Latvia has taken a significant step towards expanding its defence industry after Economics Minister Viktors Valainis signed a memorandum of understanding on the 23rd of July with a Latvian company established by US-based Native Trading to develop a full-cycle artillery rocket manufacturing facility in the country.
The investor was attracted through a joint effort by the Ministry of Economics and the Investment and Development Agency of Latvia (LIAA). According to the ministry, the memorandum is intended to facilitate cooperation, assess the conditions necessary for implementing the investment project, and promote Latvia’s sustainable economic growth, innovation, and high-value manufacturing.
The proposed facility would include the entire production cycle for artillery rockets, covering solid propellant manufacturing, explosive warhead filling, final assembly, and qualification testing. Total investment in the project is estimated at €70–90 million.
“National security depends not only on the capabilities of the armed forces but also on the country’s industrial capacity,” Valainis said.
“By developing full-cycle artillery rocket production in Latvia,
we are simultaneously strengthening national security, expanding high-value manufacturing, and creating new jobs.
Investments of this kind increase Latvia’s resilience, export capacity, and long-term economic growth.”
According to the ministry, the project will establish modern, high-value production facilities designed both to strengthen Latvia’s defence capabilities and to supply international markets.
Native Trading Chief Executive Officer Nathan Beauchamp said the company sees the project as a long-term partnership between the United States and Latvia.
“Latvia has demonstrated a clear commitment to fostering innovation, economic growth, and industrial development. Our goal is to build a long-term partnership that creates highly skilled jobs, attracts significant foreign investment, and strengthens the region’s industrial capacity.
“This project is about much more than building a manufacturing plant.
It is about creating lasting cooperation between the United States and Latvia based on trust, transparency, innovation, and a shared commitment to economic development and regional security,” Beauchamp said.
During implementation, LIAA will coordinate cooperation between the investor and relevant state institutions while providing support throughout the development process.
According to the agency, the project has already reached an advanced stage of preparation. Documentation required to establish the Latvian company is being finalised, potential production sites have been identified, and coordination with public authorities is underway. Given the project’s strategic importance, it may also qualify for Latvia’s Green Corridor mechanism, which accelerates strategically important investment projects.
LIAA Deputy Director for Investment Attraction Laura Štrovalde described the initiative as one of the most significant new investment projects in Latvia’s defence industry in recent years.
“The investment attraction efforts carried out by the Ministry of Economics and LIAA were instrumental in securing Latvia as the location for this project. The development has already reached an advanced stage, and LIAA will continue coordinating cooperation between the investor and public institutions to ensure its successful implementation,” she said.
Initial estimates suggest the project will create 150 new jobs.
Within five years of the plant becoming operational, exports are expected to reach at least 600 million euros, while private investment is projected to total at least 70 million euros.
The project is also expected to generate at least 68 million euros in tax revenue for the Latvian state budget during its first five years of operation. Construction and implementation are expected to be completed within 24 months.
The Ministry of Economics said the investment comes at a time of rapidly growing demand for defence manufacturing capacity across Europe and NATO member states, as governments continue increasing spending on defence and security.
Once completed, the facility is expected to strengthen Latvia’s position within international defence supply chains while boosting exports and creating highly skilled employment opportunities.
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