Construction works have started on Kosovo’s first ammunition factory in the western town of Gjakova, only days after the government finalised the land expropriation procedure for the project, according to KosServ.

Caretaker Prime Minister Albin Kurti and acting Defence Minister Ejup Maqedonci visited the construction site and confirmed that the facility will initially produce 5.56 mm and 7.62 mm calibre ammunition for Kosovo’s security forces.

“The defence industry of the Republic of Kosovo will start with the production of 5.56 mm and 7.62 mm calibre ammunition,” Kurti said during the visit. “In the meantime, in the later stages, it will be expanded to produce drones.”

Kurti said the factory site currently covers 19 hectares and announced additional defence investments exceeding €1bn over the next four years.

“As a continuation of the work that includes doubling the defence budget, more than €1bn has been earmarked for strengthening, modern equipment and improving training for the Kosovo Security Force in the next four years,” he stated.

Maqedonci said production equipment, laboratories and technical systems are already being prepared in Turkey despite construction works only recently beginning in Kosovo. He also confirmed that Kosovan personnel will travel to Turkey for specialised training.

“This is a historic step towards strengthening our defence industry, building state capacities and guaranteeing the security of our republic,” Maqedonci said. “Kosovo is building strategic capacities. Kosovo is producing. Kosovo is moving forward.”

The Kosovo government last week approved the expropriation of land in Gjakova intended for a broader defence industrial zone covering between 130 and 140 hectares.

The expropriated assets include social property belonging to “KBI Ereniku”, with the project formally presented as the “Construction of the Defence Industrial Zone”.

The Ministry of Defence initially submitted the expropriation request on November 27, 2025, coinciding with Kosovo Security Force Day.

The project is being developed in cooperation with Turkey. In December 2025, Kosovo signed an agreement with Turkish state-owned defence company Makine ve Kimya Endüstrisi (MKE) regarding the establishment of ammunition production facilities in Kosovo.

Kurti previously stated that the factory is expected to become operational by the end of 2026.

Besides ammunition production, the industrial zone is also expected to host investments related to military technology and the development of military and civilian drones branded “Made in Kosovo”.