The Lithuanian Finance Ministry said on Thursday that it plans to allocate 36 million euros for expanding the capacity of the state-owned small-calibre ammunition manufacturer Giraitės Ginkluotės Gamykla (Giraitė Armament Factory, or GGG) by 2027.
Around a third of the sum, 11.2 million euros, would be provided this year once approved by the government.
According to the Finance Ministry, the funds will allow the factory to start installing a new production line earlier than originally planned. The new line, which will double its capacity, is expected to be operational by 2027.
“With GGG increasing its production volumes and investing in ammunition production, the Finance Ministry will contribute 36 million euros over several years,” Finance Minister Gintarė Skaistė said in a press release.
“This will enable the factory to double its ammunition production capacity and address the increased demand for strengthening the defence industry in our region due to the war in Ukraine,” she added.
In late September, GGG signed a memorandum of understanding with the US defence giant Northrop Grumman, with plans to set up a production line for 30 mm ammunition on the factory’s grounds in Kaunas District by mid-2026.
The Finance Ministry told BNS that the 36-million-euro capacity expansion and the American investment are separate projects.
The new production line could increase the factory’s annual output from 60 million to 120 million rounds and help the company more than double its revenue to 50 million euros, according to the ministry.
Ammunition produced by GGG, the only ammunition factory in the Baltic states, is used by civilians, military, law enforcement, and NATO structures.
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