Portugal to revive ammunition production through FN Herstal joint venture

Fincantieri SpA

29/09/2026 15:43

LISBON, Sept 29 (Reuters) - Portugal's state-owned company idD Portugal Defence and Belgian firearms maker FN Herstal signed a deal on Tuesday to build a small-calibre ammunition factory, restoring Portuguese ammunition production after nearly three decades, Defence Minister Nuno Melo said.
The factory, to be developed through a joint venture, will involve an investment of €50 million ($57 million) and is expected to become operational in 2029, Melo said
Portugal expects to hold a minority stake of about 35% in the venture
The deal falls within the framework of the European Union's SAFE programme, under which Portugal has access to roughly €5.8 billion in European loans to acquire military equipment and develop domestic industrial capacity
It is the third project financed through the SAFE programme, following Portugal's acquisition of three Fincantieri frigates for €3.9 billion and 75 tactical vehicles for the Marine Corps worth €133 million
The factory "will bring back to the country a fundamental capability that we should never have lost", Melo said
FN Herstal is part of the FN Browning Group, which already has a manufacturing facility in Viana do Castelo in northern Portugal that produces hunting and sporting firearms.
($1 = 0.8816 euros)

 (Reporting by Sergio Goncalves. Editing by Andrei Khalip and Mark Potter)
 ((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters Messaging: sergio.goncalves.reuters.com@reuters.net/))