Rheinmetall Plans €275M 155mm Shell Factory in Latvia Creating 150 Jobs

German defense contractor Rheinmetall has signed a memorandum with Latvia to build a 155-mm artillery shell production plant, with construction beginning in spring 2026 and production starting about a year later. The facility, a joint venture with Rheinmetall holding 51% and the Latvian State Defense Corporation 49%, involves a €275 million investment and is expected to create at least 150 jobs, producing tens of thousands of shells annually to supply the Latvian armed forces and partner countries. This project aims to enhance Latvia's national sovereignty in ammunition production, strengthen supply chain security, and contribute to regional economic growth, with exports potentially exceeding €3 billion within ten years. Rheinmetall's CEO highlighted the partnership as beneficial for both parties, enhancing Latvia's defense capabilities and the company's global leadership in artillery ammunition. Additionally, Rheinmetall is expanding its production footprint with similar plants in Ukraine and Bulgaria, alongside the recently opened largest ammunition factory in the EU near Hanover. Latvian Prime Minister Evika Siliņa emphasized the strategic importance of this investment for Latvia's security and future.