State Defence Corporation at a glance

State Defence Corporation Ltd (SIA “Valsts aizsardzības korporācija” in Latvian) was established in November 2023 pursuant to a decision of the Cabinet of Ministers of Latvia. It is a wholly state-owned company, with the Ministry of Defence as its shareholder, and the only company of its kind in Latvia’s defence sector. In 2025, it was registered as a company of national security significance.

The Corporation was established to support the strategic and sustainable development of Latvia’s defence industry. This approach is driven by three key factors: 1) the evolving geopolitical environment, particularly in the context of Ukraine; 2) the increasing requirements of the National Armed Forces; 3) the need for coordinated industrial development and effective investment management.

The Corporation’s strategic objective is to manage investments in the national defence industry and to coordinate the development of military production. It supports the establishment of production facilities and manufacturing processes in areas of strategic importance, while contributing to the growth of Latvia’s defence industrial base and the resilience of its supply chains.

The Corporation is Latvia’s national enterprise, transforming defence requirements into industrial projects.

The Corporation operates in areas where state involvement is essential and where private sector participation alone is insufficient to deliver the strategic outcomes required in the interests of national defence and security.

The Corporation’s principal client is the Latvian National Armed Forces. It plays an important role in strengthening supply capability and overall operational readiness. In line with its mandate, the Corporation supports the long-term development of Latvia’s defence industry by managing strategic investments, coordinating defence production initiatives, and helping to build new industrial capabilities.

The Corporation also develops cooperation with domestic and international partners, promotes innovation and industrial growth, and supports the development of export-oriented production capacity, primarily for EU and NATO markets. In doing so, it contributes not only to national defence capability, but also to the sustainable development of the wider national economy.

Main tasks of the Corporation

• To develop and advance Latvia’s defence industry 

• To attract funding and establish cooperation with domestic and international partners 

• To manage strategic investments and coordinate defence industry development 

• To meet the needs of its principal client, the Latvian National Armed Forces 

 Core areas of activities and potential cooperation

• Joint manufacturing in Latvia

• Medium- and large-calibre ammunition 

• Counter-mobility solutions 

• Energetic materials 

• Research and development