The facility will ensure ammunition supplies for the Latvian National Armed Forces and partner countries, strengthening security of supply chains. The €275 million investment is scheduled to begin construction in spring 2026, with production expected a year later, creating at least 150 jobs.
Latvian Prime Minister Evika Siliņa said: “Signing this MoU is a clear step towards strengthening Latvia’s security and developing our defence industry. By aiming to establish partnership with Rheinmetall Latvia not only builds stronger national defence, but also contributes to security of supply in Europe, enhancing industrial capacity as well as facilitating economic growth. I have been directly involved in this process because I believe that investing in our defence industry is investing in the safety and future of our people.”
Armin Papperger, CEO of Rheinmetall AG, stated: “We are delighted to be able to contribute to Latvia’s national sovereignty in the field of ammunition. At the same time, the production line will strengthen our position as the world’s leading manufacturer of artillery ammunition. At Rheinmetall, we are committed to supporting our customers as a reliable partner with first-class services. I am confident that we will also build similar partnerships for ammunition production in other countries”.
Ingrida Kirse, Board Member of the State Defence Corporation, added: “With the utmost sense of responsibility, we are taking on the entrusted task of jointly establishing an artillery ammunition production facility in Latvia. I am confident that all the necessary conditions are in place, as this project brings together several essential components. On the one hand, the mission of the State Defence Corporation is to ensure the needs of the National Armed Forces and to foster the development of Latvia’s defence industry by developing manufacturing capacity. On the other hand, Rheinmetall contributes its longstanding expertise, accumulated know-how, high standards, and international recognition. This synergy forms the foundation of a strong partnership that will both advance the industry and strengthen the security of Latvia and the wider region.”
The project follows a similar development in neighbouring Lithuania, where Rheinmetall was commissioned at the end of 2024 to construct an ammunition factory for artillery shells. Work on that plant at Baisogala is due to start in the coming weeks and mirrors the scale and design of the Latvian facility.
