BAKU, Azerbaijan, September 29. On Thursday,
September 25, Latvia signed a memorandum of understanding with
German defense industry leader Rheinmetall AG to build an artillery
ammunition plant in Latvia, Trend reports.
The signing ceremony was attended by Latvian Prime Minister
Evika Siliņa, Minister of Economics Viktors Valainis, State Defense
Corporation (VAK) board member Ingrīda Ķirse, and representatives
of Rheinmetall.
The project will be implemented through a joint venture and is
expected to attract more than 200 million euros in investment. Over
the next decade, the plant’s exports could exceed 3 billion euros.
Construction is scheduled to begin in spring 2026, with production
planned to start the following year. Earlier this week, the Latvian
government approved the project as part of its strategy to
strengthen the defense industry.
Prime Minister Evika Siliņa emphasized that the agreement
reflects Latvia’s consistent investment in both national security
and allied cooperation.
“This partnership with Rheinmetall allows us to bring in
hundreds of millions of euros in investment, create new jobs, and
provide Latvian companies with access to cutting-edge technologies.
It strengthens not only our economy but also our national security
and NATO’s collective defense,” Siliņa said.
“Latvia is deliberately developing the defense industry as a key
part of the economy. This means new investment, high-value jobs,
and technology transfer that benefits our entire economy. Our
companies gain the opportunity to integrate into international
supply chains and become part of Europe’s modern defense
ecosystem,” Minister of Economics Viktors Valainis highlighted the
broader economic impact.
Defense Minister Andris Sprūds stressed the strategic importance
of the project, while VAK board member Ingrīda Ķirse underlined the
responsibility entrusted to the State Defense Corporation, pointing
to the combination of Latvia’s national priorities and
Rheinmetall’s long-standing industrial expertise as the foundation
for a strong partnership.
The project follows on from Latvia’s first major defense
industry initiative, the ROLLO modular artillery propellant charge
assembly facility. Both projects aim to strengthen Latvia’s
industrial base, foster innovation, and deepen integration into the
European defense sector.
The memorandum was signed during a major Latvian business
delegation visit to Germany, led by Prime Minister Siliņa and
Minister Valainis. The mission, involving more than 180 companies
and organizations, highlights the growing economic and security
ties between Latvia and Germany, combining science, business, and
defense industry cooperation.
The trade mission will continue in Rostock on September 25–26 as
part of the Latvia–Germany Business Day, which brings together more
than 250 participants to discuss issues related to the development
of energy, digitalization, infrastructure, and the defense
industry.
Earlier this year, the Latvian government approved the Defense
Industry and Innovation Support Strategy 2025–2036, which allocates
more than 200 million euros for defense industry development,
including business incubation, R&D, product deployment, and
large-scale investment projects.
