The State Defense Corporation (Valsts aizsardzības korporācija) and the German company Dynamit Nobel Defence GmbH signed a memorandum of understanding on Thursday, according to which a factory for the production of anti-tank mines will be established in Latvia within two years, LETA reports.
After signing the memorandum, board member of the "State Defense Corporation" Ingriida Kirše stated to the LETA agency that the project will now begin — the possible location of the factory will be determined and the necessary investment volume will be calculated.
Kirše also explained that a form of further cooperation will be chosen. According to her, the establishment of a joint venture between the "State Defense Corporation" and Dynamit Nobel Defence GmbH is possible, which would allow for the implementation of other projects with the German side in the future.
As in other projects of the corporation, the main customer for production will be the National Armed Forces (NAF), however, according to Kirše, the enterprise will also have high export potential.
The production is planned to involve other Latvian manufacturers who will supply raw materials and components, Kirše added.
She predicts that construction work may begin in 2027, and production may launch in 2028.
Defense Minister Andris Sprūds emphasized during the signing of the memorandum that this is an important step in strengthening defense capabilities, international cooperation, the development of arms production, and supplying the armed forces.
Sprūds explained to the LETA agency that the factory project is related to the agreement signed in October 2023 between the Ministry of Defense and Dynamit Nobel Defence for the acquisition of remote mine systems worth 50 million euros.
Considering localization conditions, about 10 million euros from this amount may be invested in the construction of the mine production factory, the minister reported. However, he added that this amount is not final — the total investment volume still needs to be calculated.
In response to a question about the possibility of attracting funding from European Union funds, Sprūds confirmed that such an opportunity exists. "We will work in this direction," he said.
As previously reported, the "State Defense Corporation" was established in November 2023 for the long-term development of Latvia's military industry in areas where the local industry lacks production capacity. It is part of the ecosystem of the Latvian defense sector.
The strategic goal of the corporation is to manage investments in the state defense industry and coordinate processes related to the development of military production — from creating production capacities and releasing products to ensuring supplies for the NAF, developing the entire defense industry and its supply chains. Additionally, the corporation is responsible for attracting international funding, developing national and cross-border cooperation, and creating critically important defense reserves.
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