The Latvian state defense corporation Valsts aizsardzības korporācija has signed a memorandum of understanding with the German company Rheinmetall to jointly build an artillery ammunition factory in Latvia, LSM reports.
According to Rheinmetall’s statement to the media, as part of its ongoing expansion of production capacity, the company plans to construct a modern plant in Latvia to produce 155mm artillery shells.
Today in Hamburg, the German and Latvian sides signed the memorandum of understanding. The future factory will be managed by Rheinmetall Waffe Munition GmbH (51%) and Valsts aizsardzības korporācija (49%).
“The ammunition produced will supply the Latvian National Armed Forces, strengthen supply chain security, and be available to partner countries,” the company stated.
Construction of the plant is scheduled to begin in spring 2026, with production expected to start approximately one year later.
Investments of €275 million will allow the production of tens of thousands of artillery shells and create at least 150 jobs, according to Rheinmetall. The new plant will also collaborate with local businesses.
Latvia’s Minister of Economics, Viktors Valainis, told Latvian television that the site for the factory has been chosen, but its exact location has not yet been disclosed.
