New and innovative technological solutions and the development of high-value-added products remain at the core of Riga's manufacturing sector. Building on strong engineering capabilities, export-oriented production and a competitive business environment, Riga continues to strengthen its position in advanced manufacturing through electronics, smart materials, photonics, life sciences manufacturing, food technologies and defence technologies.
With more than a century of industrial experience and strong supply chains, Riga has developed internationally competitive expertise across engineering, electronics, optics, smart materials and advanced manufacturing. Today, the sector is increasingly focused on high-value-added products, advanced technologies and export-oriented production, while growing investment in defence and dual-use technologies is creating new opportunities for innovation and industrial development.
Why Riga?
- Export-Oriented Manufacturing– approximately 65.5% of manufacturing output is exported, demonstrating strong integration into international markets.
- Engineering & Industrial Excellence – long-standing industrial traditions supported by a skilled engineering workforce and internationally active manufacturers.
- Electronics, Smart Materials & Photonics – growing expertise in electronics, optics, photonics, advanced materials and high-technology manufacturing.
- Defence & Dual-Use Technologies – rapidly growing ecosystem supported by increasing defence expenditure, drone technologies and NATO-related innovation initiatives.
- Industrial Infrastructure & Connectivity – direct access to European markets through the Port of Riga, Riga Airport and the future Rail Baltica corridor.
- Competitive Operating Costs – attractive labour costs, industrial infrastructure and one of the OECD's most competitive corporate tax systems.
Riga serves as one of the best-connected logistics hubs in the Baltic region. Companies benefit from access to an international airport serving more than 7 million passengers annually, the Port of Riga handling 16.8 million tonnes of cargo, and the future Rail Baltica corridor integrating Latvia more closely into European supply chains.
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Fastest Growing Sectors
- Electronics & Electronic Engineering
- Smart Materials, Photonics & Optics
- Defence & Dual-Use Technologies
- Food Manufacturing & FoodTech
- Bioeconomy & Sustainable Materials
- Life Sciences Manufacturing
- Industrial Automation & Industry 4.0
Numbers
One of Latvia's most export-oriented and innovation-driven sectors.
- €11 billion manufacturing production output in 2025.
- 65.5% of manufacturing output exported internationally.
- 17.8% of total employment linked to manufacturing.
- 300+ electronics and electrical engineering companies operating across the ecosystem.
- 3,700 specialists across Latvia's photonics, smart materials and engineering ecosystem.
- 40+ drone-related companies operating in Latvia.
- 5,000+ drones delivered to Ukraine by Latvian companies.
- €2.16 billion defence budget in 2026, representing 4.73% of GDP.
- 532 life sciences companies, employing more than 8,300 people and generating over €1.26 billion in turnover.
Key Benefits
- More than a century of industrial and engineering expertise with internationally recognised manufacturing capabilities.
- Strong export-oriented manufacturing ecosystem supporting companies competing successfully in global markets.
- Growing capabilities across electronics, optics, photonics, food technologies, life sciences manufacturing, automation and defence technologies.
- Competitive operating costs, including labour, industrial real estate and utilities, combined with an internationally competitive tax system.
- Highly skilled engineering and manufacturing workforce supported by universities, research institutes and technical education programmes.
- Excellent industrial infrastructure through the Port of Riga, Riga Airport, Rail Baltica and the Riga Freeport Special Economic Zone.
- Green Corridor support helping strategic manufacturing projects accelerate permitting and implementation procedures.
- Government support programmes promoting innovation, digitalisation, sustainability, R&D and export growth.
- 0% corporate income tax on reinvested profits, supporting long-term growth and investment.
Largest companies
Schneider Electric (Lexel Fabrika)
One of Schneider Electric's largest electronics manufacturing facilities in Europe producing advanced electrical and electronic equipment for global markets.
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SAF Tehnika
International producer of wireless data transmission, IoT and telecommunications equipment exporting to more than 80 countries.
Groglass
Global leader in anti-reflective and high-performance optical coatings serving museums, electronics, architecture and display technologies.
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MikroTik
Global manufacturer of networking equipment and telecommunications technologies exporting to more than 130 countries worldwide.
Grindex
Leading Baltic pharmaceutical manufacturer supplying products to more than 100 countries.
Food Union
One of the largest food manufacturing groups in Northern Europe with international production and export operations.
Contacts
Rolando Huapaija-Delgado, phone. +371 29340979, e-mail: Rolando.Delgado@riga.lv