Rheinmetall to build artillery ammunition facility in Latvia
German defence company Rheinmetall AG is set to expand its ammunition production capacity with a new state-of-the-art facility in Latvia, producing 155 mm artillery shells. A Memorandum of Understanding (MoU) for the project was signed in Hamburg in the presence of Latvian Prime Minister Evika Silina.
The facility will be operated as a joint venture, with Rheinmetall Waffe Munition GmbH holding 51% and the Latvian State Defence Corporation 49%. The €275 million investment will produce tens of thousands of shells annually, strengthen supply chains for Latvia’s National Armed Forces, and provide at least 150 local jobs, integrating regional companies into the production value chain, News.Az reports, citing foreign media.
Construction is slated to begin in spring 2026, with production expected about a year later. The facility will feature a full shell forging and filling line to ensure modern and efficient production.
Latvian Prime Minister Siliņa emphasized the project’s significance: “Investing in our defence industry is investing in the safety and future of our people. This partnership with Rheinmetall not only strengthens national defence but also contributes to Europe’s supply security and industrial growth.”
Rheinmetall CEO Armin Papperger added: “We are proud to support Latvia’s national sovereignty in ammunition production while reinforcing our position as a leading global manufacturer of artillery shells. We aim to establish similar partnerships in other countries.”
Ingrida Kirse, Board Member of Latvia’s State Defence Corporation, highlighted the collaboration: “This synergy combines Latvia’s mission to strengthen its armed forces with Rheinmetall’s expertise, forming the foundation for a robust defence industry and enhanced regional security.”
The Latvian facility follows a similar project commissioned by Lithuania in late 2024, reflecting a broader trend in the Baltic region to expand domestic ammunition production and enhance defence capabilities in response to regional security challenges.
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