Estonian defence company Wolfram Europa is developing a €200 million explosives and warhead production complex in Jēkabpils, Latvia, with initial operations targeted for late 2027.
Wolfram Europa, an Estonian defence industry company, has selected Jēkabpils as the site for a large-scale explosives and warhead manufacturing facility. The investment is planned in phases, with the first phase estimated at around €50 million and total planned investment reaching up to €200 million. At full capacity, the facility is expected to produce up to 200,000 warheads annually and employ approximately 200 people.
The Investment and Development Agency of Latvia (LIAA) has supported the project by helping identify suitable locations, connecting the company with local stakeholders and guiding it through available support measures. ALTUM’s capital rebate loan instrument was cited as a significant factor in the company’s decision to prioritise Latvia over other European locations where it is also developing projects.
Jēkabpils municipality has been closely involved in the process. The company views the project as a long-term partnership with the local community, expecting it to generate business for regional suppliers and service providers and contribute to the broader local industrial base.
Regulatory complexity has been a notable challenge, particularly in aligning facility requirements with permitting procedures for explosives manufacturing. Wolfram Europa’s experience has fed into ongoing work between LIAA and the Latvian Ministry of Defence to improve the Investment Highway framework, with the aim of making administrative procedures clearer and more efficient for future strategic projects.
The company also sees the industrial processes, facility design and operational know-how developed in Latvia as an exportable product in their own right, with potential applications across Europe and beyond.
Source: investinlatvia.org
