State Defense Corporation's consortium to get EUR 41 grant for modular charges manufacture project

RIGA - A consortium of five defense industry companies from five European countries and the European Commission have signed a EUR 41 million grant agreement for manufacture of modular charges, representatives of State Defense Corporation (Vsalsts Aizsardzibas Korporacija, SDC) company informed LETA.

SDC represents Latvia in the consortium. The financing is intended to increase production capacity of modular charges in Europe, including the establishment of an ammunition assembly plant in Latvia

The funds are earmarked for one of the largest and most comprehensive projects funded under the Act of Support in Ammunition Production (ASAP) program: Production of Modular Charges with Triple and Double base Propellant (ROLLO).

According to SDC board member Ingrida Kirse, the company's partners in the consortium are experienced international defense industry companies. Italy's KNDS Ammo and Norwegian-Finnish company NAMMO are the lead partners, while another KNDS Group company is from France.

Kirse explains that this will allow Latvia and SDC to quickly gain the necessary experience for further development, including for the establishment of the production plant and industrialization of the defense sector, entering international ammunition supply chains.

SDC representatives explain that implementation of the project will strengthen cooperation between the five companies and countries and, as a result, create additional modular charges production capacity and a more sustainable and efficient ammunition production base in Europe.

As reported, the Latvian government last year approved the establishment of state-owned military industry company SDC.

Considering the needs of the National Armed Forces, SDC will be establishing joint ventures with Latvian and foreign companies for the manufacture of particular products, thereby strengthening supply security.