Memorandum of understanding signed on development of full-cycle artillery rocket production facility in Latvia

RIGA - Economics Minister Viktors Valainis (Greens/Farmers) has signed a memorandum of understanding with U.S. company Native Trading on development of a full-cycle artillery rocket production facility in Latvia; a total of EUR 70 million to EUR 90 million will be invested in the project, the Economics Ministry informed LETA.

The purpose of the memorandum is to promote cooperation, assess the prerequisites for implementing the investment project, and strengthen Latvia's sustainable economic growth, innovation, and a high-value-added industry.

The project involves the establishment of a full-cycle artillery rocket production facility, covering all key stages of production - solid propellant production, filling of explosive warheads, final assembly, and certification testing.

During the project, high-value-added manufacturing facility will be established in Latvia, aimed at strengthening Latvia's defense capabilities and meeting the demand on international markets.

Native Trading notes that Latvia has demonstrated clear commitment to promoting innovation, economic growth, and industrial development. The goal is to build a long-term partnership that creates highly skilled jobs, attracts significant foreign investment, and strengthens the region's industrial capacity.

According to Native Trading, this project is not just about establishing a manufacturing facility - it is about building close and lasting cooperation between the United States and Latvia, based on trust, transparency, innovation, and a shared commitment to promoting economic development and regional security.

Security relies not only on the capabilities of the armed forces but also on the country's industrial capacity, Valainis commented. Developing full-cycle artillery production in Latvia will simultaneously strengthen national security, foster the development of a high-value-added industry, and create new jobs. Such investments enhance Latvia's resilience, export capacity, and long-term economic growth, he said.

During the implementation of the project, the Investment and Development Agency of Latvia (LIAA) will coordinate cooperation between the investor and the relevant government agencies, providing support to advance the project. The agency is preparing the documents necessary for establishing the company, evaluating potential locations for the production facility and, in cooperation with state institutions, facilitating the processes required for the project's implementation.

LIAA Deputy Director Laura Strovalde notes that this is one of the most significant new investment projects in Latvia's defense industry in recent years. The project has already reached an advanced stage of readiness, and LIAA will continue to coordinate cooperation between the investor and government institutions to ensure successful implementation of the project.

The Defense Ministry emphasizes that this is one of the largest new investment projects in Latvia's defense industry, being developed at a time demand for defense industry production capacity is rapidly growing in Europe and among NATO member countries, and investments in strengthening security and defense capabilities are being significantly increased. Implementation of the project in Latvia will create highly skilled jobs, significantly increase export potential, and strengthen Latvia's positions in international defense supply chains.