliber ammunition factory on Portuguese territory. The project, funded through the European SAFE mechanism, involves an estimated investment of approximately 50 million euros and is expected to create around 100 new jobs.

Under the proposed corporate model, the Portuguese state will hold a minority position, similar to the structure of OGMA, where the state maintains a relevant stake to influence management without being the majority shareholder. The Belgian partner, FN Herstal, already has existing weapon production facilities in Viana do Castelo, which is one of the potential locations for the new plant, with Alcochete also being considered.

Defense Minister Nuno Melo stated that the agreement aims to recover industrial capacity lost by the country and ensure that a portion of the munitions required by the national armed forces is produced domestically to maintain strategic reserves.