Construction officially began Tuesday on a new ammunition factory co-owned by German military industry giant Rheinmetall and Lithuanian state-owned companies near the northern town of Baisogala, a project Lithuanian leaders say will bolster the defence of both Lithuania and Europe.
“Once built, the Rheinmetall factory will supply every soldier under the NATO flag. This will contribute to Europe’s ability to defend itself and manage its own ammunition stocks,” President Gitanas Nausėda said at the groundbreaking ceremony. “To a Europe that cannot be blackmailed or intimidated, to a Europe that is ready to act.”
Prime Minister Inga Ruginienė said the project is not just about jobs, investment, and additional budget revenue. “It’s also a very significant contribution to the defence industry. As Ukraine has shown, it’s particularly important to be able to procure certain items immediately. It is in Lithuania’s best interest to have its own industry,” she told reporters.
Rheinmetall CEO Armin Papperger described the factory as strategically important for Lithuania and Europe, sending a signal of Germany’s commitment to NATO’s eastern flank.
“Approximately 150 kilometres from Kaliningrad and 300 kilometres from Belarus, the factory will strengthen the partnership between Germany and Lithuania and enhance NATO and EU defence preparedness,” he said.
The facility, valued at €260–300 million, will be built on a 340-hectare site in the village of Kemėrai, about six kilometres from Baisogala, and is expected to produce tens of thousands of 155 mm artillery shells annually.
Rheinmetall is partnering with Lithuanian state-owned companies Epso-G Invest and Giraitės Ginkluotės Gamykla (GGG). The plant will be constructed by PST Group, one of Lithuania’s largest construction firms, under a contract worth €141 million. Construction is scheduled for completion by the end of 2026.
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