“State Defence Corporation” to produce artillery ammunition components in Iecava

A plant for artillery ammunition components will be established in Iecava, becoming the first facility of its kind on such a scale in the Baltic States, Defence Minister Andris Sprūds revealed in an interview with the news agency LETA.

The plant will specialise in the production of modular propellant charges and will be located in Iecava parish, Bauska Municipality. Sprūds emphasised that this project is an important step in strengthening Latvia’s security and economic development, as well as noted that it will ensure the transfer of knowledge and technology from partners, making Latvia part of secure supply chains at both national and European level.

“The plant will be a significant gain for Latvia, as we will become part of Europe’s ammunition production chain. Within two years, we will begin producing modular propellant charges here. These could be described as explosive blocks. There is a projectile that is loaded into artillery equipment, and then there is a modular propellant charge that provides additional power to the projectile,” said Sprūds.

He also added that the factory plans to produce 50,000 charges per year, and that construction and equipment purchases will cost a total of EUR 12 million, of which EUR11 million will be financed by Latvia and 1 million EUR will be provided by the European Union.

Another important aspect is the projected additional cost of raw material procurement, which could reach approximately EUR 15 million per year. Sprūds acknowledged that sourcing raw materials is challenging, as they are available only in limited quantities on global markets, but they are planned to be purchased from partners in Italy.

The location of the plant in Iecava parish was chosen due to existing infrastructure and optimal conditions for faster project implementation. Sprūds noted that the initial response from the local municipality has been positive, and dialogue with the municipality is ongoing.

The Minister also emphasised that the plant will be safe for nearby residents and will bring significant economic benefits: “This project will create jobs and economic activity. I believe it is a benefit for absolutely everyone – for the state, for the defence sector, and of course for the municipality as well.”

Looking ahead, Sprūds revealed that the “State Defence Corporation” Ltd. is also considering the production of other military goods, including mines and explosives, in order to strengthen Latvia’s borders. He stressed the importance of developing sectors where private companies have limited resources and building partnerships with the private sector to implement such projects jointly.

He also noted that discussions have already begun with international partners, such as the Finnish and Norwegian company NAMMO and the KNDS Group from France and Italy, to assess how feasible these plans are. “We have identified this desire, this ambition, that we would like to produce various types of ammunition, and within the framework of partnerships we need to understand how feasible this is,” the minister said.

It has already been reported that the Latvian government approved the establishment of the state-owned defence industry company “State Defence Corporation” Ltd. at the end of last year.

Taking into account the needs of the Latvian National Armed Forces, the Corporation will establish joint ventures with Latvian and foreign companies for the production of specific products, thereby strengthening supply security.

One of the first projects being implemented by the Corporation is the establishment of a 155 mm ammunition modular propellant charge plant in cooperation with the Finnish and Norwegian company NAMMO, as well as the French and Italian company KNDS.

Source: Sargs.lv