Lithuania’s government has finalised the last agreement on the participation of state-owned companies in the German defence giant Rheinmetall’s ammunition plant project in Baisogala.
Lithuania will own a 49 percent stake in the joint venture set up for the project, and Rheinmetall will own 51 percent, the government confirmed on Thursday.
According to BNS, Lithuania’s share will be split between two companies: Epso-G Invest, an investment management company recently set up by the country’s state-owned energy group Epso-G, will own 48 percent and the remaining 1 percent will belong to Lithuania’s state-owned Giraitės Ginkluotės Gamykla (Giraitė Armament Plant, GGG).
Epso-G Invest’s investors will include Epso-G and Valstybės Investicinis Kapitalas, the limited partner of Lithuania’s State Aid Fund for Business, which provides the state contribution to the fund.
“I am pleased that this government and the state-owned companies have succeeded in doing this important work for Lithuania’s security and defence, from the beginning of the negotiations to the final agreement,” outgoing Prime Minister Ingrida Šimonytė was quoted as saying in the statement.
“I am sure the new government understands the importance of this project as we are leaving it a solid basis for the next stage – the construction of the plant,” she added.
Negotiations were held on three main contracts: the lease of a plot of land in Baisogala, the purchase of 155 mm ammunition, and the participation in the joint venture.
Two of the agreements – on the lease of the land and on the purchase of 155 mm ammunition – were signed on November 29, while the third agreement will be signed shortly.
The German defence giant plans to invest more than 180 million euros in the 155mm artillery ammunition factory in Lithuania’s Baisogala, which is expected to create at least 150 new jobs.
It is scheduled to be operational by mid-2026, but its construction is likely to take longer, around two years.
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