EU Funding to Boost Artillery Ammunition Production Capacity in Latvia

Today, 15 March 2024, the European Commission decided to allocate € 500 million for the development of the European Union’s defence industry under the Regulation establishing the Act in Support of Ammunition Production. This will enable the European defence industry to increase its artillery ammunition production capacity to two million rounds per year by the end of 2025.

Among the companies that the European Commission has decided to award funding to increase artillery ammunition production capacity is Latvia’s company – “State Defence Corporation”, LLC (SIA “Valsts aizsardzības korporācija”).

The Corporation submitted its application for funding as part of an international consortium together with companies of the KNDS Group in France and Italy and companies of the NAMMO Group in Norway and Finland at the end of 2023. Within the framework of the proposed international project, several activities are planned to be implemented in different countries, including one in Latvia, where it is planned to establish a production facility for modular propellant charges for artillery ammunition.

In total, the European Commission has approved €41.38 million in funding for the consortium’s project. Grant agreements are expected to be signed in May this year.

The aim of the Regulation supporting ammunition production is to accelerate and expand ammunition production across Europe. In October 2023, calls for proposals were launched under the work programme for projects related to the production of propellants, explosives, shells, testing capacity and rockets, with a submission deadline of 13 December 2023. The total budget allocated by the European Commission amounts to €513 million for 31 projects.

With additional co-financing from the industry, the overall budget is expected to exceed €1.5 billion, significantly increasing artillery ammunition production capacity across Europe.

As previously reported, in November 2023 the Government of Latvia approved the establishment of the state-owned company – State Defence Corporation. All shares in the company are held by the Ministry of Defence.

The task of the Corporation is to carry out comprehensive investment management in the national defence industry and to coordinate production-related processes. At the same time, it will indirectly ensure the production and integration of military goods, their components and technologies that are critically required by the defence sector.

About State Defence Corporation

The Corporation was established following a decision by the Government of Latvia in November 2023. Its aims are to support the long-term development of Latvia’s defence industry, manage investments in the sector, and coordinate processes related to the production of military goods. Through these activities, the Corporation contributes to strengthening the supply capabilities of the NAF, supporting the growth of Latvia’s defence industry, and ensuring the security and continuity of international supply chains. The Corporation works in sectors that require significant state involvement and are not served by the private sector.

The Corporation also fosters national and cross-border cooperation and partnerships. The company is a wholly state-owned enterprise, with the Ministry of Defence acting as its shareholder.

MORE INFORMATION
MINISTRY of DEFENCE
Military Public Affairs Department
Media Relations Section
+371 67335067
prese@mog.gov.lv

AGNESE KORBE 
State Defence Corporation 
Communication and Stakeholder Relations Manager
+371 29110062 
agnese.korbe@defencecorporation.lv 
defencecorporation.lv
linkedin.com/defence-corporation