Estonian company to build explosives plant in Latvia

Estonian defence company Wolfram Europa has announced a 200 million euro investment to build an explosives plant near Jēkabpils in Latvia, ERR reported. The complex will be built on a 40-hectare plot under a long-term agreement with Latvijas Valsts Meži, Latvia’s state forestry company.

From 2027, the facility will synthesise explosives and produce warheads and obstacle devices in three stages. Once fully operational, it is expected to create 200 highly skilled jobs in the region.

At full capacity, the complex will produce 300 tonnes of RDX, also known as hexogen, or 100 tonnes of HMX, also known as octogen. HMX is similar to hexogen but is denser and more expensive. The production capacity could be expanded further.

The plant will also mix ready-made explosive compounds. Each year, it will load and assemble 100,000 anti-tank mines and 200,000 warheads.

The complex will be able to hold up to 1,200 tonnes of explosives by net mass, providing sufficient reserves to maintain deliveries during disruptions and crises.

“Investments of this scale are an important step forward in the development of Latvia’s defence industry and also demonstrate the country’s ability to attract strategically important industrial projects to its regions,” Latvian Economy Minister Viktors Valainis said.

“Our goal is to build a competitive, export-oriented defence industry in Latvia that strengthens the country’s security, creates high-value-added jobs and contributes to long-term economic growth,” he added.

Wolfram Europa OÜ is an Estonian defence company involved in the defence industry and research and development. Its chief executive is Magnus-Valdemar Saar, a former director general of Estonia’s Centre for Defence Investment.

The company’s majority owner and ultimate beneficial owner is Triin Liimask. A 24 percent stake belongs to Margus Linnamäe’s company MM Grupp OÜ. Other investors, including Sirbi Investeeringud OÜ and Giga AS, also hold smaller stakes.

The company was founded in July 2025 and was previously called Wehold OÜ. Its ownership partly overlaps with that of defence company Frankenburg Technologies.