Bloomberg: Latvia in talks with Germany's Rheinmetall about weapons production in the country
The Latvian government is in talks with German defense concern Rheinmetall AG regarding the possible location of defense equipment production in the country, Bloomberg reports, citing informed sources.
According to the agency's sources, the negotiations are at an early stage, and there are no guarantees yet that a deal will be concluded. A Rheinmetall representative confirmed to the agency that negotiations are underway.
If an agreement is reached, it will be the second in the region – a similar ammunition production plant is already being built by Rheinmetall in neighboring Lithuania.
All three Baltic states – Latvia, Lithuania and Estonia – are among the most vocal opponents of Russian aggression in the EU and NATO. They advocate increasing defense spending to 5% of GDP, and are also actively investing in artillery, air defense systems and strengthening NATO’s eastern flank.
According to the agency's sources, Latvia is also in talks with Italian aerospace and defense manufacturer Leonardo SpA. Rheinmetall and Leonardo are the largest arms manufacturers in Germany and Italy, respectively.
"At the government level, work is underway with many potential investors, including defense industry companies," said Anna Udre, press secretary for the Prime Minister of Latvia.
- In June 2024, Ukroboronprom and Rheinmetall opened the first joint venture for the repair and production of armored vehicles.
- In July, Rheinmetall officially received an order from Ukraine to build an ammunition factory. Its construction is scheduled to be completed in 2026. The plant's capacity will significantly exceed the planned 150,000 shells per year.
- In May 2025, Ukroboronprom and the German arms concern Rheinmetall signed a memorandum of cooperation regarding the possibility of creating another joint venture.
