Rheinmetall Latvia’s ammunition plant is expanding its European production network to build a new 155 mm artillery ammunition facility in Latvia, underlining both the company’s industrial ambitions and the Baltic state’s drive to strengthen its defense autonomy.
Joint Venture for Strategic Ammunition Supply
The project was formalized with a Memorandum of Understanding (MoU) signed in Hamburg in the presence of Latvian Prime Minister Evika Siliņa. The facility will be operated by a joint venture between Rheinmetall Waffe Munition GmbH (51%) and Latvia’s State Defence Corporation LLC (49%).
By producing its own 155 mm artillery ammunition, Latvia aims to bolster the capabilities of its National Armed Forces while enhancing supply chain resilience. Ammunition from the plant will also be available to partner nations, contributing to wider regional and NATO security.
“This MoU is a clear step towards strengthening Latvia’s security and developing our defence industry,” said Prime Minister Siliņa. “By aiming to establish a partnership with Rheinmetall, Latvia not only builds a stronger national defence, but also contributes to the security of supply in Europe, enhancing industrial capacity as well as facilitating economic growth.”
Modern Facility with Regional Impact
The planned facility will include a state-of-the-art shell forging and filling line, representing an investment of €275 million. Construction is scheduled to begin in spring 2026, with production expected to commence around a year later.
The site is expected to create at least 150 local jobs and integrate Latvian businesses into its supply chain, boosting the domestic economy. Once operational, the plant will be capable of producing tens of thousands of artillery shells annually, ensuring both national and allied supply requirements.
Rheinmetall Expands Its Footprint in the Baltics
Armin Papperger, CEO of Rheinmetall AG, highlighted the broader implications: “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.”
He added that similar projects could follow in other countries as demand for European-based ammunition production grows.
Ingrīda Kirse, Board Member of the State Defence Corporation, underscored the partnership’s importance: “This project brings together the mission of the State Defence Corporation to ensure the needs of the Armed Forces, and Rheinmetall’s longstanding expertise. This synergy forms the foundation of a strong partnership that will both advance the industry and strengthen security in Latvia and the wider region.”
Regional Defense Industrial Momentum
Latvia’s move comes shortly after neighboring Lithuania commissioned Rheinmetall to build a comparable ammunition plant at Baisogala. Construction there is due to begin within weeks, reflecting a wider regional strategy to secure long-term artillery supply amid heightened defense needs across Europe.
