Signing of a memorandum of understanding on the establishment of an artillery ammunition production facility in Latvia
On Thursday, September 25, a memorandum was signed in Hamburg, Germany, on the construction of an artillery ammunition factory in Latvia. The memorandum was signed by Latvian Prime Minister Evika Siliņa, Minister of Economics Viktors Valainis, Ingrīda Ķirse, member of the board of State Defence Corporation LLC, and the investor, Rheinmetall AG, a leading German defence industry company.
A joint venture is planned to be established for the construction of the production facility. The project is expected to attract more than EUR 200 million in investments, and exports from the facility could exceed EUR 3 billion over ten years. Construction of the production facility is scheduled to begin in spring 2026, with production starting a year later. On Tuesday, September 23, the project was also supported by the government, which reviewed the informative report "On the Establishment of an Artillery Production Facility in Latvia."
“Latvia consistently invests in its defence and partnerships with allies. Cooperation with Rheinmetall provides an opportunity to attract hundreds of millions of euros in investments, create new jobs, and give Latvian companies access to state-of-the-art technologies. This strengthens not only our economy, but also national security and NATO's collective defense. I am convinced that investments in our country's defence are also investments in the security and future of our citizens," says Evika Siliņa, Prime Minister of the Republic of Latvia.
"This agreement confirms that Latvia is purposefully developing the defence industry as an important part of the national economy. We are talking about new investment volumes, high added value jobs and technologies that will benefit our entire economy. Latvian companies will have the opportunity to participate in international supply chains and be part of the modern European defence ecosystem," emphasizes Minister of Economics Viktors Valainis.
“The establishment of a production facility in Latvia is an internationally significant project entrusted to the State Defence Corporation. The implementation of this project will provide Latvia with a unique opportunity to acquire knowledge and gain experience in ammunition production from our partners, companies with many years of experience in the field of military production, and will also promote technology transfer," said Minister of Defence Andris Sprūds.
Ingrīda Ķirse, member of the board of the State Defence Corporation LLC: “We take the utmost responsibility for the task entrusted to us – to jointly build an artillery ammunition production facility in Latvia. I am convinced that all the prerequisites are in place, as the project combines several essential components. Namely, the State Defense Corporation's task of ensuring the needs of the National Armed Forces and the goal of developing Latvia's defence industry by creating production capacity, as well as Rheinmetall's many years of experience in the industry and accumulated know-how, as well as its high standards and international recognition. This synergy is the basis for a strong partnership to develop the industry and strengthen the security of Latvia and the region."
The planned project is a logical continuation of the work of the State Defence Corporation. The corporation has just begun to implement its first major defense industry project – ROLLO, or the creation of a modular powder charge assembly plant for artillery ammunition.
The artillery ammunition production plant project will strengthen the industrial base and innovation capabilities. It will also bring economic benefits in the form of new jobs and broader export opportunities. It will also promote Latvia's closer integration into the EU defence industry.
The memorandum of understanding was signed at a time when a large Latvian business delegation led by Prime Minister E. Siliņa and Minister of Economics Viktors Valainis is visiting Germany. More than 180 representatives of companies and organizations from various sectors are participating in the trade mission in Hamburg and Rostock.
This visit confirms that the economic and security ties between Latvia and Germany are becoming increasingly closer, bringing together science, business and the military industry in a single cooperation platform.
The trade mission will continue in Rostock on September 25 and 26, where the delegation will meet with companies from various sectors and participate in the Latvian-German Business Day, which will bring together more than 250 participants and focus on the development of the energy, digitalization, infrastructure, and defence industry development.
This spring, the Cabinet of Ministers approved the Defence Industry and Innovation Support Strategy for 2025–2036. Within the framework of this strategy, the Ministry of Economics (EM), the Ministry of Defence, State Defence Corporation LLC and the Latvian Investment and Development Agency have begun close cooperation in the development of defence industry projects. The EM has already allocated more than EUR 200 million in its programs to support the defence industry – for business incubation, research and development, product introduction into production, and large investment projects.
Public relations section
Ministry of Economics
E-mail: prese@em.gov.lv