Romania’s defense manufacturer UM Cugir signs EUR 54 mln contract for NATO ammunition equipment

Romanian defense manufacturer Uzina Mecanică Cugir, or UM Cugir, announced that it signed a EUR 54 million contract for specialized machinery used to manufacture components for 12.7 x 99 mm NATO-standard ammunition. The contract was signed on September 11 as part of a broader modernization programme estimated at RON 552.9 million.

The programme is intended to increase production capacity and diversify the plant’s range of 5.56 x 45 mm and 12.7 x 99 mm NATO ammunition.

“The investment programme underway at UM Cugir represents the company’s most important development project in the past three decades,” the plant’s management said.

It added that the project would support technological modernization, greater industrial capacity, improved working conditions and more efficient use of resources.

According to Agerpres, the programme has been divided into four stages, including a feasibility study, the modernization of an industrial hall, and upgrades to production capacity.

The modernization of the hall involves an investment of RON 74.5 million and is due for completion in December 2026. Almost RON 68 million is allocated to capacity for 5.56 x 45 mm ammunition, while more than RON 409 million is being invested in the production of 12.7 x 99 mm ammunition.

The investments are financed through Romanian government support approved two years ago and the company’s own funds.

The Cugir plant was established in 1799 during the Habsburg Empire as an iron and steel factory. It was divided into Uzina Mecanică Cugir and Fabrica de Arme Cugir in 2004.