Latvia is taking a bold step in Europe’s military revival, breaking ground this summer on a state-funded munitions plant aimed at boosting both national defense and regional arms production.
The €27 million facility, slated for the town of Iecava in southern Latvia, will focus on manufacturing large-caliber ammunition and is expected to be fully operational by next year. Backed by public investment and spearheaded by Latvia’s recently established state defense company, VAK, the project is a direct response to rising security concerns in the Baltic region following Russia’s invasion of Ukraine.
Though modest in size—the current VAK team numbers just 10, with staffing expected to grow to 28 by the time production begins—the factory carries symbolic weight. Built on Ministry of Defence land, it marks a clear signal: Latvia, like many of its European neighbors, is done waiting on others for its defense needs.
Riga launched VAK in late 2023 as a strategic pivot toward homegrown military manufacturing. While the factory’s primary mission is to supply Latvia’s armed forces, it’s also eyeing opportunities in the global defense market.
The facility is part of a broader initiative dubbed the “Rollo” project, a modular artillery system developed in partnership with defense firms from France, Italy, Finland, and Norway. The project has already secured €41 million in co-financing from the European Union, reflecting Brussels’ growing support for bolstering continental military capabilities.
Though still in its early stages, Latvia’s latest defense venture adds momentum to Europe’s post-Ukraine war push to rearm, re-industrialize, and reduce reliance on external arms suppliers. For now, the factory may only employ a few dozen workers—but it’s the strategic impact, not the headcount, that speaks volumes.
