As Germany’s defence giant Rheinmetall and its Lithuanian partners on Tuesday mark the start of construction on a new ammunition factory in northern Lithuania, a presidential adviser said the company is already considering a second investment in the country.
“We are now talking not only about this investment but also about a possible second one that could come in the near future. There are other plans as well,” Deividas Matulionis, President Gitanas Nausėda’s chief national security adviser, told the radio Žinių Radijas.
“As more funding becomes available for Europe’s defence industry, new opportunities are opening up to attract defence manufacturers to Lithuania as well, since we have created a truly favourable environment,” he added.
According to Matulionis, discussions have already begun regarding Rheinmetall’s potential second investment, and talks are also underway with several US and Scandinavian military industry companies about possible projects in Lithuania.
He said such deals could materialise if there is sufficient “political will” and financial capacity for the government to participate in the projects.
Tuesday’s groundbreaking ceremony for Rheinmetall’s new plant takes place near the town of Baisogala in Radviliškis District. The facility will be built on a 340-hectare site in the nearby village of Kemėrai, about six kilometres from Baisogala, and is expected to produce tens of thousands of 155 mm artillery shells annually.
Matulionis described the project as “one of the largest defence industry investments in Europe”.
Valued at between 260 million and 300 million euros, the project is being developed jointly by Rheinmetall and two Lithuanian state-owned companies: Epso-G Invest, a subsidiary of the energy group Epso-G, and Giraitės Ginkluotės Gamykla (Giraitė Armament Factory, or GGG).
Construction is expected to be completed by the end of 2026.
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