On Monday, the Lithuanian government signed a memorandum of understanding with US defence giant Northrop Grumman regarding cooperation in strengthening Lithuania’s defence industry.
According to the Defence Ministry, the memorandum will consolidate a common vision to strengthen the capabilities of the Lithuanian defence industry, focusing on the development, production, and supply of medium-calibre ammunition.
The memorandum was signed by Lithuanian Defence Minister Laurynas Kasčiūnas, Finance Minister Gintarė Skaistė and Northrop Grumman Vice President Stephen O’Bryan.
“This partnership is another very important step in the development of Lithuania’s defence industry and, consequently, in the strengthening of the defence capabilities not only of our country but also of all democracies,” Prime Minister Ingrida Šimonytė said before the signing.
Kasčiūnas says the plan is to agree on all the details by the end of the year, sign a contract and then start ammunition production in Lithuania within 18 months.
“It is amazing that we have managed to take such an important step in such a short period of time,” the minister said after the document was signed.
Kasčiūnas told BNS in mid-September that negotiations were underway with the US company on the installation of a multi-purpose production line that would primarily produce 30 mm calibre ammunition.
The minister noted that the factory would produce ammunition for both the Lithuanian military and other countries in the region.
“We’re talking about 30 mm ammunition, which is suitable for our infantry fighting vehicles because we’re also planning to expand our arsenal of IFVs,” Kasčiūnas told LRT RADIO.
“Of course, production would be oriented not only toward Lithuania but also toward the countries of the region. That would create a very important link in the manufacturing industry, which would allow us to reduce our dependence on supply chains,” he added.
Northrop Grumman plans to install a production line for 30 mm calibre ammunition production on the territory of Lithuania’s Giraitė armaments factory in Kaunas District. A separate joint venture will be established, and Lithuania will be involved in its management, according to Finance Minister Skaistė.
“The size of the investment could be tens of millions of euros. The cost sharing is already a matter of agreement. The likely cooperation will be aimed at maintaining the Lithuanian side’s control of the company, not only by giving its territory but also by having a say in the development of further capacity,” she told reporters on Monday.
Lithuania’s specific commitments to the development of the production line and the management of the future company would also be determined in the later stages of the negotiations, Skaistė added.
Both the finance and the defence ministers said that the management of Giraitė would remain unchanged, and it would remain Lithuania’s property.
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