Rheinmetall and Lithuania Begin Construction of Advanced Ammunition Production Plant

Rheinmetall and Lithuania Begin Construction of Advanced Ammunition Production Plant

(IN BRIEF) Rheinmetall and the Lithuanian government have begun construction of a new €180 million ammunition production facility in Baisogala, Lithuania, which will manufacture tens of thousands of 155mm artillery shells annually. The plant, set to start operations in mid-2026, will create around 150 local jobs and integrate regional businesses into the supply chain. The project is part of Lithuania’s broader efforts to strengthen its defense sector and reduce reliance on international arms markets. Key government officials, including Prime Minister Ingrida Šimonytė and Minister of National Defence Laurynas Kasčiūnas, attended the signing ceremony, underscoring the project’s importance for national security.

(PRESS RELEASE) DÜSSELDORF, 2-Dec-2024 — /EuropaWire/ — Rheinmetall and the Lithuanian government have officially commenced construction of a state-of-the-art ammunition production facility in Baisogala, Lithuania. This significant investment, totaling €180 million, is aimed at bolstering Lithuania’s defense capabilities and enhancing national security. The contracts, including a land lease agreement and a procurement framework for 155mm ammunition, were signed during a ceremony on 29 November 2024. The event was attended by key figures, including Lithuanian Prime Minister Ingrida Šimonytė, Minister for the Economy and Innovation Aušrinė Armonaite, and Minister of National Defence Laurynas Kasčiūnas.

Strengthening National Security and Local Economy

The new facility, covering approximately 340 hectares, will produce tens of thousands of 155mm artillery shells annually, with operations set to begin in mid-2026. The plant is expected to create around 150 local jobs and will integrate local businesses into its supply chain, providing a boost to the regional economy.

Prime Minister Šimonytė expressed the importance of the project, stating,
“Today marks a pivotal step in strengthening our defense sector. This cooperation with Rheinmetall is crucial for meeting our defense needs and ensuring the shortest possible supply chains. Our ongoing collaboration underscores the strong partnership between Lithuania and Germany, which is vital for maintaining our security.”

Rheinmetall’s Commitment to Security

Armin Papperger, CEO of Rheinmetall AG, highlighted the company’s dedication to supporting both national and international security:
“We are deeply grateful for the trust Lithuania has placed in us. Our partnership with Lithuania reaffirms Rheinmetall’s role as a cornerstone in global security, and we look forward to continuing to work together on this important long-term project.”

National Security and Strategic Investment

Minister of the Economy and Innovation, Aušrinė Armonaite, noted the broader implications of the project for Lithuania’s security:
“This plant will significantly enhance our defense capabilities and reduce our reliance on international arms markets. It is reassuring to see global leaders like Rheinmetall contributing to Lithuania’s growth and security.”

Minister of Defence Laurynas Kasčiūnas emphasized the national security importance of the facility:
“The establishment of Rheinmetall’s ammunition plant is a historic achievement for Lithuania’s defense industry. The successful collaboration between various stakeholders is a testament to our commitment to national security.”

A Project of National Significance

This project follows an agreement signed in June 2024, designating Rheinmetall’s establishment in Lithuania as a project of national significance. The Lithuanian Centre of Excellence for Ammunition will benefit from special investment conditions, accelerating the plant’s construction. This initiative strengthens Lithuania’s defense infrastructure, reinforcing its self-sufficiency in weaponry production.

Conclusion

The new Rheinmetall ammunition facility in Lithuania is a significant step in advancing national security and enhancing defense industry capabilities. The collaboration between Lithuania and Rheinmetall exemplifies a strong commitment to long-term strategic partnerships, national security, and economic development.

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Oliver Hoffmann
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Phone: +49 211 473-4748
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SOURCE: Rheinmetall