As part of a continuing shift towards European rearmament, Latvia has paved the way for a new munitions factory—with production expected to commence next year.
Construction will begin in the southern town Iecava this summer, leading to the creation of a large-calibre ammunition production plant, Expected to cost €27 million, the factory is fuelled by public funds, under the direction of the state defence corporation/VAK.
Once operational, the facility will supply Latvia’s national armed forces (NBS) but also aims to function in the export market. Growing insecurity in the Baltic states following Russia’s invasion of Ukraine prompted Riga to set up VAK at the end of 2023, with investment ongoing. Its modular artillery products, the “Rollo” project, involve joint work with defence sector companies from France, Italy, Finland, and Norway. Rollo receives co-financing from the European Union worth €41 million.
With construction set to start on Ministry of Defence-owned land, the development could be seen as symbolising the new war drive in Europe. At the time of writing, the staff of the 10-strong company is predicted to rise to 28 employees when the factory opens—meaning calm heads should not overreact.


