In 2025 “State Defence Corporation” launches construction of the Baltic region’s first artillery shell plant and expands international cooperation

In 2025 “State Defence Corporation” Ltd. (the Corporation) launched construction of the Baltic region’s first artillery ammunition modular propellant charges plant and expanded its international cooperation. The Corporation reported a profit for the year and fulfilled its delegated tasks – as confirmed by the 2025 Annual Report and Management Report approved at the shareholders’ meeting. This is the Corporation’s second annual report since its establishment at the end of 2023.

Strategic projects and international cooperation

“Last year, we continued our steady development, advanced the implementation of the project “Artillery Ammunition Modular Propellant Charge Assembly Plant” (ROLLO), and commenced construction of the facility. Construction is scheduled to be completed by mid-2026, while production is expected to begin in the third quarter,” emphasises Ingrīda Ķirse, Board Member of the Corporation.

She adds that during the past year the Corporation expanded its international cooperation and assessed opportunities to develop manufacturing capacity in Latvia by preparing new industrialisation projects aimed at ensuring critical capability and ammunition requirements in areas such as large and medium calibre ammunition, counter-mobility solutions and explosives. These initiatives provide the foundation for strengthening the capacity of the defence industry and meeting the needs of the Corporation’s primary client, the National Armed Forces (NAF).

An important step in international cooperation was the signing of a memorandum of understanding with “Rheinmetall AG” regarding the potential establishment of an large calibre artillery ammunition plant. In addition, groundwork was laid for cooperation with “Dynamit Nobel Defence GmbH”, resulting in the signing of a letter of intent at the beginning of 2026 on the establishment of an anti-tank mine production facility in Latvia.

Achievement of objectives and corporate governance

In 2025 the Corporation achieved its financial and non-financial objectives, further developed its corporate governance framework, and reported a profit for the first time of nearly EUR 136,000. In accordance with the decision of the shareholders’ meeting, the profit was allocated to cover losses incurred during the first year of operation.

The reporting period was the first year in which the Delegation contract with the Ministry of Defence was in force, and the Corporation fulfilled the public administration tasks entrusted to it. These tasks were primarily related to the needs of the NAF. For example, the Corporation prepared new industrialisation projects to ensure critical capability and ammunition requirements, identified opportunities for involving commercial operators in the creation of strategically important reserves, and evaluated international experience in the testing of military and dual-use products.

As part of its delegated tasks, the Corporation also promoted the representation and visibility of Latvia’s defence industry both domestically and internationally. In 2025, for example, the Corporation organised the Denmark–Latvia Defence Industry Day and the Germany–Latvia Defence Industry Day in Riga, attended by more than 300 participants from public institutions, military and internal security organisations, as well as industry representatives, manufacturers and associations. The Corporation also ensured the participation of the Latvian delegation and national exhibition stand at the “European Defence Innovation Days 2025” in Kraków, organised by the European Defence Agency and the Polish Presidency of the Council of the European Union.

Since 31 December 2025, there have been no events that would affect the Corporation’s financial position. At the same time, at the beginning of 2026, the Corporation was granted the status of a company of significance to national security, and a new Delegation contract with the Ministry of Defence for the period 2026–2028 was signed.

The Annual Report is available HERE (in Latvian).

Future development

Ingrīda Ķirse says: “In 2026, the Corporation’s main priority is to complete construction of the ROLLO facility and commence production of modular propellant charges. At the same time, the Corporation will continue to develop new defence industry projects in cooperation with international and local partners. In doing so, we will contribute to meeting the needs of the NAF, strengthening the capacity of Latvia’s defence industry, enhancing the security and resilience of supply chains, and supporting the national economy in line with the Corporation’s overall strategic objective.”

About the 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. In 2025, the Corporation was registered in the Register of Enterprises as a company of significance to national security.

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