Rheinmetall is driving forward its capacity expansion in the field of ammunition production and is now building a modern production facility for 155mm artillery ammunition in the Republic of Latvia. A corresponding agreement was signed today in Hamburg in the presence of Latvian Prime Minister Evika Siliņa. The facility will be operated by a joint venture whose shareholders will be Rheinmetall Waffe Munition GmbH (51%) and the Latvian State Defence Corporation, LLC (49%). Representatives of both sides have documented the key points in a memorandum of understanding. 

 

By establishing its own 155mm ammunition production facility, Latvia is taking another step toward strengthening its defense capabilities and developing an independent defense sector. The ammunition produced will ensure the supply of the Latvian armed forces and be available to partner countries. 

 

The production line will comprise a state-of-the-art manufacturing facility, including a bullet forging and filling line. Construction is scheduled to begin in spring 2026, with production commencing approximately one year later. €275 million will be invested in the facility, which will have an annual capacity of several tens of thousands of artillery shells. This will create approximately 150 local jobs. Local companies and the domestic economy will be integrated into the value chain.

 

Latvian Prime Minister Evika Siliņa said: "The signing of this Memorandum of Understanding is a clear step towards strengthening Latvia's security and developing our defense industry. Through the partnership with Rheinmetall, Latvia is not only strengthening its national defense, but also contributing to security of supply in Europe, strengthening industrial capacity, and promoting economic growth. I have directly followed this process because I am convinced that investments in our defense industry are investments in the security and future of our people."

 

Armin Papperger, CEO of Rheinmetall AG: "We are delighted to be able to contribute to Latvia's national sovereignty in the field of ammunition. At the same time, with this production facility, we are expanding our position as the world's leading manufacturer of artillery ammunition. It is and remains our goal at Rheinmetall to support our customers with first-class services as a reliable partner. I am confident that we can establish similar ammunition manufacturing partnerships in other countries as well."

 

Ingrīda Ķirse, Chairwoman of the Board of Directors, State Defence Corporation: "It is with the utmost responsibility that we take on the task entrusted to us to jointly establish a production facility for artillery ammunition in Latvia. I am confident that all the necessary prerequisites are in place, as this project combines several essential components. On the one hand, the State Defence Corporation's mission is to meet the needs of the national armed forces and promote the development of the Latvian defense industry by expanding production capacities. On the other hand, Rheinmetall contributes its many years of expertise, its established know-how, its high standards, and its international recognition. These synergies form the basis for a strong partnership that will both advance the industry and strengthen the security of Latvia and the entire region."

 

Rheinmetall was only awarded a contract by neighboring Lithuania to build a modern ammunition production facility for artillery shells at the end of 2024. Construction of the facility, which will begin in a few weeks at the Baisogala site in the heart of Lithuania, is identical in size and design to the plant planned for Latvia.