New Defense Production Facility Boosts Export Strategy
Defense manufacturers can use turnkey facility installations to capture long-term maintenance and training contracts.
Updated on Oct. 29, 2026 in Manufacturing
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The Machinery and Chemical Industry Corporation (MKE) has completed and operationalized a new medium- and large-caliber ammunition facility in Jordan. This infrastructure project is part of a broader international strategy to export defense production capabilities.
Why it matters
Manufacturers in the defense sector are increasingly shifting from direct product exports to turnkey technology transfers that allow partner nations to produce their own munitions. This model creates long-term revenue streams through facility maintenance and ongoing training contracts.
MKE has completed 11 technology transfer projects across nine countries to date. The Jordanian facility, which began operations in 2024, supports a range of ammunition production from 25 millimeters to 120 millimeters.
The players
Machinery and Chemical Industry Corporation
A Turkish state-owned defense manufacturer specializing in heavy weaponry, ammunition, and small arms production.
SOFEX 2026
The 15th iteration of a major regional defense exhibition focused on special operations and military technology.
The details
The facility in Jordan functions through a turnkey model where MKE oversees factory installation and technology integration. Beyond initial setup, the company provides technical personnel training for production, maintenance, and repair operations. This approach standardizes production processes across international borders, ensuring locally manufactured components meet the original design specifications.
Timeline
2024: The ammunition facility in Jordan commenced operations.
October 27-29, 2026: MKE exhibited products at the SOFEX 2026 conference in Aqaba.
Market Landscape
The development follows the long-standing industry trend of using the SOFEX defense exhibition series to anchor international market expansion. This project marks a shift from purely equipment-based trade to localized turnkey production within the Middle Eastern defense market.
Operators in defense manufacturing should track the shift toward turnkey technology transfers, as these deals require long-term commitments for personnel training and maintenance. Businesses should monitor ongoing negotiations for raw material supply chains to determine if new market opportunities exist for local components.
The takeaway
The turnkey factory model offers a blueprint for scaling specialized production capabilities into foreign markets through infrastructure development. Firms should track the move toward localized maintenance contracts as an indicator of sustained demand in new regional clusters.
Further reading
For additional insights on global production shifts, visit our Manufacturing section.
Source note: This article includes information reported by Daily Sabah.
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