To boost domestic ammunition production, the Lithuanian government decided on Wednesday to invest 11.16 million euros to double the country’s small-arms ammunition production.
Giraitės Ginluotės Gamykla (GGG), the state-owned manufacturer, will see its capital double to 22.3 million euros.
According to Finance Minister Gintare Skaiste, whose ministry is the factory's sole shareholder, increasing the company's capital is one of the key steps taken by the state to secure a larger supply of combat ammunition.
"This means GGG will be able to double its ammunition production,” said Finanė Minister Gintarė Skaistė, adding that an additional production line will be built at the Kaunas facility.
The Finance Ministry plans to allocate a total of 36 million euros by 2027 to expand GGG's capacity.
The new line, slated to begin operations in 2027, is expected to double the factory's annual output from 60 million to 120 million rounds and more than double its revenue to 50 million euros.
In late September, GGG also signed a memorandum of understanding with the US defence giant Northrop Grumman, with plans to set up a production line for 30 mm calibre ammunition on the factory's grounds by mid-2026.
The government's 36-million-euro investment and the planned US company’s involvement are said to be separate projects.
According to Skaisė, GGG is being considered as a potential partner for Germany's defence giant Rheinmetall, which plans to build an artillery ammunition factory in the country’s northern district of Radviliškis.
Small-calibre rounds produced by GGG, the only ammunition factory in the Baltic states, are used by civilians, the military, law enforcement, and NATO forces.
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