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Rheinmetall to Boost Latvia's Defence Capabilities With New Ammunition Plant
Published by Global Banking & Finance Review®
Posted on September 25, 2025
2 min readLast updated: January 21, 2026
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Rheinmetall plans to build an ammunition plant in Latvia, enhancing its defence capabilities. The investment will strengthen security amid European tensions.
Rheinmetall to boost Latvia's defence capabilities with new ammunition plant
Rheinmetall's Investment in Latvia
BERLIN (Reuters) -Rheinmetall plans to build a new ammunition plant in Latvia, the German defence conglomerate said on Thursday, expanding the ability of the Baltic nation bordering Russia to defend itself.
Partnership Details
Countries across Europe have been racing to increase their defence capabilities in the wake of the war in Ukraine in an effort to deter Russia from attempting to take more territory.
Investment and Capacity
Rheinmetall has benefited from those efforts, and CEO Armin Papperger is actively seeking similar partnerships with other countries and acquisitions to quickly expand production.
Broader European Context
According to a memorandum of understanding, Europe's largest ammunition producer will own 51% of the shares in the plant, while Latvia's State Defence Corporation will hold the rest.
Papperger signed the MoU in the northern German city of Hamburg on Thursday in the presence of Latvian Prime Minister Evika Silina, who called it a "clear step" towards strengthening the country's security and developing its defence industry.
Some 275 million euros ($322.74 million) will be invested in Latvia for the plant, which is expected to have an annual capacity of several tens of thousands of artillery shells.
Rheinmetall opened a new plant in the German state of Lower Saxony at the end of August that when fully operational is expected to become the largest ammunition plant in Europe.
The group also manufactures artillery shells in Spain and plans to build a similar plant in Lithuania, as well as in Romania and Bulgaria. A plant could also be built in Ukraine.
($1 = 0.8521 euros)
(Reporting by Matthias Inverardi, Writing by Miranda Murray, editing by Alexandra Hudson)
Key Takeaways
- •Rheinmetall to build an ammunition plant in Latvia.
- •The plant will enhance Latvia's defence capabilities.
- •Rheinmetall holds 51% of the plant's shares.
- •275 million euros will be invested in the project.
- •The plant will produce tens of thousands of artillery shells annually.
Frequently Asked Questions about Rheinmetall to boost Latvia's defence capabilities with new ammunition plant
1What is defense manufacturing?
Defense manufacturing refers to the production of equipment and materials used for military purposes, including weapons, ammunition, and other military hardware.
2What is investment capacity?
Investment capacity refers to the maximum amount of resources, such as capital or funding, that an organization can allocate to a specific project or venture.
