Latvia to Receive 155-mm Shell Factory From Rheinmetall

Rheinmetall has agreed to build a 155-mm ammunition production facility in Latvia.

The company’s press service and Latvia’s Ministry of Defense announced the signing of the memorandum on September 25.

According to the memorandum, the plant will be jointly managed by Rheinmetall (51% ownership) and the Latvian State Defence Corporation (49%).

The ammunition produced will supply the Latvian National Armed Forces, enhance supply chain security and be available to partner countries.

Rheinmetall reports that the production line will include a forging and cartridge case filling line. Construction is scheduled to begin in spring 2026, and production is expected to start in about a year.

The €275 million investment will allow the plant to produce tens of thousands of artillery shells annually and create at least 150 jobs locally.

Regional companies and the domestic economy will be integrated into the value chain of the plant, which will provide additional economic benefits for the country.

The Latvian Ministry of Defense expects the plant’s exports to exceed EUR 3 billion within 10 years.

The project will provide Latvia with a unique opportunity to gain knowledge and experience in the production of ammunition from partners – companies with many years of experience in military production – and will facilitate technology transfer.

The Prime Minister of Latvia, Evika Siliņa, who attended the signing of the memorandum, called the event a historic moment for the country.

Ukraine has also allocated a land plot for the construction of a Rheinmetall plant for the production of 155-mm shells.