German defence contractor Rheinmetall and Lithuania have officially started the construction of a state-of-the-art production plant for 155mm artillery ammunition. The facility, located in Baisogala, marks a significant step in strengthening Lithuania’s defence sector and bolstering European security.

 

Key contracts, including a land lease agreement and a framework agreement for the procurement of 155mm artillery shells, were signed at a ceremony attended by Lithuanian Prime Minister Ingrida Šimonytė, Economy and Innovation Minister Aušrinė Armonaite, and National Defence Minister Laurynas Kasčiūnas. The facility will cover 340 hectares and is expected to begin operations by mid-2026.

 

🇱🇹🇩🇪 By mid-2026, the Rheinmetall factory in Lithuania will be operational! Today, key agreements were signed: one for land lease & one for purchasing 155mm ammunition. This strategically vital project will boost Lithuania’s defence industry & ensure the military’s needs are met. pic.twitter.com/olsNiN7jq9

— Lithuanian MOD 🇱🇹 (@Lithuanian_MoD) November 29, 2024

 

The plant will feature advanced shell manufacturing and load assembly pack capabilities, enabling the production of tens of thousands of 155mm artillery shells annually. With an investment of €180 million, the project will create approximately 150 jobs and integrate local businesses into its value chain. This initiative underscores Lithuania’s commitment to reducing dependency on international arms markets and enhancing its national security infrastructure.

Prime Minister Šimonytė expressed her satisfaction with the project, stating: “Our defence needs, the importance of the shortest possible supply chains, and strong allied partnership between Lithuania and Germany underscore the need to maintain the momentum as we continue to work in the same spirit of cooperation.”

Rheinmetall CEO Armin Papperger highlighted the company’s commitment, saying: “It is and remains our aspiration at Rheinmetall to be one of the pillars of national and international security provision. This long-term partnership with Lithuania confirms this once again.”

 

 

Economy Minister Armonaite emphasised the broader impact, noting: “By fostering large-scale investment projects and enabling local production of weaponry, we not only address national security needs but also reduce our dependence on arms procured from international markets. I have no doubt that Lithuania is moving in the right direction.”

Defence Minister Kasčiūnas hailed the project as historic, stating: “Through joint efforts, we managed to reach an agreement on this historic and important project for our national security.”

The project was granted “state significance” status earlier this year, allowing for special investment and business conditions. Once completed, the Lithuanian Centre of Excellence for Ammunition will further position the country as a leader in regional defence capabilities.