German military industry giant Rheinmetall will invest more than 180 million euros into an ammunition production facility in Lithuania, which is expected to create at least 150 jobs, under an investment agreement signed by Lithuanian Economy and Innovation Minister Ausrine Armonaite and the German company after about 10 months of negotiations, the ministry said on Monday.
“Rheinmetall establishing operations in Lithuania is a significant step towards meeting our country’s immediate defense and security needs. It will help us to ensure uninterrupted access to essential weapons and ammunition, as the products that European defense needs will be produced on Lithuanian soil,” Armonaite was quoted as saying in the statement.
“We at Rheinmetall are very grateful for this long-term partnership with Lithuania. It confirms us once again in our claim to be one of the pillars of national and international security provision,” Rheinmetall CEO Armin Papperger said.
“We are grateful to have been selected by Lithuania as a partner of the defense industry. We are pleased to be able to make a contribution to national sovereignty in the field of ammunition,” Maximilian Froch, head of Strategic Program Organization International at Rheinmetall, said.
The new plant is expected to produce tens of thousands of rounds of ammunition per year. The project has been granted the status of state importance, and its specific location will be announced over the upcoming weeks.
The plant is likely to be built near Baisogala, Radviliskis District, on state land currently used by the Lithuanian University of Health Sciences under a lease agreement. Government representatives have confirmed that this is one of the sites under consideration.
Transport and Communication Vice Minister Julius Skackauskas said last week that the construction of the Rheinmetall plant should start in October.
“We plan to start in October,” he told reporters at the Lithuanian-German maritime forum in Klaipeda.
In April, Rheinmetall, Armonaite and Defense Minister Laurynas Kasciunas signed a memorandum of understanding in Vilnius for the construction of the plant, and negotiations with the German company were launched in August 2023.
In April, Lithuanian lawmakers adopted amendments facilitating conditions for major Western arms and ammunition makers, including Rheinmetall, to build their production facilities in Lithuania as soon as possible.
Source: BNS
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