On 23 July, Latvia’s Minister of Economics Viktors Valainis signed a Memorandum of Understanding with a Latvian company established by the U.S.-based Native Trading to develop a full-cycle artillery rocket manufacturing facility in Latvia (the Project). The investor was attracted through the joint efforts of the Ministry of Economics and the Investment and Development Agency of Latvia (LIAA). The memorandum aims to promote cooperation, assess the prerequisites for implementing the investment project, and strengthen Latvia’s sustainable economic growth, innovation capacity, and high value-added manufacturing sector.
The proposed Project envisages the establishment of a full-cycle artillery rocket manufacturing facility covering all major stages of production, including solid propellant manufacturing, explosive warhead filling, final assembly, and qualification testing. The total investment is expected to range between €70 million and €90 million.
“National security depends not only on the capabilities of the armed forces, but also on the country’s industrial capacity. By developing full-cycle artillery rocket manufacturing in Latvia, we are simultaneously strengthening national security, promoting high value-added industry, and creating new jobs. Investments of this scale increase Latvia’s resilience, export capacity, and long-term economic growth,” said Minister of Economics Viktors Valainis.
The Project will establish modern, high value-added manufacturing capabilities in Latvia, designed both to strengthen the country’s defence capabilities and to meet growing demand in international markets.
“Latvia has demonstrated a clear commitment to fostering innovation, economic growth, and industrial development. Our objective 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 far more than building a manufacturing facility—it is about establishing a strong and lasting partnership between the United States and Latvia based on trust, transparency, innovation, and a shared commitment to economic development and regional security,” said Nathan Beauchamp, Chief Executive Officer of Native Trading.
Throughout the implementation process, LIAA will coordinate cooperation between the investor and the relevant public authorities, providing support to facilitate the project’s progress. The Project has already reached an advanced stage of preparation: documentation required to establish the Latvian company is being prepared, potential production sites have been evaluated, and the necessary implementation procedures are being advanced in cooperation with government institutions.
Given the Project’s strategic importance for Latvia’s economy and national security, it will also have access, where necessary, to the government’s priority investment support mechanisms, including Latvia’s Green Corridor fast-track framework for strategically significant investment projects.
“This is 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 a key factor in the investor’s decision to choose Latvia for the development of this project. The Project has already reached a high level of readiness, and LIAA will continue coordinating cooperation between the investor and public institutions to ensure its successful implementation,” said Laura Štrovalde, Deputy Director of LIAA responsible for investment attraction.
According to preliminary estimates, the Project will create approximately 150 new jobs. Within five years of commencing operations, the facility is expected to generate annual exports of at least €600 million. The Project envisages attracting no less than €70 million in private investment and is expected to contribute at least €68 million in tax revenues to Latvia’s state budget during its first five years of operation. Construction and implementation are expected to be completed within 24 months.
The Project represents one of the largest new investment initiatives in Latvia’s defence industry at a time when demand for defence manufacturing capacity is rapidly increasing across Europe and NATO member states, accompanied by substantial increases in defence and security investment. Its implementation will create highly skilled employment opportunities, significantly expand Latvia’s export potential, and strengthen the country’s position within international defence supply chains.
