German military industry giant Rheinmetall will invest more than 180 million euros into an ammunition production facility in Lithuania, the Economy and Innovation Ministry said on Monday.
Under an investment agreement signed by Lithuanian Economy and Innovation Minister Aušrinė Armonaitė and the German company after about 10 months of negotiations, Rheinmetall is also expected to create at least 150 jobs in Lithuania.
“Rheinmetall establishing operations in Lithuania is a significant step towards meeting our country’s immediate defence and security needs. It will help us to ensure uninterrupted access to essential weapons and ammunition, as the products that European defence needs will be produced on Lithuanian soil,” Armonaitė was quoted as saying in the statement.
The new plant is expected to produce tens of thousands of rounds of ammunition per year. The project has been granted the status of state importance, and its specific location will be announced over the upcoming weeks.
The plant is likely to be built near Baisogala, Radviliškis District, on state land currently used by the Lithuanian University of Health Sciences under a lease agreement. Government representatives have confirmed that this is one of the sites under consideration.
Deputy Transport and Communication Minister Julius Skačkauskas said last week that the construction of the Rheinmetall plant should start in October.
In April, Rheinmetall, Armonaitė, and Lithuanian Defence Minister Laurynas Kasčiūnas signed a letter of intent in Vilnius for the construction of the plant, while negotiations with the German company were launched in August 2023.
In April, Lithuanian lawmakers adopted amendments facilitating conditions for major Western arms and ammunition makers, including Rheinmetall, to build their production facilities in Lithuania more quickly and easily.
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