Latvia to build full-cycle artillery rocket plant; investments up to €90 million

Latvian Minister of Economics Viktors Valainis (ZZS) and the US company Native Trading have signed a memorandum of understanding to develop a full-cycle artillery rocket production plant in Latvia. The total investment is estimated at €70 to €90 million. The memorandum aims to evaluate the prerequisites for the investment project and promote Latvia's economic growth, innovation, and high value-added manufacturing.

The plant will cover all main production stages: solid propellant production, explosive warhead filling, final assembly, and qualification testing. The goal is to create production capacities that serve both Latvia's defense strengthening and international market demand.

The executive director of Native Trading stated that Latvia has demonstrated a clear commitment to innovation, economic growth, and industrial development. The project is seen as a long-term partnership that will create highly skilled jobs, attract significant foreign investment, and strengthen the region's industrial capacity. He emphasized that this is about building a close and lasting cooperation between the US and Latvia based on trust, transparency, and innovation.

Valainis noted that security is based not only on armed forces but also on industrial capacity. Developing such a plant simultaneously strengthens national security, promotes high value-added industry, and creates new jobs. These investments mean greater resilience, export capacity, and long-term economic growth for Latvia.

The Latvian Investment and Development Agency (LIAA) will coordinate cooperation between the investor and state institutions during project implementation. Currently, company registration documents are being prepared, potential plant locations are being evaluated, and necessary processes are being advanced. Due to the project's strategic importance, the Green Corridor mechanism will be available to facilitate priority investment processes.

LIAA Deputy Director for Investment Attraction Laura Štrovalde indicated that this is one of the most significant new investment projects in Latvia's defense industry in recent years. Thanks to the work of the Ministry of Economics in attracting investments, the investor chose Latvia. The project has reached a high level of readiness, and LIAA will continue to coordinate cooperation.

The Ministry of Economics emphasizes that this is one of the largest new investment projects in the defense industry at a time when demand for defense production capacities is rapidly increasing in Europe and NATO countries, and investments in security are being significantly increased. The project will create highly qualified jobs, significantly increase export potential, and strengthen Latvia's position in international defense supply chains.