The EUR 275 million project aims to start production in 2027.

Rheinmetall has signed a memorandum of understanding to establish a 155 mm artillery ammunition factory in Latvia, marking a significant expansion of Baltic defence manufacturing. The agreement was concluded in Hamburg on 24 September 2025, with Latvia’s Prime Minister, Evika Siliņa, in attendance.

The facility will be operated by a joint venture between Rheinmetall Waffe Munition, holding 51%, and the Latvian State Defence Corporation, with 49%. The partners say the plant is intended to strengthen Latvia’s defence capabilities and underpin a more independent national defence sector. Rheinmetall is led by chief executive Armin Papperger, while the Latvian partner’s board includes Ingrida Kirse.

Designed around a state-of-the-art production line with shell forging and filling capabilities, the factory is expected to turn out tens of thousands of artillery shells. Output will support the National Armed Forces of Latvia and partner countries, including Estonia and Lithuania. Construction is scheduled to begin in spring 2026, with production targeted to start around spring 2027.

The investment totals EUR 275 million and is projected to create at least 150 local jobs, with regional companies to be integrated into the plant’s value chain. Officials view the project as a means to anchor specialised industrial skills in Latvia and broaden supply options for allied armed forces.

The move follows a parallel initiative in the region: in late 2024, Rheinmetall was commissioned by Lithuania to build a similar ammunition facility in Baisogala. Together, the projects signal a coordinated effort among Baltic states to expand indigenous ammunition production in support of national and regional defence needs.