Translated using ChatGPT service.
On Thursday, September 25, in Hamburg, Germany, a memorandum was signed for the construction of an artillery ammunition production plant in Latvia. The signing was attended by the Prime Minister of the Republic of Latvia, Evika Siliņa; Minister of Economics, Viktors Valainis; Board Member of the State Defence Corporation (VAK), Ingrīda Ķirse; and the investor – leading German defense company Rheinmetall AG.
A joint venture will be established to build the plant. The project is expected to attract investments exceeding EUR 200 million, and over ten years, the plant’s exports could surpass EUR 3 billion. Construction is planned to start in spring 2026, with production beginning a year later. The project’s progress was also approved by the government on Tuesday, September 23, in an informative report “On the Establishment of an Artillery Production Plant in Latvia.”
“Latvia consistently invests in its defense and partnerships with allies. Collaboration with Rheinmetall provides an opportunity to attract hundreds of millions in investments, create new jobs, and give Latvian companies access to top-tier technologies. This strengthens not only our economy but also national security and NATO collective defense. I am convinced that investments in our country’s defense are also investments in the safety and future of our citizens,” said Prime Minister Evika Siliņa.
“This agreement demonstrates that Latvia is purposefully developing the defense industry as a significant part of its economy. We are talking about new investment volumes, high-value-added jobs, and technologies that will benefit the entire economy. Latvian companies will have the opportunity to participate in international supply chains and be part of a modern European defense ecosystem,” emphasized Minister of Economics Viktors Valainis.
“The establishment of the plant in Latvia is an internationally significant project entrusted to the State Defence Corporation. Implementation will provide Latvia with a unique opportunity to acquire knowledge and experience in ammunition production from our partners with long-standing expertise in military manufacturing, as well as promote technology transfer,” noted Minister of Defence Andris Sprūds.
Ingrīda Ķirse, Board Member of the State Defence Corporation, stated: “We take on the responsibility of jointly establishing an artillery ammunition plant in Latvia with the highest commitment. I am confident in the project’s success, as it combines several key components: the State Defence Corporation’s mandate to meet the needs of the National Armed Forces and develop Latvia’s defense industry, Rheinmetall’s extensive experience and knowledge, as well as high standards and international recognition. This synergy forms the foundation for a strong partnership to develop the industry and strengthen the security of Latvia and the region.”
The project is a logical continuation of the State Defence Corporation’s work. The Corporation recently began its first major defense industry project – ROLLO, a modular artillery charge assembly plant.
The artillery ammunition plant will strengthen the industrial base and innovation capabilities, create new jobs, expand export opportunities, and further integrate Latvia into the EU defense industry.
The memorandum was signed while a large Latvian business delegation, led by Prime Minister E. Siliņa and Minister of Economics V. Valainis, was in Germany. The trade mission in Hamburg and Rostock includes over 180 representatives from various sectors.
This visit demonstrates that Latvian-German economic and security ties are growing closer, combining science, business, and the military industry into a unified cooperation platform.
The trade mission will continue in Rostock on September 25–26, with meetings with companies from various sectors and participation in the Latvia–Germany Business Day, bringing together over 250 participants and focusing on the development of energy, digitalization, infrastructure, and defense industries.
This spring, the Cabinet approved the Defense Industry and Innovation Support Strategy for 2025–2036. Under this strategy, the Ministry of Economics, Ministry of Defence, State Defence Corporation, and Investment and Development Agency of Latvia have begun close cooperation in defense industry projects. The Ministry of Economics has already allocated over EUR 200 million in its programs to support the defense industry, including business incubation, research and development, product introduction to production, and large investment projects.