07.04.2025 - Companies, Technology

Frankenburg Technologies Set to Skyrocket the Air Defence Industry in Latvia

What needs to change in defence technology for the free world to protect itself? That’s the challenge Frankenburg Technologies – a newly established Estonian-Latvian air defence technology company – have set out to solve.

Since then, the company has signed cooperation agreements with Riga Technical University and the Ministry of Defence of Latvia, developed its first 2 km-range drone-neutralizing rockets (now in testing), and begun planning its first large-scale R&D and manufacturing plant in Latvia.

As CEO Kusti Salm, former Secretary of the Estonian Ministry of Defense, puts it, “The backbone of our very talented engineering team comes from Latvia. I think that Latvia can be very proud of the engineering heritage that they have, especially in Riga Technical University.”

Innovation at the Core of Frankenburg Technologies

According to its mission, Frankenburg Technologies aims to “develop missile systems that are ten times more affordable, a hundred times faster to produce, and in quantities far exceeding current industry capabilities”. Salm says this will be possible due to the strategic choice to use low-cost, widely available components, the strength of the engineering team and the resourceful design philosophy driving their work.

“Innovation is not only about how to make things even better or achieve that extra two percent of performance,” Salm explains. “It’s also about how to do things with slightly less performance, but at a significantly better price, easier usability, and much faster manufacturing. That kind of innovation is even harder – especially in defence tech – than building a new miracle weapon.”

Frankenburg Technologies is also revolutionizing missile targeting by developing an AI-powered situational awareness platform capable of scouting the sky on a new level: “The air defence infrastructure currently relies on radar systems. But in wartime or during a crisis, we can’t take the radar picture for granted. We need to rely on other sensors to tell us what’s flying in the air. We also need to get better in anticipating the flight trajectories of incoming drones and be better in planning defences. Ukrainians are doing this fairly well, and it’s a capability Europeans will need too.” 

Latvia Supports Defense-Tech Innovation

Salm points to several reasons why Latvia is a great place for a company like Frankenburg Technologies to grow. One of the biggest advantages is the country’s “hidden gems” in engineering talent. “We’ve got a very strong engineering team. Not just in terms of technical skills, but also in their mission-oriented mindset. They’re very much interested in contributing to the national defense of Latvia, which aligns with our company’s mission,” he explains.

The government’s support for business growth has also played a key role. “ The program the Ministry of Defense of Latvia has put forward for sparking innovation in C-UAS domain is extremely unique, innovative, and forward-leaning when it comes to incentivizing and promoting innovation,” Salm recognizes.

He also mentions how this kind of support allows for real, on-the-ground feedback, direct collaboration, and the opportunity to integrate their technology with what the armed forces are already using. “This is very unique and a few countries are moving this forward like Latvia does,” Salm concludes.

“We are genuinely a Latvian company when it comes to people, facilities, and business activities.”

Support from The Investment and Development Agency of Latvia (LIAA) has been crucial to streamline several processes as well: “LIAA  has been very helpful when it comes to assessing the potential sites for the Latvian manufacturing plant, helping us to understand the legislative environment and getting us in contact with different stakeholders in the Latvian market.”

“Latvia has translated political slogans into concrete action, turning the need for ordnance industry to action that would attract companies to the country. There is a clear appetite for innovation in the Ministry of Defence. To take risks and to use systems, weapons and solutions that haven’t been used before. And that is very unique,” Salm says, looking ahead to the company’s next steps.

Challenges Overcome and Plans for the Future

On their way to releasing their first product, the “Missile Mark 1” – a drone-neutralizing rocket system – into mass production, expanding their team to 50 people, and setting out to establish a manufacturing plant in Latvia, Frankenburg Technologies haven’t been without their challenges. One of the largest ones has been adjusting the defence industry legislation to the current geopolitical needs.
“Some parts of the legislation are from a very deep peace time where the urgency was not that strong. The regulations were set in place maybe not to encourage the defence industry development. Now, it’s changing,” Salm explains, adding that there are still some difficulties in this, but the Latvian government seems inclined to adjust as quickly as possible.

Looking ahead, Salm outlines main goals the company is focused on in the coming years. The key aim, as previously mentioned, is developing affordable solutions to counter the growing drone threat. This could help countries keep pace with rapidly evolving drone technology, which is increasingly deployed to inflict not only military, but also economic harm.

The company plans to continue expanding and aims to hire dozens more engineers. “If you’re a young engineer dreaming of building rockets, missiles, or working in the defence industry, we encourage you to apply – we have many openings. You won’t just be advancing your career, but also playing a direct role in national defence, as the drone threat is especially acute in Latvia.”

Salm also urges young people who are still undecided about their path to consider studying missile engineering or aerodynamics, calling it a unique opportunity to join an industry that didn’t previously exist in Latvia. According to Salm, Frankenburg Technologies is prepared to invest tens of millions of euros in the Latvian branch in the upcoming years, so the industry as well as the product portfolio is set to keep growing.

“We are extremely grateful to the Latvian government for allowing us to do business and grow in Latvia. Frankenburg Technologies is the place for talented people, and we’re here to contribute to national defense,” he concludes.

 

 

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