The Lithuanian government is expected to grant Rheinmetall’s planned 180-million-euro artillery ammunition factory in the northern district of Radviliškis a special status that would allow starting construction bypassing normal procedures.
If the cabinet approves the proposal drafted by the Economy Ministry, the German defence industry giant’s factory will be recognised as a project that serves Lithuania’s immediate defence and security needs.
In that case, Rheinmetall will be able to start construction without the usual construction permit. It would have to be obtained before the construction is completed.
According to the ministry, Lithuania currently purchases most of its weapons and ammunition in international markets, making the country’s security dependent on foreign suppliers.
“In order for the Lithuanian Armed Forces to have uninterrupted [...] access to the necessary arms and ammunition, it is necessary to ensure that the state’s essential needs are met by economic entities operating in the territory of Lithuania,” the draft government resolution reads.
The Defence Ministry said that the Rheinmetall factory would supply the Lithuanian Armed Forces with the required amount of ammunition and ensure its continuous supply in the event of a threat.
The parliament in April passed legislation creating more favourable conditions for major Western arms and ammunition manufacturers to build factories in Lithuania as quickly as possible.
The legislation allows them to launch operations more quickly, to carry out environmental impact assessment procedures and obtain construction permits while construction works are already underway.
The law also allows construction in non-urbanised areas without going through the usual territorial planning procedures with local municipalities.
Investors are not obliged to inform members of the public about the design process, involve them in the project design discussions, or make public information on the start of construction.
Rheinmetall plans to invest more than 180 million euros in its 155mm artillery ammunition factory, which is expected to create at least 150 new jobs. The facility has been granted the status of a large-scale project.
The investment agreement with Rheinmetall, the parent company of the Rheinmetall Group, and Rheinmetall Defense Lietuva, which has been operating in Lithuania since 2018, was signed in early June.
The land lease agreement with the German company is expected to be signed in the first half of July, with construction planned to begin in October.
Newsletter
Every Friday morning.
