Cugir Mechanical Plant to develop ammunition production to NATO standards

Representatives of Cugir Mechanical Plant (UM Cugir) announced on Monday that a contract worth 54 million euros had been signed to modernise industrial infrastructure, increase production capacity and diversify the range of NATO-standard ammunition manufactured.'The strategic modernisation programme aimed at increasing production capacity and diversifying the range of NATO-standard ammunition manufactured by Cugir Mechanical Plant, in 5.56 x 45 mm and 1EUR7 x 99 mm calibres, with an estimated value of 55EUR9 million lei, has reached another stage. On 11 September 2026, Cugir Mechanical Plant signed a contract worth 54 million euros for the supply of special-purpose machinery, custom-built for the production of NATO ammunition components in 1EUR7 x 99 mm calibre,' the company said in a statement posted on its Facebook account.The contract covers the modernisation of industrial infrastructure, increasing production capacity and diversifying the range of NATO-standard ammunition manufactured and aims to improve working conditions as well as increase efficiency and environmental responsibility.The commercial partner has not been announced, although three bids were submitted in the tender, one from Belgium and two from Türkiye. The award criterion was the best price-quality ratio.The custom-built special-purpose machinery will be capable of producing NATO-standard 1EUR7 x 99 mm ammunition components, including case cup, bullet cup, case, bullet jacket, bullet assembly and cartridge assembly. It must produce three types of NATO-standard 1EUR7 x 99 mm cartridges, M8/M20/M33, and provide a production line capacity of at least 80 cartridges per minute at a minimum efficiency of 85%.At the end of last month, UM Cugir announced that it was carrying out a strategic project worth more than half a billion lei to modernise and develop ammunition production to NATO standards, representing the largest investment project implemented in Cugir in the past 30 years.The project has been structured into four stages, one of which involved the preparation of a feasibility study while the other three provide for the modernisation of the industrial facility and the modernisation and development of production capacities.The industrial facility modernisation stage involves investments of 74.5 million lei from the company's own funds and is due to be completed in December 2026.The stage involving the modernisation and development of production capacities for 5.56 x 45 mm calibre ammunition is worth almost 68 million lei and is due to be completed in November 2026, while the largest investments are being made under the ongoing stage for the modernisation and development of production capacity for 1EUR7 x 99 mm calibre ammunition, amounting to more than 409 million lei.The financing of these strategic investments at UM Cugir is being provided through financial support granted by the Romanian Government two years ago as well as from the company's own budget.The Cugir plant was established in 1799, during the Habsburg Empire, under the name Iron and Steel Factory. In 2004, the company was divided into the Mechanical Plant and the Arms Factory.