Rheinmetall has announced plans to build a new production facility for 155 mm artillery ammunition in Latvia. The agreement was formalized in Hamburg with the signing of a Memorandum of Understanding (MoU) in the presence of Latvian Prime Minister Evika Siliņa.
The plant will be operated as a joint venture between Rheinmetall Waffe Munition GmbH, holding a 51 percent share, and Latvia’s State Defence Corporation, with 49 percent. The facility is intended to strengthen Latvia’s defence sector by ensuring a steady supply of ammunition for the National Armed Forces and providing additional capacity for partner nations.
Construction of the site is scheduled to begin in spring 2026, with production expected to start the following year. The €275 million investment will include a forging and filling line and is projected to produce tens of thousands of shells annually. The initiative is also expected to create at least 150 jobs while incorporating local companies into the value chain.
Latvian Prime Minister Evika Siliņa stated:
“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, commented:
“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 development follows a similar initiative in neighboring Lithuania, where Rheinmetall was commissioned in late 2024 to construct a comparable ammunition plant at Baisogala. That project, set to begin construction in the coming weeks, mirrors the design and capacity planned for the Latvian facility.
